Making 100% profit in poultry is possible, we do it consistently. I know experts and some beginners won’t accept this simple fact.
Trust me, the majority rear birds for weeks, spend lots of money on feeding and drugs, and later sell below their cost of production. These set of people will never accept the 100% profit claims I just mentioned above. They are right, they are speaking out of the experience.
But, let me show you how we do it effortlessly on each cycle of birds we rear. I know this will help answer your questions. Especially people who are just starting a poultry business.
It’s not easy fixing the price on how much your chicken should cost, most especially when you are selling your birds based on assumptions. Based on assumption?
Yes. What I mean is, you are selling based on their weight. By weight, the price is fixed at N700 – N800 per weight for live-weight. So, it’s easy to bargain with your customers. But if your market is strictly on assumption and bargaining, this article will help you. You’ll be able to sell your birds profitably after reading this article.
I will summarize my words. It will be brief but with all the ingredients needed to convey the message. Let’s follow it step by step.
✅Know Your Cost of Procurement of DOC(Day Old Chicks)
Using the current hike in the price of DOC, averagely, a DOC is N500. This means, right from day one, your bird is N500 above.
This is one area that distorts potential profit in the poultry business. I am not an expert in this field but trust me, experts won’t expose or educate you on this. The reality is, your excessive spending on unwanted drugs is the only reason why they’re in business.
It’s not their fault. You want quick results at times and they have the drugs that can do the magic for you. Unfortunately, those drugs are not cheap(more expensive than human drugs). Yes, they can help you push your DOC to table size within 4-5 weeks.
Which is what you want. But the cost of production has increased exponentially, which will further distort your potential profit. I don’t know how much I can explain this to you. But let me share a bit of what we practice here.
Our vaccination is 4 times only. Week1, week2, week3, and week4. And the amount of money you can spend here depends on the number of birds you stock.
Our drugs? Pay attention now, we don’t have a fixed number of drugs we administer to our birds. Why? Because we don’t administer drugs to them unnecessarily. We only give them drugs when they’re sick.
When they’re not sick, we make sure their environment is 100% clean. We make sure their water is always fresh/clean. We call this “Biosecurity” in livestock production. So, when you watch out carefully for biosecurity majors, success is guaranteed.
You’ll spend less on drugs. Beginners who don’t know what to do usually spend all their money on the purchase of drugs and end up losing their invested capital.
Therefore, my advice is simple “Give Your Birds Drugs When They’re Sick”. Now, as a business person, always record the cost of vaccination and drugs, it will sum up. You will realise how much money was spent on medications.
Let’s assume you spent N10,000 on drugs for 50 birds for 6 weeks, it means each bird consumes drugs worth N200. Now, add N500+N200=N700.
At week 6, each bird is worth N700.
✅Know Your Cost of Feeding.
If you are a practising poultry farmer, I don’t have to tell you this. You already know the number of bags 100 birds should consume between week1 to week 6-8. For me, an average of 500kg worth of feed can sufficiently feed a minimum of 50 broilers from day one to week 6.
Which means each had consumed 10kg worth of feed. According to today’s price of N4,300 for 25kg broiler feed, it means which bird consumes feed worth N172 only.
Now, let’s sum up the expenses. DOC plus drugs/vaccine was N700 per bird. Add the cost of feeding now, N700+N1720=N2420.
It means each bird costs N2420.
✅Cost of Lighting
I don’t have much to say here. Let me just share my 6 years routine with you. I don’t provide light for my birds at night right from day one till maturity. A lot of people won’t agree with this, but I do it and the result is positive and it saves the cost of running on fuel or diesel engines.
Though we have steady power on my farm, we turn off the light bulbs at night and allow the birds to sleep without feed to eat. Let’s assume you are running on a generator all night, do your calculations and add it to the price of the birds.
✅Know The Cost of Labour
Let’s assume you have employees on the farm. Kindly divide their monthly salary across each bird. Hello, don’t forget this. If you do, you are selling those birds below production cost and you don’t know.
Let’s assume you have one staff managing the 50 birds for a basic salary of N10,000 monthly. Divide N10,000÷50=N200. It means the cost of labour per bird raised is N200.
Add N872+N200=N1072. Based on our records, you should know that by week 6, the production cost per bird is N1072. Let’s tag it at N1,100 each.
So, 50 birds now are worth N55,000 only.
Note: We have other direct/indirect expenses, but we will stop here and draw out the conclusion. The calculation above is a guide for you to ascertain your production cost accurately.
Time To Sell Out Your Mature Broilers.
The question you ask yourself before stocking birds should be “Who is my client? what is their purchasing power?”. If the answer is not satisfactory, don’t invest in broilers production. Because you’ll hate the poultry industry when selling all the birds but your bank account is still red.
Instead of smiling to the bank, you’ll be angry at the economic situation of your country. So, you are selling those N1,100 birds for how much? How about selling for N2,000 per bird?
Yes, it is possible.
How about N2,500 or N2,300? Yes, people will pay you money happily. Let’s assume you sold each bird for N2,300 only. That is above N1200 pure profit per bird, each put the profit above 100%.
Impossible? Let’s discuss this matter today.
Finally, only professional farmers can make 100%. Amateurs doubt this and middlemen distort their profit margins greatly.
Do you have any questions? Ask me, don’t assume you know.