Cost of Raising 1000 Layers in Nigeria with Profit Amount

Posted by: Samuel Ezenwankwo 6 months, 3 weeks ago/ (29 comments)

 Nigeria is the largest egg producer in Africa recording an average annual growth rate of 4% between 2000 and 2012 when output reached 640,000 tonnes.

However, the rate flock expansion has slowed around 2.5 % since 2008, reflecting a large increase in input costs and their impact on profitability. With cost and profit in mind, poultry farmers are more knee like never before to source for ways to cut costs and maximize profit.

And one of the steps to ensure that your plans will materialize is by estimating cost and profit for your production.

In my last two posts, I estimated the cost and profit for raising 200 layers for a year and the cost and profit from 100 broilers in 8 weeks. And some of you requested the cost of raising 1000 layers in Nigeria.

So, in this post, I am going to give an estimated cost and profit for raising 1000 layers in Nigeria with an estimated cost of 1000 capacity battery cages. As usual, this article will be divided Into two parts;

  • Part 1: Cost amount for raising 1000 layers in Nigeria

  • Part 2; Profit amount from raising 1000 layers in Nigeria

 

 

So, get your pen, paper and calculator let do some homework

 

 Also read:  10 ways to sell and market your broiler chickens fast that are proven to work

How much does it cost to raise 1000 layers in Nigeria?

 

Let assume you have a structure already in place, and the manpower/labor for this number of birds will be done by you, your family, and one employee considering the number of birds.

 

These are the major expenses

 

Day old chicks

  1.   1000 day old chick (DOC) @₦350 = ₦350,000

     

2  .   5 pieces of plywood for making a brooder @₦2000 = ₦ 10,000

   

 

3.     8 bags of charcoal for heating the brooder @ ₦2,700 = ₦ 21,600

     

4.      Brooding charcoal burners @₦ 2500/one = ₦ 12,500

 

Also read 8 Things I wish I’d known About Poultry farming. Don't neglect No 7

 

5. Feed Analysis

How Many bags of chick-mash feed for 1000 layers? 

1 chick feeds 45gms of chick-mash per day 

 

Therefore, 1000 chicks feed 45gms x 1000 = 45000gms

 

1000gms = 1 kg 

 

There 45000gms = 45kg

 

Chick-mash is fed to chicken for 60 days

 

Therefore 60 days x 45kg =2700kg

 

1 bag = 25kgs =₦ 5,305

 

108 bags = 2700kg = ₦572,940

  

Therefore, 1000 chicks will feed on chick-mash for 60 days

(108 bags) = ₦572,840

 

 

Also read:  Poultry vaccination and schedule for Layers and Broilers

Thousand layers in woody cages

How many bags of grower will feed 1000 pullets?

 

 

1 pullet feeds 70gms of grower-mash per day

 

1000 pullets feed 70gms x 1000 chicks = 70000gms

    

1000gms = 1kg

 

Therefore 70000gms = 70kg

 

Grower mash is fed to chicken up to point of lay (POL)

 

POL is approximated to be day 120                                                                                                                                                                                                                                                                                                                            

 

Day 120 end of grower mash – Day 60 end of chick-mash = 60 days

 

Therefore 60 days x 70kg =4200kg

 

1 bag = 25kg =₦4,900

168 bags = 4200kg = ₦823,200

 

1000 pullets will feed 168 bags of grower mash in 60 days, costing ₦823,200

Order for your quality day old chicks and other poultry [email protected] and have them delivered at your farm

 

Mash, crumble and pelleted feed

How many bags of layer mash will feed 1000 layers?

 

1 pullet feeds 90gms to 105gms of layer-mash per day

 

90gms at the start of laying and 105gms at maximum

 

 Laying 

mash on average (90 +105)gms/2 = 97.5gms

 

Therefore, 1000 pullets feed 97.5gms x 1000 =97500gms

 

1000gms = 1kg 

 

Therefore, 97500gms = 97.5kg

 

Layers mash is fed to chicken up to menopause (week 72 or day 504)

 

POL is approximately to be day 120

 

Day 504 ( end of layers mash ) – Day 120 (start of layers mash )= 384 days

 

Therefore 384 days x 97.5kg = 37440kg 

 

1 bag = 25kg = ₦5,465

1497.6 bags = 37440kg =₦8,184,384

 

Cost for layer mash for 1000 pullets for 384 days =₦8,184,384

 

Approximately 1498 bags of layers mash will feed 1000 layers for 384 days

 

Also read: Fowl pox symptoms, treatment and prevention

6..Vaccine cost for 1000 layers

 

1000 doses of Newcastle Disease (ND) IB Lasota strain = ₦2,150

 

1000 doses of ND Lasota plain = ₦1,550

 

