ECONOMICS OF BROILER

RAISING
Process Flow of Live Operations
Poultry Growing
Imported Grand Parent Stock Operations
from USA and Europe
(25 weeks)
Brooding
(3weeks)
Hatchery Growing
(3 weeks) (1week)
Finishing
(1week)
Parent Stock
(25 weeks) Processing Plant

Hatchery
(3 weeks) Consume rs
(Total 61weeks ) 2
POULTRY FARMING TODAY HAS BECOME SPECIALIZED OPERATION

housing
Significant
and husbandry
Scientific
Advances disease controls

nutrition (feeds and feeding)

From 40 grams at day old chick

What should our efficiencies be?

Poultry Broiler

➢Meat Type
➢Tunnel Vent/Controlled Climate System

Sisiw Day 1-Day 7-Day 14-Day 21-Day28

Harvest
1.615 kg at 28 days
2.273 kg at 35 days
2.563 kg 38 days Under local conditions
Curtains

Flaps / Saya
 HIGHLIGHTS OF OPERATIONS

Chicken Feeds

Pork Beef Value-Added Meats

Controlled Climate System

Controlled Climate System
Processed Meats

(CCS)
(CCS) Butter Margarine Cheese

SAN MIGUEL CORPORATION Coconut oil

SMFG-AGRIBUSINESS

“Tunnel Ventilation with

“Tunnel Ventilation with
evaporative cooling”
evaporative cooling”

7
• What is tunnel
ventilation?
• Tunnel ventilation is a system where
exhaust fans are located at one end of the
house and two large openings are installed
at the opposite end.
• Air is drawn through these openings, down
the house, and out the fans, like a wind
tunnel (
 HIGHLIGHTS OF OPERATIONS

Chicken Feeds

Pork Beef Value-Added Meats

Processed Meats

Butter Margarine Cheese

SAN MIGUEL CORPORATION Coconut oil

SMFG-AGRIBUSINESS

SAN S

nd speed,
At the proper wind speed, animals
animals feelfeel cooler
cooler and more
and more comfortable…
comfortable…
thus, they are healthier and grow faster.

8
• Air movement is one of the most effective
methods of cooling birds during hot
weather.
• As air moves over a bird’s hot body, heat is
removed from the bird, making it feel
cooler.
• The greater the amount of air movement,
the greater the cooling effect produced.
Cooling produced through air movement is
commonly referred to as the “windchill
effect”.
Feed intake decreases during heat stress
Situations of stress and/or illness
1. Increase of nutrient requirements in the body (e.g.
of amino acids for acute phase response)
2. Decrease in feed intake
3. Shortage in nutrients => ‘nutrient supply gap’
Temperature related processes
 Causes of heat stress
▪ High environmental temperatures
▪ High production performance: high growth
▪ High activity of metabolic processes
▪ Small skin surface per kg body weight
▪ Density in area
▪ Heat stress cause both fluid and electrolyte
imbalances that need to be corrected
 Symptoms of heat stress
▪ Elevated body temperature
▪ Respiratory rate increases
▪ Higher oxygen demand
▪ Evaporative cooling
▪ Lower blood CO2 levels
▪ Change acid-base balance (electrolyte)
▪ High water intake
13
 HIGHLIGHTS OF OPERATIONS

Chicken Feeds

Pork Beef Value-Added Meats

Definition
Processed Meats

Broiler
BroilerGrowing -a business
Growing endeavor
-a business between
endeavor an
between an
investor or “Grower” and San Miguel Foods,
Butter
investor or “Grower” and San Miguel Foods, Inc. Inc.
Margarine Cheese

wherein,
wherein, SAN MIGUEL CORPORATION Coconut oil
SMFG-AGRIBUSINESS

Grower provides the land, housing, water, power, labor

Grower
and provides the land, housing, water, power, labor
farm management;
and farm management;
SMFI provides the chicks, feed, medicine and vaccine,
technical support,the
SMFI provides delivery & harvest,
chicks, and payment
feed, medicine and vaccine,
schedule.
technical support, delivery & harvest, and payment
schedule.
4
 HIGHLIGHTS OF OPERATIONS

Chicken Feeds

Pork Beef Value-Added Meats

Definition Processed Meats

Grower focuses on the “farming side”. The farms’ output

Butter Margarine Cheese

are broilers.
Grower focuses on the “farming side”. The farms’ output
Coconut oil
are broilers.
SAN MIGUEL CORPORATION
SMFG-AGRIBUSINESS

Income is derived from farm production efficiencies;

it is NOT AFFECTED by market price or demand
Income is derived from farm production efficiencies;
Fluctuations
it is NOT AFFECTED by market price or demand
fluctuations
A Sure and Steady income!
A Sure and Steady income!
5
 HIGHLIGHTS OF OPERATIONS

