EGGS FOR

FUNDING AND BUDGET FOR A POULTRY

EDUCATION FARM WITH 1000 LOCAL CHICKENS

MAY 2011 | Eggs For Education

Table of Contents
Table of Contents .................................................................................................................................... 2
Introduction............................................................................................................................................. 3
Explanation for the calculations of the annual profit ............................................................................. 4
Budget for the construction of a poultry house ...................................................................................... 5
Budget for other materials ...................................................................................................................... 6
Financial input to purchase 1000 chicks ................................................................................................. 7
Total financial input to build a poultry farm and purchase 1 000 chickens ........................................ 7
Layers....................................................................................................................................................... 8
Expenses for 500 layers ....................................................................................................................... 8
Income for 500 layers .......................................................................................................................... 8
Profit for 500 local layers: ................................................................................................................... 8
Annual profitability for 500 layers....................................................................................................... 8
Broilers .................................................................................................................................................. 10
Expenses for 500 broilers .................................................................................................................. 10
Income for 500 broilers ..................................................................................................................... 10
Profit for 500 broilers ........................................................................................................................ 10
Annual profit for broilers................................................................................................................... 10
Conclusion ............................................................................................................................................. 11

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Introduction
This document shows the preliminary budget for the
construction of a poultry house and 1000 local chickens.
The figures have been taken from documents showing the
past construction plan for Kisugu Primary School Poultry Farm
(which was quite expensive) and estimations made by staff at
Bukasa Primary School, where we asked a teacher that has
constructed poultry houses in the past for a cheaper solution.
Eggs for Education will gather more exact details and a
construction plan during their visit in Uganda in June 2011.
When you buy local chickens the sexes are not separated,
therefore you get ca. 50 percent layers and 50 percent
broilers. The numbers can change a bit but the calculations in
this document are for 50/50. It takes about 8 weeks before
you can separate the sexes from each other.
All prices are in Swedish Kronor (SEK), based on an exchange
rate from the summer 2009, when the
Ugandan Shilling was stronger than today’s, in case of
changes.
The conclusion is that it costs 66 401 SEK to construct a
poultry house and to reach full capacity with 1000 chickens.
After the investment the poultry farm will generate an annual
income of about 30 000 SEK.

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Explanation for the calculations of the annual profit
The poultry house will always be filled with around 1000 chickens. Every 23 weeks, the broilers will
be sold for consumption and new chickens will be purchased. Only the calculations for the first phase
of 500 layers will be shown in this budget, but note that more layers will be added every time a new
purchase of chickens is made. For example, after 23 weeks, 500 broilers will be sold and a new phase
of chickens bought. These will be mixed of around 250 layers and 250 broilers. After that phase of
broilers are sold, 250 chickens will be bought (125 layers and 125 broilers). This means that there will
be layers at different stages. In the annual profit, the sale of two phases of broilers has been
included.

52 weeks ( 1 year) has been chosen as an average to represent the annual profit for 500 layers and
750 broilers, although the amount of either sex will vary throughout the year.

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Budget for the construction of a poultry house

Item Price/unit Number Total

Site clearing 105 SEK 105 SEK
Foundation excavation 333 SEK 333 SEK
Aggregate 701 SEK /trip 2 1 402 SEK
Bricks 0,8 SEK 2500 2 000 SEK
Cement 105 SEK /bag 24 2 520 SEK
Sand 561 SEK /trip 4 2 244 SEK
Timber (for the roof) 53 SEK 78 4 105 SEK
Cutting of timber 9 SEK 9 SEK
Eukalyptus 12 SEK/unit 45 540 SEK
Treated posts 84 SEK/unit 13 1 092 SEK
Wire mesh 84 SEK/roll 10 840 SEK
Nails 18 SEK/kg 25 450 SEK
Iron sheets 77 SEK/unit 42 3 234 SEK
Ridges 7 SEK/unit 5 35 SEK
Door (frame and shutter) 561 SEK/unit 1 561 SEK
Transport 1053 SEK 1053 SEK
Wiring the poultry house 351 SEK 351 SEK
Miscellaneous 1404 SEK 1404 SEK
Labour 1754 SEK 1 754 SEK
GRAND TOTAL 24 032 SEK

It will cost 24 032 SEK to construct a poultry house

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Budget for other materials

Item Price/unit Number Total

Disinfection of the poultry house 105 SEK 105 SEK
Feeding troughs (small) 9 SEK 10 90 SEK
Feeding troughs (large) 18 SEK 15 270 SEK
Water troughs 18 SEK 15 270 SEK
Clay pots (for heat) 21 SEK 5 105 SEK
Boots 57 SEK 1 57 SEK
Laying nests 53 SEK 25 1325 SEK
Thermometer 70 SEK 1 70 SEK
Weighing scale 105 SEK 1 105 SEK
Measuring cup 35 SEK 1 35 SEK
Empty Trays for Eggs 158 SEK 158 SEK
Rake 35 SEK 1 35 SEK
Book of Accounts 484 SEK 1 484 SEK
Check book 35 SEK 35 SEK
GRAND TOTAL 3 144

An additional 3 144 SEK will be needed for other material.

