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Economics Of Layer Farming

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Deepa Menon
Deepa Menon

The document summarizes the economics of a layer farming operation with 1000 layers and 10000 layers. It outlines the fixed capital costs including buildings, equipment, and total fixed costs. It also lists the overhead costs, recurring/working capital costs including costs of chicks, feed, labor, medicines/litter/transportation. It provides income details from egg sales, sale of byproducts and calculates the gross and net profits per year and per bird for each operation.

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ECONOMICS OF LAYER FARMING 1000 layers in deep litter system A FIXED CAPITAL a BUILDINGS Brooder cum grower house for 1000 birds @ 1.5 sq feet per bird and rs 200/sqfeet 300000 Layer house for 1000 @ 2 sq ft * Rs 200/sq feet 400000 Office cum feed store room of 400 sq feet @Rs 300/ sqfeet 120000 Total 820000 b Equipments 1 Cost of equipments like brooders, feeders, waterers@Rs40/ bird 42000 2 Cost of electric installation 5000 Total 47000 TOTAL FIXED COST 867000 B OVERHEAD COST a Depreciation on buildings @ 10% 82000 b Depreciation onequipments @ 20% 9400 TOTAL OVERHEAD COSTS 91400 C RECURRING EXPENDITURE /WORKING CAPITAL a 17600 Cost of 1100 day old chicks @ Rs 16/ bird b Cost of feed for 1100 chicks @1.5kg/ bird @ rs 16/kg chick mash 26400 c Cost of feed for 1050 chicks @6kg/ bird @ rs 14/kg grower ration 88200 d Cost of one labour for 5 months @ 2000/ month 10000 e Cost of medicine, litter, transportation & electricity 4/ bird 4200 COST OF REARING PULLETS TILL POINT OF LAY (20 weeks) 128800 D COST OF EGG PRODUCTION (20-72 weeks) a Cost of feed for 1000 birds @40kg/ bird @ Rs 15/kg 600000 Cost of one labour for 12 months @ 2000/ month 24000 Cost of medicine, litter, transportation & electricity 2/ bird 2000 COST OF EGG PRODUCTION 626000 TOTAL EXPENDITURE 846200 E INCOME a Sale of eggs @290/ bird @ Rs 2.5/ egg 1% breakage , 99 % marketing 717750 b sale of gunny bags @ Rs 5/kg 950 bags 4800 c Sale of poultry manure @ Rs 500/ tonne 24000 d Sale of culled birds @Rs 80 / bird (12% mortality) 70400 Gross return/ year 816950 Gross profit (Income- recurrent expenses) 62150 Net profit ( gross profit- operational fixed cost) -29250 Profit / year 10750 Profit per bird -29.25 Cost of production of 1 egg 2.58 Cost of production of 1 ready to lay pullet 118.17
