Diversifying in to free range egg production

Lloydsfreerange · Mar 22, 2017

Lloyds Free Range are seeking to procure additional free range egg producers.

This is in light of the recent announcement from major retailers that by 2025 they want cage free egg supply for their shell egg sales and in addition to this, retailer demand for Free Range “liquid egg” increasing for added value food products.

We are looking for units of either 16000 or 32000 birds which have a land requirement of either 20 or 40 acres. We currently have over 1.5 million birds contracted to us through out the UK. We offer a complete package from pre-planning to flock depletion, with full field support during the flock.

If you are interested in starting an egg enterprise, please call me on 07943815455 or email [email protected] if you would like to know more

multi power · Mar 22, 2017

What is the cost of the building for 16000 birds?

kmo · Mar 22, 2017

Seems to suggest 30 pounds a bird
https://www.fginsight.com/vip/vip/is-the-poultry-sector-for-you--16003

Kevtherev · Mar 22, 2017

@sherg

YorkshireAndrew · Mar 22, 2017

kmo said:
Seems to suggest 30 pounds a bird
https://www.fginsight.com/vip/vip/is-the-poultry-sector-for-you--16003

Think I might get 10 birds .

sherg · Mar 22, 2017

Kevtherev said:
@sherg

I can recommend having a word with tom If nothing else he can take you to some bloody good sites and it gives you a good chance to think if its for you or not

multi power · Mar 22, 2017

YorkshireAndrew said:
Think I might get 10 birds .

I was thinking maybe half a dozen would be plenty

Billboy1 · Mar 22, 2017

So 32000 birds cost set up nearly 1 mill ! If you've got to borrow that can money be made ?

Frodo2 · Mar 22, 2017

Billboy1 said:
So 32000 birds cost set up nearly 1 mill ! If you've got to borrow that can money be made ?

Maybe yes, maybe no.

On todays figures as long as you have average luck and are reasonably competant you will, but the future is unknown and anything is possible.

Lloydsfreerange · Mar 22, 2017

multi power said:
What is the cost of the building for 16000 birds?

From a green field site to being ready to house birds, capital cost would be around 32 pounds per bird. If you would like a breakdown of capital costs and a costing on 16000 birds please let me know

Thanks

Happy · Mar 22, 2017

Scotland largest egg producer was in the news a couple of weeks ago saying he feared the free range egg job was being overdone and spoke of depressed prices in the next few years in run up to phasing out of colony production in 2025.
No doubt has his own vested interests in saying such things but would have to be brave to invest £1million in the job if that's the case.

Lloydsfreerange · Mar 22, 2017

Billboy1 said:
So 32000 birds cost set up nearly 1 mill ! If you've got to borrow that can money be made ?

Happy to supply current budget figures and our producers historic margins. After all operating costs, capital repayments, interest and labour, each bird should leave around 2 pounds per bird per flock.

multi power · Mar 22, 2017

Lloydsfreerange said:
From a green field site to being ready to house birds, capital cost would be around 32 pounds per bird. If you would like a breakdown of capital costs and a costing on 16000 birds please let me know

Thanks

And what would be the pay back time?

Lloydsfreerange · Mar 22, 2017

multi power said:
And what would be the pay back time?

Approximately 8 years but the best performing producers will be considerably quicker

multi power · Mar 22, 2017

Lloydsfreerange said:
Approximately 8 years but the best performing producers will be considerably quicker

So a pretty crap return on investment

Frodo2 · Mar 22, 2017

multi power said:
So a pretty crap return on investment

Do you have a long list of better ones? if so let me know.

Lloydsfreerange · Mar 22, 2017

multi power said:
So a pretty crap return on investment

Current returns in excess of 2000 per acre after labour, capital and operating costs. Which in comparison to other sectors in agriculture would be very favourable. The land can still be grazed and the birds would produce half a tonne of manure per thousand birds per week which is not taken in to account in the aforementioned figures

Only · Mar 22, 2017

At current currency levels the kit in the shed is going to cost a lot more!

sherg · Mar 22, 2017

Only said:
At current currency levels the kit in the shed is going to cost a lot more!

Tell me about it

Only · Mar 22, 2017

My bank manager said one of her clients Was looking at £1.2 million +( electricity water etc were a big cost for him) for 32000 birds

Diversifying in to free range egg production

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Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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