Many starter farmers in Nigeria usually have a big problem regarding how to make realistic income and profit projections before entering into the business. Many have been misled by false projections and have badly burned their fingers in the business.

I want to teach how to make a realistic income and profit projection for decision making either to invest in the business or to stay away from it.

Lets say that you have 500 Layers Chickens and want to know the Income Potential

First you must realize that only healthy chickens lay eggs and the income comes from the eggs. Therefore, you should know what it takes to rear a layers chicken in top health status. This is talking about the hygienic measures, the vaccination and many other factors that go into rearing layers chickens. You must be conversant with them all and apply them diligently.

Secondly, know the production capacity of a healthy layers chicken. A layers chicken lays an egg in 24 to 36 hours which translates to 5 to 7 eggs per 7 day week. Assume that you are using 5 eggs per week as the base, you have 2500 eggs per week for the 500 layers chicken.

Thirdly, know that the whole 500 eggs will not be laying eggs at the same pace. A few chickens may not lay any eggs or may start producing much later. Make a 5% provision.

Fourth, know that some chickens may die. The acceptable loss rate is 8% of the stock per year. Make provision for 8% of the chicken stock for possible deaths.

Fifth, know that there is a period for consistent production by the chicken and another is the period for diminishing production. You have to take note of this factors in the estimates to arrive at a realistic income and profit projection.

One of the major threats to cost effectiveness of businesses in Nigeria is the erratic power supply to factories. Many factories run on electrical generators for much of the day. The price per liter of diesel is about N200.00. Running feed mills and hatcheries with high cost diesel could lead to the closure of mills and hatcheries thus impairing the value chain.

There is increasing costs of feed ingredients such as maize which is a major component in the feed formulation thus making the cost of production to be less cost effective for the millers. High costs of fuel and high cost of feed ingredients adversely affects the bottom line in terms of profitability.

An important element in the value chain is the day old chick production which is fundamental to the sustainability of the industry as this determines the availability of inputs on which other inputs depend. Tnerefore, there is an urgent need by the government to address these threats such as the power supply.

The average price of a day old broiler as at June 30, 2020 is N370.00, while a day old layer chick costs N280.00. A day old cockerel costs N70.00. A bag of starter feed mesh averagely costs N3800.00. A bag of Grower Feed Mesh costs N2950.00 while the Layer Feed Mesh costs N3200.00

A crate of eggs costs about N1000.00

John Ayodele.

 

The lockdown of the Nigerian economy to curtail the further spread of the deadly Coronavirus pandemic is already having a severe adverse on the operations of many poultry producers thereby threatening their continuity and sustainability.

The collapse of the industry is imminent where a poultry producer is unable to sustain cash flows for his farm operations by his inability to sell his produce on ti
me.

The Covid-19 lockdown in Nigeria which commenced on March 25, 2020 is in the 4th week. The average shelf life of an egg is about 21 days being a perishable product. He should be able to sell his eggs within 7 days of production. If he fails to sell within a reasonable period, the products either perishes in his hands or they get to the consumers too late to be of any good use.

In a lockdown, the demand for poultry products nosedives where businesses have closed down. In addition, the producers are unable to move their products around quickly to points of sale due to the restrictions on intra-city and intra-state movement.

Therefore, the farmer’s continuity in business and sustainability is threatened. This scenario is likely to lead to the collapse of many farmers especially the small farmers and the loss of thousands of jobs in the industry.

To address this challenges, exemptions should be granted to poultry producers to convey their critical and perishable produce such as dayold chickens, eggs, feeds and drugs to where they are needed by the consumers. While many producers are unable to sell their products, many farmers are also unable to feed their chickens.

There is an urgent need to consider the plight of the poultry producers by exempting them from the restrictions on vehicular movement during this lockdown of the economy.

John Ayodele.

For about two decades, the import of poultry products into Nigeria has been on the contraband list. But due to the porosity of the land borders and ineffective monitoring, poultry products have always been smuggled into the country to the detriment of local production.

The Federal Government’s recent decision to close the land borders with neighbor  countries through which the products are smuggled is expected to lead to acceleration in the nation’s agricultural value chains. These value chains are several including the supply of inputs, storage, transportation, insurance and many others.

Nigeria has an estimated poultry consuming population of about 200 million, an annual output exceeding 400 million crates of eggs and over 300,000 metric tonnes of meat. There are millions of jobs to be created in the poultry sub-sector ranging from hatcheries, day old chicken production and distribution, layer and broiler chicken rearing, poultry meat production, egg sales, raw material supplies, feed milling etc.

Before the land borders began to become effectively closed, the local poultry industry was in a coma, Nigeria was consuming about 2 million tonnes of poultry meat annually with about 75% imports through smuggling through land borders that were not effectively monitored.

