Monday, September 14, 2015

Which one is more profitable, raising chickens for meat or for eggs?

If you have considered raising chickens as a business at a farm, you have probably already also come across this question. Which one is bet... thumbnail 1 summary
If you have considered raising chickens as a business at a farm, you have probably already also come across this question. Which one is better raising chickens for meat or for eggs – especially for a small scale farmer looking to make every cent of his investment count.



Let’s get the facts straight from the start. Chicken rearing or poultry farming requires hard work if you are to succeed in it. The best way to make money out of it is to always ensure that your chickens are checked, fed and given water daily. If you have layers, you must collect the eggs regularly.

Now, do I go for broilers (common breed for meat) or for layers (means just that – lay eggs)? First gather as much information about the two routes before you decide.

There are competitive differences. For example broiler meat can be frozen over a long a long time and transported over long distances – which makes the sector more competitive, while, in comparison, eggs are more perishable and must be dispatched to the market when they are still fresh. Since, production usually follows consumption, there is usually less competition from outsiders!

Layers for eggs
If you are going the layers route, do not expect a quick reward. For starters, they need a minimum of 18 weeks before they can start laying eggs. They also only lay well in the first year and after that output sort of declines by about 20% per year.

Selling eggs for consumption is also not very profitable – just check your local supermarket and seem how much a dozen eggs sell for. Since the profit margin per year per bird is low, you will need to have good management skills. This is after a lot of work gathering, washing, storing, packaging, and delivering the eggs.

So how do you increase your profitability with your layers? The answer is in value addition. Egg processors are no longer selling eggs as shell eggs but also as food ingredients or in ready to eat forms to food manufacturers and food service distributors. So find what value add might be profitable for you…

Also see how you can produce eggs for hatcheries – companies that sell chicks to chicken farmers.

Broilers for meat
Broilers might be an easier and get-your-money-back-fast option for small chicken farms. Broilers are often ready for market in only eight weeks and can make about $5-10 profit per bird.

However, they are also far more likely to randomly die or get sick than a layer bird. So it's possible lose all your effort and money after the chickens have died before you can sell them. Broilers also take far more time and energy to keep them fed and clean than layers.

There are some options for small broiler farmers to increase their profitability.

Get a contract
Large chicken producers usually get smaller farms to produce chickens for them on a contract basis. The contract basically states in advance how many birds you will supply and the price. You will just have to provide the land and shelters and the company will give you the chickens, feed and medication.

Timing is important
Chicken meat is a favourite in Zimbabwe. But for maximum profit make sure that your birds are sold at or before the 42-day mark for a good profit.

If you keep them longer, you begin to lose money feeding them and treating any diseases that may arise. A good idea here is to have a demand ahead of your chicken project.

In the end, for most farmers, rearing broilers or layers is often the same. It just depends on good management and timing – which means on broilers, expect a quicker return on your investment than on layers. Hence, see layers as a more long term investment. Nowadays, it also possible to rear ‘dual purpose’ chickens. They will begin by laying eggs and after their output begins to fall, you can still them for a good price for meat.

No comments

Post a Comment