1000 doses of Gumboro = ₦ 2,040

 

1000 doses 0f intermediate Gumboro = ₦1,480

 

1000 doses of fowl pox = ₦1,300

 

 The Total cost for vaccine = ₦ 8,520

 

 

 

7.Cost for Vitamins and Antibiotics 1000 Layers

 

 

  • 2 litres of vitamin trace oral = ₦ 9,300

 

 

,

  • Alicerlyle 8kg ( for gastrointestinal infection prevention and multivitamins) = ₦ 4,800

            The total cost of Vitamin and Antibiotics for 1000 pullets is = 

₦27,100

Also read: How To Star a Profitable Layer Poultry Farming In Nigeria

8. Cost for Feeder, Drinker, and wood-shaving for 1000 Layers

  • 50 feeders @ ₦1500/feeder 5kg = ₦ 75,000
  • Kindly note that here I mean tube feeders. They have a ratio of 1:10
  • 50 Drinkers @ 500/drinker = ₦25,000
  • 40 bags of wood shavings @ 200 per bag = ₦8,000

Total cost for the drinker, feeder, and wood shavings = 108,000

Tube Drinker and feeder

9. Salary for one Employee ( A helper)  

₦10,000/month for 1 year and a half (18 months)

Therefore 10000 x 18 = ₦ 180,000 

 Total cost in words = DOT ­+ Plywood + charcoal + charcoal burner + Chick-mash + Grower mash + Layers mash + Vaccine + Vitamins and Antibiotics + Finder. Drinker and Wood shavings.

Total cost in figures =350,000 + 10,000 + 21,600 +12,500 +

572, 840 + 823,200 + 8,184,384 +8,520 +27,100 ­+108,200 +180,000 =  

₦10,298,344 

The total cost for raising 1000 layers for 18 months is = ₦10,298,344 

Kindly note that these are the major costs. The majority are capital costs, meaning they shall not be incurred in subsequent production.

Moreover, you can cut down costs if you can improvise some of this equipment and materials like cartoons, wood shavings, feeders, and even drinkers too. 

In total you need at least =₦10,298,344

You do not need all this cash at a go to start; you may even need a quarter. So don’t be scared by the huge sum of money ok, just start before you know it you see yourself overcoming the challenges. Start Now!

Ok,  it is time to reap the fruits of our labour. You have done a great job so far, now let look into the profit from 1000 layers.

PART 2:

What is the Profit Amount from 1000 Layers in Nigeria?

Note: In part one we estimated the cost of rearing 1000 layers up to week 72. Here our profit margins shall be as well up to 72 weeks.

Let get down to it:

 

A bird starts laying between week 18 and week 22.

From week 18 and week 22, the cumulative egg per bird is approximated to be 329 eggs

 Remember not all birds will survive to week 72.

Therefore cumulative mortality at week 72 is assumed to be 4% when all factors are held optimum.

Thus cumulative mortality shall be, 1000 x 4/100 = 40

Total laying birds = 1000 – 40 = 960

Total eggs = 960 x 329= 315,840 eggs

 

 1 egg = ₦40 (farm gate price)

Therefore 315,840x 40 = ₦12,633,600

 

Total sales of eggs from 960 layers is =₦12,633,600

 

 

Year 1 (Profit)

 

Total sales – Total Cost = Profit

₦(12,633,600 - 10,298,344 ) = ₦2,335,256 (Approximately $5,696)

 

Profit amount from 1000 layers is two million three hundred thirty-five thousand,  two hundred and fifty-six naira (₦2,335,256) Wow! This what I call ‘poultry oil well’. Imagine if feeds and medications are not as expensive as it is now in the market, I bet, you can make 50% of your investment as profit.

In conclusion, poultry farming is no doubt a profitable business especially when done right. The major threat here is the high cost of feed which has caused the slow down flock expansion and forced some poultry farmers to empty and close down their farms.

However, as I stated earlier, you can cut down your expenses by improvising some of this equipment from cheaper materials. 

You can also formulate your feed to cut down your expenses to at least 30% or 40%, which is the main cause of high input in poultry farming. 

Again, you can also make extra profit and take care of other minor expenses after selling them off as old layers. They are sold between ₦1700 to ₦2000 depending on the age, size, and season.

You can now order online for your quality day old chicks, best poultry feed, and other poultry [email protected]Afrimash and have them delivered at your farm.

PS: Cost for 1000 Capacity Battery cage

  

locally fabricated cage

Locally fricated

96 capacity = ₦ 68,000

120 capacity = ₦ 75,000

128 capacity = ₦80,000

Divide the number of birds by each cages’ capacity, then you will know how many unities you have to buy.

