We perused and analysed the business plan of an intending poultry farmer to ensure that the right thing to do was done so as to prevent avoidable challenges in the course of eventual set up and operations.
Below is the content of the review that was sent as a reply to the investor.
Details
For the structure, I will advise you to rent a poultry farm, but if
you cannot see anyone to rent, you can go ahead with the construction.
For the layers you can budget #200 for your day old chicks ,it might be even less than that.
For the feed consumed, the amount of money you stated is too small .
After 18 weeks of rearing, each of the pullets would have consumed an average of 8.3kg of feed.
Multiply that by 480 (20 birds lost to mortality ) will give
you something around 4000kg of feed. Now divide that 4000kg by 25kg per bag of feed. This would end up giving you 160 bags of feed. Meaning that you would need around +/-1600 bags of feed to feed your pullets till 18 weeks alone.
Each bag of feed costs around +/- #2800 (chicks mash and growers mash). So multiply 160 bags times #2850 to give you an idea of what they would consume till 18 weeks when they would be getting ready to start laying eggs for you.
Still in the layers, when you want to sell your spent layers after two
years of laying, I will advise that you change the selling price to
#1600 .Nobody would buy your spent layers at the rate of #3000. It is really on the high side.
Talking about the revenue from the sale of eggs. You would
not expect all 500 birds to survive the rearing stage, so you need to assume that +/-480 birds would remain. You can now calculate your number of eggs based on that figure.
Then one important thing you should know is that not all birds would lay eggs every day, infact it is not possible. You can base the number of eggs to be collected daily on a certain percentage …lets fix 80%
daily production which is a more realistic hen daily production
performance .
So you can now estimate your number of eggs based on
80% of 480 birds. So simply calculate 80% of 480 birds to get an idea of your daily gross revenue.
For the sales of the crates.. the current market price at
farm is #800-#900, although someone in Kogi state said they sell theirs around #1000 per crate. But you can go around and do a market survey in your vicinity for the current farm price of a crate of egg.
For the broilers…
The current price of day old chick is around 200-220 , but that always changes based on the market demand. It might not be as high as the #270 that was stated there.
For the drugs and vaccine, spending #92,000 is quite expensive. Most of the vaccines required may not be more than 1000 dose required and
based on the vaccination programme for broilers, you wont be spending as much as that. As regards medication the same thing applies. You can
drastically reduce the expenses on drugs to #15,000 incase you end up with infections affecting your birds with the most common ones as coccidiosis and respiratory diseases.
With feed consumption, it is expected that each of your broiler birds will consume just about +/- 4kg of feed. So to estimate the feed to be consumed, simply multiply 4kg by 500 bird. You will get 2000kg
which is equivalent to 80 bags of 25 kg feed. Multiply 80 bags of
feed by around #2800- #3000 to get an idea of the cost of feed to be expended on your chicken.
For Sales of broiler chicken after 6 weeks most people sell between #800 to as much as #1200 per kg of live
weight .So your estimate should be something like this below.
Lets assume that a kg of broiler chicken is #1000 in your market
environment, multiply #1,000 by 1.8 kg (after 6 weeks body weight) this will give you around #1980 per chicken. Remember that you would surely experience mortality so the 500 birds wont survive till the end
of the cycle. To get an estimate, we would use 3% mortality meaning that 15 birds out of the 500 you started with would be lost to mortality.
To get a final estimate on the gross profit that would be generated, we would multiply #1980 by 485 remaining surviving birds out of 500
that you started with.
Finally, It is good that you let me have a perusal of the cost
analysis before implementing your plans. The reality would have turned out different from what was written on paper.
In other words, the whole proposal needs to be overhauled and rewritten to have a more realistic cost and revenue figure reflecting the actual farm scenario.
