Does it worth it at all ? The so called husband will spend the rest of his life behind bars. If the wife survives she will relocate and marry another man and life continues. Women are not worth dying for. He might not immediately realize the enormity of what he has done. Lesson: always be in control of your emotions

Graduate unemployment is one of the main problems confronting the country today.

One major cause of unemployment among graduates is that, as students, they wait until after graduation before they start thinking about employment. Employment requires long-term planning. It cannot be achieved overnight!!
Students need to start planning and taking steps towards their employment from their first year at the university.

There are 2 employment options open to graduates:

1. Paid Employment
2. Self Employment

Whichever option is chosen requires long-term planning. In addition to focusing on their education, there are a number of other things students need to do, while at the university, to prepare them for the world of work. Today, education alone is no more sufficient to do well at work, whether as a paid employee or as an entrepreneur.

For those who plan to go into paid employment, they need to be aware of what prospective employers expect from fresh graduates and work to meet those expectations at the point of graduation.

For those who plan to go into self-employment, they need to be aware of what it takes to succeed as an entrepreneur and work to achieve them.
The employment market is getting more and more competitive with about 500,000 fresh graduates entering the market every year. So, to get a chance, individuals must plan on how to be ahead of the crowd.

Listed below are 12 specific things students are advised to do to improve their competitive advantage in the job market, whether as a paid employee or as a self employer.

1. Study Hard and Get Good Grades

Pay attention to your GPA while at the university. Reason: most reputable organizations like banks, oil companies, multi-nationals etc, expect students to graduate with a minimum of second class upper degree (2.1) in order to participate in their recruiting exercise. If you do not want to be shut out by these companies, you must start your plan from your first year at the university.

2. Don’t Hate Mathematics

Numbers are the language of business. Because of this, employers expect their candidates to be good with numbers. Aptitude test is conducted at the beginning of recruitment exercises to assess the numeracy ability of candidates. Only those who pass the test will be allowed to move to the next stage of the recruitment process.
If you want to be self-employed, you need to be good with numbers to be able to manage your business’ finances efficiently.
The digital era, which presents us with big numerical data, has also put a premium on the need for numeracy skills.
Everyone cannot be great mathematicians; however, to function well in today’s business world, you must understand the basic numeracy concepts like; addition, subtraction, multiplication, estimation, percentages, probability, and statistics, graphs, and tables, numerical operations, currency conversion, discounts, etc
Students who are poor in math during their secondary school days must find a way of making up before graduating from the university.

3. Acquire Computer/IT Skills

About 98% of today’s graduate jobs require the use and knowledge of computers[b][/b]. Employers expect fresh graduates to be equipped with basic IT skills when they come knocking at the employment door. Computer skills go beyond the ability to browse the Internet and use social networking like Facebook. Organizations use computers to become efficient and save costs. There are basic computer productivity tools that most businesses use that every graduate must be familiar with, irrespective of their course of study. At the point of graduation, they must be comfortable with the use of Word, Excel, and PowerPoint. They must also be able to operate some office automation devices- Fax machine, Multimedia Projector, Scanner, Photocopy machine, etc.

In addition, depending on your major course of study, you must be familiar with computer productivity tools peculiar to your industry. Accounting graduates must be comfortable with the use of at least one Bookkeeping and Accounting Software, A Law graduate must be able to use at least one Legal Management Software package, an IT graduate must be able to work with at least 3 modern computer programming languages (JavaScript, HTML, Ruby, etc), an Engineering graduate must be good with CAD (Computer-Aided Design) software etc
To be computer proficient, at the point of graduation, students must use the computer as part of their day-to-day study tool. Lecturers should encourage them to complete their assignments using the computer. Graduates who still rely on business centers to prepare their CV cannot claim to be computer-proficient.

