Chicks

Objectively Determining a Chicken Sale Price: Part 2

Here are the quotes on bulk retail prices from the local feed mill.

Bulk, retail Quotes from Feed Mill
soybean 519 /ton
cornmeal 194 /ton
wheat mids 184 /ton
ground limestone 110 /ton
alfalfa meal 484 /ton
trace vitamins 60.35 /50 lb use at 5 lb/ton
salt 6.15 /50 lb use at 5 lb/ton
locally roasted soybeans 508 /ton 30% Protein and 20% Fat
probiotic
kelp from acadia 59.75 /50 lb 10-20/ton

By linking the percentage make up of desired ration (from Polyface Farms ration), I can get a estimate of the costs per 50 pound bag

My desired Ration
Ration Percentage Price per mixed ton Price per mixed 50 lb bag Substitutions Notes
Corn 52% 100.88 2.522
Roasted Soybean 29% 147.32 3.683 Soybean meal, cottonseed meal
Crimped oats 11% 20.24 0.506 Whole oats using wheat midds for now
Limestone 1% 1.1 0.0275
Fishmeal 3.50% not mentioned by feedmill Protein booster, not availible from rockingham
Kelp 0.50% 11.95 0.29875 Probably Topdress, unless increases to replace nutrient
Probiotic 0.10% Probably Topdress (fast track)
Nutrient booster 3% 72.42 1.8105 Maybe salt + Kelp + trace vitamin? See PDFs
100% Total 353.91 8.84775

Seeing it will cost me around $9 per 50 bag at retail prices, I can use the chart provided in my previous post to estimate the cost to feed an individual broiler chicken in its lifetime.

Age Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Total # of Bags
One Bird 4.2 oz. 9.2 oz. 3.7 oz. 18.8 oz. 26.1 oz. 34.5 oz. 38.5 oz. 42.6 oz. 46.5 oz. 14.63 lbs.
25 Birds 6.56 lbs. 14.38 lbs. 21.41 lbs. 29.28 lbs. 40.78 lbs. 53.91 lbs. 60.16 lbs. 66.56 lbs. 72.66 lbs. 7.32 bags
50 Birds 13.13 lbs. 28.75 lbs. 42.81 lbs. 58.75 lbs. 81.56 lbs. 107.81 lbs. 120.31 lbs. 133.13 lbs. 145.31 lbs. 14.63 bags
100 Birds 26.25 lbs. 57.5 lbs. 85.63 lbs. 117.5 lbs. 163.13 lbs. 215.63 lbs. 240.63 lbs. 266.25 lbs. 290.63 lbs. 29.26 bags

The above chart from The Organic Feed Store shows that I will need a maximum of 14.63 pounds of feed per chicken in its lifetime.

Next in raising my broilers is moving a pen and refilling feed/water. A total of a half hour per day spread across the 75 birds per pen. Processing a 75 bird batch will take around 4 hours assuming my scalder/plucker builds are successful.

Hours Labor description
0.5 Labor for moving/feeding per day per 75 birds
0.006666667 ^ Per day single bird
60 Days birds are alive
0.4 Labor per bird over its lifetime
4 Processing labor for 75 birds
0.053333333 Processing labor for 1 bird
0.453333333 Total Labor per bird

From brooding to processing, the birds will need to be feed a maximum of 60 days in their lifetime so each bird will take .45 hours of labor to raise.

Adding up the feed and sourcing costs, I can figure my bottom line.

Bottom Line
2.23 Cost of chick at 50 Per order
0.5348 Cost of shipping per chick
5.35365165 Total cost of Chick in lifetime
90% 10% Loss Factor Constant
3.5 Average Dressed Weight
3.5 Price charged per pound
6.206713515 Profit
13.69127981 Hourly Wage

NOTE: I EDITED THIS CALCULATION TO CHANGE MORTALITY RATE TO 10% AFTER MORE RESEARCH

Manually inputting various pricing per pound, I found that $3.50 will provide an hourly wage of almost $15. Keep in mind that all estimated cost are done conservatively and the birds should source 20-30% of their feed directly from the pasture. Any increase in efficiency, decrease in feed costs, minimizing of losses etc. will give me a raise. As a centerpiece of my farm operation, seasonal pastured broiler production will support my desired lifestyle while I explore additional avenues for income.

 Here is a link to Google docs for my spreadsheet if you wish to download it.

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3 thoughts on “Objectively Determining a Chicken Sale Price: Part 2

    • I have! My figures above are for my commercial production after a few test batches. I factored in 2% for a starting point while being fully aware I could exceed that in my first batches (and beyond and will have to revise the calculations if that proves to be the case). I’ve also read that aerating the bedding between batches of chicks in the brooding pen rather than replacing it has shown to reduce mortality rates. From my little research, it is suspected that beneficial microbes and fungi help the chicks immune systems but I haven’t found a concrete or peer reviewed source that would warrant a full blog post. But keep in mind I will keep a minimum of 12-18″ of bedding in the brooding pen at all time to absorb the nutrients and ammonia.

      Liked by 1 person

  1. Pingback: Easy to Raise Protein for Chickens | thegreenergrassfarm

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