Quick Cost Estimate & Profitability Analysis of Poultry Farming Business

Oasdom profitability of poultry farming in nigeria
Oasdom profitability of poultry farming in nigeria

How about a quick cost estimate and profitability analysis of poultry farming business in Nigeria?

If poultry farming is one of the lucrative home business ideas in Nigeria, I’m certain you want to know what to expect, right?

So, How much Does it Cost to Start a Poultry Farm In Nigeria?

Please note that the analysis below is based on a reasonable estimate on the current market prices of items presented. Also, the analysis excludes fixed asset cost.

You will need the following, and the cost is dependent on certain factors.

  • Land: This depends on the environment as lands in rural areas tend to be cheaper.
  • Battery cage/deep litter system: The size of the battery cage determines the price.

The lowest price for small scale farmers is around N40,000. You’ll also need:

  • Feeders and drinkers
  • Lighting system
  • Heaters
  • Egg tray
  • Tanks
  • Waste disposal system
  • Perches
  • Labor: This depends on the environment and experiences of those to be employed. Miscellaneous such as security, marketing and transportation also have to be in place.
profitability of poultry farming in nigeria

Also Read: How to start a fish farm in Nigeria and profit

Quick Cost Analysis of Poultry Farming

Now, provided you have all these on ground, and you wish to start a poultry farm with N150,000:

Day old chicks of:

Broilers is between N200 to N210

Layers is between N205 to N232

Local Turkey is N600

Foreign turkey is around N1,700

And point of lay (16 – 17 weeks) = N1,400

Let’s assume you wish to deal with layers

If you intend to start with 100 birds, starting from a day old chick

  • 100-day old chicks = N21, 000 if each cost N210
  • For 4 weeks, a bird should eat 1.5kg feed

Which means 100 birds should eat 150kg chick mash for one month (4 weeks)

**1.5kg multipled by 100 birds = 150kg**

150kg is 6 bags of chick mash as 1 bag weighs 25kg

** 150kg/25kg = 6 bags**

This feeding will continue for another 4 weeks

Meaning another 6 bags, making 12 bags for the first 8 weeks

Presently, a bag of chick mash range between N3600 and N3700

Let’s use the highest price N3,700

**3700 multiplied by 12 bags gives N44, 400**

For the next 8 weeks, birds should feed on chick grower

A bird should feed on 4kg feed for 8 weeks

Hence 100 birds should feed on 400kg feed

**4kg multiplied by 100 birds = 400kg**

Remember 1bag = 25kg

**400 / 25 = 16 bags

Then 400 kg will be 16 bags

That means the birds will feed on 16 bags for another 8 weeks

1 bag of grower range from 2900 to 2950

16 bags multiplied by N2900 = N46, 400

At 16 weeks, birds start to feed on layers mash

From the 16th week to the 20th week, a single bird should feed on 2kg

Hence, 100 birds will feed on 200kg which means 8 bags of layers mash

A bag should cost N2,900

Therefore, 2900 multiplied by 8 bags should give N23, 200

The total amount of feeds used for the 20 weeks is

**N23, 200 +N 46, 400 + N44, 400 = N114, 000**

Activities such as vaccinating, drugs, deworming and debeaking of 100 birds can cost as much as N15, 000

Birds should start laying from the 21st week.

Apart from the fixed cost asset,

100 day old chicks = N21, 000

Feeding for 20 weeks = N114, 000

Vaccinating, deworming, debeaking = N15,000

Total  = N 150,000

The number you wish to rear will determine the type of house, the quantity of feed, etc.

This means operating a small scale or large scale is determined by the number of birds which is also going to be determined by the capital at hand.

The analysis above can be used to calculate your costs if you wish to produce lower or higher number of birds.

poultry farm cost estimate

Also Read: How to write a fish farming business plan and get a loan

Profitability of Poultry Farming in Nigeria

The profitability of poultry farming in Nigeria is based on the analysis made on the cost of starting a poultry.

Under normal condition, 100 birds should lay over 80 eggs per day

Since a crate contains 30 eggs, 80 eggs per day will be 2.6 crates per day

Presently in my area, a crate of egg is N800

N800 multiplied by 2.6 crates will give N2,080

Now, 100 layers need 12.5kg of food per day. That is half of a bag

A bag cost N3,100. Half therefore is N1,550

Then, Profit per day; N2080 – N1550 = N530

  •            Profit per month; N530 multiplied by 30 days = N15,900
  •            Profit per year; N15,900 multiplied by 12 = N190,800

Egg laying will definitely reduce after 12 months; hence, it’s better for these birds to be disposed.

Mortality is inevitable, however good maintenance culture will reduce the death rate to the minimal.

If there is 10% mortality

This means 90 birds survived after 12 months

Birds at that mature stage should sell for at least N1,200

N1,200 multiplied by 90 birds should give N108,000

Sum of money generated in a year; N108, 000 + N190, 000 = N298, 000

Remember, we estimated total expenses to be N150, 000

Therefore N298, 000 – 150,000= N148, 000

Hence the profit is N148, 000

Please note that the analysis made is based on estimate. Prices of feed and maintenance differ from place to place.

Indeed, poultry farming in Nigeria is profitable.