©Shutterstock Poultry farm full of white laying hen
In a previous post, https://tinyurl.com/yd2ys776 I described how you could collapse an already profitable poultry farm by attempting to expand it but on this occasion, I am going to describe how you could scale up operations the proper way.
Year 1
I always encourage people to start small so in your case, you are going, to begin with, 200 layer birds. If you want to find out how much it will cost you to raise 200 birds, please follow this link https://tinyurl.com/y89x74p8. Now let’s assume you initially invested GH₵ 20,000, you can expect that money to last only about four months so you may need to invest another GH₵ 3,500 for this business to run for the first year. So at the end of year one, the money that will be left in your account will probably be GH₵ 250.
Year 2
At this point, you may be thinking, “How the hell I’m I supposed to reach the 10,000-bird milestone if I have only GH₵ 250 left in my account?” Please, be patient we will get there soon. At this point, you have gained valuable experience in poultry farming so now you can book 400 day-old layer chicks for around GH₵ 3200. Now, if you project into the future, you may make an average monthly revenue of GH₵ 2100 per year and expenses of GH₵ 8,400. This means for year 2, you probably have to take a loan of GH₵ 78,550.
Year 3
In January of Year 3, you’re probably going to sell the initial 200 layers as spent layers so we expect that they will bring in around GH₵ 5,000. At this point, you’ve proven yourself worthy to care for a relatively large number of birds so we just straight to booking 5,000 birds which would cost around GH₵ 42,500. Around this period, average monthly revenue is expected to be in the region GH₵ 50,000 and expenses around GH₵ 55,000. Therefore, you probably need to raise GH₵ 152,500 to run the farm for year 3. Follow the link, https://tinyurl.com/y8doqvxn to find out how you can raise money to fund your operations.
Year 4
At this point, you would have sold the 400 layers as they no longer lay eggs productive so you can expect to recoup GH₵ 10,000. You are now going to book 7500 day-old layers and this would cost you around GH₵ 63,750. This particular year you are expected to make GH₵ 950,000 in revenue and GH₵ 860,000 in expenses so this means, you end the year with GH₵ 90,000 in profit.
Year 5
At the beginning of year 5, we assume that your farm begins with a bank balance of GH₵ 140,000 so you are going to finally purchase 10,000 day-old layer chicks.
Conclusion
As you can see, it is not very easy to reach a 10,000-bird capacity in 5 years so if it will take you longer to reach this goal, say 10 years that will also be great. All I want to say is that even though you should strive to grow your farm, you should fully understand the costs involved.
Pkom 