The smuggled products were sold at much lower prices, were of lower quality and preserved with formalin that can cause extensive damage to liver and kidney in the long run. The smuggling adversely affected the local production of poultry products leading to the closure of many poultry farms especially the small farmers.

If the effective closure of the land borders is sustained in the long term, it is expected to drastically reduce to the barest minimum the incidence of smuggling which will significantly accelerate the local production and millions of jobs in the poultry sub-sector.

John Ayodele.

 

 

 

 

A poultry farm cannot survive in a dirty environment. There is a minimum hygienic condition to maintain in a poultry farm if the chickens are to remain in good health for optimal production and maximum profits.

The poultry farm must be cleaned regularly and the droppings should be cleared before it constitutes an agent of disease. The farm house must be thoroughly cleaned and disinfected before bringing in new stock of chickens.

A farm house is dirty and in urgent need of cleaning when it has an offensive odour. The farmer should clear the chicken droppings mixed with saw dust into disposal bins on regular basis.

The chicken droppings contain ammonia which is a health hazard that can lead to outbreak of disease. When the droppings are cleared, fresh wood shavings should be brought in and spread on the floor.

The farm surroundings must be kept clean at all times.

John Ayodele

 

Many small farmers especially those going into the business for the first time are scared of starting with day old chickens for the fear of high mortality due to inexperience and ignorance.

To be adequately prepared for successful brooding and rearing, among many other details, the following should be noted by a starter:

• Buy the day old chickens from a reliable source with good track record and one of them is Animal Care Konsult in Nigeria.
• Ensure the chickens have been vaccinated against new castle disease, chicken bronchitis and brooder pneumonia.
• Ensure the chicken pen is ready before their arrival by disinfecting it about 3 times in the two weeks preceding their arrival, and spread wood shavings on the floor.
• Ensure the doors and windows are closed and heated for at least 3 hours before their arrival. The temperature requirement for the first week is 35 centigrade.
• Ensure the brooders house is spacious enough to accommodate the chickens
• Any weak, sick or deformed chickens should be separated from the main flock for appropriate treatment and closely monitored in the first week and fed with balanced feeds.
• Watch the birds closely. When they are huddled together, it indicates they are feeling cold and when they are warm, they disperse. Regulate the temperature according to their heat requirements in the initial 4-6 weeks.
• Transporting the chickens to the farm must be done in the early morning hours or late evening to avoid suffocation from exposure to heat.
• On arrival, give the chickens vitamins in their water to clear stress

For starters: Resource Page: https://wp.me/p11ziB-ZD
Testimonials: http://wp.me/p11ziB-TS

John Ayodele

www.johnayodele.wordpress.com

Lagos, Nigeria.

Poultry farming business is established as a profitable and good business idea in Nigeria. The Nigerian economy is dependent on the agricultural sector which contributes significantly to national income.
Reasons for starting a poultry business in Nigeria.

It is a lucrative business for individuals and entrepreneurs creating employment opportunities for job seekers

It is a business that can never dry up in Nigeria.

It provides eggs which is a great source of nutrition

Increasing population in Nigeria and the ban on importation of chicken products are a critical driving factor behind the opportunities opened for poultry farmers as a result of the remarkable demand for poultry products

A change in the consumption pattern especially increasing demand for fast foods is driving the demand for chicken products in Nigeria.

Farm Location:
The farm location must not be in a residential area
A plot of land measuring 120 by 60 square meters is sufficient for a medium sized farm but the size of land depends on the number of birds to be raised. For a commercial purpose, land acquisition may be expensive.

Facts to consider:
The land should be in a rural area far away from the cities and where cost of labor and land are cheaper
Select a fresh environment and pollution free area
Doing the business on a rented land is an unwise idea and may fold up the business
High acid water is not good for the birds
Ensure that the area is free from predators, theft and animals
Ensure proximity to markets, customers, transport facilities and motorable roads.

Farm system:
There are 3 profitable farm systems based on weather and climate conditions in Nigeria and they are the extensive system, semi-intensive and the intensive system

Chicken breeds:
There are layers that produce eggs for commercial production
There are the broilers which are very fast growing birds for meat production and gain slaughter weight in a very short time
There are the cockerels which are males for meat production but grow slower than the others

Housing:
The housing design varies in accordance with the types of poultry raising methods. Factors to consider in the housing design is adequate ventilation essential for good health and productivity in a clean environment that is free from insects and predators
Make it North-South faced and there must be adequate spacing between two houses, about 40 feet.
Poultry cages: for commercial production, poultry cages are suitable.

