Growing broilers as a business with profitability of up to 60%

Broilers are a type of chicken bred for the meat market. Poultry does not require complex care and a long feeding time compared to piglets and calves, so the payback period is much shorter. For the business to be profitable, a clear and well-thought-out business plan for broiler breeding with calculations at the start and preliminary income is required.

Features of the broiler breeding business

Poultry farming is much simpler than the business of raising and slaughtering cattle. Despite this, each direction has its own characteristics. In the case of broilers this is:

• place – when building a chicken coop, it is worth considering that the birds do not require a large area. The approximate ratio is 13-18 heads per square meter. There will be nothing bad if the room seems a little larger, but such an approach will have a negative impact on the financial side;
• equipment – ​​rapid growth of poultry requires special conditions. This includes a certain temperature and light regime;
• infections - chickens are the most susceptible to diseases of all animals, so it is necessary to take into account the financial costs of preventive measures, as well as the risks associated with the extinction of part of the brood or all of the offspring;
• sales - given that broilers grow in a short time (50-60 days), it is necessary to find sales channels for products in a timely manner.

Help: if you have no experience in breeding chickens, it is recommended to initially purchase a small number of chickens with subsequent sale. This will reduce the degree of bankruptcy of the enterprise, and with a successful start it will provide excellent experience for further business on a larger scale.

Advantages and disadvantages

Pros:

• small investments at the start;
• the size of the business directly depends on the desire and financial side of the entrepreneur;
• quick payback due to the short growth period of the bird;
• lack of special conditions for keeping broilers - a standard chicken coop with balanced light and a heat source is sufficient;
• no need for special food - broilers eat regular grain crops.

Minuses:

• risks associated with avian infections and die-offs;
• high competition;
• instability of the financial market associated with the seasonality of poultry sales (meat is cheaper in summer than in winter).

If you find reliable and profitable sales channels, then competition and lower prices for meat will not play a significant role. Especially if you focus on the number of birds bred. The most important risk is disease and extinction of the livestock, which entails loss of invested funds.

Important: It is strictly not recommended to purchase and add prophylactic medications to food on your own. For this purpose, you should invite a veterinarian, and then regularly follow the prescribed instructions.

Feeding

A business plan for breeding boiler chickens involves choosing a diet. Broiler nutrition plays a key role in generating further profits. The diet is divided into three main stages, namely:

• Pre-launch
• Starting
• Finishing

The first stage lasts 2 weeks, during this period the chickens are fed with a special mixture, gradually increasing the daily intake from 10 to 25 grams.

The starting period lasts until the end of the first month, at which time the portion is increased to 120 grams. Then, until the end of the second month, the daily portion is 130-150 grams of feed.

If you are planning to make raising broilers your business, then you should not experiment with feed - it is better to purchase ready-made feed, which contains everything necessary for healthy growth and active weight gain. The amount of feed should also be sufficient. Cutting portions can have a bad effect on the weight gain of birds.

Despite the fact that broilers are not very susceptible to all kinds of infections, it is necessary to adhere to hygiene measures: keep the bedding, drinkers, feeders clean, and periodically add fresh grass to the chickens’ diet. On a household scale this is easy.

Market and competitor assessment – ​​preliminary stage

Breeding broilers for the purpose of selling carcasses involves analyzing the market, purchasing power and searching for distribution channels. First of all, you will have to compete with local poultry farms, so a couple of important points are necessary:

1. At the initial stage, you should not focus on large-scale production - factories work using a completely different technology, often losing in product quality, but compensating for this in the quantity of goods sold. This is unacceptable for an entrepreneur.
2. Delivery of products - each meat buyer has its own conditions. Someone accepts goods on their territory, so you should think about transport and methods of transportation. Pickup is often provided, which is much more convenient.

The competitive struggle in poultry breeding is that there are too many products grown, so the final cost of the carcass is greatly underestimated. It would be useful to make inquiries about poultry farms and private production in neighboring regions, and look for distribution channels in those places where the sale of broiler carcasses is least concentrated.

