How Much Does It Cost To Start A Poultry Farm?

Read on to find just how much it will cost you to start a poultry farm.

Poultry business is capital intensive, profitable and also a risky venture. While this is true, the returns can be huge! Now, the financial implication for starting a poultry farm might seem quite vague for many. It is also not advisable to go into this venture without factoring out the cost.

This is because your budget might be more than what’s required (which is better) or less.

You don’t want to be faced with a situation where you are short on cash. This can be a terrible experience. Luckily some materials provide ample information on cost.

This article is one of them.

What Constitutes Startup Cost In Poultry Farming?

To have an idea of expenses you’d incur as a poultry farmer, it’s necessary to briefly mention some of the areas your expenses will be channeled to. First, you’ll need to get a chicken egg incubator. The type of incubator you get will depend on the scale of your poultry farm.

Next, you need to make housing preparations for them. There needs to be a nursery as well as the main housing. Now, not every type of housing is suitable for rearing birds. Certain conditions must be available such as adequate ventilation and lighting among others. The type of housing you choose will impact on cost. We’ll revisit this shortly.

Other pieces of equipment include feeders, drinkers (consisting of troughs, founts, and automated systems), heaters, coops & cages, and egg handling nests. Is there a reliable source of clean drinking water? If not, you’ll have to bear additional costs for drawing a line to your farm.

Feeding is among the most important aspects of poultry farming. So also is vaccination.

Average Cost Of Starting A Poultry Farm

This is where we discuss costs in more detail. This section will focus on key areas of poultry farming such as cost of incubators, cost of housing, equipment as well as feeding costs. By the end, you should have a fair idea of how much startup capital is needed to operate your farm.

  • Hatchery Cost

A hatchery will be required by poultry farmers who wish to raise produce their birds. Hatcheries are needed to hatch eggs under artificial conditions. The most important piece of equipment here is the incubator. These are available in different sizes with varying capacities. As such, costs will vary. You should expect a cost ranging between $1,000 to $12,000. 

  • Energy Costs

Running a poultry farm involves the use of electricity. There are lots of equipment which will require electricity to work such as incubators, automated feeders, heaters, lighting and so on. To calculate the cost, you’ll need to find out how much a kilowatt-hour kWh of electricity costs. Kilowatt-hour represents the power consumption of a thousand watts of electricity per hour.

  • Poultry Housing Costs

Poultry housing consists of different types. There are tunnel ventilated poultry housing, battery cage systems among others. Poultry housing is built in a way that ideal conditions are maintained. This helps the birds thrive in such environments and conditions.

Multiple variables come into play when housing is concerned. These are influenced by location, size, and type of housing. Thus, the housing cost for your poultry farm may start from $2,000 to as high as $200,000. Commercial housing is usually massive and costs more to build.

  • Feeding Costs

When it comes to poultry, a lot of feed is consumed by the birds. The higher the number of birds you keep, the greater the feeding costs. A medium-sized poultry farm containing about 5,000 birds will attract feeding costs in the thousands. Expect to invest a sum ranging from $5,000 to $25,000.

This amount covers feeding right from when these birds emerge from hatchery to when they are mature enough for disposal (when the birds reach table size). Large scale poultry farms spend much more than this on feeding. It is important to set aside sufficient capital to provide sufficient feeding.

  • Vehicle Cost

As a poultry business, you’ll need to have an operational vehicle or truck to enable you to operate efficiently. Without one, it becomes more challenging to have a smooth operation. You can turn to a vehicle leasing company to cut down on overall costs or get (buy) one for the business. There new as well as previously owned trucks. Buying a truck can cost you between $3,000 to $10,000.

  • Running Costs

Starting a poultry farm comes with running costs. These are basic costs relating to maintenance, vaccinations, treatments, fuel costs, wages, energy costs and more. There should be sufficient running costs to enable you to foot the bills during the entire time. You’ll also need to factor in the cost of insurance. Running costs vary depending on the size of the poultry. As expected, a larger farm will incur more running costs than smaller farms.

  • Cost of Drilling A Borehole

Several poultry farms make their water provisions independent. This involves drilling a borehole. Drilling one on-site will cost anywhere between $4,000 to $10,000.

  • Setting Up A Store

Every poultry farm needs a store. This is necessary for storing eggs (in terms of broilers) as well as feeds. Your farm size will determine the size of your store. Building one adds to your cost of doing business. The cost of building a store will vary based on the size, location, and scale of the poultry farm.

A poultry farm as earlier mentioned is capital intensive. This is seen in the cost information provided above. Cost varies by the scale of a poultry farm. While most poultry farms are commercial, these come in different scales and types. Some poultry farms rear both broilers and layers while others focus on either of them.

The information provided here should give you a better idea of what it will cost you to establish your farm,  eliminating guesswork while developing a business plan for your poultry venture.

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