Marketing: there are no religious or cultural and social taboos affecting the marketing and consumption of chicken products in Nigeria and there is a high demand during festivals

Profit:
To breed a broiler to 4 weeks cost about N450.00 and the selling price is about N700.00 to N750.00
To breed a table size bird of about 12 weeks cost N2500.00 and the selling price is N3500.00 to N4500.00

John Ayodele
http://www.johnaydele.wordpress.com

Based on 2018 market prices in Nigeria:
To rear a broiler and sell at 5 weeks, costs about N450.00
The selling price is N700.00 to N750.00
The expected profit is N250.00 to N300.00 per broiler

To rear a broiler to full maturity age 12 weeks, costs about N2500.00
The selling price is N3500.00 and above
The expected profit is N1000.00 minimum but also depends on the season.
Selling prices and profit margins are higher during festivals like Christmas

To rear a layers chicken from day old to egg laying maturity at 20 weeks, costs about N1500.00
Where you have 1000 layers chickens, the costs would be N1.5 million
Where you have 90% egg production, you have 900 eggs per day or 30 crates
Where you have consistent production for 12 months, your expectation would be 30 crates x 30 days x 12 months and that is 10,800 crates of eggs produced in one year
If a crate of eggs is sold on the farm for N700.00, then the revenue from egg sales would be N7,560,000.00

The prices and estimates given above are realistic and are not fantastic figures or hypes.
Take note that the layer chicken can produce eggs for up to 18 months but 12 months was used for consistent production.
Then, you have to consider the costs of feeding the chickens, medication,staff wages and other farm overheads to work out the net profit for the year.
You have to make allowance for mortality at 8% of the chicken stock per year. 8% is the accepted maximum mortality rate if the farm is operated under excellent conditions and running smoothly.

Resource Page: https://wp.me/p11ziB-ZD
Testimonials: http://wp.me/p11ziB-TS

John Ayodele
http://www.johnayodele.wordpress.com

A layers chicken having a cold will not lay any eggs.

Plenty of fresh air is essential to the health of the birds.

Proper ventilation ensures an exchange of air. Pure air means adequate oxygen and contaminated air means a lack of oxygen and poisonous gases.

A laying hen in deep litter needs exercise, essential to good health, egg production and fertility.

Make the house rat proof and a concrete floor is the best. Rats consume large amounts of chicken feed, pollute the feed and can cause death to the chickens.

Top of the floor should be one foot above the surrounding areas to ensure that it is dry in the rainy season.

Poultry resources: https://wp.me/p11ziB-ZD
Testimonials: http://wp.me/p11ziB-TS
John Ayodele
http://www.johnayodele.wordpress.com
Phone: +2348035978352

A backyard chicken farm is a home farm in a residential neighborhood.
Many Nigerians are backyard poultry farmers with small holdings below 1000 chickens. Some rushed into setting up a home backyard farm without considering the pros and cons of the idea and ran into trouble which could not be managed and were compelled to fold up. Before setting up a home backyard chicken farm in Nigeria, there are many factors to consider for smooth running.

Advantages:
A small chicken farm containing about 200 to 500 to 1000 birds may be set up in the home provided that adequate space is available. The major advantages of a backyard are:
Firstly, the farmer is closer to the farm in terms of proximity and ability to give prompt attention to the chickens which are among the issues necessary to success in the business. Secondly, necessary facilities such as water and electricity will already be in place which makes a backyard farm less capital intensive to set up. Thirdly, the farmer’s family will be able to assist in the management of the farm which means reduced wage bills.

Problems:
One of the major challenges many backyard farmers have is the chicken waste evacuation which can become a nightmare. Many backyard farmers have problems with their neighbours on account of the offensive odor coming from the chicken waste. The odor results when the chicken waste is not quickly removed from the chicken pen and disposed properly.

• Evacuation of chicken droppings must be done regularly to avoid the offensive odors disturbing the neighbors. If starting the farm with day old birds, the evacuation should be done once in 5 days for as long as egg production is yet to commence if the chickens are layers.

A dirty and smelling chicken house constitutes serious health hazards to the layers chickens which could lead to chicken deaths and increased medication costs. Same applies to broilers and cockerels.

When egg production commences as in layers, then the chicken waste evacuation must be done every 3 days in a backyard farm that operates a deep litter system or a battery cage system that has no pit beneath. Usually, the evacuation is done manually and is a tedious exercise. This may mean engaging someone to do the cleaning when due.

• Ensure that you can dispose the chicken waste properly. It is not to be dumped carelessly because of the health risks. It can be given out to crop farmers or sold to them if there are crop farms around.
If the chicken waste disposal will be a problem that cannot be effectively managed, then do not set up a backyard farm especially in a residential area that is fully built. To do so is to risk trouble with the neighbors who may report to the local government and you will be compelled to close down the farm abruptly.

Resource Page: https://wp.me/p11ziB-ZD
Testimonials: http://wp.me/p11ziB-TS

John Ayodele
http://www.johnayodele.wordpress.com
Phone: +2348127920417