Layers or broilers

[User name:]

I am playing around with the idea of setting up a poultry unit to supplement beef and sheep farm, was looking for advice. Thinking two 40k broiler units or 32k free range layers. What would be better? What Labour hours per day would each take to complete? Which has better margins?
Thanks

 

[yin ewe]

I am playing around with the idea of setting up a poultry unit to supplement beef and sheep farm, was looking for advice. Thinking two 40k broiler units or 32k free range layers. What would be better? What Labour hours per day would each take to complete? Which has better margins?
Thanks

First thing you would need to do is contact an egg packer or Moy Park to see if they want any more producers.
Better margins for layers at the moment but that can soon change. We have 16k house and it takes 2- 2 1/2 per day for me to complete the daily tasks on my own (quicker with 2 people but not half the time)
Planning will be your issue and don't see our new ag minister being much help in that department.
Cost of 32k layer unit is over £1.5 million so not something to jump into lightly.

 

[tractorsandcows]

That's a massive amount of money. What is the payback time and what is the profit over and above paying back the investment

 

[Tmlois]

The broilers you would probably spend 2 hours a day in once everything is running smoothly if you have no bird problems. Busy at turnaround though if you clean out and set up yourself. Unsure on margins now with no rhi but we are targeted 1.40 pence a square meter a week less cost of chicks and feed. Though if we were on lpg gas we would be spending 0.51 pence off the just on heating

 

[Frodo]

That's a massive amount of money. What is the payback time and what is the profit over and above paying back the investment

Somewhere between 4 years and infinity.

 

[Bossfarmer]

Somewhere between 4 years and infinity.

4 years? is that even possible?

 

[yin ewe]

4 years? is that even possible?

At the minute probably yes, but depends on how much you want to take out yourself. We were told before we started that 5-6 crops (6-8 years) would be the payback with taking a good wage out.
We just about got our building work done before the costs started to rise, egg price has risen since whilst meal price has come down which has benefitted us big time.

 

[User name:]

The broilers you would probably spend 2 hours a day in once everything is running smoothly if you have no bird problems. Busy at turnaround though if you clean out and set up yourself. Unsure on margins now with no rhi but we are targeted 1.40 pence a square meter a week less cost of chicks and feed. Though if we were on lpg gas we would be spending 0.51 pence off the just on heating

That seems to leave a surprisingly small margin once the heating, chicks and feed are all taken off. Suppose for the hours put into it it’s not over bad. What would the payback time be do you know?

 

[Bossfarmer]

At the minute probably yes, but depends on how much you want to take out yourself. We were told before we started that 5-6 crops (6-8 years) would be the payback with taking a good wage out.
We just about got our building work done before the costs started to rise, egg price has risen since whilst meal price has come down which has benefitted us big time.

ok so roughly 7 yr parback of 1.5million, is that with borrowed money and after tax paid?beats most other farm investments if so...

 

[yin ewe]

ok so roughly 7 yr parback of 1.5million, is that with borrowed money and after tax paid?beats most other farm investments if so...

Most people pay over 10 years as it allows a bit more slack financially. But yes it beats all other enterprises at the moment.

 

[Bossfarmer]

Most people pay over 10 years as it allows a bit more slack financially. But yes it beats all other enterprises at the moment.

so if it was done over 25 years it would be cashflow positive immediately and provide a decent return?

 

[yin ewe]

so if it was done over 25 years it would be cashflow positive immediately and provide a decent return?

None of the lenders we spoke to were talking about terms longer than 10 years. We eventually borrowed from the egg packer so he wants his money back quicker than the bank.

 

[Frodo]

4 years? is that even possible?

Hypothetically with top egg performance, a good egg price, cheap feed source family labour money on deposit and a value on the manure, while somehow not paying any tax, possibly, but I certainly wouldn’t budget on it.

An outbreak of avian influenza in a young flock without insurance would finish many businesses.

 

[Bossfarmer]

Hypothetically with top egg performance, a good egg price, cheap feed source family labour money on deposit and a value on the manure, while somehow not paying any tax, possibly, but I certainly wouldn’t budget on it.

An outbreak of avian influenza in a young flock without insurance would finish many businesses.

im guessing the insurance is getting dearer now, does it cover you for 100% of the costs if you go down with it?

 

[R J]

so if it was done over 25 years it would be cashflow positive immediately and provide a decent return?

Lenders won't lend over that period of time as your equiptment will need replacing long before you have paid for it

 

[Bossfarmer]

Lenders won't lend over that period of time as your equiptment will need replacing long before you have paid for it

ah so theres a fair bit of reinvestment needed down the line then?

 

[yin ewe]

ah so theres a fair bit of reinvestment needed down the line then?

That's the same for any business though.

 

[Andrew_Ni]

I’d imagine it’s the same as any other farm investment. You work away to pay it off and think all will be well when it’s paid for only to realise it’s just about done or needs upgrading/ more money spent. The farming hamster wheel.

 

[Sleepeasy]

Layer job be f**ked within 12 months

 

[yin ewe]

Layer job be f**ked within 12 months

Maybe but make hay while the sun shines.