Archive for January 2016

Poultry Farming: How to Make Better Profits in 2016 (2)   Leave a comment

Happy new year 2016 and welcome to this highly regarded and acclaimed poultry blog that teaches you how to do poultry business with the barest minimum upset.

Some farmers have closed down their farms citing losses and it is shocking and unfortunate. I will tell you why it is unfortunate when a farmer closes down his farm claiming to be unable to break even.

Poultry farming in Nigeria is a viable business. The poultry products are in high demand especially eggs and frozen poultry. This is a business that yields returns in the short run and Nigerians like businesses that yield returns in the short term. The market for poultry products is a large and guaranteed market, far from saturation waiting for more entrants.

With the above beautiful credentials in favor of this business, why then will a farmer pull out citing losses as his reason?

Many Nigerians jump into a business because they see someone doing it but without doing any research into the business before set up. That is a serious blunder based on ignorance.
Before you venture into the chicken farming business, take note of the following factors that determine profitability in the business.

 Profit in this business is a game of numbers. The higher the number of chickens, the greater the profits, ceteris paribus. If the chicken stock is low or too low, you may be frustrated where the feed costs are high and the egg revenue inadequate to cover it. You should know the minimum quantity of birds to start with to attain a certain level of profits.

 In poultry business, some chickens will die but the mortality must be controlled to the barest minimum. The acceptable normal mortality rate is 8% of the stock per year. If your mortality is low, below 8%, then you will have more chickens alive for egg production and to sell off as old layers at the end of egg production

 The feeding cost takes over 50% of the total overhead cost. You should know how to control costs in this business especially the feeding cost. Apart from the feeding cost, you must bring all the other costs under control and eliminate unnecessary costs.

 The price per crate of eggs, the higher it is, the higher the profits.
 Choice of feed whether commercial feeds or self-milled feeds.
 Quantity of crates of eggs produced, the higher the quantity, the better the profits.
 Ability to sell the chicken waste (poultry manure) to earn more cash
Ability to sell the spent or old layers at higher prices
 A healthy chicken is the key to profits and you must know what it takes to keep a chicken alive and in top rate health.

To the matter at hand, the ingredients in chicken feed are in categories as follows:
Energy Sources, Protein Sources, Fiber Sources, Phosphorus Sources, Amino Acids, Salt, Calcium Sources and Vitamins

In each of the above sources is an array of ingredients. For example, in the energy source, two of the ingredients are maize and biscuit dust. You pick one of the ingredients under each source. For instance, in the Energy Source, maize is one of the ingredients and maize is the one commonly used. However, you need to consult a nutritionist for guidance, highly recommended!

To do the milling, you have to know all the ingredients coming under each of the Sources that are available in Nigeria and their prices.

Then, you have to know the mix i.e. how to do the mixing. For example, to produce a ton of chicken feed, that is 1000 kg, how many kg will the ingredient in energy source be; how many kg will the protein source ingredient be and so on. There are specific ratios and these are called nutritional ratios and all must equal 1000 kg. A bag of feed is 25 kg, so 1000 kg will give you 40 bags.

Assemble the various ingredients in the right nutritional ratios and take them to a miller to do the grinding and mixing in a mixer and the feed is ready. Or set up your own feed mill on your farm and do the grinding and mixing.

Take note, that the quality must not be compromised. The ingredients must be in good state, not stale, rotten or mouldy. You must buy the feed from the right sources. You must have the right nutritional formulation. The grinding must be thoroughly done as well as the mixing after the grinding. Then the whole process must be hygienic and cleanly done.

Doing self-milling, you have to produce ahead of time because it takes time to do the milling and have them in stock. If you are using commercial feeds, you can wait till the last bag is exhausted because you know that you can easily purchase more within minutes from a nearby store. In self-milling, it may take days to get the stock ready. So you have to know your minimum stock and re-order levels. The larger the quantity assembled for grinding, the lower the costs of production.

To make the work easier for you, Poultry Report 3 (Compounded Feed Plan for Layers & Broilers) and Poultry Report 9 (Self-Milling Chicken Feed Profit Analysis) is available. The link is where all the reports are highlighted. The testimonials link is

John Ayodele