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Writer's pictureFahad H

Practical Poultry Farm Business Performance Calculations

Introduction

In this text, I share VERY sensible, actual world related tips on efficiency measures you’ll be able to compute day by day, weekly, month-to-month and on the finish of yr to precisely decide at each stage whether or not your poultry farm enterprise is working optimally.

These efficiency indices are NOT mixture measures. In different phrases, they’re NOT measured in financial phrases. Instead they’ve NO models, being ratios, utilization charges and percentages that assist to (a) set up a standard pattern of your farms’ behaviour (b) rapidly determine/detect departures from that pattern, as a way to take well timed/corrective motion.

Note that these measures are tried and examined, and are literally constructed right into a customized spreadsheet software program software I constructed for a consumer who runs a Twelve thousand (12,000) layer poultry farm enterprise.

You Can Quickly & Easily Compute Performance Indicators To Check Your Farm’s Health

It would curiosity you to know that this consumer really at the moment does ALL knowledge entry into the software program software on his laptop computer, utilizing stuffed copies of a customized file protecting kind I designed (following a farm go to that concerned a overview of present/wanted information) to be used by the farm employees DAILY.

He as soon as shared with me how he detected some anomalies in knowledge recorded by the supervisor, by utilizing the robotically computed efficiency indices within the software program.

The level being made right here is that KNOWING the efficiency measures you’ll be able to calculate to CHECK how properly your farm is doing when it comes to OPERATIONS and FINANCES, is essential.

You can do it your self, because the calculations are literally easy and straightforward to make use of. However, once you handle a big (or rising) farm enterprise, you could get to a degree the place it could be extra worth including, in the event you saved your self the effort of getting to do such computations manually.

Instead, you’ll be able to automate their computation(utilizing customized software program like mine), and spend your time doing extra clever managing of your farm enterprise by learning the developments in your efficiency indices over time, in order to take well timed/impact selections that result in total profitability.

Here are three (3) VERY helpful Poultry Farm Business efficiency measures it’s best to know and use usually:

1. Mortality Rate (%)

In the course of the laying cycle for a batch of birds on a poultry farm, there might be deaths or losses that happen for quite a lot of causes. Could be illness outbreak, fireplace, predators and so on. What is vital is that measures be put in place to stop a re-occurrence.

Then correct documentation of such losses must be executed, with wanted inventory information changes being made.

There is NO farm that won’t have mortalities. However, the farm administration must preserve it to a minimal. You will have the ability to monitor the mortality charge simply by computing it day by day. That means, you’ll be able to detect any adjustments, taking well timed motion, in order that there are not any surprises on the month finish!

Incidentally, once you preserve observe of this index, you will discover it simpler to reconcile in any other case sudden drops in eggs manufacturing.

To calculate Mortality Rate (%):

Number of birds useless x 100 ———————– (Opening Stock + Closing Stock of layers) x 0.5

2. Hen Day Production (%)

Properly documented information of mortalities will support correct estimation of Hen Day manufacturing – which is the variety of eggs produced divided by the entire variety of laying birds on the farm throughout the interval thought of, assuming every fowl lays an egg per day.

It is well-known {that a} fowl really takes about 26 hours to put one other egg after a previous one. This is why we don’t count on to set a goal of 100% Hen Day manufacturing for our flock. It can be affordable as an alternative to count on that 80 to 90% of the birds will lay eggs every day, in order that if our calculations yield outcomes inside that vary, it could counsel moderately passable efficiency.

To calculate Hen Day manufacturing (%):

Number of eggs produced x 100 ———————– (Opening Stock + Closing Stock of layers) x 0.5

Your Hen Day manufacturing will drop in a fashion reflective of mortalities recorded, except you calculate as proven above. Understanding this may show you how to examine your outcomes with different farms that will not be acutely aware of this refined distinction.

Note that this calculation methodology helps you actually confirm whether or not or not your birds are getting much less productive, because it prevents the losses that happen from making these birds nonetheless alive look like laying much less steadily – one thing that may make you begin worrying or taking in any other case unneeded corrective actions.

3. Feeding Rate (grammes per fowl)

Available information from farms and literate all point out that every laying fowl ought to eat about 100 to 105 grammes day by day.

To calculate Feeding charge (grammes per fowl):

Total Kilogrammes feed x 1000 x 100 —————————— (Opening Stock + Closing Stock of layers) x 0.5

Using the entire Kilogrammes transformed to grammes) fed to your laying birds to divide the entire variety of birds managed day by day will let you know how properly they’re feeding; if they’re underfeeding or being over fed.

Each situation has its personal implications. Underfeeding may result in poor laying; over feeding interprets to waste – and naturally larger price of manufacturing, which you positively wish to keep away from lest you eat into your revenue margins!

By calculating your feeding charge for every battery cage or pen day by day, you’ll be able to rapidly verify and ensure if the birds are getting the correct quantity of meals wanted. It would additionally show you how to observe your steadiness shares of feed, and subsequently support planning for brand new purchases.

IMPORTANT NOTES:

1). To obtain a “weighted” – and subsequently extra sensible – end result, the formulation outlined above use a derived common of the sum of the opening and shutting shares of laying birds, as denominator.

2). If you do NOT have a dependable paper based mostly farm knowledge recording system diligently saved by your competent employees on the farm, you’ll NOT have the ability to rely on no matter outcomes you get from computing these efficiency indices. It can be like it’s usually stated for the pc: Garbage In, Garbage Out (GIGO)!

SUMMARY

Lots of people run poultry farm companies out right here. Many plan to start out. A quantity are hoping to borrow cash from banks, or pals/family to launch theirs. Unfortunately, very FEW – identical to their catfish farming counterparts – have ANY data of what it takes to intelligently mange the enterprise knowledge evaluation elements of their ventures.

A sound data of how one can measure the operational efficiency of your farm enterprise is important for making certain long run success. The three indices I’ve mentioned above may help you on this regard. Learn to make use of them.

But that’s simply ONE facet to it. You additionally must know how one can measure the monetary efficiency of your farm enterprise – and presumably examine it to different farms or perhaps a generic commonplace.

There are at the very least three monetary efficiency ratios that may be computed to let you know in case your farm enterprise is rising or NOT.

They will let you know when you have executed higher on the finish of this yr as towards final yr or two (2) years earlier than. They may also inform those that put money into what you are promoting, (or who need/plan to) how financially sturdy your farm enterprise is – in comparison with final yr and so on.

If you wish to BUY a farm enterprise, it would be best to know how one can compute these three (3) ratios, to make sure your funding is worth it!

Note that the monetary ratios I point out are NOT mixture measures just like the Income Statement (also referred to as the Profit and Loss report) or the Net value Statement (aka Balance Sheet). They are measures which are NOT unit based mostly, which make them (like these farm operations measurement indices mentioned above) simple to make use of for comparability.

You can get a particular report detailing how one can compute these very highly effective farm enterprise monetary efficiency ratios from me.

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