Gross margin for 500 commercial layers

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 periodEggs
  • 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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