COMMERCIAL EGG FARMING

Editted by Antonio Innocent Mudong,i
Written by Maurice Rangoma

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Some people have requested for gross margin of raising 500 commercial layers. Here is a breakdown of the expenses and returns that are expected. The prices are not uniform throughout the country therefore you are advised to adjust the prices according to your locality.

Important assumptions

• 500 birds flock
• 12 months production period
• Production of eggs start when birds are 6 months old
• 10% mortality (50 birds)
• 90% laying percentage
• 10% egg losses
• Cost of 1 DOC at Kshs 95 each
• Building already exist

Day old chicks

500 chicks @ 95 each =  Kshs 47,500.00

Brooding costs

Item	Unit	Quantity	Unit price	Total Amount (Kshs)
Cardboards	Pieces	15	450	6,750.00
Paraffin	Litres	60	110	6,600.00
Kerosene lamps	No	10	900	9,000.00
Total				9000

Feeds

Age (weeks)	Feed type	Amount (70kg bags)	Cost (Kshs)	Total (Kshs)
0 – 8	Chick and duck mash	10	3300	33,000.00
8 – 20	Growers mash	50	2400	120,000.00
20 - 75	Layers mash	255	2550	650,000.00
Total				803,250.00

Equipment 

Equipment	Quantity (No)	Unit price	Total Amount (Kshs)
Round feeders	15	500	7500.00
Round drinkers	20	250	5000.00
Egg trays	20	40	800.00
Total			13,300.00

Veterinary charges

Treatment	Frequency	Unit price (Kshs)	Total Amount (Kshs)
Gumboro vaccination	2	500	1000.00
NCD vaccination	3	500	1500.00
Fowl pox	1	500	500.00
Assorted antibiotics			2000.00
Dewormers			1000.00
Total			6000.00

Labour

1 attendant for 18 months @ 4000 each = 72,000.00

Summary of cost

Item	Total
Brooding	9,000.00
Day old chicks	47,500.00
Feeds	803,250.00
Equipment	13,300.00
Veterinary	6000.00
Labour	72,000.00
Total	951,050.00

Returns up to the 75th week + culls.

note. good layers should lay eggs up to at least 2 Years

Item	Unit	Quantity	Unit price	Total
Eggs	Trays	6416	300	1,924,800.00
Culls	No	400	300	120,000.00
Gunny bags	No	315	30	9,450.00
Total				2,054,250

Gross margin

Kshs (2,054,250– 951,050) =  Kshs 1,103,200
You can increase the profit margin by cutiing costs and increasing the laying percentage

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