Profitability analysis of egg production business.

[Etini]

Doctors recommend that every person should eat at least one egg a day. Eggs are very nutritious and are used for a wide variety of purposes ranging from hair stimulants to beauty products. The demand for eggs is so huge. So here I am going to show the profitability of producing eggs.

To produce eggs, one needs to farm hybrid commercial layer hens. They are many species as brands of these hens. There are two ways of sourcing these egg machines. The first way is to buy what we call Point of Lay. With this kind of operation, you buy mature chickens that have been raised to maturity. With these hens on your farm, egg production would kick-start in a week or two. Let's look at the costs for 100 chicks

Cost of Chicks:
$6/chick= $600

If production is at 85%, you would be having 85 eggs a day. And you sell one egg at $0.12.

You would have $0.12*100= $12. This minus
Cost of feeding/day= $7.
Daily profit= $5/day

Note that the hens produce eggs for one year. That is $5*365= $1825.
Net profit for one year= $1225.

We can say that egg production is very profitable. And as the scale increase, it becomes more profitable.

 

[niche]

The cost of the hens will vary depending on the country, in some countries, chicks can be purchased for $1 in some cases. However, the main problem is that some of the chicks will die, especially if the person taking care does not have much experience. Additionally the business owner also has to invest money in cages, and spend time feeding the chicken, cleaning the cages.