Poultry Income and Profit of Broiler Breeding (2023-2024)

Examining the income of chicken farms and the amount of profit of broiler chicken breeding is the first step to enter this industry. Because the life of any economic activity is related to its profit and loss issues. In the KarnoTech collection, we are faced with many questions every day about the income of broiler farming. Therefore, we decided to provide you with an article about this.

Poultry Income and Profit of Broiler Breeding (2032-2024)

The growing trend of the country’s population requires that food production also increase according to our needs. Nowadays, the importance of white meat products is obvious to everyone. In the last few years, the general policies of the country have focused on issuing licenses for larger units. Especially the collections that are in the form of a chicken chain. In this way, the production costs are significantly reduced, and the price of the product can be lower for the consumer.

But as we know, a lot of capital is needed for broiler chicken chains, which is beyond the financial capacity of many farmers. Therefore, many farms today prefer to operate as a subset of chicken chains. Regarding poultry licenses, we have seen in many provinces that they do not issue capacities of less than 20,000 pieces.

Introduction

Broiler chicken breeding has superior points compared to other breeds, which we will discuss below.

1. The proportion of waste in chicken meat is lower compared to other livestock, sheep meat waste is about 50% and chicken is about 25%.
2. Chicken meat is better than other proteins in terms of digestion and absorption after fish meat.
3. Breeding chickens is easier than other livestock and a large number can be raised in a limited environment.
4. The growth rate of chicken is higher than other livestock, so that a one-day-old chick of 42 grams will reach the weight of 2500 grams after 40-50 days.
5. The food conversion ratio of chicken is better, so that in modified chickens, this ratio ranges from 2 to 2.2, and in calves and cows, it ranges from 6 to 9%. The conversion factor of 2 is not a suitable conversion factor and it causes a lot of costs in many farms in the country. One of the important steps we take at KarnoTech is to reduce the conversion rate of the production sets. In the standard farms of the world, we have seen the conversion factor of 1.65, of course, in many of these farms, chickens are kept in cages. Keeping chickens in cages causes us to experience better conversion rates due to the movement limitations of poultry. But there are some considerations for using broiler cages, which we have discussed completely in a separate article about the disadvantages and advantages of keeping broiler in a cage, which may be useful for you.

Regarding poultry farming, there is always the question whether it is better to raise meat chickens or laying hens. In the article comparing broiler chicken farming with egg-laying chicken farming, an attempt has been made to address different aspects of meat chicken and egg-laying chicken. For example, the initial cost of setting up a broiler hall is lower than that of a laying hen, but the profit and income of a laying hen on an industrial scale is much better than that of a broiler.

The first step is to choose a chicken farm

Be careful when choosing a place for chicken farming. From different aspects, attention should be paid to the location of the chicken farm. For example, the marketability of your manufactured product is something that you should pay special attention to. For example, if you are planning to build a broiler farm and there are many broiler units around you, this issue can have an adverse effect on the sale of your products. Some cities and provinces of the country are saturated in some crops. For example, the city of Sabzevar in Khorasan Razavi has many poultry farms. But the density of laying hens in this area is less. Or, for example, Mazandaran province is considered as one of the main hubs of broiler chicken breeding in the country. However, due to the high consumption of chicken meat in the three northern provinces and its proximity to the center of Iran, including Tehran, the chicken meat production market has become attractive. In addition to this issue, the discussion of proximity and distance to other farms, as well as the main road and slaughter centers, etc. is also important.

Why should we pay attention to the construction site of the poultry farm building?

Estimate of the initial capital for setting up a poultry farm in (2023-2024)

In this section, we decide to estimate all the costs of building a chicken farm. And also, the issue of what equipment is needed to start working.

The initial costs are as follows:

1. Land Purchase
2. Obtaining licenses (establishment and operation license)
3. Getting water, electricity and gas facilities
4. The cost of building a shed
5. The cost of installing cooling and heating facilities

Estimating the costs of building a poultry farm in (2023-2024)

We need at least one hectare of land to breed 10,000 chickens.

Each hectare of land around Mashhad, with the necessary permits, costs at least 500 million tomans. Of course, this cost is different in different cities and in other provinces. You should calculate this cost according to the area where you plan to set up a poultry farm. But for a better understanding of this issue, in the article about the minimum land required for the construction of a 20,000-piece chicken farm, various aspects of suitable land for a 20,000-piece chicken farm have been discussed.

