REVIEW OF THE COST OF PRODUCTION OF 100 BROILERS IN NIGERIA

In poultry business, broiler production is one of the aspect you ensure quick return of investment (ROI). Broilers are reared for its meat and takes average of two (2) months to get to a marketable size with weights between 2kg to 4.5kg. With the high demand for broiler in the market, many people want to venture into the business however due to lack of idea on estimate of what they need, they find it difficult to start.

In this post, I am going to give you a current estimated review of the cost of producing 100 broilers in Nigeria with possible expected profit.

 

 Cost implication in raising 100broiler

In this analysis, it is believed that structure, source of water and labour is already available. We are considering the cost of stocking and raising of your birds to marketable stage using new hope feed.

In broiler production, the following has to be considered

1.    Day old chicks

2.    Source of heat

3.    Feed

4.    Vaccine/medication.

5.    Bedding.

Day old chicks:

 The cost of day old chicks fluctuates with demand, season and availability. It can be as low as N250 to as high as N700. However for the purpose of this writeup, we will use N500.

100 day old chick: N500 x 100= N50,000

HEALTHY DAY OLD CHICKS

Source of heat

In brooding, one can use 200watt electric bulb, charcoal brooder or gas/electric brooder. However considering the epileptic power supply and size of production, we will go for charcoal brooder. This can be in form of clay or metal with holes around its body to give out heat.

·         Cost of brooder N1,500

·         Cost of one half bag of charcoal N2,500

Total N4,000

  

It is however necessary that an enclosed space be dedicated for brooding these birds till after the heat is removed. This might require just a piece of plywood, carton or any flexible material to construct.

BROODER GUARD

Feed

in poultry business, feeding takes up over 70% of your cost of production. The table below  shows the expected feed intake of a broiler at every given week. This shall be used to estimate the quantity of feed consumption.

Broiler is raised with starter for the first four weeks and finisher till disposal. From the table, at four (4) weeks broilers will consume about 2020g of starter feed

Therefore 100broilers will consume 2020 x 100 = 202,000g of starter feed

Convert to kg, 1000g = 1kg

202,000g = 202,000/1000 =202kg starter

 

But a bag of poultry feed is 25kg. Therefore number of starter bags consumed in four week will be 202/25 = 8bags

Finisher feed consumed will be total feed consumed less the starter. Therefore from the table 8800 – 2020 = 6780g of finisher feed will be consumed by a bird. 100birds will consume 6780 x 100 = 678,000

Convert to kg, 1000g = 1kg

678,000 = 678,000/1000 = 678kg finisher

A bag of finisher is 25kg, therefore number of finisher bags consumed till maturity will be 678/25 = 27bags

Cost of feed

Starter: 8 x 9,000 = N72,000

Finisher: 27 x 8,000 = N216,000

Total cost of feed: N288,000

 

Cost of vaccine/ medication

I usually estimate cost of vaccine at N50/bird. However it is necessary to give the birds two doses of lasota and two doses of gumboro. While for medication at N150/bird which covers the following:

·         Vitamins

·         Anticossidiosis

·         Antiviral and

·         Anti cough medications

Total cost of vaccine/medication = 50 +150 =N200/bird

100x200 = N20,000

Bedding

We can use shavings or rice husk depending on availability in your area. This cists about N200 per bag and about 10bags will be needed till disposal

200 x 100 = N2,000

Total cost = cost of day old chicks + brooding + feed + medication + bedding

 50,000 + 4,000 + 288,000 + 20,000 +2,000= 364,000

From above estimate, cost of production of 100 broiler is N364,000

A broiler will be at N3,640 cost price

 

To go further and calculate possible profit, Broiler presently is sold at N4,000 to N7,000 depending on the size, location and consumer. Let’s use the average which is 7000 +4000 = 11000/2 = N5,500

Profit = selling price – cost price

5500 – 3640 = 1860

Total estimated profit 1860 x 95 (considering 5% mortality) = N176,500

 

The profit is fair enough considering the fact that this is the profit for just two months. However in broiler business, a lot of factors is considered like

·         Biosecurity

·         Vaccination

·         Medication

·         Environment

·         Choice of feed etc

However, is one can ensure good management practice, proper marketing and reinvestment, one can hit N500,000 to N1,000,000 profit in just two months