Reasons Why Large-Scale Poultry Farms Have Lower Production Costs

Have you ever wondered why your competitors’ products may be significantly cheaper than yours, yet they continue to make massive profits margins? During the recent hike in chicken feed prices, there were calls to enforce a fixed pricing strategy for all Ghanaian poultry farmers. Despite the increase in feed prices, larger poultry farms were still charging relatively lower prices for their eggs. This forced some smaller farmers to attempt replicating the low price strategy to compete with their larger counterparts (this, of course, was a wrong decision). As you’d imagine, many small scale poultry farmers had to close down their farms since it was unsustainable for them to keep charging extremely low prices while the cost of production kept skyrocketing. With that out of the way, let’s delve straight into some reasons why larger-scale operations almost always incur a relatively lower cost per unit production.

How much money do you need to start a poultry farm?

Poultry farming indeed by far, is one of the most lucrative businesses anyone regardless of educational attainment or professional skills can venture into. However, some farmers do not understand the financial implications of the business they want to start and this has led to serious consequences – for example, a farmer I know, who wasn’t financially prepared, decided to rear layer birds. He soon had to find out the hard way that layers have to be fed for at least 4 months before he gets even a sniff of revenue. Frustrated about how his farm was draining him financially, he gave up and sold his birds when they reached 3 months of age.

Which One is More Profitable, Poultry Farming or Pig Farming?

A lot of farmers would love to raise both chickens and pigs on a commercial scale simultaneously, however, the capital required to start both business ventures is more than what most farmers can afford. Farmers are therefore forced to choose between poultry or pig farming. Before the choice is made, the farmer would definitely want to know the venture that offers the biggest return on investment within the shortest possible time. In this article, we are going to compare the two livestock ventures based on certain parameters so that you can decide as to which one is more profitable for you.

How Many Birds Should You Start Rearing as a Beginner?

People usually ask me for advice on the advisable number of birds, especially layers, to start rearing as a beginner poultry farmer. In the past, I used to advise them to begin by raising 200 layers. Because 200 layers could potentially bring in a monthly profit of GH₵ 700 so in my opinion, this is the minimum number of birds you should raise if you want to make any significant financial return from poultry farming. However, I have now toned down on this advice. Because for instance, if someone has GH₵ 120,000+ that she’s willing to lose, then it is not a bad idea for her to rear 1000 birds as a starter.

Is It a Good Idea to Rent a Poultry Farm?

Around December 2021, I had a client who I was helping with record-keeping. She’s a poultry farmer, and what I found striking about her operations is that she was renting her poultry houses. Initially, I thought renting a poultry farm was a terrible idea, but upon careful reflection, I realized there was more to this than meets the eye. So I urge you to keep reading and have an open mind while I discuss the merits and demerits of renting a poultry farm.

Is It Still a Good Idea to Start a Poultry Farm in Ghana?

farmers. Currently, if you want to rear 200 layers, you must prepare to wave a sum of GH₵ 9,000+ goodbye. Oh, wait! You must be thinking GH₵ 9000 is the total startup cost for starting a 200-layer farm. You couldn’t be any further from reality. That amount mentioned will only cover the cost of feed for the first eight months. I have already spoken about the reason why you should make a budget for eight months. Meanwhile, around November 2020, feed costs for the first eight months only amounted to around GH₵ 5,000 for 200 layers.

Why People Need to Take Livestock Farming More Seriously

Gradually, more people in Ghana, especially the youth, are starting to find agriculture more attractive. However, I find it interesting that many of those I’ve met would have owned some chickens, goats, sheep and occasionally, some pigs, yet most of them (farmers) have made little to no effort to advance the business side of things.