The second cost for raising and keeping chickens is the establishment of halls. The construction of breeding halls varies according to the consumables.

The materials used in most cases are concrete blocks, which are relatively cheap and come in good quality. The use of pre-made Hublex (Heblex) blocks is also seen recently in poultry farms.

According to the broiler breeding standard, we need one square meter of space to breed every 15 chickens.

Therefore, a 45 x 15-meter shed is needed for a 10,000-chicken farm. In addition to sheds, one or more warehouses should be considered for the industrial unit, which usually costs less than sheds.

In the following article, we have discussed in detail about the appropriate dimensions of poultry farming. If you are interested in this topic, we suggest you read the following article.

What are the proper dimensions of a chicken farm?

Summary of Costs

1. The cost of buying land and building a shed
2. The cost of plumbing for water and gas
3. The cost of all the necessary equipment
4. The cost of feed consumed by each chicken during the breeding period
5. Salaries and wages paid to workers

Regarding poultry sheds, we should note that there are different types of poultry sheds. Among them, we can mention vaulted sheds, light structure sheds, two-story sheds, etc., each of which has its own advantages and disadvantages. Knowing the best type of shed depends on the area of ​​your farm as well as the amount of capacity you want. In the article on types of poultry sheds, I have addressed this issue in a more comprehensive way and I have examined modern arched sheds that have lighter structures. It is noted that the geographical environment will have a great impact on the type of shed we choose. In snowy areas, attention should be paid to the strength of sheds during the peak of cold and snowfall.

Covering and building materials for poultry houses is also an important and influential issue in the construction of poultry houses. Using a sandwich panel in the construction of a chicken coop can be a very good option. High execution speed, good insulation against cold and heat, proper disinfection and hall hygiene are much better in chicken farms established with sandwich panels. But in recent years, due to the significant increase in its price, the desire to build a hall with sandwich panels has decreased, and other materials such as cement blocks and Hublex (Heblex) are used.

After the shed and cover of the poultry house, there is the stage of equipment related to poultry breeding. At the date of writing this article, the policies of Jihad Agriculture are such that they do not issue licenses for the capacity of less than 20,000 pieces. This factor has caused that it is not possible to breed in a traditional way as before and automatic systems have replaced the old systems. The important point in this case is that regarding automatic systems, new innovations and initiatives are being carried out every day, which awareness can have a great impact on the success of cultivation. Unfortunately, the atmosphere of universities and scientific centers, which are the main custodians of the transmission of new experiences and sciences, is not very interesting. I have always witnessed it during my undergraduate and graduate studies in animal science at one of the best universities in the country. Usually, the talks and ideas discussed by professors and students in the university were far from the reality of today’s industry. This issue became one of the main reasons that KarnoTech Company deals with the transfer and training of new topics in the field of poultry breeding and always tries to provide beneficial and useful information to our contacts, at least in the field of equipment and facilities needed by poultry farms.

In the topic of new poultry equipment, I have introduced the best poultry equipment, and the related materials are constantly reviewed and updated, and I invite you to read it if you are interested in this topic.

So far, I have tried to explain to you the points related to the costs of poultry farming. In order to better understand these issues, in another article, I considered a hypothetical poultry farm with a capacity of 20,000 chickens and I have investigated the costs of setting it up completely. I checked the suggested plans that we usually provide to people who are working on establishing poultry houses, and in this article, I have tried to prepare all the equipment and items that are necessary for a 20,000-broiler house in separate tables. Also, by reading this article, you can make an estimate about your desired capacity, such as a 10,000 or 15,000 hall.

20,000 pieces of poultry farming equipment

Broiler Income

So far, we talked about the fixed and circulating costs of poultry farming. Now I want to talk about its income.

For a more accurate calculation of meat salons, consider the following process:

For example, a poultry farm with 20,000 chickens has 19,600 meat chickens with an average weight of 2.5 kg at the end of the period if there is a 2% loss. (In some areas, they load the chicken at a higher weight and in some areas at a lower weight). With the above assumptions, at the end of the 42-day period, this farm will produce 49 tons of live chicken.

Today, when I am writing and updating this article (July 1403), the price of live chicken is around 60,000 tomans. Therefore, the amount obtained from its sale is about 3 billion tomans.

