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; cost of rearing 100 broilers in Nigeria with the profit amount, and several people requested for 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 get down working.
Let 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:
Our two weeks old broiler chicks
The table below contains the age, expected body weight, and the cumulative feed intake for male and female broilers from week one to week nine.
We shall be using the table to estimate the quantity of feed 500 broilers will consume for 8 weeks.
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.
So, from the table:
At 4 weeks a bird will consume between 2020g for male and 1825g for female
Average = (2020 + 1825) g/2 = 1922.5g
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
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
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
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
500 dose of Gumboro vaccine = ₦2,800
Vaccine in totality = (3,540 + 2,800) ₦ = ₦6,340
Parmark Agrovet, Nneobi
total (12,000 + 16,200) = ₦28,000
Total = 4000+8800 = ₦12,800
Total = 5000+ 9600 = ₦14,600
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
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!
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 at week was sold as follow;
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 [email protected]₦4,150
Remember not all birds will survive to week 8. Therefore, cumulative mortality at week 8 is assumed to be 4% when all factors are held 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
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, and 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.
Share on Twitter Share on Facebook