Ingredients for agriculture inputs and livestock feed have seen major price increases globally. Due to unfavorable climate change, the recent global pandemic, poor soil yield and increased competition between humans and livestock animals for food, this scenario is quite clear and beyond dispute.
An increase in the price of feed and other inputs has the disadvantage of raising production costs and lowering producer earnings.
Due to the losses, several farms have had to shut down because the situation has gotten so bad. Some proprietors of poultry farms have relocated to completely unrelated industries, leaving the business to individuals who can handle it.
Because the majority of clients are unwilling to pay greater costs for our agricultural products like chickens or eggs, breaking even is much more difficult.
They thus relocate to other farms that are willing to sell to them for absurdly low costs.
This post is for you if you are a chicken farmer who is discouraged and on the verge of giving up. It's not just you going through this dilemma. We are all struggling to survive in this business.
How to Reduce Costs in the Face of Rising Feed Prices
1By selling less productive animals, you can reduce your stock
Even though it's a difficult choice, you must reduce the quantity of birds if you want to keep your farm afloat.
The reasoning for this is that your feeding expenses will decrease as you keep fewer animals. If things get very bad, sell around 30% of your animals, especially the ones that aren't very productive, and utilise the money to cover your overhead.
2Create your own feed mill
Reduced feeding costs are the main justification for self-formingulating and milling animal feeds. A hammer mill (crusher), mixers, and the building of a shop or warehouse to store materials and processed feeds are additional expenses that come with this, though. On the whole, nevertheless, it is profitable.
Don't switch from purchasing ready-made feeds to milling the feed yourself unless you have a sizable number of animals, access to high-quality feed ingredients and testing the efficacy of the formulated feed.
3Purchase ingredients for feed in large quantities
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The merchant or supplier usually offers you excellent savings when you buy feed or feed ingredients in bulk or in large amounts. You can save money by taking advantage of some that even provide free delivery.
As a result, proceed if you have the money and a suitable storage space for buying feed ingredients in sufficient numbers. Saving money will be achieved.
4Boost the value of your product
The most crucial thing is to make money from selling your farm products and you may make even more money by adding value to already-existing goods. For example, if you raise meat chickens you can increase value by simply processing and packing the birds. Your product commands greater pricing as a result increasing your income.
5Reduce the size of your staff
If fewer farm workers are necessary to maintain the operation of your farm, you should take that action. Remember that some employees may resign or leave without warning if it becomes impossible to pay wages and compensation. If shrinking is the best course of action for lowering your operational costs, you've done well.
6Boost your management techniques
Poor animal management would result in you having to spend more money on items like medication, litter, gas, consulting fees and electricity.
On your farm take cleanliness and farm hygiene seriously. You and your animals must be protected; hence biosecurity precautions must be taken. Reduce crowding and water spills to lessen the need to change litter as often.
Vaccinate at the appropriate period to lower the risk of disease breakout and make sure there is no feed waste in the pens or feed mill.
In Conclusion
It is crucial to take all reasonable steps to make the business lucrative if your farm is your only source of income. Otherwise, it may not survive.
The aforementioned advice will go a long way toward helping you maintain your poultry business's profitability as well as its ability to endure in this period of ongoing rises in the cost of feed and medications.