Now it’s time to reduce the costs. The first cost is the price of a day-old chicken, which is 25,000 tomans at the time of writing this article. The price of one-day-old chicken has high fluctuations, so you need to include its price in your calculations instantly to calculate the profit and loss of this work. Therefore, the cost of a day-old chicken is equal to: 500 million Tomans.

The biggest current cost of a broiler farm is the cost of its feed. Inputs generally have a lot of fluctuations. How you prepare farm feed has a great impact on the profitability of your farm. For example, many poultry farmers prefer to prepare their feed from animal and poultry feed factories. This issue is more expensive for the poultry farmer, but if the feed is with fat and the balance of energy and protein as well as various supplements are properly observed in it, it can make up for the price difference with the better growth it brings to your poultry. compensate

Some poultry farmers also prefer to produce their own feed. This group of poultry farmers should pay attention to use the expertise of ration experts who are familiar with the issues of meeting the needs of poultry. Because the lack of balance in poultry feed rations can greatly affect the amount of consumption and ultimately the conversion rate of your farm. The discussion of poultry conversion rate is one of the biggest problems and challenges of this industry. The high conversion rate of many farms today causes a lot of damage to the poultry farmers and then to the valuable resources of our country. The importance of this issue in the current state of the country, as well as the water crisis and its damage to the environment, is not hidden from anyone. Therefore, it is necessary for all poultry farmers to pay special attention to the category of conversion factor and improve their farms by using quality feed, appropriate equipment, basic management, attention to poultry health, etc. This issue has been discussed more carefully in the article on poultry feed conversion factor.

Let’s go back to the previous calculations. Usually, 60% of poultry income is covered by feed expenses. This amount can be considered up to 70% in certain circumstances. Therefore, we consider the feed costs to be about 1.8 billion tomans. So far, the total cost of feed and one-day chicken is 2.3 billion. The remaining costs can be considered labor costs and wages, vaccinations, fuel costs (gas or diesel, electricity, etc.). You can also calculate these things in an approximate manner according to the possibilities you have in mind and predict the income of poultry farming.

Keep in mind the following for further guidance.

The daily price fluctuations of broiler chicken are high. Note that only 1000 tomans increase or decrease in price can dramatically change the income of poultry farming.

We checked the feed costs in detail. A reduction of 0.1 in the conversion factor can make a significant profit in a meat farm.

The daily price of day-old chicken fluctuates a lot. Try to get quality chicken at the right time and from a reliable place. Because low-quality chicken will damage you no matter what you do.

Fuel costs are also important. In some parts of the country, such as Sistan and Baluchistan, the diesel quota that meat farms get provides a significant income for poultry farmers. In farms with municipal gas, due to the cheapness of gas and the ease of transferring it to the poultry farm, a good saving is made in poultry farming costs. Also, the use of high efficiency heating systems can guarantee you save a lot of capital. (Types of poultry heating systems)

Poultry losses: As mentioned in the calculations above, we assumed 2% losses. This amount can be much higher in many cases, especially in polluted and disease-ridden areas. Pay attention to the strategies to reduce losses in poultry farming (strategies to reduce losses in poultry farming)

Summing Up

In general, it can be said that poultry farming, like any other business, is affected by severe price fluctuations in Iran. Sometimes due to excessive imports, sometimes due to the lack of some inputs such as corn and soybeans, and sometimes due to the occurrence of infectious diseases that we see in Iran, sometimes poultry farmers suffer many losses. Usually, chicken farmers who have good financial support to continue hatching even when they suffer losses for one or two periods are more successful.

On the other hand, poultry farmers who follow the standard principles of poultry farming and are always thinking about more productivity in their breeding are in a good situation. In the following article, like this article, we have examined the profit and loss of laying hens, which I recommend you read if you are planning to start a laying farm.

Income and profit of laying hens

The author of this article is Farid Vahedi, a senior poultry expert from Ferdowsi University and a member of the board of directors of KarnoTech Company. I have nearly 12 years of experience in building and operating poultry farms. I will try my best to increase your awareness, dear friends. In these years, I have always tried to improve the productivity of the salons that I am consulting by transferring the latest technologies of the poultry industry. Therefore, you can share my scientific and practical mistakes with me in the comments section. Also, if you need a specialist consultation with me, you can book a consultation time through the link below.

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