Between Layers and Broilers, Which is More Profitable?

Should you invest in Layers or Broilers?

In the chicken industry in Kenya, there are three main sectors: Layers, which are the chicken bred and raised to produce eggs, or broilers, chicken raised and bred to be slaughtered meat and the indigenous breeds. Whatever sector you choose, you have to make the right decisions to make your chicken business a profitable one.

I have come across the question of which is the best enterprise between broilers and layers on several different occasions.

I will not give a direct answer. However, here is a simple calculation to help you make a right decision.

NOTE:

1. The calculation below is based on feeds only since it contributes to up to 80% of cost of production and does not cover costs of drugs, or building or labor and other overheads.
2. It is based on current market price which changes from time to time and should be used as a guide.

Broiler 500 birds

• Broiler starter costs Ksh 50 per kg fed for the first 3 weeks
• Broiler finisher costs Ksh 45 per kg fed for the remaining next 4 weeks.
• Mature bird is sold at Ksh 400

Maximum amount of broiler starter given to chicks per day = 100g

Maximum amount of broiler finisher feed fed to mature birds per day = 180g.

Cost of feeding broiler starter for 3 weeks = Ksh 52500

Cost of feeding broiler finisher for 4 weeks = Ksh 113,400

Total cost of feeds = Ksh 52500 + Ksh 113400 = Ksh 165,900

Revenue from Sale of 500 birds = Ksh 200,000

Gross Margin = Ksh 34, 100.

Profit per month = Ksh 17,050.

Layers 500 birds

Costs

• Chick mash @ Ksh 45/kg fed from wk 1 to wk 8
• Growers mash @ Ksh 30/kg fed from wk 9 to wk 19
• Layers mash @ Ksh 40/kg fed from wk 20 to wk 84
• One tray of egg sold for Ksh 320.

NOTE

1. Maximum amount of feed fed to chicks per day = 60g
2. Maximum amount of feed fed to growers per day=90g
3. Maximum amount of feed fed to layers per day=120g

• Cost of feeding Chick mash = Ksh 75,600
• Cost of feeding growers mash = Ksh 103,950
• Cost of feeding layers mash = Ksh 1,092,000

Total Feed costs = Ksh 1,271,550

Revenue from sale of eggs.

Laying percentage =85%

Total eggs collected for 455 days =193,375

Total crates =6446 × Ksh 320 (cost of one crate)

Total revenue = Ksh 2,062,720

Gross margin = Ksh 970,720

Profit per Month = 51,090

Conclusion

1. Therefore rearing layers is profitable in the long run, i.e in the two years.
2. You need to plan before investing in layers as your hens will stay for up to 18 weeks before starting laying meaning no revenue.
3. Hen can lay continuously  up 2 years with average percentage of 85%
4. Broilers reach market weight after 2 months.