Rapid Assessment of Expenses and Profitability Analysis for Poultry Farming Enterprise

 




Expressing a Swift Estimate of Costs and Profitability Analysis for Poultry Farming in Nigeria


For those considering poultry farming as a lucrative venture in Nigeria, it's essential to understand the anticipated costs. The analysis below provides a rough estimate based on current market prices, excluding fixed asset expenses.


Startup Costs:

1. Land: Cost depends on the location, with rural areas generally being more affordable.

2. Battery Cage/Deep Litter System: Prices vary based on cage size, starting at around N40,000 for small-scale farmers.

3. Additional Equipment: Includes feeders, drinkers, lighting systems, heaters, egg trays, tanks, waste disposal systems, perches, and labor.


 Quick Cost Analysis:

Assuming a starting budget of N150,000:

- Chicks: Day-old layers costing around N210 each, 100 chicks amounting to N21,000.

- Feed:Calculated for 20 weeks, with a total cost of N114,000.

- Other Expenses: Vaccination, deworming, and debeaking for 100 birds estimated at N15,000.


Total Expenses: N150,000


Profitability Analysis:

1. Egg Production:

   - With 100 layers, expected daily production of over 80 eggs.

   - At N800 per crate, daily profit is N2,080.

   - Monthly profit: N15,900; Yearly profit: N190,800.


2. Bird Sale:

   - Assuming a 10% mortality rate, 90 birds would survive.

   - At a sale price of N1,200 per mature bird, total revenue is N108,000.


Total Revenue: N298,000

Profit Calculation: N298,000 - N150,000 = N148,000


It's important to note that these figures are estimates, and actual costs may vary based on location and market conditions. Poultry farming in Nigeria is deemed profitable, contingent on effective management and maintenance practices.

 

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