Chicken Feeds

Pork Beef Value-Added Meats

Processed Meats
Definition
d Climate System (CCS)
Butter
nel -the use of tun
Margarine Cheese

Controlled Climate System (CCS) -the use of tunnel

on with
ventilation withevaporative cooling.
evaporative cooling. SAN MIGUEL CORPORATION Coconut oil
SMFG-AGRIBUSINESS

The goal CCSisintoin

of CCS the
themodern
modernproduction houseis to
production house
animals
keep the animals in in
or or near
near their
their comfort
comfort
temperatureturezonezonewherein theythey
wherein can optimize the the
can optimize
use of feededforfor
growth.
growth.

6
 9

CONVENTIONAL POULTRY HOUSE

 10

CONVENTIONAL HOUSE EQUIPMENT

CONVENTIONAL POULTRY HOUSE 11
 Ideal Temperature Curve for Broilers

37.7*C

26.6*C

15.6*C

Reference: Elanco Monteban brochure AI9313 (05/02)

12
CLIMATE CONTROLLED SYSTEM BROILER HOUSE 14
 HIGHLIGHTS OF OPERATIONS

Chicken Feeds

Pork Beef Value-Added Meats

Standard Broiler House

Standard Broiler House Processed Meats

Butter Margarine Cheese

Recommendedd volume
volume: : 36,000
36,000bird
bird space
space
SAN MIGUEL CORPORATION Coconut oil

fications : East West orientation

SMFG-AGRIBUSINESS

Design specifications : East West orientation

52 ft. width
52 ft. width
450 ft. length
450 ft. length
Broiler House
Broiler House
with Controlled Climate System(CCS)
and plasticwith Controlled Climate System(CCS)
slats.
( and plastic slats.

26
CONTROLLED CLIMATE SYSTEM BROILER HOUSE
15
 16

CCS POULTRY FARM

 16

CCS POULTRY FARM

 17

CCS POULTRY FARM

CONTROLLED CLIMATE SYSTEM BROILER HOUSE 18
 19
CONTROLLED CLIMATE SYSTEM POULTRY FARM
CONTROL ROOM 20
WATER MEDICATOR 21
FULLY AUTOMATED FEEDING AND WATERING SYSTEM 22

WITH PLASTIC SLATS

TEMPERATURE AND HUMIDITY SENSORS 23
 24

2 DAYS BEFORE HARVEST

 CARGILL JOY

RETURN ON INVESTMENT
CAPITAL INVESTMENT (HOUSE ONLY) 12,000,000
FLOOR AREA (52X400) 20,800
STOCKING DENSITY 0.54
LOADING CAPACITY 38,688
ANNUAL NUMBER OF CYCLES 7.00

AMORTIZATION PERIOD 5
ANNUAL AMORTIZATION 2,400,000
ANNUAL HARVEST 258,629
AMORTIZATION PER HARVESTED BIRD 9.28

POTENTIAL GROWER’S FEE 21.57

FARM OPEX PER BIRD 9.42
POTENTIAL INCOME AFTER FARM OPEX 12.13
ROI 26%
Objective

• Raise broilers efficiently at the

cheapest cost.
• Provide good management or
husbandry practices.
Major Components
Major Components

• Facilities and Equipment

• Feeds
• Day old chicks
• Manpower
• Medicines/ vaccines
• Miscellaneous farm supplies
Major Components

• Facilities and Equipment

• Feeds
• Day old chicks
• Manpower
• Medicines/ vaccines
• Miscellaneous farm supplies
 Facilities
• Land & Housing
• Minimum of 1 hectare to house 20,000
birds
• Ideally segregated for biosecurity
• Cost of building is P150-200/sq foot
• 1 – 1.2 ft2 per bird (conventional)
 Facilities
• Other facilities
• Water Supply
• Power Supply
• Feed Bodega (min. capacity of 3 days
peak consumption)
• Generator
• Stock room
 Equipment
• Feeders
• Approximately 40 feeders per 1000
birds (14 inch dia.). More for smaller
diameter.
• Linear Chick feeders (20 per 1000 – 3
ft long)
 Equipment
• Waterers

• Gallon drinkers (20 per 1000)

• Basin Drinkers (35 – 40 per 1000, 16
inch diameter)
• Bell Drinkers (15 per 1000)
 Equipment
• Others

• Weighing scales (25 kg cap; 2 kg cap)

• Sprayers (power sprayer ; backpack)
• Infrared heaters (1:1000)
• Brooder guards
Pre-Loading Checklist