Staff

Breeding broilers at home as a business is aimed primarily at family-type peasant farms. The hardest work will naturally fall on the adults. So, one person is enough to fully care for a hundred birds. However, some assistance will be required in purchasing feed, cleaning the chicken coop and other utility work.

However, if it is possible to cope with a “family contract”, then there is no need to hire someone on the side. This means you won’t have to register as an employer or pay extra taxes. The services of veterinarians and invited specialists can be contracted as a specific service, and not a permanent job.

Organizational plan

The organization of poultry farming begins with the registration of business activities. Only then can you proceed to the purchase of building materials and construction of the premises. The organizational plan also includes purchasing the necessary equipment, chickens to raise, and recruiting personnel. In fact, some stages can be swapped or combined. For example, if a chicken coop is not being built on its own, but through hired workers, then in parallel you can already move on to purchasing equipment and recruiting employees to care for the future farm.

Registration of activities

Growing broilers allows you to choose any form of doing business - individual entrepreneur, peasant farm or LLC. For beginning entrepreneurs, the ideal option would be to open an individual entrepreneur or peasant farm, since these 2 types are simpler to register. If the future involves creating a full-fledged poultry farm or factory, then it makes sense to immediately register a limited liability company.

Registration of an individual entrepreneur is simple - submission of documents (passport, TIN and application) and payment of the state fee. The recommended taxation system is simplified tax system 6%.

Registration of a peasant farm is practically no different from the previous type - an agreement on the creation of a peasant farm is added to the documents. The tax system is the Unified Agricultural Tax.

The establishment of an LLC requires the provision of a company charter, the presence of an authorized capital and a decision on organizing a legal entity. The tax system is the simplified tax system.

The procedure for registering any type of business activity takes place at the tax service, so all questions that arise can be asked on the spot.

Construction of a chicken coop

Before starting the construction of the premises, it is worth deciding on the choice of site and its compliance with the approved legal norms. The land plot must be fenced, equipped with water drains and isolated poultry runs.

Criteria for a chicken coop:

1. The wall material should be easy to clean from dirt, dust and chicken feces.
2. The floor surface is covered with shavings, straw or hay, which is periodically replaced with dry material when dirty.
3. Ventilation outlets are required.
4. The length of the feeders depends on the age of the bird. Chickens – 5 cm, adult broilers – 8 cm.
5. Drinking bowls – 3 cm for one individual.

To increase the comfort of living creatures, automatic lighting and heat supply systems are installed. To prevent infection, the walls of the chicken coop are covered with lime.

Broilers can be kept either in a common flock on the floor (with the obligatory separation of young animals and adults) or in cages. Approximate number of chickens per 1 sq. m. – 15-18 heads.

What equipment will you need?

Minimum list:

• drinking bowls;
• water containers;
• feeders;
• containers for mixed feed;
• lamps for lighting and heating;
• ventilation equipment;
• fan heater;
• litter;
• heating radiators;
• cells or material for their manufacture;
• additional consumables.

Purchase of chickens

First of all, you need to find a trusted poultry supplier. Here it would be useful to make inquiries on the Internet, as well as look at the documentation and permission to sell chickens. The business must be registered legally with the necessary papers - certificates from the SES, veterinary service.

Birds are selected according to age. Professional breeders know that chickens need to be purchased at an early age so that they grow up on the main farm. This will have a positive effect on the health of the individual and the rate of weight gain.

It is not forbidden to buy an adult bird at the age of 1 month, but here it is worth considering that after a month the animals are subject to slaughter and sale, and it is impossible to gain full experience in breeding chickens in this way.

Help: young chickens are much cheaper than mature broilers, so you need to buy livestock at a very early age - a few days after hatching.

Feeding and caring for birds

Feeding is an important stage in broiler breeding, affecting health and rate of weight gain. There are several time intervals, each of which provides for features in the bird’s diet:

• the first 5 days - the hatched chicks do not know how to take food on their own, so food is given forcibly. Diet - fermented milk products, crushed boiled eggs, and closer to the 5th day they begin to provide compound feed for the young animals. The maximum dose is 5 g per day per chicken;
• age 5-10 days – chopped carrots, greens, feed dose increased to 20 g;
• starting from the 11th day, the frequency of feeding is 6 times a day. Boiled potatoes and soybeans are added to the above diet. The products are mixed with compound feed;
• from day 20, the frequency of feeding is reduced to 4 times a day, which is compensated by an increased volume of food. Bone meal, beans, peas are added;
• starting from one month of age, the main ingredient becomes a special feed for adults.

