Cost Of Starting A Chicken Farming Business – Summary
The cost of starting a chicken farming business in Kenya is Sh.30,000-Sh.1,000,000 on average exclusive of the land cost. The cost of a small-scale chicken farming business is Sh.10,000-Sh.50,000 on average. The cost of rearing 100 layers is Sh.100,000-Sh.200,000 annually on average. We will illustrate in detail below how we get to this number. You can also choose to start a kienyeji chicken farming business. We will also explain the different types of chicken and the cost of starting a chicken farming business for each.
As the current president, William Ruto, will confirm, the chicken farming business is highly profitable. He declared that he rears 200,000 chickens that produce 150,000 eggs. “I make Sh.1.5 million daily,” he explained at a press conference in his Karen home. You do not need as much chicken to earn profit. Small chicken farming businesses make decent profits too. We will show you how to make a profit from your small chicken farming business.
First, we will explain in detail the cost of building a chicken farming business and getting it started.
A Breakdown Of The Cost Of Starting A Chicken Farming Business
1. Farm
The cost of land in Kenya is Sh.500,000-Sh.3,000,000 per plot on average. Where do you want to start your chicken farming business? The cost of land close to or in urban centers is more expensive compared to rural areas. The cost of renting land in Kenya is Sh.100,000-Sh.500,000 per plot on average.
When buying or renting a farm for starting a chicken farming business, consider the following factors:
- The number of chickens you intend to rear. A large number of chickens need a large space.
- Storage for your chicken feeds. You will need space to store chicken feed, especially if you are rearing a large number of chickens.
- Chicken safety. Ensure your land is not infested with dangerous animals that may feed on your chicken. If so, look for a way to prevent this from happening by making a perimeter around your land.
2. Chicken coop
The cost of a prefabricated chicken coop is Sh.25,000-Sh.40,000 on average with a capacity of 100-150 chickens on average. A prefabricated chicken coop comes with installed compartments for chicken feeds, egg collection, and a waste collection compartment. The cost of building a chicken coop yourself is Sh.5,000-Sh.100,000 on average. This depends on the number of chickens you intend to rear and the type of building material you will use. Using steel material to build a chicken coop is more expensive to use wood material. This option is, however, more durable and offers better security against animals and thieves.
3. Equipment
When starting a chicken farm business, you need a couple of pieces of equipment that will make the rearing process much easier. Below is a table of equipment you need to start a chicken farming business, their uses, and how much each piece of equipment costs in Kenya.
Chicken Farming Business Equipment Costs
| Equipment | Use | Cost |
|---|---|---|
| Waterer | Where chickens drink water from. Automatic waterers refill after chickens drink from it. | Sh.300-Sh.6,000 |
| Egg collection system | Used to collect eggs after being laid. | Sh.13,000-Sh.150,000 |
| Egg hatchery and brooder | Used to balance the environmental conditions that ensure eggs hatch successfully. After hatching, a brooder keeps the chicks warm. | Sh.15.000-Sh100,000 |
| Abattoir equipment | Used for processing broiler chicken. It is used to slaughter a chicken. Relatively expensive abattoir machines have the ability to pluck feathers. | Sh.30,000-Sh.2,000,000 |
| Manure processing system | Used for processing chicken waste into manure. | Sh.130,000-Sh.500,000 |
| Chicken house lighting system | Increases the level of egg production in the coop. | Sh.500-Sh.5,000 |
4. Chicken medication Costs
When starting a chicken farming business, it is necessary to budget for chicken medicine. Chickens are prone to diseases, especially young chicks. Before you start a chicken farm business, make sure you include a budget of Sh.10,000-Sh.50,000 for chicken medicine.
When a chick is hatched, it has to be immunized. Chickens need to be injected with vitamin B6 for healthy bones as they grow. In the chicken farming business, healthy chickens will bring in more profit.
5. Chicken feeds Costs
Chicken feeds are classified into the following:
- Layer mash: The cost of layer mash is Sh.5,000-Sh.6,000 per 50kg on average. Layer mash is fed to laying chicken to improve the size and quality of the eggs.
- Broiler mash: The cost of broiler mash is Sh.4,500-Sh.5,000 per 50 kg on average. Broiler mash increases the growth rate of broilers.
- Grower mash: The cost of grower mash is Sh.6,000-Sh.6,500 per 50 kg on average. Used to feed chicks to make their bones stronger.
- Chick starter feeds. The cost of chick starter feed is Sh.5,000-Sh.6,000 per 50 kg on average. This is used to improve the immunity of growing chicks and increase their bone strength.
6. Legal requirements
The cost of a license and business permit for starting a chicken farming business is Sh.25,000-Sh.50,000 on average. This includes application fees, registration fees, license fees, and permit fees among others. After paying this fee, you will have covered all the legal requirements and your chicken farming business will now be good to start.
7. Labor
The cost of hiring labor is Sh.10,000-Sh.100,000 on average per month. The level of work an individual puts into your chicken farm business will determine the amount you pay them. Once you establish your chicken coop and have all the equipment you need, you can now hire people to help you run your business as soon as the chicks come in.
Types Of Chicken In A Chicken Farming Business
1. Layers
The cost of a layer chick is Sh.100-Sh.150. Layers are reared mainly for the production of eggs. A budget plan for layers should include transportation costs for the distribution of eggs. The cost of layer mash should be included in your plan because they improve the quality of eggs produced by layers. Layers have unique equipment necessary for a successful business venture. When starting a layer chicken farming business you need the following equipment:
- Egg collector.