Brooding Placement Design

Brooding Set-UP
Brooder Set-Up

5 ft-7.5 ft
Temperature and Relative Humidity
Temperature and Relative Humidity
Brood Chamber Stocking Density
Major Components

• Facilities and Equipment

• Feeds
• Day old chicks
• Manpower
• Medicines/ vaccines
• Miscellaneous farm supplies
 Feeds
• Proper nutrition is needed to attain
the full genetic potential of the
birds.
• Accounts for 70-75% of the total
cost of production.
• Must be of good quality.
• From a reliable source.
Feeding Management

• Automatic Feeder
Feeding Management

Always Practice Proper Transition

Old:New 75:25 , 50:50 , 25:75

PELLET

CRUMBLE
Water Management

• Nipple Drinker (Automatic)

Water Management

• Bell-Type Drinker
 Broiler Feeding Program
• Chick Booster – 14 days
~300kg, ~500 L of water / 1000 birds
• Broiler Starter – 14 days
~1500 kg, ~1200 L of water / 1000 birds
• Broiler Finisher – 7-14 days
~1500 kg, ~2000 L of water / 1000 birds

Average ~3.3 tons of feeds / 1000 birds

Therefore, 60-65 bags / 1000 birds
 Feeds

Regimentation:
• Chick booster = 5
• Broiler starter = 10
• Broiler grower = 15
• Broiler Finisher = 30
Feeding Guide and
Performance Targets
Age Depletion Feeds (b/k) ALW FCR
7 1.50 2.82 150 0.94
14 2.01 9.02 362 1.25
21 2.68 20.02 693 1.44
28 3.47 35.62 1085 1.64
35 4.50 53.91 1506 1.79
40 5.34 68.22 1814 1.88
Feeding Guide and
Performance Targets

Age Depletion Feeds (b/k) ALW FCR

7 0.59 2.52 155 0.81
14 1.16 10.04 418 1.20
21 1.69 23.23 819 1.42
28 2.23 40.34 1253 1.61
36 3.89 62.86 1763 1.78
Major Components

• Facilities and Equipment

• Feeds
• Day old chicks
• Manpower
• Medicines/ vaccines
• Miscellaneous farm supplies
 Day old Chicks

• Day old chicks

• Must come from a reliable supplier
• Class A in quality ( not less 40 )
• Reasonable costs
• Free from defects and
abnormalities.
Chick In (Loading)

• Chick Quality
Chick Placement

• Source
• Class/Type of
Chicks
• Population
• Location
Proper Brooding
Lighting
Post-Loading Checklist
Post-Loading Checklist
• INTERNAL CHICK TEMPERATUE
✓ 40-40.6 oC
✓ above 41oC will lead to panting in first 4
days
✓ below 40oC means the chick is too cold
Post-Loading Checklist

• Crop Feeling
EFFECTIVE BROODING
Expansion

Day 5-7 2/3

Day 14 full Blast
Major Components

• Facilities and Equipment

• Feeds
• Day old chicks
• Manpower
• Medicines/ vaccines
• Miscellaneous farm supplies
 Manpower

• Important component, often

neglected.
• Agree on compensation.
• Managers, supervisor, caretakers.
• Ratio of manpower
• 5000 - 8000 birds per caretaker
Major Components

• Facilities and Equipment

• Feeds
• Day old chicks
• Manpower
• Medicines/ vaccines
• Miscellaneous farm supplies
 Med / Vac

• Medicines
• Antibacterial
• Vitamins & electrolytes
• Disinfectants
• Growth promoters and other
additives.
 Med / Vac

• Vaccines
• ND + IB
• IBD
• Others depending on specific
locations.
Sample Programs

• Low Risk Areas

7 days – ND B1B1
14 days- IBD

• Medium Risk
7 days – ND B1B1
14 days – IBD
21 days – ND B1 La Sota
Sample Programs

• High Risk Areas

1 – 3 days – ND B1B1 + IB
5 – 7 days – IBD
14 – 16 days – IBD
21 days – ND B1La Sota
Sample Programs

• Endemic Areas
1 day – ND B1B1 + IB
5 days – IBD
11 days – ND La Sota
14 – 16 days – IBD
21 days – ND B1 La Sota + IB
 Miscellaneous Supplies
and Costs
• Brooding Costs
• Use Infrared heaters - very
expensive
• P58 per kg LPG
• Consume 30 to 40 kgs per 1000
birds
• P 1.74 to P2.32 per bird
 Miscellaneous Supplies
and Costs
• Other Costs
• Laminated curtains
• Rice Hulls
• Repair and maintenance
• Food costs
• Haulers or harvesters
Some Considerations
Growing cycles per year
1. 5 grows
• 35-40 growing period
• 33- 38 downtime
2. 5.5 grows
• 35-40 growing period
• 26-31 downtime
3. 6 grows
• 35-40 growing period
• 20- 25 downtime
Computation of costs
• Feeds
• Chicks
• Manpower/ Food
• Medicines/ Vaccines
• Power light & water
• Heater
• Rental/Depreciation
• Miscellaneous
Cost of Feeds/50 kg bag

