When considering the profitability of your poultry farm idea – EBIDTA is a critical factor. There are two ways to go about that. You might be asking, isn’t profit just profit – no matter who it belongs too. This is a key measure (metric) to have at your fingertips when running or starting a poultry farm. It would be a good idea to site your farm in an area with a lot of available land for expansion. Other sub-sectors are layers breeding, broilers for meat production, chicken or hatchery and poultry feed production. But before you get started it would be imperative for you to consider the following options in the business. The following are the steps one should take to start profitable poultry farming; Choosing a poultry sector: There are two main sectors in poultry farming and that is meat or egg production.A farmer might decide on which to majorly base on or whether he or she will choose both of them. The poultry market is very wide. Deep cleaning costs with a broiler farm are for greater than with a layer farm. You actually don’t need a lot of land to start profitably. Over 80% of poultry keeping is for the purpose for producing table meat and eggs. I’ve said it before and I’ll say it again (…& I couldn’t really say it often enough if I tried). But, what is contribution profit? The equipment you use on your farm depend on the technology you choose to adopt. Think long term and make provision for the future. Once every 72 weeks (or a year and a bit). Among the sub-sectors in the poultry business is the grooming of different kinds of birds such as chicken, turkey, quail, ostrich and so on. After which a deep clean is required before a new batch replaces the last. Simply take the contribution margin and multiply by the number of units sold. Also, it’s no secret that larger businesses enjoy economies of scale…. The difference in the thinking of the two schools boils down to their attitude to growth and the future. Depending on what the ‘something else‘ is, you can consider your primary option either profitable or loss-making. EBITDA is the chief figure that anyone with even a little financial understanding will want to know when sizing up the viability of your poultry farm. So there are a lot of areas or niches for business to be carried out. Farm Locationeval(ez_write_tag([[300,250],'startupback_com-leader-1','ezslot_6',107,'0','0'])); Your farm location is very important to your success in business. Choosing what format you want your project report? Even with one bird. things costing less per item bought – why? So the market for poultry products cannot be saturated. Alternative Poultry Feed Ingredients: The Cost Pressure Is On! A layer hen commercial lifecycle is in the region of about 72 weeks for maximum profitability. For this reason, as a (potential) business owner, you should always have your eyes on a *profitable exit*. This really is based on their natural constraints and parameters. Within a 12 month cycle – this would amount to about 6 rounds of deep cleaning. What’s a ‘Normal’ Broiler Farming Mortality Rate? In other words you will have to determine if you will be grooming laying birds or broilers for meat purposes. As for overall profit, however, both broiler farming and layer farming have their pros vs. cons. Helping agribusiness enthusiasts worldwide get access to reliable expert advice - affordably. Sure, your variable costs could always change – and so will your margin. Here are some drawbacks which eat away at the size advantage of large farming businesses: These are just some of the issues related to large scale farming. The only way of increasing regularity is to run multiple batches side by side. Want to calculate how much profit you could make with 2,000 layers or maybe 20,000 layers? How Many Bags Of Feed Do I Need For Poultry Farm? It tells them what they could expect to personally benefit from if they were in your shoes. Broiler farming, therefore, carrying 6-times the deep clean cost of an equivalent layer farm. What Makes Kadaknath Chicken Flesh Black & Feathers Iridescent? In spite of the economic situation people must eat. Hence this makes the demand for food inelastic. If you were weighing up putting your poultry start-up funds in the bank instead of kick-starting your venture…. If your bank projections showed a better outcome (ROI – return on investment) vs your farm idea – then you know what to do.