You can prepare the feed yourself or buy a ready-made mixture. The composition should include not only the main ingredients (corn, grain, flour, chaff), but also minerals and vitamins.

Help: according to statistics, chickens gain weight faster on ready-made feed. However, the disadvantage of such mixtures is their inflated price. The livestock will practically not lose any meat if you purchase the components separately and mix them in the required proportions. The procedure requires increased attention and precision, and ultimately allows you to save 30-40% of money.

Farm staff

When the number of heads is 500-1000 units, hired employees are practically not required. After building a chicken coop and purchasing chickens, the entrepreneur is able to independently change the water, provide food and care for the birds. On the other hand, it takes a lot of time, and monitoring the equipment requires special knowledge.

Taking into account the nuances voiced, 2 people will be required to maintain a poultry farm:

• a technician responsible for supplying light and heat, as well as monitoring the operation of the ventilation system;
• a worker whose responsibilities include timely feeding of birds and maintaining order in the premises.

Subsequently, you need to hire an accountant and a specialist in finding distribution channels, but at first the entrepreneur is able to do this personally.

Required documents

To open such a business, you can use either an individual entrepreneur or an LLC. If you do not plan to expand, then it is enough to open an individual entrepreneur. It will cost less and take less time. It is more profitable to choose a simplified form of taxation.

You will also need to obtain permission from the following regulatory authorities:

• Rospotrebnadzor.
• SES.
• An organization that deals with veterinary quality control.

Search for chicken sales channels

The distribution channel depends on the volume of poultry raised. For example, if it is planned to breed up to 100 animals, then the products can be supplied to retail outlets. If the number of broilers is higher, then it makes sense to enter into an agreement for the supply of carcasses to wholesalers. Meat processing plants, sausage shops located in the region, or companies purchasing broilers for sale in the capital. Think over a plan for combining distribution channels - sell some wholesale, some to retail chains.

The procedure for finding buyers can be divided into active and passive. The first option is a personal visit to meat processing plants and factories in order to obtain information about cooperation. In addition, places of sale can be found through advertisements in newspapers or on the Internet.

The second option is to place your own advertisement in the media, advertising services on the Internet and printed materials. In this case, you don’t need to do anything, and the buyers themselves will call and offer their conditions.

Room

The poultry breeding premises must be located at a distance from residential buildings, be suitable for comfortable housing for broilers and comply with all sanitary standards.

• For 100 individuals, the area of ​​the room must be at least 10 sq.m. For 2-3 utility rooms, 5-7 sq.m. is enough.
• The walls of the chicken coop must be plastered with lime. This prevents the growth of bacteria.
• You can use straw, shavings or sawdust as bedding for chickens.
• The building must have a well-functioning ventilation system.
• The concentration of harmful substances (ammonia, carbon dioxide and others) must be within normal limits.
• Place drinking bowls and feeders at a convenient distance so that you can easily clean and fill them. For drinkers, the width per individual is 1-3 cm, and for feeders - 6-8 cm.
• Birds do not like cold: this must be taken into account when arranging a chicken coop. Take care of heating the room during the cold season.

Financial plan

One of the main stages is calculating expenses and income. After this, it will become clear how profitable the broiler breeding business is and how much money it requires at the start.

Investments in broiler business

Initial expenses:

• construction of a chicken coop for 500 - 1,000 (50 sq. m.) - 60,000 rubles;
• purchase of chickens – 25,000 rubles (1,000 heads at a price of 25 rubles per individual);
• equipment – ​​25,000 rubles (material for cages, drinking bowls, feeders);
• technical equipment – ​​20,000 rubles (lamps, additional heat sources);

Result: 130,000 rubles.