4. Build Useful Network

Your ability to secure employment, after graduation, is a combination of what you know and who you know. So, as you pursue your academic career ensure to build a useful network. The people you network with during your university days will be useful during your job search. Following are some of the ways you could build your network:

i). Join Professional Association

One way to build a network is to join the student’s section of your professional association-NBA, ICAN, NMA, NUJ, etc. Attend their workshops, seminars, and functions. This will give you the opportunity to interact and learn from practicing professionals in your field. The contacts you make here will be of great use when you are ready to work

ii). Your Alumni

Find out and contact your alumni already in the industry while you are still studying. They will be willing to mentor you and provide you with inside information to put you ahead of others when you are ready for employment. Your professors can connect you with their past students in your field. Make sure you do not ruin your contacts by asking for undue favors.

5. Acquire Work Experience

Acquiring some work experience during your school days will give you an edge over others who never worked. The work experience does not necessarily have to be in your field of study but it will be a big plus if you are able to intern in a related organization. This will enrich your CV with non-academic pursuits. Look for opportunities to gather work experience starting from your first year at the university.
You can acquire work experience through internships, volunteering, part-time and holiday jobs. You will learn a lot and acquire experience which will make you attractive to would-be employers. You will also be able to make contacts which will be useful during your job search. Ensure you get the most out of each opportunity you have to gain as much work experience possible. Don’t worry if it is paid or non-paid, you are investing in your future.

6. Learn a Vocation

Learn a vocation while pursuing your academic degree. It may or not be related to your field of study. Employers are attracted to candidates who get their ‘hands dirty’ while working on practical things. Vocational jobs will provide you with practical experience which you can bring to bear on whatever job you find yourself doing. The vocation could turn out to be your basis of starting off, when you graduate, instead of looking for the elusive white-collar job.

7. Start a Business

Start a business while you are still studying. It does not have to be in your field of study. Even if the business is not successful, you would have acquired a lot of experience which will be of immense benefit after graduation. The business could also serve as a take-off point after graduation. If you decide to go into paid employment, you will be attractive to prospective employers knowing that you have a basic understanding of how businesses operate. Make sure you have a business name registered with the Corporate Affairs Commission (CAC) before graduating


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Trustme2:
They saved 10b by using TSA but incurred 16b as running costs
Nigeria is full of scam

Where in the statements do you see that N16B was expended to save N10B? You just want to comment even if not reasonable

Can't they wait for court process to take its course? They are looking for sympathy votes. Any election that does not favor them is rigged. When plane was used to carry cash to Ekiti in 2014 to rig the election in favor of Fayose, it was acceptable to them. Bunch of thieves. They want to come back to resume the looting. No way

MallamAhmed:
Let's assume all Nigerian graduates are employable, do we have enough employment opportunities to employ all of them in Nigeria of today.

Employment is not only about paid-employment but also about self-employment. With education and right combination of skills you can be a good emploeyer. The country has a population of about 180million people rwith needs to be met which creates employment opportunities for those who can tap into them.

The whole show is a fraud. How can Cee Cee be the first runner up? That's how people are rewarded for bad behaviour.? She never won any HoH task, she fought almost every House member, she has the highest strike, she was pardoned for reaping apart the dress given to her by the sponsor and so many other infractions which will earn any other member eviction. The purported voting results also cast doubt on the integrity of Delloite as the Auditor. The outcome of the 3rd edition of BBN is a reflection of our corrupt Nigerian society. Shame on the organisers.

If you cannot get someone to hire you, start your own business

Of course it can work anywhere. Good has no other name but good anywhere in the world.

Why Majority of Nigerian University Graduates Are Unemployed

Unemployment, especially among the youths, is a challenge currently facing the country. [font=Lucida Sans Unicode][/font]

Many are unemployed not because there are no jobs but because they do not possess the skills necessary for employment.

While it is true that available jobs cannot go round everyone seeking employment, the reality is that there are many vacant
positions that cannot be filled because there are no suitable candidates.

You need more than university degree to succeed in today’s work place. There is a wide gap between the skills gained through university education and the skills required in the work place.

Employers are looking beyond educational qualifications to make hiring decisions.
You also need more than your degree to be successful in self-employment.

What are employers looking for in job applicants?
A careful scrutiny of employment advertisements will reveal the four critical areas employers assess job applicants:
1. Educational Qualifications
2. Skills
3. Attitudes (Character)
4. Job-related Experience
For graduate or entry-level jobs, job-related experience is mostly de-emphasized because majority of applicants are
deemed not to have previous work experience.

