Cost of Rearing 500 Broilers in Nigeria With the Profit Amount

Posted by: Samuel Ezenwankwo 2 years, 3 months ago/ (21 comments)

 It is needless to state that poultry farming is one of the most booming businesses in the agricultural sector in recent times. Consequently, people dive into this business with little or no background studies or training, thus making the same poultry farming mistakes several farmers have made.

One such mistake is improper record keeping like the cost of production, losses, profits, direct and indirect expenses, etc,

Without proper record keeping, you are just like a leaf floating in the air without a direction-its fate could be anywhere. The same fate awaits any poultry farmer who does not keep proper record keeping.

 

However, in this post, I am going to estimate the cost of rearing 500 broilers in Nigeria with its profit amount.

Although, my last post on cost and profit was on; the cost of rearing 100 broilers in Nigeria with the profit amount, and several people requested the cost of rearing 500 broilers, which we are about to dive into now.

 

Please, get a piece of paper, a pen, and a calculator because we are going to do some calculations.

 

Without any further ado, let's get down to working.

 

 

Also, read:  How To Make Broiler Chicken Grow Faster

 How much does it cost to rear 500 broilers in Nigeria?

Let's assume you have a structure already in place and manpower/labor will probably be done by you and your family, but I am still going to estimate it for those who may which to employ a helper. I am very certain that one helper will be enough.

 

These are the major expenses at the time of writing this article:

 

  1. 500-day-old chicks (DOC) at ₦515 = ₦257,500

 

  1. 1 piece of plywood for making brooder @ ₦2,000. 3 x 2000 =₦ 6,000
  2. 2 bags of charcoal for heating the brooder = ₦8,000
  3. 2 charcoal burners (Jiko) = ₦6,000
  4. 15 bags of wood shavings@₦200 = ₦3000

 

 

 cost for rearing  500 broilers

 Our two weeks old broiler chicks

How many bags of feed will feed 500 broilers for 8 weeks?

 

The table below contains the age, expected body weight, and cumulative feed intake for male and female broilers from week one to week nine.

 

We shall use the table to estimate the quantity of feed 500 broilers will consume for 8 weeks.

Expected weight of broiler

 

 

 

 

 Some farmers give their broilers grower, but I don’t… I only give them a starter for 4 weeks and then a finisher to finish off.

1. How many bags of starter mash will 500 broilers consume in four (4) weeks?

 

So, from the table:

 

At 4 weeks a bird will consume between 2020g for males and 1825g for female

 

Average = (2020 + 1825) g/2 = 1922.5g

 

 

Therefore,

 

1 chick will consume 1922.5g of starter mash at 4 weeks

500 chicks will consume 961250g of starter mash at 4 weeks

 

1000g = 1kg

961250g= 961.25kg.

That is, 500 birds will consume 961.25kg of feed till 4 weeks

Let covert 961.25kg to bags

25kg = 1 bag=  ₦6,300

961.25kg = 38.45 bags = ₦242,235

 

So, for the first 4 weeks, 500 broilers will consume38.45 bags of starter mash worth ₦242, 235

 

1. How many bags of finisher mash will 500 broilers consume for the last ( week 5 to week 8 ) 4 weeks?

 feed trunk

feed trunk

70% of your expenses will be on the feed. You should plan for this before production

From the above table, the cumulative feed for male and female broiler at week 8 are 7400 and 6800 respectively.

 

Average = (7400g – 6800)g/2 = 7100g

 

Cumulative feed intake from 5 to 8 weeks = cumulative feed intake at 8 weeks minus (-) cumulative feed intake at 4 weeks (7100-1922.5)g =5177.5g

 

1 broiler chicken will consume 5177.5g from 5 to 8 weeks

 

500 broiler chickens will consume 2588750 g from week 5 to week 8

1000g =1kg

2588750= 2588.75kg

25kg = 1 bag = ₦ 6,500

 

500 broilers will consume 103.55 bags of finisher from week 5 to week 8 at ₦ 673,075

 

Total cost for feed = ( cost for starter mash + cost for finisher )

                                 =  (242,235 + 673,075) ₦915,310

 

 

Cost of Vaccine for Rearing 500 Broilers in Nigeria

 

  • 500 doses of NCD (Lasota) on days 1, 14, and 28. (1,180 x 3 ) =₦3,540

500 doses of Gumboro vaccine = ₦2,800

Vaccine in totality = (3,540 + 2,800) ₦ = ₦6,340

 

 

Cost for Vitamins and Antibiotics

 Agrovet store

Parmark Agrovet, Nneobi

  • Vitamins = ₦12,000
  • Antibiotic = ₦16,200

total (12,000 + 16,200) = ₦28,000

 

 

 Also, read 10 Reasons Your Chickens Are Not Laying Eggs And How to Fix It.

