Gross margin for 500 commercial layers
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Some people have requested for gross margin of raising 500 commercial layers. Here is a breakdown of the expenses and returns that are expected. The prices are not uniform throughout the country therefore you are advised to adjust the prices according to your locality.
Important assumptions
- 500 birds flock
- 12 months production period
- Production of eggs start when birds are 6 months old
- 10% mortality (50 birds)
- 90% laying percentage
- 10% egg losses
- Cost of 1 DOC at Kshs 95 each
- Building already exist
Day old chicks
500 chicks @ 95 each = Kshs 47,500.00
Brooding costs
Item |
Unit |
Quantity |
Unit price |
Total Amount(Kshs) |
|
Cardboards |
Pieces |
15 |
450 |
6,750.00 |
|
Paraffin |
Litres |
60 |
110 |
6,600.00 |
|
Kerosene lamps |
No |
10 |
900 |
9,000.00 |
| Total | 9000 |
Feeds
Age(weeks) |
Feed type |
Amount(70kg bags) |
Cost(Kshs) |
Total(Kshs) |
|
0 – 8 |
Chick and duck mash |
10 |
3300 |
33,000.00 |
|
8 – 20 |
Growers mash |
50 |
2400 |
120,000.00 |
|
20 - 75 |
Layers mash |
255 |
2550 |
650,000.00 |
|
Total |
|
|
|
803,250.00 |
Equipment
Equipment |
Quantity(No) |
Unit price |
Total Amount(Kshs) |
|
Round feeders |
15 |
500 |
7500.00 |
|
Round drinkers |
20 |
250 |
5000.00 |
|
Egg trays |
20 |
40 |
800.00 |
|
Total |
|
|
13,300.00 |
Veterinary charges
Treatment |
Frequency |
Unit price(Kshs) |
Total Amount(Kshs) |
|
Gumboro vaccination |
2 |
500 |
1000.00 |
|
NCD vaccination |
3 |
500 |
1500.00 |
|
Fowl pox |
1 |
500 |
500.00 |
|
Assorted antibiotics |
|
|
2000.00 |
|
Dewormers |
|
|
1000.00 |
|
Total |
|
|
6000.00 |
Labour
1 attendant for 18 months @ 4000 each = 72,000.00
Summary of cost
Item |
Total |
|
Brooding |
9,000.00 |
|
Day old chicks |
47,500.00 |
|
Feeds |
803,250.00 |
|
Equipment |
13,300.00 |
|
Veterinary |
6000.00 |
|
Labour |
72,000.00 |
|
Total |
951,050.00 |
Returns
Item |
Unit |
Quantity |
Unit price |
Total |
|
Eggs |
Trays |
4300 |
300 |
1,290,000.00 |
|
Culls |
No |
400 |
300 |
120,000.00 |
|
Gunny bags |
No |
315 |
30 |
9,450.00 |
|
Total |
|
|
|
1,419,450 |
Gross margin
Kshs (1,419,450 – 951,050) = Kshs 468,400.00
You can increase the profit margin by cutiing costs and increasing the laying percentage.
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