Nowadays broiler farming becomes a highly money-intensive business. The smaller the scale higher will be its risk because of lesser margins. Only those people go in losses who do not play by the rules of the broiler industry. These rules are (1) the lowest possible FCR (2) Mortality within 2% of the flock (we give consultancy and advice to properly follow these rules).
Economics is divided into 2 parts
1st fixed cost – land development, shed & other constructions, equipment purchase, electricity & water fittings
2nd running cost – feed, medicine, and chick’s cost, labour,
In land development – costs vary according to the activities involved in making land suitable for farming like if you have to make a new road or have to repair the old road or raise the platform for shed construction.
Shed construction is also variable according to the availability of local resources and transport costs involved in bringing raw materials. Usually, it cost around 70 to 110 Rs per sqft for a simple open type shed up to more than 250 Rs per sqft for an environment control shed.
Equipment cost
- Mini chick feeder 90Rs
- Jumbo Feeder 200Rs
- Mini Drinker 90rs
- Large Drinker 200rs
- Brooder guard – 1200Rs
- Bukhari – 600Rs (small) / 2000Rs (big)
- Tank 500lit – 4000Rs
- Nipple cost – 15Rs per nipple
- Pipe cost –
- Diesel brooder – 25000-30000
- Brooder (gas/electric/bukhari),
- Ventilation/Poultry fans – 15000
- Bucket & mug – 200
- Weighing scale – 5000Rs
- Brooder canopy – 800Rs
- Digital body thermometer – 120-200Rs
- Digital room thermometer – 300-400Rs
- Ropes – ??
- Curtains – ??
- Flame gun – 1500-2000Rs
- Thermal fogger – 20000-22000Rs
- Moisture meter – 5000-7000Rs
- Infrared thermometer – 2000Rs
- Fogger/sprinklers – 100-120Rs
- Cyclic timer for foggers – 1500-2000Rs
- pH and TDS meter – 1200Rs
- ORP meter – 8000Rs
Feed cost
- If maize 18 and soy 45 – Pre starter cost average 33 (35) Rs, Starter 31 (33) Rs, finisher 29 (31) Rs
- For maize soy feed FCR of 1.5 can be expected easily
- 500g pre starter 17.5Rs
- 1.5Kg starter 49.5Rs
- 1Kg finisher 32Rs
- 99Rs cost of feed at 2Kg weight
Chicks cost
- It is highly variable depending on the demand and supply
- Usually vary between 12 to 35Rs
Labor
- It is also variable
- For 5000 farms, 1 full-time labor is sufficient and 10000Rs is the present market rate
Medicine & vaccine
- It varies between 5 to 7rs per bird
Perception of prices –
- All these running costs are highly variable and vary according to the market demand for chicken and farmers’ internal perception.
- In my opinion market demand is remain the same except in sometimes like Sawan or unusual conditions like a corona.
Batch-wise break up of expanses and earning of 5000 chickens
- Chicks cost – 25Rs X 5000 = 125000/-
- Feed cost – 32Rs X 5000 X 3Kg feed each bird = 480,000/-
- Medicine & Vaccine – 5Rs X 5000 = 15000/-
- Labor cost – 2.5Rs per bird X 5000 = 12500/-
- Misc (electricity, transport etc) – 1Rs per bird X 5000 = 5000/-
- Total expenses till 2kg average = 637500/-
- Total live weight achieved 2 X 5000 = 10000Kg @ 85Rs/kg = 850000/-
- Net profit = 212,500/-