How profitable is Broiler chicken farming in Kenya
The domestic per capita consumption of poultry meat is 0.6 kilogram per person each year In Kenya. Its gross demand is over 35,000 tons annually.
There are 2.91 million broiler chickens in Kenya, according to the 2019 census results. You can raise them commercially using an intensive method for white meat only. It is common in most urban and peri-urban areas of Nairobi, Mombasa and Kisumu. The Fryers production cycle takes 42-50 days (7 weeks).
Broilers have special needs from chick level to maturity. You will follow a strict feeding and vaccination program for best results. You can produce and market individually or enter a contractual arrangement in an out-grower scheme.
Select Characteristics of Broiler chickens
- Most have white feathers. However, specialists suggest that any chicken raised for meat is a broiler.
- A mature broiler weighs around 500 grams.
- The hybrid and exotic birds are highly vulnerable to infections than other chicken breeds.
- You will keep both cocks and hens since all of them provide meat.
Assumptions for a broiler poultry farm Gross Margin Analysis
Are you wondering what it costs and the profits you will get from raising chicken for meat? In this blog post, we provide costs and benefits of raising 100,200, 500 or 1,000 broiler chickens. The analysis uses the current market prices for farm inputs and labour and final products. It also makes the following assumptions for chicken feed quantities required and the vaccination schedule.
- The selling prices for a mature broiler chicken and a bag of chicken manure are Ksh 450 and Ksh 30, respectively. The analysis assumes a 2 per cent loss of chickens during the production period.
- The buying price of one-day-old chicks is Ksh 100. This analysis assumes you will brood them for 21 days using kerosene lamps. A single one will provide enough warmth for 100 chicks. You will require 6 litres of kerosene, at Ksh 85 per litre according to the Energy regulatory commission (ERC). An alternative is using a 100 watts electricity bulb as cleaner energy.
- Follow the vaccination schedule as provided in the analysis.
- You need two types of commercial chicken feed;
the broiler starter and finisher
- 100 g of broiler starter feed per chick for the first three weeks (10 kg for 100 chicks per day for 21 days). The cost of buying a starter feed is Ksh 3,800 70kg bag.
- 180 g per bird from 4th to 6th week. (18 kg for 100 birds each day for 2nd-50th day) of broiler finisher feed. The cost of growers mash is Ksh 3,700 for a 70kg bag.
- The cost of labour to hire one person is Ksh 4,000 per month. You will need one for 1.5 months. For raising many chickens like 1000 birds, you will need at least two workers.
- You need around feeder for every 30 chicks and a single round drinker for 50 chicks.
Profit analysis for rearing 100 broilers in Kenya
The following is the projected revenue and cost of raising 100 broiler chicken in Kenya. The analysis uses the current market prices and standard feed and nutrition requirements.
Your overall sales revenue after selling mature birds and poultry manure are Ksh. 44,250. It assumes a loss of two per cent loss of the birds. Poor feeding, hygiene and vaccination can lead to more losses. Observing better farm practices like disinfecting poultry houses and value addition will give you more sales revenue in the long run.
The operating cost of raising 100 broilers is Ksh 42,670 without capital expenditure. The large portion, 95 per cent, is for buying chicken feed. You will spend fewest amounts on vaccines and treatment at Ksh 580 only.
The gross revenue for raising100 meat birds is Ksh 1,580. After a further deduction of Ksh 6,000 additional cost of labour, you will get a net loss of Ksh 4,420.
A beginner in poultry keeping will incur an initial capital investment of Ksh 71,870. It will be for constructing a chicken house, getting brooding equipment and other reusable items like waterers and feeders.
Profit analysis for rearing 200 broilers in Kenya
The following is a cost-benefit analysis (CBA) for raising 200 broiler chickens in Kenya. It uses the current market prices and the above-given assumptions.
The revenue of selling mature broilers as live birds and poultry manure is Ksh. 88,500. The bulk of it is after selling live birds as the primary product and Ksh 300 from marketing manure as the by-product.
The large portion of the operating costs of raising them is buying broilers feed at Ksh 62,760. The total operating cost of the project is Ksh 84,990 to get a gross profit of Ksh 3.510. Similar to raising 100 chicken, the labour cost is Ksh 6,000 to get you a net loss of Ksh 2,490.
As a beginner, you will incur a one-time capital expenditure of Ksh 143, 740.
Profit analysis for rearing 500 broilers in Kenya
The following is a projection of revenues and costs of raising 500 broiler chicken in Kenya. The analysis uses the current market prices and the above assumptions for feed quantities and vaccines.
The gross revenue for 500 broiler poultry farm is Ksh 221,250. Significant sales are from selling 490 live birds at Ksh 450 each.
The operating costs for raising 500 broiler chicken are Ksh. 213,580. It will give you a gross profit of Ksh 7,670 and a net profit of Ksh 1,670 after deducting labour costs of Ksh 6,000.
As a startup venture, you need a capital expenditure of Ksh 276.750 for a fully functional 500 chicken house. The overall costs and profits for keeping 500 broiler chickens are as shown above.
Profit analysis for rearing 1,000 broilers in Kenya
The following is a gross margin analysis for a 1,000 broiler chicken farm. It uses the current market cost, prices and the above assumptions required farm inputs and labour.
You will get a total revenue of Ksh 442,500 after marketing your live birds and poultry manure.
The operating cost for your 1000 chicken farm is Ksh. 431,800 excluding the one-time capital expenditure of Ksh 453,500 for beginners. The most significant expense is buying commercial chicken feed at a value of Ksh 313,800.
The projects’ gross revenue is Ksh 10,700. The only additional cost is labour at Ksh 6,000 getting you a net profit of Ksh 4,700. The overall benefits for keeping 1000 layers are as shown above.
Though the gross and net profits of raising chicken appear to below, you can have up to 7 broods in a year. If you have a 100 bird’s farm, you can raise 700 of them in a year compounding your benefits seven (7) times. Besides, slaughter and market them as dressed and chicken meat. Value-added products fetch more profits than live birds. Apart from manure, other by-products to sell are feathers, chicken feet and heads that are a valuable delicacy in street food vendors.