1050 Birds 1100 Birds 1000 space 1.5 cost of 1 chick 16 cost 1 200 feed/ bird 47.5 space 2 cost of 1 kg feed 17 cost 2 200 Cost of electricity, litter & medicines 4 space 400 Labour 6 cost 300 labour cost 2000 equipment 40 cycles 7 chick mash 16 no of birds 1000 chick mash 1.5 wt of bird 2 grower mash 14 cost of chicken (live) 60 grower mash 6 layer 15 gunny bags = 950 feed 40 cost of g bag 5 manure 332.5 cost of manure 500 eggs no 290 cost of egg 2.5 1100 1.5 1650 1050 6 6300 1000 40 40000 47950 48 48 1575 6300 7875 3937.5 157.5
ECONOMICS OF LAYER FARMING 10000 layers in deep litter system A FIXED CAPITAL a BUILDINGS Brooder cum grower house for 10000 birds @ 1.5 sq feet per bird and rs 200/sqfeet 3000000 Layer house for 10000 @ 2 sq ft 4000000 Office cum feed store room of 400 sq feet @Rs 300/ sqfeet 120000 Total 7120000 b Equipments 1 Cost of equipments like brooders, feeders, waterers@Rs20/ bird 200000 2 Cost of electric installation 10000 Total 210000 TOTAL FIXED COST 7330000 B OVERHEAD COST a Depreciation on buildings @ 10% 712000 b Depreciation onequipments @ 20% 42000 TOTAL OVERHEAD COSTS 754000 C RECURRING EXPENDITURE /WORKING CAPITAL a 176000 Cost of 11000 day old chicks @ Rs 16/ bird b Cost of feed for 11000 chicks @1.5kg/ bird @ rs 16/kg chick mash 255750 c Cost of feed for 10500 chicks @6kg/ bird @ rs 14/kg grower ration 882000 d Cost of 2 labours for 5 months @ 2000/ month 20000 e Cost of medicine, litter, transportation & electricity 2 / bird 22000 COST OF REARING PULLETS TILL POINT OF LAY (20 weeks) 1355750 D COST OF EGG PRODUCTION (20-72 weeks) a Cost of feed for 10000 birds @40kg/ bird @ Rs 14/kg 6000000 Cost of 2 labourers for 12 months @ 2000/ month 48000 Cost of medicine, litter, transportation & electricity 1/ bird 10000 COST OF EGG PRODUCTION 6058000 TOTAL COST OF EGG PRODUCTION 8167750 E INCOME a Sale of eggs @290/ bird @ Rs 2.5/ egg 1% breakage , 99 % marketing 7177500 b sale of gunny bags @ Rs 5/kg 9500 bags 49950 c Sale of poultry manure @ Rs 500/ tonne 500 250000 d Sale of culled birds @Rs 80 / bird (12% mortality) 704000 Gross return/ year 8181450 Gross profit (Income- recurrent expenses) 767700 Net profit ( gross profit- operational fixed cost) 13700 Profit / year 13700 Profit per bird 1.37 Cost of production of 1 egg 2.47 Cost of production of 1 ready to lay pullet 124.58
10500 Birds 11000 Birds 10000 space 1.5 cost of 1 chick 16 cost 1 200 feed/ bird 4 space 2 cost of 1 kg feed 16 cost 2 200 Cost of electricity, litter & medicines 4 space 400 Labour 2 cost 300 labour cost 2000 equipment 20 cycles 7 chick mash 15.5 no of birds 10000 chick mash 1.5 wt of bird 2 grower mash 14 cost of chicken (live) 60 grower mash 6 layer 15 gunny bags = 950 feed 40 cost of g bag 5 2000 manure 28 12 cost of manure 500 eggs no 290 cost of egg 2.5 11000 1.5 16500 10500 6 63000 10500 40 420000 499500 49.95 10000 499500 49.95 499.5 1575 6300 7875 79.5 500 39750 7950 135.58

