45 Days Broiler Chicken Cost Analysis
Profitability of 45 Days Chicken Farming
Small, medium and large scale poultry raisers enjoy the profit of their business. This business is based on raising chickens for meat consumption in our local market. Chickens comply to halal standard, which means that everyone eats chicken. Cost of chicken has gone considerably up and the business thrives even through the minimal increase in poultry feeds, chick cost, water and electricity, medicines. Other fixed cost expenses also shows increase like building and rent cost. Labor cost minimally increase although as most farms are located in the rural areas which have lower cost of labor. 45 days chicken highlights a fixed day feeding program to market chicken for 45 days at the targeted weight of 1.5 to 2 kilograms.
45 days chicken are essentially chicken farming for meat consumption. Chicken meat sold in the market has the cost of transportation, regulatory fees, selling cost, and the production cost. Chicken meat per kilo is around 120 to 140 per kilo which depends upon market forces of supply and demand. From this cost, we see that the no. 1 cost in poultry business is the chicken production cost.
Small scale or backyard poultry raisers are common due to low cost of entry and available market. We will look into the cost analysis of medium and large scale 45 days chicken farm.
Chick Starting Costs
Medium to Large scale 45 day chicken farms, like the small scale have expenses associated with chicken farming. Chicks are bought from broiler egg hatchery farms or hatched in-house. Cost of chicks is at Php 4.00 to Php 5.00 for a day old. The cost will be determined in the quantity of chickens procured or hatched has a bearing in the cost as the more chicks you buy, the better the deal in chick pricing. Typical chick count at 10,000 head would lead to only Php 4.00 per chick. This is one of the advantage of medium and high scale 45 days farm. Small scale farms however can still raise chicken by buying from local poultry stores where chicks of various days old can be bought.
Building and Facilities
For private properties and owned land, rent is not a cost. However if you are renting, considering the rent cost to the expense is needed. Floor area per bird is 2 square feet but can be lessened further if there is a good ventilation by setting up elevated poultry house. These cost adds up and we look at Php 10,000 estimated rent and building cost per 10,000 heads.
Feeds, water and electricity
Chickens need warmth during cold nights and enough light to eat at night. For chickens to grow fast and become marketable in 45 days, they need to eat and drink. 45 day chickens can’t see their food if there is no light. Water and electricity bill at Php 4500 per 5000 heads chicken. Feed cost is around 60 pesos per bird.
Chicken have high mortality if not properly managed. This will definitely affect the profitability of the business. High mortality means lower output and therefore, lower profit. It has been seen that one third the cost of the feed is equivalent to the total cost for medicines.
Chickens do not care for themselves in broiler farms. Paid laborers take care for them unlike backyard farms. 45 day chicken needs food given at different times of the day. Water is also given and drinking containers need to be cleaned. Labor cost is around 4500 pesos per 5000 chicken.
The actual net profit can be lower than 1,800,000 pesos for 10,000 heads. If mortality rate is at 20%, it becomes Php1,440,000. Deduct Php868,000 and you will get ROI at 39.72% for 45 day chicken farming.
Disclaimer: We are not responsible for any business loss, damage, or any form of negative effect to the reader by reading the article. Actual cost and real cost will differ from stated cost due to many factors like poor poultry farm management, changing prices and cost, higher actual costs, or other unlisted costs like regulatory permits as described above. Any form of loss or damage due to the use and application of the above information is the sole responsibility of the reader and the author will not be held responsible in all circumstances whatsoever.