Expenses

Expenses for 2 months:

• salary for employees - 40,000 rubles (15,000/month for a worker, 5,000/month for a technician whose activity consists of periodically visiting the site to check equipment).
• purchase of feed – 20,000 rubles;

• utility costs - 30,000 rubles.

Result: 90,000 rubles.

Income from meat sales

When calculating profits, it is worth taking into account the risk of death of chicks or adults from various factors (disease, destruction by predators). On average, out of 1,000 birds, up to 100 birds die, so only 900 carcasses are taken into account below.

The average weight of clean meat of one broiler is 1.7 kg. The cost per kilogram is 130 rubles. The total is:

• 900 multiplied by 1.7 = 1,530 kg is the total weight;
• 1,530 multiplied by 130 = 198,900 rubles - this is the total profit from the sale of meat.

Result: almost 200 thousand “dirty” income in 2 months.

Profit calculation

It’s easy to calculate net profit - you need to subtract the costs for 2 months from the total amount.

198,900 – 90,000 = 108,900 rubles net profit.

How much do you need to invest at the start?

Here is an approximate list of start-up costs for starting a broiler poultry farm.

Expenses	Cost, rub
Buying birds	From 7 thousand
Cells	From 40 thousand
Chicken coop repair and equipment	From 25 thousand
Stern	From 15 thousand
Business registration	From 5 thousand
Heating and ventilation systems	From 35 thousand
Veterinarian expenses	From 5 thousand
Total	From 132 thousand

This is an approximate estimate, not including the purchase of refrigeration units. There may be additional small costs for arranging a bird room.

Monthly expenses are needed for feed, utility bills, taxes, and transportation costs.

Is it profitable to raise broiler chickens, profitability

It is worth understanding that the resulting net profit does not take into account start-up costs, so in the first 2 months the entrepreneur will not even recoup the funds spent on building a chicken coop.

In the future, with an established scheme, regular income will be 100 thousand or more rubles. Payback varies within 4-6 months, which depends on the speed of sales and the pricing policy of buyers.

Profitability – net income/total profit multiplied by 100%.

108 900/198 900*100 = 55%.

Based on all the calculations and indicators, the direct benefits of broiler breeding and the rate of return on business become visible.

Owning a poultry breeding business is much more profitable than a similar business raising animals. Chickens are unpretentious in food, grow quickly, and meat is always in demand because it has a low price and has dietary properties. In just a few months, raising broilers for sale can be turned into a serious enterprise with a high cash turnover.

Preparation for sale

Broiler breeding as a business requires a production cycle of about 70 days. When the birds have reached two months of age, they can be slaughtered. It is better to hire a third-party employee for this purpose. Before slaughter, birds are not given food for 10-12 hours. Catching should be done carefully so as not to cause injury or cause stress. You must proceed as follows:

• Stun and kill a bird
• Perform exsanguination
• Pluck and gut the carcass
• Singe and rinse
• Package and label products
• Freeze

We prepare documentation

Beginner farmers often register as an Individual Entrepreneur, and this is the right approach; if you do not have a large start-up capital, do not intend to open a large-scale industrial enterprise and do not intend to work directly with large store chains and other organizations.

Individual entrepreneurs are allowed to adhere to a simplified taxation system, and this plays into the hands of an inexperienced entrepreneur. Otherwise, it is better to register an LLC, but this will require a lot of time, paperwork and, of course, money.

Then all that remains is to register your own future production with various social funds and obtain permission to sell and breed poultry from Rospotrebnadzor, the Sanitary and Epidemiological Station and the veterinary quality control organization.

How to find buyers?

• When breeding broilers, you also need to think about this in advance. The more advantages you have, the more buyers you can attract. Therefore, if possible, organize delivery methods and offer for sale broiler carcasses that are as prepared for cooking as possible.
• You can start by advertising in local newspapers and on television. This way you can attract restaurant business enterprises, possibly meat processing plants located nearby, and also resellers. Your products may also be of interest to those who live nearby and want to periodically buy fresh poultry meat, thus becoming your regular customers. You can sell the products yourself, or by hiring a salesperson.
• It is quite difficult to sell broilers in the form of stew, except to acquaintances. Stores will not accept products that have not passed GOST certification and all sorts of approvals. Therefore, if you decide to purchase an autoclave for preparing stew, count on low power, mainly for yourself.