Thefore for 1000 layers you will have;

  • 11 units of 96 capacity = (11x 68000 ) =₦ 748,000

  • 9 units of 120 capacity = ( 9x75000) = ₦ 675,000

 

  • 8 units of 128 capacity = (8 x 80000) = ₦640,000

 

So you can choose the amount that best fits your taste and budget

 

 

 

 

I am wishing you a profitable poultry farming as you venture into egg production.

Please, comment and share with family and friends.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Best Quality Day Old Chicks

Comments

Charles Dunu 6 months, 3 weeks ago

I am highly impressed and encouraged by your intellectual write up. In fact I have not been confident enough to venture in but after reading your analysis I will start soon, Thanks for making my day

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Samuel Ezenwankwo 6 months, 3 weeks ago

Thank you Charles.Comment like this keeps me going.

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Moses 6 months, 3 weeks ago

I enjoyed reading through. However, the cost of feeds is currently double the estimate used. I would love to venture into large scale egg production, but the current inflation is so discouraging.

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Samuel Ezenwankwo 6 months, 3 weeks ago

You are right about the feed. That is the plights Poultry farming now. Every Business has its trying time. We shall all survive...

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Gideon Olukoya 6 months, 2 weeks ago

You are highly intelligent and a good teacher you are. I'm not scared anymore..
Please I will need the precedure on how to go about it from day old to point of manopause.
Thanks God bless you

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Samuel Ezenwankwo 6 months, 2 weeks ago

Thanks for the compliment Gideon. I am glad you have taken a bold step to start. Please email at [email protected].

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Sandra ozah 6 months, 1 week ago

This is very impressive and encouraging.. Am even in calabar. So automatically you have become my consultant... Thanks alot

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Samuel Ezenwankwo 6 months, 1 week ago

I am glad you find it helpful Sandra.

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Davies Tosin 6 months ago

This is a brilliant article i must commend.
personally though I was adding some little additional figure to what you gave out in case of sligth price change. Also personel price might be double as well as mortality.

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Samuel Ezenwankwo 6 months ago

You are welcome. I could have done the same Tosin

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Heunicah Ventures 5 months ago

Very impressive, comprehensive and straight forward analysis. More wisdom from God

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Samuel Ezenwankwo 5 months ago

Thank you for reading Venture.

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Mufutau Kareem 4 months, 4 weeks ago

Thanks for the detailed information, very interesting and educative. I have some few clarifications: 1. As a new comer in the industry is it advisable to start with day old or POL? 2. What is the estimated cost for the pen House? 3. Where is your location?
Thanks.

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Samuel Ezenwankwo 4 months, 4 weeks ago

You're welcome Kazeem. You can start with any one with the proper guidance. email me at [email protected] for more details.

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Emkel 4 months, 1 week ago

This is well articulated and informative. Thanks for sharing.

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Folashade Oyekanmi 4 months, 1 week ago

Thanks for taking time out to give this detailed information. I learnt a lot. But, some eggs at first droppings ( may be up to a week) are so tiny that you may not be able to sell out, or you sell so cheap. Was this taking into consideration pls?

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Samuel Ezenwankwo 4 months, 1 week ago

I am glad you find it helpful.

However, with regards to the egg size, active laying starts between 20 to 21 weeks to 70 to 72 weeks- this range is the Peak weeks, while 16 to 19 is pre-peak where eggs are normally small, and 72 to 80 is post-peak where eggs are big and the quantity small.

So, to some extent, my estimation is still ok assuming the pre-peak and post-peak canceled out

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TK 4 months ago

Very good analysis. Well done, however I think there is an error in the profit calculation as 960*329 = 315,840 * 40 = N12,633,600 as against 376,320 which affects the returns, please cross-check. Thanks

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Samuel Ezenwankwo 4 months ago

Thank you very much, TK for your correction. Correction made.

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Enoch007 3 months, 4 weeks ago

I m really impressed by your cleared explanation this is surely encouraging me to kick start my poultry farm I had wanted to start with catfish farming cause that where I have more interest & understanding.
With they way you have explained this I guess starting with layers will be good for me. Many thanks to you

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Samuel Ezenwankwo 3 months, 4 weeks ago

I am glad you find it helpful, Enoch. I am wishing you a successful poultry farming.

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Helen Akhidenor 3 months, 3 weeks ago

Nice one here, detail and precise. God bless you

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Samuel Ezenwankwo 3 months, 3 weeks ago

Thanks, Helen

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NDIANABASI SAM 3 months, 3 weeks ago

Brilliant write-up,am encouraged to start soon. God bless.

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Samuel Ezenwankwo 3 months, 3 weeks ago

That will be great. Thanks for reading

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Lucky 3 months, 1 week ago

I want my own poultry farm and I need your direction

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Samuel Ezenwankwo 3 months, 1 week ago

I will contact you, Lucky.

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