During period of high un-employment, as is currently happening in the country, there are more than enough job applicants that meet the educational requirements.
Among the multitudes that meet the set educational requirements, the criteria to choose remain:

1. Skills
2. Attitudes (Character)

Skills + Attitudes = Employability Skills

What are Employability Skills?

Employability Skills are the skills and attitudes (character) that are required to;
• Gain
• Keep
• .. and become Successful
at work, whether you work for yourself or work for other people.

Many of today’s graduates lack employability skills; hence they are considered to be “unemployable”
From its definition, you need employability skills not only to get the job, but also to hold on to it as well
as work your way up the employment ladder.

You also require the skills to start and run your own successful business.

What Are The Differences Between Educational Qualifications and Employability Skills?

Educational qualifications are also called;
• Hard skills,
• Technical skills,
• Vocational skills,
• Professional skills,
• Specific skills, etc.
They include:
• Law,
• Medicine,
• Engineering,
• Carpentry,
• Fashion Designing,
• Photography,
• Marketing,
• Bead-Making, etc.

They are characterized by being;

• Teachable (can be taught),
• Testable (can be tested by examination),
• Job-specific (they cannot be transferred from one job to another)

Hard skills qualify you to apply for a job but do not guarantee you a placement.
Students and apprentices spend their study time to acquire hard skills.

Employability Skills

Employability skills are also referred to as:
• Soft skills,
• Transferrable skills,
• Life skills,
• People skills,
• Interpersonal skills etc.
They are characterized by not being;
• Teachable- cannot be taught
• Testable- cannot be tested through examination

They are, however, transferrable- can be applied in all jobs, in different industries and at different levels in the organization.

Employability skills are applicable both in professional and personal life.

Though, employability skills are not teachable or testable, their presence or absence can be felt.

They can be acquired through deliberate efforts and practice over a period of time.
Hard and soft skills can be likened to hardware and software in computer terminology.
While hardware can be seen, touched and felt, software cannot be seen, touched or felt.
Hardware cannot function without software. Software is like human blood.
Hard skills have limited usefulness without Soft skills.

Majority of university graduates lack Soft skills.

This is the reason why they are considered to be “unemployable”.

To become employable, they need to work on their Employability (Soft) Skills

It has to be noted that Vocational skills are not the same as soft skills.
Graduates are advised to acquire vocational skills to make them employable.
Bead-making, fashion designing, carpentry etc., are all hard skills.
They also require soft skills to make success out of them.
Acquisitions of vocational skills will only enable graduates have multiple sources of income but will not solve their lack of employability skills.
What are the Employability Skills Necessary For Employment?

The following are some of the employability skills sought by employers, which are considered lacking in most University graduates:

1. Effective Communication Skills

Employers are keen on hiring applicants who can express themselves both orally and in writing. This skill is important to get the job and also to do the job.
A lot of communications go on in the work place with co-workers and customers.
If you are self-employed, you need effective communication skills to sell your products or services. You need to write proposals and make presentations to prospective customers to convince them to buy your product or service.
You need effective writing skills to craft compelling CV and covering letter to be invited for job interview.
When you get interview invite, you need good oral communication skills to sell yourself.
Many applicants get disqualified at application stage as a result of poorly and badly written CV. CV with grammatical and spelling mistakes is destined for the waste paper basket.
A lot about you and your character can be deduced from your CV and covering letter even before the prospective employer meets you.
Majority of university graduates lack effective communication skills. The advent of social media has worsened the situation.
Effective communication also includes;
• Effective listening skills,
• Presentation skills,
• Questioning skills
• Avoiding barrier to communication.
For communication to be effective, it must follow the 7Cs of communication. It must be:
Clear, Correct, Complete, Concise, Considerate, Coherent and Courteous.

2 IT/Computer Skills

This is the ability to effectively use computer and its associated technologies. Most organizations employ computer to run their businesses efficiently to save cost and be more productive.