• Chick booster = P1780

• Broiler starter = P 1620
• Broiler grower = P 1590
• Broiler Finisher = P 1560
 Feeds

Regimentation:
• Chick booster = 5
• Broiler starter = 10
• Broiler grower = 15
• Broiler Finisher = 30
 Cost per 1000
birds
Cost Per Bags Per
Bag 1000
Chick Booster 1200 5 6,000
Broiler Starter 1175 10 11,750
Broiler Grower 1130 15 16,950
Broiler Finisher 1080 30 32,400
Average 1118 60 67,100
Per Kilo 22.36
Cost of chicks

• Price normally range from P14 –

25 per chick.
• Sometimes seasonal.
Manpower & Food

• May have different payment

schemes.
• Must be computed on a per
growing cycle basis.
• Dependent on number of
personnel.
Medication / Vaccines

• Must be computed on a per

growing cycle basis.
• Cost dependent on “sound”
medication program.
• May range from P2.00 – 3.00 per
bird.
Power, Light & Water

• Must be computed on a per

growing cycle basis.
• Cost dependent on how we
conserve these.
• May range from P1.00 – 1.50 per
bird.
Rental / Depreciation

• Must be computed on a per

growing cycle basis.
• Owned farms – Amortization
• Rental – P3.00 per bird / cycle
Cost

• Dependent on how well we grow

the birds.
• Better “efficiencies” lower
costs of production.
• Better margins of profit.
Efficiencies

• Feed Conversion Ratio – Amount

of feeds needed to produce a
kilo of meet.
• Liveweight – Higher weight for
less feeds, better
Efficiencies

• Harvest Recovery – More birds,

better profit. Cost divisor is
number of birds.
• Age – Earlier harvest means
less feeds, more growing
cycles.
Sample Efficiencies

• An average liveweight of 1.700

kilos, a harvest recovery of
95%, and an FCR of 1.80.
• 10000 chicks placed.
• 61.2 bags/1000 to get 1.8 FCR
and ALW of 1.7 kg.
 Total Cost Per Bird Per Kg
Feeds 612 bags – 1118 /bag 684,216 72.02 42.37
Chicks P20 per chick 200,000 21.05 12.38
PLW P1/ chick 10,000 1.05 0.62
Labor 6,000 0.63 0.37
Med /Vac P2/chick 20,000 2.11 1.24
Rental P3/bird 30,000 3.16 1.86
Heater P58/kg at 35 kg per K 20,300 2.14 1.26
Misc P0.5/bird 5,000 0.53 0.31
102.69 60.41
Sample Efficiencies

• An average liveweight of 1.600

kilos, a harvest recovery of
90%, and an FCR of 2.10.
• 10000 chicks placed.
• 67.2 bags/1000 to get 2.1 FCR
and ALW of 1.6 kg.
 Total Cost Per Bird Per Kg
Feeds 672bags - 1118/bag 751,296 83.48 52.17
Chicks P20 per chick 200,000 22.22 13.89
PLW P1/ chick 10,000 1.11 0.69
Labor 6,000 0.67 0.42
Med Vac P2/chick 20,000 2.22 1.39
Rental P3/bird 30,000 3.33 2.08
Heater P58/kg at 35 kg per K 20,300 2.26 1.41
Misc P0.5/bird 5,000 0.56 0.35
115.85 72.40
But How?????
• Start right - Make sure that you
are prepared.
• Brood the chicks correctly.
• Give utmost comfort to the
birds (temperature and
ventilation.
• Keep it simple.
• Pay attention to details and
respond at once to problems.
• Listen to the birds!!!
• Don’t make them make the
choice.
• Be strict with biosecurity.
• Do not create a competitive
environment. Equal access to
feed and water at any given
time.
• Avoid stress at all times.
• Maximize full genetic potential
by giving proper nutrition and
correct feeding technique.
• Attain early gains in weight for
better development.
• Attain good uniformity as early
as possible.
• Have a good and accurate
recording system.
Remember:

“Garbage in

Garbage out”
Remember:

“If
you always do what
you’ve always done,
you’ll always get what
you’ve always got”
Winston Churchill
Thank You Po!