Poultry Business – SS1 Livestock Farming Lesson Note (Second Term)

Poultry business is the running of a poultry farm to make a profit.

• Profit: total sales are higher than total expenses.
• Loss: total expenses are higher than total sales.
• Main tasks: finding out where the money goes, keeping records, and selling broilers and eggs at good prices.

Behavioural objectives

By the end of the lesson, students should be able to:

1. Explain the difference between fixed costs and variable costs in a poultry farm.
2. Calculate profit or loss from total sales and total expenses.
3. List the types of records a poultry farmer keeps and say why they matter.
4. Describe how broilers are marketed.
5. Describe how eggs are graded, packaged and sold.

Why does a poultry farmer need to manage money?

A poultry farmer must manage money because a farm that spends more than it earns will close down.

• Healthy birds are not enough: the farmer must also be a good businessman or businesswoman.
• Track money: know what comes in and what goes out.
• Keep records: write down what happens on the farm.
• Sell well: sell products at a price that gives a profit.

What costs does a poultry farmer have?

A poultry farmer has two kinds of cost: fixed costs and variable costs.

• Capital: the money needed to start the farm.
• Operating costs: the money spent regularly to run the farm.

What are fixed costs?

Fixed costs are big, one-time expenses used to set up the farm.

• Poultry house: building the pen.
• Equipment: feeders, drinkers and crates.
• Generator or water tank: for power and water supply.

What are variable costs?

Variable costs are expenses that are paid regularly and change with the number of birds kept.

• Day-old chicks: the cost of buying the chicks.
• Feed: the biggest expense, often about 70% of the total cost.
• Medication and vaccines: keep the birds healthy.
• Labour: wages for people who help on the farm.
• Electricity and water: paid for as they are used.

What is the difference between fixed and variable costs?

How is profit or loss worked out?

Profit = Total sales minus Total expenses.

• Profit: the answer is a positive number, because sales are higher than expenses.
• Loss: the answer is negative, because expenses are higher than sales.
• Total expenses: add all fixed and variable costs for the period.

Worked example

1. Cost of chicks: ₦20,000. Cost of feed and medicine: ₦60,000.
2. Total expenses = ₦20,000 + ₦60,000 = ₦80,000.
3. Total sales from the birds = ₦120,000.
4. Profit = ₦120,000 minus ₦80,000 = ₦40,000.

How can a farmer reduce waste?

• Feed waste: prevent birds from spilling feed on the floor.
• Deaths: good care and vaccination reduce the loss of birds.
• Broken eggs: use strong crates and handle eggs gently.

Why should a poultry farmer keep records?

A poultry farmer keeps records because no one can remember every detail of the farm.

• Progress: records show whether the farm is improving.
• Disease warning: a sudden drop in feed eaten or eggs laid can show that a disease is starting.
• Money control: records show where money is spent and earned.
• Planning: past records help the farmer plan the next batch of birds.

What types of records does a poultry farmer keep?

A poultry farmer keeps four main types of records: production, feeding, health and financial records.

• Mortality: the number of birds that die. A high figure warns of disease or poor care.

How are broilers marketed?

Broilers are birds reared for meat, and they are sold at the right time, at the right weight and in the right form.

• Target the festivals: prices rise at Christmas, Easter, Sallah and New Year because demand for chicken is high.
• Weight matters: customers prefer heavy-looking birds, so good feeding at the finisher stage is important.

What are the ways of selling broilers?

There are two ways of selling broilers: as live birds or as dressed birds.

1. Live birds: sold directly in the open market.
2. Dressed birds: killed, cleaned and frozen, then sold to supermarkets, hotels or restaurants.

• Price: dressed birds sell for more because the farmer has done the extra work of cleaning them.

How are eggs marketed?

Eggs are a daily business, because hens lay every day and eggs must be sold before they spoil.

What steps are followed before eggs are sold?

1. Collect: pick up the eggs from the nests regularly.
2. Remove bad eggs: set aside cracked or dirty eggs.
3. Grade: sort the eggs into sizes: large, medium and small.
4. Pack: place them in clean, strong crates.
5. Sell: take them to customers quickly.

• Grading: sorting eggs by size. A crate of large eggs brings more money than a mixed crate.
• Packaging: broken eggs are lost money, so use crates that protect them.

Who buys eggs?

There are four main types of egg customers: wholesalers, retailers, direct consumers and confectioneries.

1. Wholesalers: people who buy many crates at once to resell in the market.
2. Retailers: small provision shops and egg hawkers.
3. Direct consumers: neighbours and people who buy for their homes.
4. Confectioneries: bakers who need many eggs for cakes and bread.

What tips help a farmer win in the poultry market?

A farmer wins in the poultry market by being honest, selling waste products and growing the farm slowly.

1. Be honest: make sure a crate of 30 eggs has no cracked or rotten egg. A good name brings customers back.
2. Sell the waste: bag poultry droppings and sell them to vegetable farmers as organic manure. This is extra profit.
3. Start small: do not start with 1,000 birds if you have never kept 10. Learn with a small number, then grow.

Evaluation

1. Name two fixed costs and two variable costs of keeping poultry.
2. Math challenge: A farmer bought 50 chicks for ₦30,000 and spent ₦70,000 on feed and medicine. He sold all the grown birds for ₦150,000. Calculate his profit.
3. Why is it important to record when a bird dies (mortality)?
4. State two ways of selling broilers.
5. List four types of records kept on a poultry farm.

Assignment

Interview a local poultry farmer or an egg seller in the market. Ask them: “What is the biggest problem you face when trying to sell your products?” Write down their answer.