Employers expect their applicants to be comfortable with the use of the common office productivity tools such as;
• Microsoft Word,
• Microsoft PowerPoint,
• Microsoft Excel
• Business Emailing.
Computer literacy also includes ability to operate office automation devices such as;
Photocopy Machine, Multimedia Projector, Fax Machine etc.
Again, depending on the applicant’s field of study, he/she is expected to possess additional skills in the use of computer software packages and devices in their industry.
• Accounting graduates are expected to be familiar with the use of at least one of the common
accounting software packages- QuickBooks, Peachtree, Sage, etc

• Medical graduates – Telemedicine software and Vital Sign Measuring Devices

• IT/Computer Science graduates-Ability to use at least two or more modern computer programming languages
e.g HTML, JavaScript, C++, C#, PHP, etc
• Engineering graduates- Computer Aided Design (CAD) software

IT/Computer skills go beyond ability to browse the Internet and use of social networking.
Graduates who still rely on business centers to prepare their CV cannot claim to be computer literate.

3 Problem Solving Skills

This is the ability to find solution to problems.
Organizations solve problems to earn their income. Employers are looking for problem-solvers and not salary earners.
Problem-solving is in the heart of all businesses. If you want to run a successful self-employment, you must find solution to problems which others are willing to pay for.
Think of any successful business, you’ll discover that it is providing solution to human problem (need) through service or product.
Businesses are setup to meet human needs. Maslow’s theory of human needs range from physiological needs, at the lower level, to self-actualization at the highest level.
Businesses are set up to meet needs at each level of needs.
Facebook and other social networking sites are setup to meet desire for ‘love’ and ‘belongingness’ needs of humans.
Hospitals, schools, telecommunication companies etc provide services that meet the needs others are willing to pay for.
Applicants who can come up with ideas that can generate income for their organizations are those that can get employment.

4 Team-working Skills

Team-working skills are the ability to work with others in a professional manner to achieve organizational goal.
Today’s work environment requires that you work with others in a team. You must demonstrate that you can work well with others with diverse views and culture to achieve set goals.

You must exhibit positive group attitudes that reinforce your ability to forge alliance. These include:
• Willingness to share time and talents
• Readiness to compromise personal views to reach consensus
• Being humble and not arrogant
• Willingness to listen to others view
• Willingness to help others to achieve
• Being reliable and consistent always
• Willingness to contribute without being domineering

T =Together E=Everyone A=Achieve M=More;
“Together Everyone Achieve More”, emphasizes the importance of team work in the workplace.

5 Planning and Organizing Skills

Planning is the process of enumerating the tasks and resources needed to achieve a set goal.
Organizing is the process of managing and implementing the tasks and resources needed to achieve a set goal
Planning and Organizing go hand-in-hand.
Planning involves;
• Goal setting
• Enumerating tasks and resources needed to reach the goal
Organizing involves;
• Prioritizing
• Scheduling
• Implementation
Planning is important in all aspects of life to ensure achievement of desired result.
Time is one of the resources required to achieve set goals and because it is limited it has to be properly managed. Time Management is always linked with planning and organizing.
As a graduate employee, you are more than likely to be given multiple assignments at the same time and for you to meet deadlines; you must be a good time manager.
The 6Ps of planning:
Prior Planning and Preparation Prevents Poor Performance.
You must demonstrate that you can identify tasks and resources required to meet goals and prioritize tasks to achieve much in a given time. Time is money.
Time management is often specified as one of the requirements in job advertisements.

6 Initiative and Enterprise Skills

This is the ability to work with minimal supervision. Initiative is when you are able to do the right thing at the right time without being told.
Enterprise is the ability to spot opportunity when others could not and taking steps and risks to actualize its implementation.
Individuals with initiative and enterprising skills seek better ways to do things for improved effectiveness and efficiency. They are responsible for the continuous improvements in the socio-economic lives of humans over time. They come up with products and services that make life easy.

7 Numeracy Skills

Numeracy is the ability to use numbers.
Numbers are the language of business. You need numeracy skill no matter what your position or job is. Employers are interested in applicants who are comfortable with the use of numbers.
While you do not have to be a mathematician, you should be familiar with basic arithmetic operations such as:
• Addition,
• Subtraction,
• Multiplication,
• Percentages
• Interpretation of graphs,
• Understanding trends in data,
• Currency conversion,
• Discounts,
• Shapes and geometry etc.
Numbers are used on daily basis both in personal and work environments.
No matter how good your product or service is, if you cannot manage the money your business makes, you cannot go far.
People with poor numeracy skills suffer a lot of employment and business related disadvantages. They earn far less with limited opportunities than their numerate counterparts.
Innumerate people are not able to compete effectively in the work place. Employers are keen to hire numerate applicants because the will be able to contribute to their bottom-line.