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Economics Of Layer Farming

  • 1. ECONOMICS OF LAYER FARMING 1000 layers in deep litter system A FIXED CAPITAL a BUILDINGS Brooder cum grower house for 1000 birds @ 1.5 sq feet per bird and rs 200/sqfeet 300000 Layer house for 1000 @ 2 sq ft * Rs 200/sq feet 400000 Office cum feed store room of 400 sq feet @Rs 300/ sqfeet 120000 Total 820000 b Equipments 1 Cost of equipments like brooders, feeders, waterers@Rs40/ bird 42000 2 Cost of electric installation 5000 Total 47000 TOTAL FIXED COST 867000 B OVERHEAD COST a Depreciation on buildings @ 10% 82000 b Depreciation onequipments @ 20% 9400 TOTAL OVERHEAD COSTS 91400 C RECURRING EXPENDITURE /WORKING CAPITAL a 17600 Cost of 1100 day old chicks @ Rs 16/ bird b Cost of feed for 1100 chicks @1.5kg/ bird @ rs 16/kg chick mash 26400 c Cost of feed for 1050 chicks @6kg/ bird @ rs 14/kg grower ration 88200 d Cost of one labour for 5 months @ 2000/ month 10000 e Cost of medicine, litter, transportation & electricity 4/ bird 4200 COST OF REARING PULLETS TILL POINT OF LAY (20 weeks) 128800 D COST OF EGG PRODUCTION (20-72 weeks) a Cost of feed for 1000 birds @40kg/ bird @ Rs 15/kg 600000 Cost of one labour for 12 months @ 2000/ month 24000 Cost of medicine, litter, transportation & electricity 2/ bird 2000 COST OF EGG PRODUCTION 626000 TOTAL EXPENDITURE 846200 E INCOME a Sale of eggs @290/ bird @ Rs 2.5/ egg 1% breakage , 99 % marketing 717750 b sale of gunny bags @ Rs 5/kg 950 bags 4800 c Sale of poultry manure @ Rs 500/ tonne 24000 d Sale of culled birds @Rs 80 / bird (12% mortality) 70400 Gross return/ year 816950 Gross profit (Income- recurrent expenses) 62150 Net profit ( gross profit- operational fixed cost) -29250 Profit / year 10750 Profit per bird -29.25 Cost of production of 1 egg 2.58 Cost of production of 1 ready to lay pullet 118.17
  • 2. 1050 Birds 1100 Birds 1000 space 1.5 cost of 1 chick 16 cost 1 200 feed/ bird 47.5 space 2 cost of 1 kg feed 17 cost 2 200 Cost of electricity, litter & medicines 4 space 400 Labour 6 cost 300 labour cost 2000 equipment 40 cycles 7 chick mash 16 no of birds 1000 chick mash 1.5 wt of bird 2 grower mash 14 cost of chicken (live) 60 grower mash 6 layer 15 gunny bags = 950 feed 40 cost of g bag 5 manure 332.5 cost of manure 500 eggs no 290 cost of egg 2.5 1100 1.5 1650 1050 6 6300 1000 40 40000 47950 48 48 1575 6300 7875 3937.5 157.5
  • 3. ECONOMICS OF LAYER FARMING 10000 layers in deep litter system A FIXED CAPITAL a BUILDINGS Brooder cum grower house for 10000 birds @ 1.5 sq feet per bird and rs 200/sqfeet 3000000 Layer house for 10000 @ 2 sq ft 4000000 Office cum feed store room of 400 sq feet @Rs 300/ sqfeet 120000 Total 7120000 b Equipments 1 Cost of equipments like brooders, feeders, waterers@Rs20/ bird 200000 2 Cost of electric installation 10000 Total 210000 TOTAL FIXED COST 7330000 B OVERHEAD COST a Depreciation on buildings @ 10% 712000 b Depreciation onequipments @ 20% 42000 TOTAL OVERHEAD COSTS 754000 C RECURRING EXPENDITURE /WORKING CAPITAL a 176000 Cost of 11000 day old chicks @ Rs 16/ bird b Cost of feed for 11000 chicks @1.5kg/ bird @ rs 16/kg chick mash 255750 c Cost of feed for 10500 chicks @6kg/ bird @ rs 14/kg grower ration 882000 d Cost of 2 labours for 5 months @ 2000/ month 20000 e Cost of medicine, litter, transportation & electricity 2 / bird 22000 COST OF REARING PULLETS TILL POINT OF LAY (20 weeks) 1355750 D COST OF EGG PRODUCTION (20-72 weeks) a Cost of feed for 10000 birds @40kg/ bird @ Rs 14/kg 6000000 Cost of 2 labourers for 12 months @ 2000/ month 48000 Cost of medicine, litter, transportation & electricity 1/ bird 10000 COST OF EGG PRODUCTION 6058000 TOTAL COST OF EGG PRODUCTION 8167750 E INCOME a Sale of eggs @290/ bird @ Rs 2.5/ egg 1% breakage , 99 % marketing 7177500 b sale of gunny bags @ Rs 5/kg 9500 bags 49950 c Sale of poultry manure @ Rs 500/ tonne 500 250000 d Sale of culled birds @Rs 80 / bird (12% mortality) 704000 Gross return/ year 8181450 Gross profit (Income- recurrent expenses) 767700 Net profit ( gross profit- operational fixed cost) 13700 Profit / year 13700 Profit per bird 1.37 Cost of production of 1 egg 2.47 Cost of production of 1 ready to lay pullet 124.58
  • 4. 10500 Birds 11000 Birds 10000 space 1.5 cost of 1 chick 16 cost 1 200 feed/ bird 4 space 2 cost of 1 kg feed 16 cost 2 200 Cost of electricity, litter & medicines 4 space 400 Labour 2 cost 300 labour cost 2000 equipment 20 cycles 7 chick mash 15.5 no of birds 10000 chick mash 1.5 wt of bird 2 grower mash 14 cost of chicken (live) 60 grower mash 6 layer 15 gunny bags = 950 feed 40 cost of g bag 5 2000 manure 28 12 cost of manure 500 eggs no 290 cost of egg 2.5 11000 1.5 16500 10500 6 63000 10500 40 420000 499500 49.95 10000 499500 49.95 499.5 1575 6300 7875 79.5 500 39750 7950 135.58
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