₦airaland Forum

Hello, How una dey here?

Christmas is approaching, and I have been seeing people advertising one broiler for 20 to 25k. Of course, as an entrepreneurially inclined person, I naturally want to know the costs involved. Luckily, I don't have to write a whole business plan to know this. Come along if you want to know how lucrative broiler production is.

Disclaimer: Prices vary. This analysis is based on prices obtainable in Lagos.


These two threads have something related

https://www.nairaland.com/7653782/broiler-business-bad-business

https://www.nairaland.com/5915011/race-poultry-broiler-rearing-beginner

Chart from https://www.poultryfarmguide.com/blog/broiler-feeding-chart-and-weight-chart-top-performance/

Your contributions will be needed to make this analysis more accurate. So, contributions are welcome.

Let's go!


Apart from land and housing, 100 broilers will need the following:

10 feeders..............#20,000

5 medium drinkers should be enough.......... #10,000

Charcoal stove...........#3,500

Weighing scale.........#15,000

Shovel......#8,000

Rechargeable lightbulb......#3,000


Wood shavings & sawdust ( I used 3½ bags last time out).........#8,000

Charcoal: 1 bag maximum.......#6,000

Drugs: Glucose, antistress, anti-cocci, CRD, Tylosin, enthrofloxacin, multivitamins, broad spectrum antibiotics, & calcium supplements if possible. You will not use all in a set, but you need to have these drugs in your arsenal...........#23,000

Vaccines: Lasota 2x, Gumboro & Infectious bronchitis if possible. ........#7,000


105 Day old chicks to account for ~5% mortality............#105,000

Sub total: #195,500

FEED:

Starter: weeks 1 to 4 — 2.2kg consumed per bird.
2.2kg x 105 = 231kg (three mortalities here)
231kg = 9.24 ~ 9 bags

9 x #26,000 = #234,000


Grower: Week 5 — 1.22kg consumed per bird.
1.22 x 102 = 125kg (two mortalities here)
125kg = 5 bags

5 x #25,000 = #125,000
You don't necessarily need to use grower though

Finisher: week 6 to 8 — 4.72kg eaten per bird
4.72 x 100 = 472 kg
472kg ~ 19 bags

19 x #26,000 = #494,000

Feed total = #853,000

Most farmers will not keep them to 8 weeks and it gives a better profit that way. However, Christmas is an exception. People will pay for big chicken during christmas so

TOTAL costs: #1,048,500


By the time you feed broiler this way, it will easily weigh 4kg in two months. With all the shege involved and Lagos high costs, it is easy for them to put the price at 20k. It will fetch hooge profit that way.

But let me use a more reasonable wholesale frozen food price instead.

A 4kg bird should yield more than 3.5kg carcass.

1kg of frozen chicken is now #5200 in my area, but assume you're selling to the seller at #4,600 per kg.

#4,600 x 3.5kg = #16,100 per bird

#16,100 x 100 = #1,610,000 sales

#1,610,000
-
#1,048,500

=
#561,500 Profit in two months and the next batch will be free of the fixed costs.

What could possibly go wrong? A lot but na who get the capacity. Pros.

Imagine scaling it


Broiler production needs a lot of money in a short time but it also produces a lot of money in that short time. The disadvantage compared to layers is that the market is not always available compared to eggs.

Some offtakers fit whyne you ehn.

This analysis may not be 100% accurate, please note. I just did my best to project based on experience.

There is no way 10 feeders will serve 100 birds. Unless you want serious competition which will lead to bullying.
If the marketing is not well planned, you may have to eat some by yourself because lots of people reared the birds they need on their own at their backyards

Wow! So what is the workable marketing strategy? It appears to be important in the value chain?

jflower06:
There is no way 10 feeders will serve 100 birds. Unless you want serious competition which will lead to bullying.
If the marketing is not well planned, you may have to eat some by yourself because lots of people reared the birds they need on their own at their backyards

jflower06:
There is no way 10 feeders will serve 100 birds. Unless you want serious competition which will lead to bullying.
If the marketing is not well planned, you may have to eat some by yourself because lots of people reared the birds they need on their own at their backyards

Tah. 10 birds per feeder is more than enough sef. One rectangular feeder takes up to 12 birds at once.

Also, this analysis was made with Lagos in mind. A 25 million population of People who don't always have backyard spaces or time. I mentioned the marketing issue in the initial post and I'm sure buyers will fall over themselves to buy a 4kg live broiler at #16,500

Link to my last thread: Analysis of Egg Production with 100 Layers

https://www.nairaland.com/8266137/analysis-egg-production-100-layers