8 Financial Literacy Skills

Financial literacy skills are the skills needed to manage your personal finances to guarantee life-long financial independence. They include the knowledge how:
• Money is made
• It is saved
• It is invested to multiply
• To budget and live within your means
• To take appropriate insurance (to mitigate against life’s risks)
• To use money to assist others.
Financial literacy skills are different from numeracy skills; not all numerate individuals are financially literate. Employers are keen to hire financially literate applicants because they are considered to be more productive than their illiterate counterparts.
Financially illiterate employees are always bogged down with money issues which often distract them from their jobs. They go into debts, borrow money from colleagues and take salary advance. They spend a lot of time on phone resolving money issues which makes them less productive.


9 Commercial Awareness (Business Awareness) Skills

Commercial awareness is the ability to know what makes a business or organization successful. It is one of the key employability skills employers are looking for. They want their applicants to have ‘business sense’.
Commercial awareness skill includes ability to understand a company’s:
• Products and Services
• The industry it belongs
• Its competitors
• Its customers and suppliers
• The Political and Economic environments in which it operates
• Its Legal environment
• Its expansion plans
• Its position in the industry
Another way to demonstrate commercial awareness is the understanding of the importance of cost-effectiveness, efficiency and customer care as factors affecting the success of organizations.
Your prospective organization expects you to understand the role of the position you are applying for.
While it is not possible to become commercially aware overnight, there are many ways to acquire the skill through deliberate efforts:
• Reading up about your prospective company on its website
• Listening to business programs on TV or Radio
• Through internship, part-time job or volunteering activities
• Partaking in extra-curricular activities
• Through community development activities
• Belonging to social and business associations

10 Attitudes (Character)

In addition to your educational qualifications and skills, employers are interested in personal attitudes which have direct bearing on job-performance.

You are assessed based on your level of positive attitudes. The following attributes are considered necessary for optimum job performance:
• Punctuality
• Honesty/Integrity
• Perseverance
• Flexibility/Adaptability
• Positive attitude to work
• Dedication
• Affirmative
• Tolerant
• People Skill
• Commitment
• People Skills
• Creative/Innovative
• Organized
• Responsibility/Dependability
• Well groomed

The various stages in the interview process sre designed to test the skills and the attitudes needed in each job.
It is not enough to claim in your CV or covering letter that you have those skills and attitudes but you must be prepared to provide evidence that you have put them into use and obtain the desired results.

****

This discussion looks at two issues in Poultry business:
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1. How to determine Profit
2. How to improve profitability

The two issues are interrelated, because it is always said that:

“If you cannot measure it, you cannot control it”

The first part is profit measurements while the second part is profit control.

The first part will be discussed in this post while the other will be discussed subsequently.

What is Profit

Profit is the difference between Income and Expenses

Profit = Income- Expenses

Importance of Profit in a Business

• Profit making is the motive behind all business ventures
• Profit is the reward for entrepreneurship and risk taking
• It is the blood that sustains a business
• Any business that fails to make Profit consistently will eventually die.
• No bank or other investor will extend funding to a business not making profit
• Profit provides information about the health of the business-dwindling profit is a sign that the business
is sick and need to be rescued before it is too late.

Importance of Profit Determination Process in a Business

Given the importance of profit in a business, every business owner should put in place a process of profit
determination (profit measurement). This will continually provide information about the health of the business.
The information will assist the owner to take appropriate action before it is too late.
A business might appear healthy on the surface but in actual fact, dying slowly.

Profit Determination in Poultry Business

From the definition of profit, there are 2 variables involves in its determination, income and expenses.
Profit determination is about knowing what the expenses and income of a business are.
While profit determination is easy and straightforward in some type of businesses, it is not so in some others.
Poultry farming business falls into categories of businesses where profit determination is neither easy nor straightforward.
To assist Poultry Farmers overcome this challenge, we present here the procedures for profit determination.
The discussion covers the different aspects of poultry business.

