Many poultry farmers calculate profit by subtracting feed costs from sales, but profitability requires accounting for every expense incurred throughout production. Real profitability starts here.

Record chick purchases, feed, vaccines, medications, labour, electricity, transport, litter, mortality, equipment depreciation, repairs, water, and other operating expenses carefully. Complete records reveal hidden costs.

Add all production expenses to determine your total cost, then calculate total sales from eggs, spent layers, broilers, manure, and products. This establishes your revenue.

Subtract production costs from total revenue to obtain net profit. Divide net profit by total cost and multiply by one hundred to determine your profitability percentage.

Also calculate cost per bird, cost per kilogram, mortality rate, feed conversion, and return on investment. These indicators reveal whether your enterprise is performing financially.

Remember, high sales do not automatically mean high profits. A poultry business controls costs, reduces avoidable losses, records transactions, and makes decisions using financial information.

Warm regards,

Abdullah Opeyemi Akande

B.Agric. (FUNAAB)

GAS (NIAS)

M.Sc. Animal Sci. (UI)

RAS (NIAS)

M.Sc. Int’l Business (UU, UK)

Ph.D. in view