Business Idea: Poultry

Two weeks ago, we were invited to check out the chicken farm of my aunt’s friend.  I was not really invited. My aunt asked her friend if she could bring me along. The farm is located the one of the barangays in the city I have never been to so I welcomed the opportunity to see the place.

The farm is built in an almost 2-hectare land on an elevated area of the city. I have not seen these many chickens in my entire life.  I was busy taking photos but I think the owner said that there were 11,000 chickens in this farm.  Just imagine the revenues.

The chickens need to be hydrated all the time. You can see water is available all around the coop.  When we went there, there was one that died of heatstroke.

As you can see, this is NOT the free-range chicken type.

This is how the business works. Big corporations like Magnolia, Swift and Bounty Fresh provide the chicken farmer with the chicks and feeds. They come back one month after to buy the chickens that have the desired weight. (Or was it two months? I was not listening well.)  The chicken farm should be able to produce 90% (just an estimate made by me to do the math) of such chickens.  Of the 11,000 chicks, there should be 9,900 grown chickens ready for the dinner table. The 1,100 chickens that did not make the cut in weight are usually given to the people in the barangay. I do not know how much these corporations pay for every chicken that made the cut. The owner said that he makes a clean profit at around P150,000 per ‘harvest’. By the way, there are also buyers of chicken dung.

Businesses come with risks. This kind of business needs a large capital outlay to build a farm.  Building those large chicken houses requires money. Banks do not lend to businesses with an agricultural land as collateral. Poultry business stinks (literally) so you need an area away from city. In this case, we were were already in the mountains. They have trusted farm hands. Remote areas can have security risks. Since chickens need water, the owners had to build a huge water tank that required huge electric bills for water pumps (around P12,000).   If you can handle all those disadvantages, this is a viable business idea.

There is a part of me who wished that the 2-hectare land was planted with trees instead.

There are other animals in the farm.

Dogs help secure the area.

We had fried chicken for dinner that night.    :D

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