Cost for Feeders and Drinkers

Drinkers:

  • 3 litres drinker @500: 8 x500 = #4000
  • 12 litres drinker@ 1,100: 8 x 1100 =₦8,800

 Total = 4000+8800 = ₦12,800

 

Feeders:

  • 10 Tray feeders@ 500: 10 x 500 = ₦5,000
  • 12 big hanging feeders@ 800: 12 x 800 = ₦9,600

     Total = 5000+ 9600 = ₦14,600

 One  worker @ 12,000 per month for 8 weeks = 24,000

Total Cost of Rearing 500 Broilers in Nigeria

Total Cost = (DOT + Plywood + Charcoal + Charcoal burner +Wood shavings + Starter feed + Finisher feed + Vaccine + Vitamin and Antibiotics + Feeder , Drinker , and a worker )

 

Total cost = ( 257,500+6000 + 8000+6000+282,235+673,075+6,340+28,000+14,000+12,800+24,000) ₦ = ₦1,317,950

 

Therefore, the Cost of rearing 500 broilers in Nigeria is ₦1,317,950

 

Kindly note that these are the major costs. Some costs for drinkers and feeders are capital costs, meaning they shall not be incurred in subsequent production.

 

In total, you need at least ₦1,317,950  to rear 500 broiler chicks for 8 weeks.

You do not need all this cash at a go to start a broiler farm, maybe you even need a quarter to start. Start now!

 

Also, read: Cost For Rearing 100 Broilers In Nigeria with The Profit Amount

Profit Amount From Rearing 500 Broilers in Nigeria

 

So how much profit should I expect from 500 broiler chickens?

To get the profit amount you have to get the cost of rearing one bird. To get this you divide the total cost by the total number of chicks =₦1,317,950  /500 =₦ 2,635.9

 

Next, is to decide how much profit you should add to your cost per bird. To do this, without getting stranded in the course of selling your bird, you have to know the market prices of various sizes/weights of broiler chickens in the market.

At the time of writing this article, the market price (in my area) of birds between 2kg and 3kg per week was sold as follows;

  • Male broilers were sold between ( 3,800 and 4200)₦. 
  • Female broiler was sold between (3500 and 3,800)

Average Price = 3500 + 4200 +3800/3 =₦3,833.33 

 

Since the ideal market price is ₦3,833.33, So let assume you will sell your bird between ₦ 3800 and ₦4500

 

Your average price will be 3800 + 4500/2 = ₦4,150 

 

So, you will be selling one birds@₦4,150 

 

Remember not all birds will survive until week 8. Therefore, cumulative mortality at week 8 is assumed to be 4% when all factors are optimum.

Thus cumulative mortality shall be

500x4/100 = 20

Total surviving birds =500-20 = 480

Total sales=₦4,150  x480 = ₦1,992,000

 

Total sale is = ₦1,992,000

 

Profit = Total Sale – Total Cost

 ( 1,992,000- 1,317,950) = ₦674,050

 

The profit amount from rearing 500 broilers in Nigeria is  ₦674,050

 

Wow! What a profit…

 

This profit amount obviously shows that the poultry business is a game of numbers. The higher the number of birds, the greater the profit.

 

However, before you think you expanding your flock you should ensure you have the available structure, capital, managerial skill, labor, good poultry record keeping, and a sizable market as well. With all these things in place, you are good to go. 

I am wishing you a successful and bountiful poultry farming this season

 

If you find this article helpful, please, do comment and share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Best Quality Day Old Chicks

Comments

Deinde ONIMOLE 2 years, 3 months ago

What an eye opener! Surely without record keeping, there can't be a viable Poultry farming.
Regards and thanks

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Gilbert Utazi 2 years, 1 month ago

Thanks.Your analysis is very detailed and reliable.After my NYSC I will start.

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Gilbert Utazi 2 years, 1 month ago

Your analysis is very detailed and reliable.I will start soon.Thank you

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Samuel Ezenwankwo 2 years, 1 month ago

Thanks for reading, Gilbert. And wish you all the best as you plan ahead.

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Uko udong 2 years ago

I must say your article has been of immense assistance and timely. It has helped me become decisive. Although my poultry knowedge has been rusty as at the time I stumbled at your piece, it has made my day. Thanks a lot.

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Samuel Ezenwankwo 1 year, 11 months ago

I am glad you find it helpful,

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Deborah 1 year, 11 months ago

Wow wow so interesting nd easy to understand I will start mine soon

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Reuben 1 year, 11 months ago

This is very detailed, easy to understand and well presented.
Apart from farming, you'll definitely be a good writer.
I'm a poultry farmer myself and l can relate 100% with you figures and estimations.
Kudos sir.

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Samuel Ezenwankwo 1 year, 10 months ago

Thanks, Reuben for reading. And I am glad you find it helpful.

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Olufemi 1 year, 9 months ago

I believe that to survive in broiler farming business, one should not be a seasonal farmer alone. The sales cost stated in the article is only applicable during festive season when the demand for life chicken is high and one can easily sell some good quantities but what of during off-season when the demand for life chicken is not much. During the off-season, will one still be able to sell at the above price and in large quantities.
I found the article useful though, thank you for the good work you're doing.

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Samuel Ezenwankwo 1 year, 9 months ago

You are right, Olufemi. The profit will be different about 10 to 15 % less during the off-season but still a good sale. I normally make above 50% of my investment during the season, but during the off-season is between 30 to 50 % depending.

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Ade Elijah 1 year, 5 months ago

Your write up is very educative and good to go provided the source of the day old chick is very okay.

Thanks and God bless you for the eye opener from your superb analysis.

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Samuel Ezenwankwo 3 months, 1 week ago

Thank you very much for your observation. I will update it.

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