Batch Rearing

Poultry farmers rear their birds in batches. The total profit of a farm is the aggregate profit made from each batch executed
within a period of time.
The profit made from each batch is important to the survival of the farm.

There are 3 types of batches:

1. Meat-Producing Batch (Broilers, Cockerels)
2. Egg-Producing Batch (Layers)
3. Point-of-Lay Batch (Pullets Rearing)

1 Meat-Producing Batch (Broilers, Cockerels)

The birds are raised from day old to market weight and then disposed off either live or processed.
The batch cycle is between 5 to 6 weeks for broilers and up to 26 weeks for cockerels. Broiler bird is
good at feed to meat conversion, hence it is chosen over all other bird types for meat production. A broiler
bird can attain a market weight of between 1.8kg and 2kg in 5 weeks (35 days).

2 Egg-Producing Batch (Pullets)

The birds are raised for the purpose of egg-laying. They are disposed off as “old layers” at the end of the egg-laying cycle.
Income is derived from both the sales of eggs and sales of old-layers. Rearing of layer birds can be done in one of 2 ways:
i. Rearing from day old (DOC)
ii. Purchase at the point-of-lay (POL)

3 Point-of-Lay Production Batch (Pullet Rearing)

Some poultry farmers specialize in raising pullets from day-old to point-of-lay (POL) for sale to other farmers who
want to raise them further for egg production.

1 Profit Determination In Meat-Producing Batch (Broilers, Cockerels)
Profit = Income – Expenses

Expenses

The following expenses are expected to be incurred when raising birds from day old:
i. Pre-delivery Expenses (cleaning, minor repairs of rearing house, etc)
ii. Acquisition Cost (cost of day-old-chicks)
iii. Delivery Expenses (transportation)
iv. Heating Expenses (kerosene, wood shaven, charcoal etc)
v. Feeding Expenses (constitutes between 70-75% of total costs)
vi. Drug/Veterinary Expenses
vii. Labor Costs (attendant)
viii. Generator/Fuelling
ix. PHCN
x. Mortality (up to 5% of number of birds)
xi. Selling Expenses (advertising, phone calls etc)
xii. Processing Costs (if processed before disposal)
xiii. Other Miscellaneous Expenses

Income
a) Income from sales of birds
b) Drawings by the owner (value of birds taken by the owner for PR or personal use)

Steps in Profit Determination

1) Record all Expenses on day-to-day basis as they are incurred.
2) ADD all Expenses
3) Record all Sales Income
4) ADD all Sales Income

Profit from batch = 4) – 2)

For example: If Total Income from Sales of birds = N850,000
and Total Expenses = N600,000
Profit from batch = N850,000 – N600,000 = N250,000

****Note: A detailed Example is worked out in Appendix I

2 Profit Determination In Egg-Producing Batch

2.1 Raising Birds From Day-Old (Pullets)

The Poultry Farmer rears the birds from day-old to point of lay, continues to rear them and derive income
from egg-production. He eventually disposes the birds as “old-layers” at the end of egg-laying cycle. The
whole cycle (from day old to disposal) lasts between 75 to 80 weeks.
The profit determination in this batch is not as straightforward as in meat-producing batch. To determine profit,
the whole batch cycle is divided into 3 phases:

i. Pre Egg-Laying Phase
ii. Egg-Laying Phase
iii. Terminal Phase

i Pre Egg-Laying Phase

This phase covers the period from day-old to when the birds start laying. During this period, the farmer
only spends, without income.

The following expenses are incurred during this phase:
i. Pre-delivery Expenses (cleaning, minor repairs of rearing house, etc)
ii. Acquisition Cost (cost of pullets)
iii. Delivery Expenses (transportation)
iv. Heating Expenses (kerosene, wood shaven, charcoal etc)
v. Feeding Expenses (costs between 70-75% of total costs)
vi. Drug/Veterinary Expenses
vii. Labor Costs (attendant)
viii. Generator/Fuelling
ix. PHCN
x. Mortality
xi. Other Miscellaneous Expenses

All the expenses incurred during this phase will be treated as “Capital Expenditure.”
Laying birds are like “production machine.” The expenses will be capitalized.

