Are you looking for a profitable business venture in the Philippines?
Look no further than poultry farming!
With the potential to earn a livable wage and generate significant cash flow, even as a small backyard enterprise, poultry farming is a scalable business that can lead to huge returns on investment.
But how much profit can you actually make?
In this article, we’ll explore the ins and outs of poultry farming in the Philippines, including the types of birds raised, the cost of starting a farm, and how much money you can expect to make.
So, whether you’re a seasoned farmer or just starting out, read on to learn more about this lucrative industry.
How Much Profit Does A Poultry Farm Make In Philippines?
Poultry farming is a profitable business venture in the Philippines, with the potential to earn a significant income. The average poultry farmer gross salary in the Philippines is ₱219,773 per year, with an entry-level farmer earning an average salary of ₱172,285 and a senior-level farmer earning an average salary of ₱261,359.
The main types of birds raised in the Philippines are layer hens for eggs, broilers for meat, and turkeys for their feathers. Selecting the right breed of chicken for your operation is crucial. Commercial growers prefer heavier breeds because they lay more eggs and require less care than lighter breeds.
Starting a basic poultry farm in the Philippines would require at least P100,000 to cover all the housing for the chickens, broiling equipment, chicken feed, and operating expenses. This should also include medication and booster feed for the chicken that would make it raised for meat production.
The profitability of a poultry farm depends on many factors, including the size of your flock and how much money you put into it. Starting with 10,000 heads will be a good start but will not make you a profit in the first harvest because of your expenses in construction. If you want to go on a small scale, however, even raising 100 chickens could make you a profit.
The most profitable type of chicken in the Philippines is the Cornish-cross, which is usually from Cobb or what we call the 45-days broiler chicken. Broiler chickens take 38 to 40 days to reach slaughter age. This is why this white broiler is called 45 days because it only takes 45 days maximum to reach the slaughter age.
Types Of Poultry Raised In The Philippines
In the Philippines, the most commonly raised types of poultry are chickens, ducks, and turkeys. Chickens are primarily raised for meat and eggs, while ducks are raised for their meat and feathers. Turkeys, on the other hand, are mainly raised for their feathers.
Among the chicken breeds, the most popular ones are the commercial broilers and layers. Broilers are raised for their meat and can reach slaughter age in as little as 38 to 40 days. Layers, on the other hand, are raised for their eggs and can produce up to 300 eggs per year. Native chicken breeds such as Banaba, Bolinao, and Darag are also popular among small-scale farmers who raise them for cockfighting and meat production.
Ducks are also a popular type of poultry in the Philippines. Muscovy ducks are commonly raised for their meat, while mallard ducks are raised for their eggs. Ducks are generally hardy birds that can thrive in a variety of conditions.
Turkeys are another type of poultry that is raised in the Philippines. They are mainly raised for their feathers, which are used for various purposes such as decoration and insulation. Turkey meat is also consumed in the country but is not as popular as chicken or pork.
Starting A Poultry Farm: Costs And Considerations
Starting a poultry farm in the Philippines can be a lucrative business venture, but it requires careful planning and consideration of costs. The following are some important factors to keep in mind when starting a poultry farm in the Philippines:
1. Land: The first consideration when starting a poultry farm is land. Farmland can be acquired for between P2,500 to P3,500 per acre. Poultry farmers must allocate at least three square feet per chicken, meaning that one acre can service up to 5,000 chicks.
2. Building structure: Building the proper structure is another important consideration when starting a poultry farm. Pole barns with electricity and water can be built to accommodate any size operation and typically cost anywhere from P25 to P50 per square foot. Some modifications may be necessary to the structure depending on the type of poultry operation you are considering.
3. Labor: Labor costs depend on the size of your farm, but 500 chickens can be fed for three months for around P750. It is important to factor in the cost of hiring staff to help with the day-to-day operations of your farm.
4. Feed: Feed is a significant cost for any poultry farm. The cost of feed will depend on the type of feed you choose and the number of chickens you have. On average, it costs around P20 per kilogram of feed.
5. Vaccinations: Vaccinations are essential for keeping your chickens healthy and free from disease. The cost of vaccinations will depend on the number of chickens you have, but on average, it costs around P0.75 per chicken.
6. Initial cost of chicks: The initial cost of chicks will depend on the size of your order, but day-old chicks can be purchased for under one peso per piece.
7. Contract with a poultry company: Often an agreement with a poultry company will be required before financing can be arranged and construction can begin. Building chicken houses from scratch is expensive, with a single unit averaging anywhere from P200,000 to P280,000 or more, including site preparation, construction, equipment, wiring, and plumbing.
Starting a basic poultry farm in the Philippines will require at least P100,000 to cover all the housing for the chickens, broiling equipment, chicken feed, and operating expenses. However, if you want to go on a small scale, raising 100 chickens could make you a profit. It is important to carefully consider all costs and factors before starting a poultry farm in the Philippines to ensure profitability and success in this business venture.