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Financial input to purchase 1000 chicks
It takes 23 weeks for a hen to start laying eggs and for the broilers to grow big enough to sell. After
23 weeks no additional funding is needed and the poultry farm sustains itself.

The table below shows the budget that Eggs For Education is striving towards achieving in order to
buy 1000 chicks. It shows expenses up to 23 weeks.

Item Price/unit Number Total

Local chicks 3,5 1000 chicks 3 500 SEK
Feeds 1000 chicks 25 755 SEK
Vaccinations 1000 chicks 910 SEK
Saw dust 11 SEK / bag 40 bags 440 SEK
Charcoal 123 SEK / bag 50 bags 6 150 SEK
De-worming 1000 chicks 350 SEK
Fixed costs1 2 120 SEK
GRAND TOTAL 39 225

Cost for 1000 local chickens for the first 23 weeks: 39 225 SEK.

Total financial input to build a poultry farm and purchase 1 000 chickens
24 032 SEK + 3 144 SEK + 39 225 SEK = 66 402 SEK

Total financial input to build a poultry farm and purchase 1 000 chickens: 66 402 SEK

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Fixed costs includes payment for night watchman, phone bills, bank charges and transport. These
costs are more or less the same no matter the number of chicks in the poultry.

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Layers
Expenses for 500 layers
Below are the calculations for expenses for 63 weeks (the lifetime of a layer). Local hens start to lay
eggs after 23 weeks and then they lay for about 40 more weeks.

Item Price / unit Number Total

Chicks 3,5 SEK 500 1 750 SEK
Feeds for life 47 140 SEK
Vaccinations 455 SEK
Sawdust, charcoal, paraffin 3 900 SEK
De-worming 175 SEK
Fixed costs 3 180 SEK
GRAND TOTAL 56 600 SEK

Total expenses for 500 local layers for their whole life time: 56 600 SEK

Income for 500 layers

The estimated egg production rate for layers is 70 percent. This means that 500 layers lay ca 350
eggs/day or 2450 eggs a week. Each layer lays for 40 weeks which makes the lifetime production
from 500 layers= 98 000 eggs.

Eggs from Kisugu Primary School will mostly be sold in trays of 30 eggs. After 40 weeks, 500 layers
would have produced 3 266 trays. Each tray is sold for 21 SEK.

Item Price/unit Number Total

Eggs 21 SEK/tray (30 eggs) 3266 trays in 4 weeks 68 600 SEK
Off layers 28 SEK/ bird 500 14 000 SEK
GRAND TOTAL 82 600 SEK

Total income for 500 layers: 82 600 SEK

Profit for 500 local layers:

82 600 – 56 600 = 26 000 SEK

Total profit after 63 weeks: 26 000 SEK

Annual profitability for 500 layers

26 000 SEK ÷ 63 weeks = 412 SEK profit every week

There are 52 weeks in one year

412 SEK x 52 weeks = 21 424 SEK

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The annual profitability for 500 layers: 21 424 SEK

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Broilers
Expenses for 500 broilers

Item Price/unit Number Total

Chicks 3,5 SEK 500 1750 SEK
Feeds 13 840 SEK
Vaccinations 455 SEK
Sawdust, charcoal, paraffin 3200 SEK
De-worming 175 SEK
Fixed costs 1 070 SEK
GRAND TOTAL 20 490 SEK

Expenses for 500 broilers: 20490

Income for 500 broilers

A local broiler that is 23 weeks old may be sold at the price 53 SEK

53 SEK X 500 = 26 500 SEK

Income for 500 broilers: 26 500 SEK

Profit for 500 broilers

Since it costs 20490 SEK to rear 500 broilers. The calculations for the profitability are:

26500 – 20490 = 6010 SEK

Total profit for 500 local broilers after 23 weeks: 6010 SEK

Annual profit for broilers

After 23 weeks, 250 more broilers will be bought and sold when they are old enough to be
consumed.

500 layers from phase one + 250 layers from phase 2 = 750 layers in one year.

6010 ÷ 500 = 12 SEK

12 SEK x 250 broilers = 3 005 SEK

6010 SEK + 3005 SEK = 9015 SEK

The annual profit for 750 broilers: 9015 SEK

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Conclusion

Cost to start a poultry farm: 66 402 SEK

500 local layers profitability for 52 weeks: 21 424 SEK.
750 local broilers profitability for 52 weeks: 9015 SEK.
Total profitability per year for 1250 chicks: 30 439 SEK.
In a school with 1000 students: 10 SEK/term/student, or 30 SEK/year/student.
OR with term fees at 130 SEK, 230 school fees for free/term, or 80 students for
free/year.

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