For example if the total expenses incured to bring the day old birds to egg-laying stage is N5million,
then N5million is capitalized

ii Egg Laying Phase

This phase commences when the birds start laying eggs. During this phase, the poultry farmer will continue to incur costs
but also derives income from sales of eggs.
This occurs when the birds are between 16 and 18 weeks old.

Expenses during this phase are regarded as “Revenue Expenditures”, while the Income is regarded as
“Revenue Income”.

Revenue Profit = Revenue Income – Revenue Expenses

Revenue Expenses
The revenue expenses are similar to expenses in phase 1, excluding Pre-delivery and Acquisition costs. The expenses are mostly on feeds.
Revenue Income
The revenue income will be derived from the sales of eggs.

Revenue Profit/Loss

At the onset of egg-laying, the revenue expenses will be far higher than revenue income. This will create revenue loss.
As production increases, the gap between revenue expenses and revenue income closes and revenue loss decreases.
At about between 28th and 29th week, the revenue income will be equal to revenue expenses.
At this point, the batch is said to reach “break-even point”.
As egg production further increases, the revenue income will be higher than revenue expenses, resulting in
“revenue profit”. This will happen at around 35th to 36th week.
When this happens, the batch is considered to have turned “profitable”.
Once the batch turns profitable, the profit will be applied to gradually write-off the accumulated loss that
occurred between the commencement of egg-laying and when the batch reached ”break-even point”.
As egg production increases furthermore, the revenue profit increases and at a point, the accumulated revenue loss
will be completely written-off.

Subsequent revenue profits will be applied to gradually write-off the capital investment in phase 1.
During this period, the birds would have reached peak production of between 80%-90%.

iii Terminal Phase

As the birds age, the egg production decreases and the revenue starts to decline.
At a point, the income from egg production will not be enough to cover the ongoing expenses. When this happens, the birds will be disposed off as “old layers” and the batch cycle will come to a close.
This happen between 75th and 80th week

The income realized from the sales of the old birds is regarded as “capital income”. It is like selling off old machine.
The capital income is used to write-off the balance on the invested capital, if it has not been completely written off in
egg-laying phase.
The surplus remaining is the profit from the batch.
All drawings, in form of eggs, birds and cash by the owner would be valued and added to income as they take place.

Note: The over-all profit of the batch and attainment of key milestones (age at commencement of egg-laying,
attainment of break-even point, profitability point and terminal stage) will depend on many factors, including:
• Management of the birds at each stage of development, especially Pre-egg Laying Stage
• Breed of the bird
• Quality of feed used
• Weight of birds at point of lay
• Human factors (attendants’ trustworthiness)
.. and other factors peculiar to the farm and batch.

Summary

Profit determination in egg-producing batch can be summarized as follow:

1) Capitalize all expenses prior to commencement of egg-laying
2) At commencement of egg-laying, regard all expenses as revenue expenses and all income as revenue income.
3) Determine revenue Profit/Loss as : Revenue Income-Revenue Expenses
4) There will be accumulated revenue loss up to when batch reached “break-even point”
5) Profit arising after break-even point will be used to write-off accumulated loss in step 4).
6) Subsequent profit will be applied to write-off capitalized profit in step 1.
7) Sell off the birds when revenue income is lower than revenue expenses
The income realized from sales of birds is regarded as capital income.
9) If capital invested has already been written-off in the previous stage, then this final income will be part of
total profit from the batch.

2.2 Profit Determination of Layer Birds Starting with Point Of Lay (POL)

The other approach to raising egg-laying birds is to buy the birds at Point of Lay (POL).
The birds have been raised up to between 14 and 16 weeks by the vendor.
There are both advantages and disadvantages to this approach.

Advantages
1) The farmer can start getting return on his investment within a short period.
2) The risks associated with rearing day old chicks are avoided
3) The farmer can benefit from specialization of POL farmer

Disadvantages
1) It involves high upfront capital outlay -the cost of a bird can vary between N1,200 and N1,400
2) The farmer will rely on the vendor for the history of the birds which in most cases might not be factual
3) The vendor might have skipped some important drugs/medications which might affect the birds’ production performance.

