How to Calculate Profit in Poultry Farming

Poultry farming is one of the most rewarding agribusinesses, offering farmers an opportunity to earn consistent income through egg or meat production. However, many farmers struggle to determine whether they are truly making a profit. Understanding how to calculate profit accurately is essential for managing your farm effectively, making informed decisions, and growing sustainably.

In this comprehensive guide, we’ll walk you through the essential steps to calculate profit in poultry farming, break down important cost categories, and share tips to improve profitability.

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💼 What Is Profit in Poultry Farming?

Profit is the amount of money left after subtracting all expenses from your total income. In poultry farming, profit is the difference between your total revenue (money earned from selling eggs, birds, manure, etc.) and the total cost of raising and maintaining your flock.

Profit Formula:

Profit = Total Revenue − Total Expenses

If the result is positive, you made a profit. If it’s negative, you incurred a loss.

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📈 Step 1: Determine Your Total Revenue

Revenue in poultry farming can come from different sources depending on your production type.

For Layers:

• Egg sales (daily or weekly basis)

• Sale of spent layers (after 12–18 months)

• Manure sales (organic fertilizer)

• Feathers (optional)

For Broilers:

• Sale of live or dressed birds (after 5–7 weeks)

• Manure sales

For Both:

• Value-added products like smoked or packaged meat

Example (Broilers): Let’s say you raised 100 broilers and sold each for KES 500:

Total Revenue = 100 birds × 500 = KES 50,000

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👥 Step 2: Calculate Your Total Costs (Expenses)

Costs are usually divided into two categories:

• Fixed Costs: Costs that don’t change with the number of birds.

• Variable Costs: Costs that increase with flock size.

🏡 Fixed Costs:

• Housing construction or rent

• Equipment (feeders, drinkers, cages)

• Brooder setup (heat source, thermometer)

• Land lease (if applicable)

• Salaries (if you employ labor)

🌾 Variable Costs:

• Chicks or pullets purchase

• Feed (starter, grower, finisher/layer mash)

• Water and electricity

• Vaccination and medication

• Bedding materials (sawdust, straw)

• Transport

• Marketing

• Miscellaneous supplies (disinfectants, charcoal, etc.)

Example (Broilers): You raise 100 broilers. Below is your cost breakdown:

Expense Item	Unit Cost (KES)	Quantity	Total Cost (KES)
Chicks	100	100	10,000
Starter Feed (50kg)	3,000	2 bags	6,000
Finisher Feed (50kg)	3,000	4 bags	12,000
Vaccination/Medicine	500	-	500
Bedding	500	-	500
Transport	1,000	-	1,000
Electricity/Water	500	-	500
Labor (if hired)	2,000	-	2,000
Equipment (amortized)	2,000	-	2,000
Total Expenses			34,500

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🥇 Step 3: Calculate Net Profit

Now subtract your total expenses from your total revenue:

Net Profit = Revenue (KES 50,000) - Expenses (KES 34,500) = KES 15,500

This means your poultry venture made KES 15,500 in profit.

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📊 Step 4: Calculate Profit Per Bird

To evaluate performance more precisely, calculate profit per bird:

Profit per Bird = Total Profit ÷ Number of Birds
                = 15,500 ÷ 100 = KES 155

You can use this figure to plan your next cycle, set price targets, or adjust your input costs.

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🔍 Bonus: Calculating Break-Even Point

The break-even point is when total revenue equals total cost – you make neither a profit nor a loss. It's important for planning and risk management.

To find your break-even price per bird:

Break-even Price = Total Cost ÷ Number of Birds
                 = 34,500 ÷ 100 = KES 345

So, you must sell each bird at a minimum of KES 345 to avoid losses.

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📅 Keep Records for Accuracy

Good recordkeeping is essential for accurate profit calculations. Keep track of:

• Number of chicks purchased

• Quantity and cost of feed used

• Medication and vaccination expenses

• Mortality rate

• Daily egg collection (for layers)

• Sales and payment records

Using a farm diary, spreadsheet, or mobile app can make this easier and help you spot trends or areas of improvement.

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🚀 Tips to Increase Profitability

1. Buy feed ingredients in bulk to reduce cost.

2. Mix your own feed if you have the expertise.

3. Reduce chick mortality through proper brooding and hygiene.

4. Vaccinate on time to prevent disease outbreaks.

5. Sell directly to consumers to maximize earnings.

6. Add value by selling processed meat or eggs.

7. Recycle waste (use manure for crops or sell to farmers).

8. Keep efficient breeds with fast growth and high feed conversion.

9. Utilize kitchen scraps or green forage to supplement feed.

10. Raise birds during high-demand seasons (e.g., December).

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📖 Case Study: Profit from 200 Broilers

Item	Amount (KES)
Revenue (200 x 550)	110,000
Expenses	68,000
Net Profit	42,000
Profit per bird	210
Break-even price	68,000 ÷ 200 = 340

This farmer exceeded the break-even price and earned a good profit due to efficient management.

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🔧 Tools to Help with Profit Calculation

• Excel spreadsheets (manual tracking)

• Mobile apps (e.g., Agrikore, SmartFarm)

• Farm accounting software (for larger operations)

• Notebook or farm diary (for handwritten entries)

Choose what works best for your farm size and comfort level.

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📝 Final Thoughts

Profit calculation is not just about numbers – it's about making smart decisions that improve your farm's performance. By understanding your income and expenses clearly, you can:

• Identify areas where you're overspending

• Set proper selling prices

• Plan for future growth

• Access loans or grants with accurate reports

Whether you're raising 50 layers or 1,000 broilers, calculating profit empowers you to farm with confidence and sustainability.

🖬️ "What gets measured, gets managed." Start tracking your poultry profit today and turn your passion into a successful business!

Recycle waste (use manure for crops or sell to farmers).

 

Keep efficient breeds with fast growth and high feed conversion.

 

Utilize kitchen scraps or green forage to supplement feed.

 

Raise birds during high-demand seasons (e.g., December).

 

📖 Case Study: Profit from 200 Broilers

Item       Amount (KES)

Revenue (200 x 550)       110,000

Expenses             68,000

Net Profit            42,000

Profit per bird    210

Break-even price              68,000 ÷ 200 = 340

This farmer exceeded the break-even price and earned a good profit due to efficient management.

 

🔧 Tools to Help with Profit Calculation

Excel spreadsheets (manual tracking)

 

Mobile apps (e.g., Agrikore, SmartFarm)

 

Farm accounting software (for larger operations)

 

Notebook or farm diary (for handwritten entries)

 

Choose what works best for your farm size and comfort level.

 

📝 Final Thoughts

Profit calculation is not just about numbers – it's about making smart decisions that improve your farm's performance. By understanding your income and expenses clearly, you can:

 

Identify areas where you're overspending

 

Set proper selling prices

 

Plan for future growth

 

Access loans or grants with accurate reports

 

Whether you're raising 50 layers or 1,000 broilers, calculating profit empowers you to farm with confidence and sustainability.

 

🖬️ "What gets measured, gets managed." Start tracking your poultry profit today and turn your passion into a successful business!