Factors That Affect Profitability In Poultry Farming
The profitability of a poultry farm depends on several factors that can either positively or negatively influence the income generated. One of the critical factors is the cost of production, which includes the cost of chicken feed, medication, housing, and equipment. The higher the cost of production, the lower the profit margin.
Another factor that affects profitability is the size of the flock. The larger the flock, the higher the potential for profit, but it also means higher expenses in terms of feed, medication, and labor costs. However, starting with a smaller flock can also be profitable if managed correctly.
The breed of chicken also plays a significant role in determining profitability. Broiler chickens are usually raised for meat production and take about 38 to 40 days to reach slaughter age. The Cornish-cross breed is considered the most profitable in the Philippines due to its fast growth rate and high meat yield.
Mortality rate is another factor that can affect profitability. High mortality rates can lead to a significant reduction in profit margins due to losses in potential sales.
Market outlets and pricing also play a crucial role in determining profitability. Farmers need to identify reliable markets that offer fair prices for their products to maximize profits.
Lastly, efficient management practices can significantly impact profitability. Proper management of resources and labor can help reduce costs and increase productivity, leading to higher profits.
Average Profit Margins For Poultry Farms In The Philippines
The profit margins for poultry farms in the Philippines vary depending on the type of bird raised and the size of the operation. On average, smallholder chicken farmers produce about 1.5 million birds per hectare, while large-scale producers have an average flock size of more than 500,000 birds per hectare.
For broiler chickens, which are raised for meat production, the gross profit per bird is typically around Php. 14.00 (~7%). This means that for a flock of 10,000 birds, a farmer could potentially earn Php. 140,000 in gross profit. However, it’s important to note that this figure does not take into account the cost of housing, equipment, feed, and other operating expenses.
For layer hens, which are raised for egg production, it takes approximately 18-20 weeks from hatching to produce their first egg. Point-of-lay hens (hens that are ready to lay eggs) can be purchased instead of raising day-old chicks, but they come at a higher cost. While waiting for layers to lay their first egg, a farmer could potentially raise up to three broiler flocks and benefit from that cash flow.
Tips For Maximizing Profit In Poultry Farming
If you want to maximize your profit in poultry farming, there are several tips you can follow.
1. Opt for organic medication: Medication costs can eat up a significant portion of your expenses in poultry farming. Consider using organic medication made from herbs and spices instead of synthetic drugs to combat poultry diseases and improve their immune system. This will help you reduce poultry mortality and increase profits.
2. Practice proper hygiene: Maintaining proper hygiene in your poultry farm is crucial in preventing the development and spread of diseases that lead to high poultry mortality. Make sure to follow well-defined biosecurity practices throughout broiler production and effective hygiene practices to limit disease transmission within and between barns.
3. Specialize: Specialization is key when starting a poultry business. Decide on whether to rear layers or broilers, or even local birds, and focus on that specific type of bird. Passion is also important in this business.
4. Bypass the middlemen: Instead of relying on middlemen to sell your products, set up your own retail outlets or sell directly to customers online. This will increase your profit and provide you with a better understanding of the market pricing and conditions.
5. Become a supplier to restaurants and hotels: A major part of the business is supplying products to restaurants and hotels. Collaborate with them by writing clear and attractive proposals and business plans for your poultry company.
6. Employ marketers: Hiring online and offline marketers can help you increase your business and develop the online image of your poultry company.
7. Offer attractive packages and home delivery services: Offering smart affordable services and free home delivery can increase sales and gain potential permanent customers. This is especially important when starting a new poultry business because it helps build trust and reliability with customers.
By following these tips, you can maximize your profit in poultry farming in the Philippines. It’s important to remember that profitability depends on many factors, including the size of your flock, breed of chicken, and how much money you put into it. With the right strategies in place, however, poultry farming can be a profitable business venture in the Philippines.
Challenges And Risks In Poultry Farming And How To Mitigate Them
Despite the potential for high profits, poultry farming in the Philippines comes with its own set of challenges and risks. One of the most significant risks is the outbreak of diseases such as Salmonella and Campylobacter, which can lead to foodborne infections in consumers and severe health problems in humans.
To mitigate these risks, poultry farmers must implement strict biosecurity measures, including proper management, vaccination protocols, and nutritional feed additives. Additionally, it is crucial to eliminate or control foodborne and zoonotic pathogens that pose a significant challenge to the industry. Farmers should also be careful with antibiotic use to avoid public health hazards from consuming foods with high antibiotic residues.
Another challenge is the impact of external factors such as the COVID-19 pandemic. While chickens are not susceptible to intranasal infection by the virus, the pandemic can affect poultry consumption, transport, and the economics of poultry farming. To mitigate this risk, farmers should ensure they have a robust supply chain and contingency plans in place.
Furthermore, poultry farmers must be knowledgeable about the interconnection of their animals’ health, welfare, and immunity. They should prioritize the well-being of their birds by providing them with adequate housing, nutrition, and care. Finally, collaboration among stakeholders such as stockholders, veterinarians, farmers, and government agencies is crucial to ensure sustainable agriculture and fulfill human demands.