** To be safe, look for reliable and trusted POL Rearing farmer Profit Determination
1) Capitalize the acquisition cost plus additional expenses incurred before commencement of egg-laying.
For example, if cost of acquisition of POL is N6million and additional N1million is spent before the birds start laying eggs, the amount to be capitalized is N7million

2) Follow the steps in phases 2 and 3 in rearing from DOC

3 Rearing of Point of Lay (Pullets)



Some farmers specialize in raising birds from day old chicks (DOC) to Point of Lay and selling to other farmers for further
rearing for egg-production. The batch cycle is between 12 and 16 weeks.

Profit Determination

The process of profit determination is similar to that of rearing for meat.
Income and expenses are regarded as revenue (Revenue Income and Revenue Expenses).

Revenue Profit = Revenue Income- Revenue Expenses

Challenges Faced By Poultry Farmers In Profit Determination

There are 2 major tasks involved in profit determination:
1. Bookkeeping (recording of income and expenses on daily basis)
2. Profit calculation (the arithmetic of addition and subtraction)

The 2 tasks could be cumbersome and time consuming for the farmer, especially if it has to be done manually.
The farmer wants to concentrate on rearing his birds.
This has prevented majority of farmers from venturing into profit determination in spite of its importance to the business.
Unfortunately this has lead to the collapse of many poultry businesses.

Role of Technology

Technology has come to the aid of farmers in simplifying the process of profit determination.
This comes in the form of “Cloud Accounting System”.
Cloud Accounting System can assist farmers in the tasks of bookkeeping and profit calculation in a cost-effective and stress free way.
All the farmer needs to do is to enter the transaction data and the remaining process is automatically carried out.
Cloud Accounting is a computer-based accounting system devoid of the high costs associated with traditional computer-based accounting system:
• No computer software to acquire
• Basic hardware requirement is a laptop and internet connection
• Pay affordable monthly subscription
• Easy to operate
• Carry out transaction entries remotely from the farm
• Works the same way as Internet Banking

For further information on Cloud Accounting System installation and questions on the post, we can be reached on:

Email: betaideas95@gmail.com , Telephone: 0909 8410 126

In the next post, we will discuss how you can improve the profit in your poultry business.

Appendix I

Worked Example

Profit Determination of Meat-Producing batch (Broilers)
The following data is based on average Income and expenses incurred over 3 different batches of 200 birds each.

EXPENSES

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• Pre-delivery expenses- N1,500
• Drugs/Veterinary expenses N3,500
• Cost of acquisition: 200 DOC @ N230 each + 4 free birds: = N46,000
• Feed: 30 bags of 25kg:

a) 8 bags Broiler Starter @ N3,650 = N29,200
b) 22 bags Broiler Finisher @ N3,550= N78,100

• Heating expenses (wood shaven, kerosene, charcoal, lantern etc)= N2,000
• Other miscellaneous expenses (transportation, etc)= N3,000
• Mortality = 8

TOTAL EXPENSES = N163,300

INCOME
SALES INCOME = 196 birds @ N1,350 per bird = N264,600

PROFIT = N264,600-N163,300 = N101,300

Note:
1) The birds were raised for 42 days with average live weight of 1.9kg per bird.
2) Some of the birds reached live weight of 1.8kg at 35 days and were sold off

Cost Categorization

The costs (expenses) associated with raising birds can be categorized into 2 types:
i[size=8pt]) Variable Costs
Variable expenses are those expenses that increase directly with the number of birds.
Cost of acquisition: the cost of acquiring 400 day old birds is twice the cost of 200 birds.
Cost of feed: the cost of feeding 400 birds is twice the cost of feeding 200 birds

ii) Fixed Costs

Fixed costs remain the same over a number of birds:
Drugs/Veterinary, Cost of attendant, heating expenses, transport etc
These remain the same for 400 birds and 200.
This means that you can increase profit by increasing the number of birds in a batch since fixed costs remain the same.