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Cost And Returns Of Broiler Production

Cost and returns of broiler production
is often a critical factor to be considered once there is a concept to invest in broiler production cost and returns of broiler production in Nigeria is important so as to evaluate the viability of investment in broiler production for “return of investment cost” and profit, which however could be foreseeably determined based on certain regulating principles of broiler production Generally the regulating principles of broiler production, accounts for the optimistic and pessimistic views and approach towards the cost and returns estimation of broiler production so as to provide a clear and accurate situation for the expectation of investment in broiler production. However, the projection of the costs and returns of broiler production in Nigeria can be practically be unactualized, actualized even more so surprising, depending on the management of the broiler as with every other livestock. These principles are vital to provide a bankable business plan for an investor for broiler production.
Principles and important guides for cost and returns of broiler
1. Type of House – deep litter with open sides for cross ventilation
2. Production plan – all-in- all- out
3. Feeding system – Ad libitum
4. Litter type – wood shavings of appropriate type and quality
5. Stocking density – 12 mature broiler per m2
6. Breed of broiler – viable commercial breeds/hybrids
7. Maturity age and live weight – 6-7 weeks and 1.6-2kg
8. Mortality – 5-10% maximum (including runts and deformed)
9. Feed intake – per broiler from start to finish
10. Price of mature live broiler
11. Recommend 6-6.5 production batch per year
12. One batch/production period takes 7-8 weeks to completion( including one week period of cleaning and rest of the pens)
13. Medication – maximum of 5% of the feed cost including payment for vet services
14. Minimum of 5 years financial projection is required for a business plan.
Assumption: Cost and returns of 600 broilers
*Assumption: 1. already available land with bore hole
2. Each production cycle will be made up of 600 birds per batch of production.
3. Minimum of 6 batches of birds per year
4. Selling price of mature broiler = #2000
COSTS
Expenditure
(Fixed cost) Cost Annual Cost Cost per batch
Building(10m/5m) 362500 30208.33 5034.78
Poultry Equipment and facilities 125200 15435.33 2572.22
Variable Cost
Day old [email protected] #250 per chick __ __ 138,000
FEED
Starter (960kg @#140 per kg) __ __ 134,400
Finisher (1440kg @ #132 per kg) __ __ 190,080
TOTAL: 324,480
Medication (5% of feed cost, including Vet services) -----------------------------------16,224