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ECONOMICS OF BROILER FARMING
    1000 broilers per cycle @ 6 cycles/ year in deep litter system
A FIXED CAPITAL
a BUILDINGS
   Broiler house for 1000 birds @ 1 sq feet per bird and Rs 200/sqfeet       200000
   Office cum feed store room of 400 sq feet @Rs 300/ sqfeet                 120000
   Total                                                                     320000
b Equipments
 1 Cost of equipments like brooders, feeders, waterers@Rs40/ bird             40000
 2 Cost of electric installation                                               5000
   Total                                                                      45000
   TOTAL FIXED COST                                                          365000

B OVERHEAD COST
a   Depreciation on buildings @ 10%                                           32000
b   Depreciation onequipments @ 20%                                            9000
    TOTAL OVERHEAD COSTS                                                      41000

C RECURRING EXPENDITURE /WORKING CAPITAL

a   Cost of 1050 day old chicks @ Rs 30/ bird ( 2% extra
    provided to cover mortality)                                              31500
b   Cost of feed for 1000 broilers @4kg/ bird @ Rs 20/kg                      80000
c   Cost of electricity, litter & medicines @ 4/ chick                         4000
d   Cost of one labour/1 1/2 months @ 2000/ month                              3000

          TOTAL COST OF REARING BROILERS/CYCLE                               118500
D         OPERATIONAL COST FOR 6 CYCLES / YEAR
a TOTAL COST OF REARING BROILERS / 6CYCLEs                                   711000
b OPERATIONAL FIXED COST /YEAR                                                41000
  TOTAL                                                                      752000

E   INCOME
a   Sale of 6000 broilers @ 70/kg @ 2kg/ bird                                840000
b   sale of gunny bags @Rs5/bag                                                2400
c   Sale of poultry manure @Rs 500/ tonne                                     12000

    Gross return/ year                                                       854400
    Gross profit                       (Income- recurrent expenses)          143400
    Net profit                     ( gross profit- operational fixed cost)   102400
    Profit / year                                                            102400
    Profit per broiler                                                         17.07
    Cost of production of 6000 broilers                                      737600
    Cost of production of 1 broiler                                           122.93
    Cost per kilo of chicken                                                   61.47
1050
Birds                                     1000
cost of 1 chick                             30
feed/ bird                                   4
cost of 1 kg feed                           20
Cost of electricity, litter & medicines      4
Labour                                     1.5
labour cost                               2000
cycles                                       6
no of birds                               1000
wt of bird                                   2
cost of chicken (live)                      70

gunny bags =                               480
cost of g bag                                5
manure                                      24
cost of manure                             500
cost of building                           200
feed store                                 300
equipments                                  40

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Economics Of Broiler Farming

  • 1. ECONOMICS OF BROILER FARMING 1000 broilers per cycle @ 6 cycles/ year in deep litter system A FIXED CAPITAL a BUILDINGS Broiler house for 1000 birds @ 1 sq feet per bird and Rs 200/sqfeet 200000 Office cum feed store room of 400 sq feet @Rs 300/ sqfeet 120000 Total 320000 b Equipments 1 Cost of equipments like brooders, feeders, waterers@Rs40/ bird 40000 2 Cost of electric installation 5000 Total 45000 TOTAL FIXED COST 365000 B OVERHEAD COST a Depreciation on buildings @ 10% 32000 b Depreciation onequipments @ 20% 9000 TOTAL OVERHEAD COSTS 41000 C RECURRING EXPENDITURE /WORKING CAPITAL a Cost of 1050 day old chicks @ Rs 30/ bird ( 2% extra provided to cover mortality) 31500 b Cost of feed for 1000 broilers @4kg/ bird @ Rs 20/kg 80000 c Cost of electricity, litter & medicines @ 4/ chick 4000 d Cost of one labour/1 1/2 months @ 2000/ month 3000 TOTAL COST OF REARING BROILERS/CYCLE 118500 D OPERATIONAL COST FOR 6 CYCLES / YEAR a TOTAL COST OF REARING BROILERS / 6CYCLEs 711000 b OPERATIONAL FIXED COST /YEAR 41000 TOTAL 752000 E INCOME a Sale of 6000 broilers @ 70/kg @ 2kg/ bird 840000 b sale of gunny bags @Rs5/bag 2400 c Sale of poultry manure @Rs 500/ tonne 12000 Gross return/ year 854400 Gross profit (Income- recurrent expenses) 143400 Net profit ( gross profit- operational fixed cost) 102400 Profit / year 102400 Profit per broiler 17.07 Cost of production of 6000 broilers 737600 Cost of production of 1 broiler 122.93 Cost per kilo of chicken 61.47
  • 2. 1050 Birds 1000 cost of 1 chick 30 feed/ bird 4 cost of 1 kg feed 20 Cost of electricity, litter & medicines 4 Labour 1.5 labour cost 2000 cycles 6 no of birds 1000 wt of bird 2 cost of chicken (live) 70 gunny bags = 480 cost of g bag 5 manure 24 cost of manure 500 cost of building 200 feed store 300 equipments 40