Equipment

To raise broilers you do not need to purchase a large amount of different equipment. It can be divided into 2 main types:

• Equipment that maintains the necessary atmosphere for bird life.
• Equipment needed to feed them.

The second type includes drinking bowls and feeders. The first type includes the following items:

• Heat fan.
• Tube type heaters.
• Lattice type covering for floor installation.

We purchase livestock

Farmers experienced in broiler farming know which specific chickens are worth buying, but a beginner should not deviate from the concept - the younger the age, the more profitable it will be to organize a business. The first weeks of a chick’s life are the most difficult period in terms of rearing, therefore chickens that have lived this period on someone else’s farm will cost much more than those that have recently hatched.

Undoubtedly, a beginner will say that it is better to buy an older specimen, because it is less expensive in terms of effort and time, even money, but this is not so. An inexperienced farmer must learn the art of breeding in order to independently understand what exactly needs to be done to increase profits.

Location

You can start a business even in your summer cottage. But if you plan to sell meat and eggs in wholesale quantities as an environmentally friendly product, you need to look for a place that meets the requirements of sanitary services.

Your site should be located away from industrial facilities and residential buildings. But for the convenience of transporting products to the city, it is advisable to look for a place a short distance from it and with convenient transport links.

The size of the chicken coop depends on the method of keeping the birds. The cellular method is not suitable for you, although it allows you to save on space. Achieving competitive advantages over large poultry farms due to the high nutritional properties of meat and eggs is possible only with floor housing. This is a chicken coop, the area of ​​which is calculated based on the norm of 10 m² for 20 birds, with fenced areas for walking.

Availability of additional land for growing fodder is highly desirable. It is very expensive to purchase everything that a bird needs for normal development and weight gain.

Main risks

The main danger is exposure of chickens to diseases (bird flu, helminthiasis, pasteurellosis, pullorosis, coccidiosis). Insurance will help reduce risks; you can use one of the programs developed for farms. Purchasing chickens in specialized nurseries, using vitamins and vaccination will slightly increase the cost of chicken meat and eggs, but will allow you to avoid significant losses due to mass mortality of poultry on your farm.

The unpredictable behavior of grain prices seriously complicates the work. They make up the main part of the poultry diet. It is not difficult to minimize losses if you have your own plot and grow your own cereal crops.

Batteries for cells

Frame type fan (for cages)

Depending on what type of breeding you have chosen, you need to select the appropriate equipment. You also need to take care of natural and artificial lighting. Artificial lighting should not be too bright.

Don't forget about refrigeration equipment. It must be of high quality and suitable for your capacity.

Personnel

A small farm of 500 birds can be managed by 2-3 people. This business is often organized as a family business. If you plan to grow crops for food yourself, you can hire seasonal workers to perform certain jobs.

General concept

As practice shows, both domestic and foreign, broiler poultry farming is economically profitable and allows you to start making a profit in a short time. For comparison: to raise a bull for slaughter, it takes from 6 months to 1-2 years, but a broiler can be fattened to marketable condition in 70 days.

In most cases, the activities of large broiler farms include various areas of activity:

• direct fattening of meat poultry;
• rearing young animals;
• selection of new interbreed hybrids;
• sale of meat and other products;
• production and sale of feed mixtures.

You need to choose where to start implementing your business idea. You should not invest in all directions at the same time. It is better to postpone this until later, when the business becomes stable and provides sufficient income for development. Initially, you can choose raising day-old chicks as your main activity:

• to purchase a batch of eggs for incubating young animals, you need a minimum of costs;
• the development of the bird’s body up to hatching proceeds quite quickly;
• the price of day-old chicks is usually 2-3 times higher than the price of eggs.

By raising and selling young animals at a profit, you will not only recoup the initial costs, but also receive funds to purchase a larger batch of eggs.

In addition, starting with incubating chickens, you will be able to master the intricacies of poultry farming, understand its nuances, etc. Subsequently, it will be possible to move directly to raising broiler chickens.