- Egg hatchery and brooder.
- Chicken coop lighting system.
2. Broilers
The cost of a broiler chick is Sh.80-Sh.100. Broilers are reared mainly for the production of meat. Starting a broiler chicken farming business, you should include transportation in your budget plan. Broilers are transported to slaughterhouses or to marketplaces. Broilers are fed broiler mash which increases their growth rate and weight. This should be included in your budget plan to speed up the growth of your chicken so you can sell them after a short period of time. This, in turn, increases your profits. If you intend to slaughter and process your chicken, you need to invest in the abattoir equipment. It is used to slaughter broilers and pluck off their feathers.
3. Kienyeji
The cost of a kienyeji chick is Sh.100-Sh.120 on average. When starting a chicken farming business that deals with the kienyeji breed, you need to invest a lot in medication. They are prone to diseases, especially contagious diseases. You should vaccinate them when they are hatched. They take longer to mature, therefore, you need to have a budget plan for their feeds. To do this, you need to install an efficient watering system and feeder in their coop. Dealing with kienyeji on a large scale, you need to hire enough labor to watch over them. They require much attention because they all have different attributes.
Factors That Affect The Cost Of A Chicken Farming Business
1. Product distribution
The cost of transportation when starting a chicken farming business varies depending on the size of your business. In a large-scale chicken farming business, the cost of transportation from your farm to consumers and vendors will be relatively high. A large number of eggs or chickens will need to be transported by larger tracks. You will also need a number of tracks to transport your products to different locations. You could hire transportation or buy your own tracks.
The cost of transport in a small-scale chicken farming business is relatively low. In a small-scale chicken business, you will need a pick-up, motorcycles, and bicycles. If your business is really small, you can deliver your product on foot.
2. Hiring labor
The cost of starting a chicken farming business is highly affected by the labor force. In order to earn good profits, you need to hire an eligible workforce to look after the chicken. Layers and broilers need to be in a clean environment at all times. You will, therefore, need to hire people to clean waterers and feeders at all times. Labor is also important in the following areas:
- Collection of eggs.
- Medication issuance.
3. Buying Medicine
The cost of medical care when starting a chicken business is relatively high in large-scale chicken farming businesses. Chicks are prone to diseases, and most contagious diseases. In a large-scale production chicken farming business, you need to have a professional vet around at all times. When a sickness breaks out, they will control the spread faster. Not doing this will cost a chicken business farmer big losses. In a small-scale chicken farming business, you can monitor your chickens yourself. When any slight sickness shows, call a veterinary doctor with immediate effect.
4. Electricity and water bills
The larger your chicken farming business the more costs you will incur on electricity and water bills. The choice of the breed to rear affects the cost of electricity. Layers use high amounts of electricity due to the lighting system that helps improve the quality of eggs. Broilers will use a high amount of electricity when you do the slaughtering yourself. The abattoir machine will always be running. This machine is common in large-scale farmers, therefore small-scale farmers are not affected by this.
5. Buying chicken feed
The scale of your chicken farming business determines the number of feeds you need to buy. A large-scale production chicken farming business spends more money to feed a large number of chickens. The breed you choose to rear will also affect the cost of feeds. With layers, you will need to buy layer mash. Broilers use broiler mash. Kienyeji feeds are not limited but their growth process is low. Whatever you choose to feed kienyeji chicken will be costly due to the long time they take to grow.
Frequent Questions About Chicken Business In Kenya
Sh.10,000-Sh.50,000 on average. The cost includes feeds, a chicken coop, and also medication. Raising a large number of chickens will cost relatively high. The cost is also affected by the breed you choose to raise. Broilers and layers are more expensive to rear compared to kienyeji.
The cost of owning a chicken is Sh.1,000-Sh.2,000. The type of chicken you want to own affects the cost of rearing. Broilers and layers cost more to rear compared to kienyeji chicken. Broilers and layers are slightly affordable when you own a number of them.
Sh.5,000-Sh.100,000 on average. this is in consideration of the number of chickens you want to occupy the house. It will also depend on the building material you intend to use.
Sh.30,000-Sh.1,000,000 on average excluding the cost of buying land. The cost of building a chicken farm depends on the number of chickens you want to rear. The more chickens, the more costs you will incur when setting up your farm.
6 bags of 50kg feeds per month. 100 layers consume 10kg of feed in a day. One layer consumes 100 grams-150 grams per day on average.
Sh.50,000-Sh.80,000 per month on average. The cost of feeding 100 layers is Sh.30,000-Sh.35,000 per month on average. Other additional costs go to labor, water, and electrical bills among others.
1kg kienyeji costs Sh.600-Sh.1200 on average. Kienyeji is much cheaper in rural areas compared to urban centers. When the demand is high, the prices of kienyeji chicken shoots e.g during the Christmas holidays.
Layer poultry farming. Layers produce a lot of eggs within a short period of time. However, you need to feed them regularly and install an expensive chicken lighting system that increases the production and quality of eggs.
Sh.5,000-Sh.6,000 per every 50 kg bag on average. Layers consume a large amount of layer mash. A 50kg bag can be consumed completely by 100 layers over a period of 5 days approximately.