how much profit does a poultry farm make in philippines

How Much Profit Does a Poultry Farm Make in the Philippines?

The poultry industry is a major contributor to the Philippine economy In fact, the Philippines is one of the top 10 poultry producers in the world With a growing population and increasing demand for poultry products, running a poultry farm in the Philippines can be a profitable business venture. But how much profit can you really make? Let’s take a closer look.

Profit Potential of Poultry Farming in the Philippines

Poultry farming presents excellent profit potential in the Philippines for several reasons

• High demand – Filipinos consume a lot of poultry. Chicken is the most widely eaten meat, and eggs are a dietary staple. This steady demand ensures a ready market for your products.

• Underconsumption – Current production levels are unable to meet local demand, so the country depends on imports. This supply-demand imbalance allows poultry farmers to fetch good prices.

• Supportive government – The government provides incentives to boost local production and reduce imports. The Poultry Development Program helps new and existing poultry farms access funding, technology, and training.

• Cost efficiency – Economies of scale allow larger poultry farms to keep production costs low. Smaller farms can also maintain efficient operations. Local feed ingredients like corn and rice bran are abundant and inexpensive.

• Value addition – Further processed products like dressed chicken, eggs trays, salted eggs, balut, and chilled or frozen chicken have higher profit margins.

Expected Returns on Investment in Poultry Farming

On average, a well-run poultry farm in the Philippines can generate a return on investment (ROI) of 15-20% per year.

For broiler farms, profits are realized quicker, as marketable size is reached within 6-8 weeks. However, broiler farming requires more intensive management.

Layer farms take longer to generate returns, as egg production starts only after 16-20 weeks. But egg sales then continue daily for the 1-2 year production cycle.

Let’s look at two examples to understand the profit potential:

Broiler Farm Profitability
For a small broiler farm with 2,000 bird capacity, producing 4 batches annually:

• Revenue per batch of 2,000 birds = Php 280,000 (Php 140 farm gate price per bird)

• Cost of production per batch = Php 210,000 (Day old chicks, feed, labor, utilities)

• Gross profit per batch = Php 70,000

• Annual gross profit for 4 batches = Php 280,000

For a capital investment of around Php 500,000 on housing and equipment, this represents a 56% return on investment.

Layer Farm Profitability
For a small layer farm with 1,000 bird capacity:

• Annual revenue from egg sales = Php 2,100,000 (1,000 birds x 300 eggs/year x Php 7 farm gate price per egg)

• Annual cost of production = Php 1,750,000 (Day old chicks, feed, labor, utilities)

• Gross profit = Php 350,000

With a capital investment of around Php 800,000 on housing and equipment, this represents a 44% return on investment.

As you scale up production, product specialization, integration, contract growing, and value addition can help improve profits further.

Key Factors that Determine Profit Levels

While the profit potential is certainly excellent, your actual returns will depend on how well you execute the following aspects:

Site Selection – Choose a location with good access to input supplies and target markets. This will help minimize transport costs.

Housing and Infrastructure – Invest in quality housing, equipment, power, and water supply suited to your target production volumes. Poor infrastructure can compromise bird performance.

Breed Selection – Choose breeds that are productive, disease resilient and suited to local conditions. This affects output efficiency.

Flock Health – Maintain high standards of biosecurity and hygiene. Preventive health care lowers mortality rates.

Feed Management – Ensure adequate quantity and quality of feed. It accounts for 60-70% of production cost.

Labor Management – Hire and train responsible farm hands. Pay market wages to retain them.

Market Linkages – Develop relationships with suppliers and buyers. This gives you purchasing and sales leverage.

Record Keeping – Maintain updated farm production data. Use it to control costs and fine-tune operations.

With excellent management in these areas, you can maximize returns from your poultry farm in the Philippines.

Returns on Investment Over Time

Profit levels are not static. As your experience grows, you can improve productivity and efficiency.

For example, with layer birds, the feeding and health protocols you establish with your first flock can help boost egg production in subsequent flocks.

Upgrading housing and equipment also helps enhance production volumes and quality over time.

By reinvesting profits into expansion, integrating operations, and adding value through processing, profits can be multiplied year after year.

Starting small, focusing on quality management, and reinvesting profits smartly is key to growing a highly profitable poultry farming business in the Philippines.

Summing It Up

With proper planning, efficient management, and smart reinvestment, profits from a poultry business can steadily increase year after year.

While global feed price volatility poses some risk, astute farm managers can mitigate that by negotiations, inventory management, and timely selling of output.

Poultry farming offers motivated entrepreneurs a stable and rewarding livelihood opportunity. By providing a valuable service of food production, your farm can play a role in empowering your local community and economy.

So if you have the passion and commitment required, a profitable poultry farming business in the Philippines can help your money cluck happily along!