The economic value of poultry is one of the reasons why farmers take an interest in poultry farming. The following is the economic value of poultry keeping:
Provides income from the sale of chicks, meat and fertilized and unfertilized eggs;
The feathers are used to make stuffing for pillows mattresses and quilts
It supplement other incomes from livestock and crops
Poultry droppings are used as livestock (ruminant) feed, as it is a rich source of non-protein nitrogen and provides protein
Poultry manure increase soil fertility and can be sold as fertilizer
Poultry droppings make excellent slurry for biogas production plants
The by-products of a hatchery are used to make livestock protein supplements.
It can generate foreign exchange earnings through the export of poultry products
Used for recreation and also in poultry competitions and shows. In some communities they are kept for their crowing ability.
Use in special festivals, traditional ceremonies, as a gifts, and in traditional medicine.
We hope you now appreciate the economic value of poultry. Let us now estimate the cost of poultry production so that you can determine its profitability.
Economics of Poultry Production
Before you start a poultry business, it is important to determine whether it is profitable and sustainable. There are two costs of production that you should take into consideration. These are:
Fixed costs
Variable costs
Your profits will be greatest if you are able to keep your variable costs to a minimum. Let us look at each type of cost in further detail.
Fixed costs
These are the costs that remain constant throughout the management of one flock. These include the following:
Cost of day – old chicks (approximately 12%)
Housing depreciation
Depreciation of equipment
Depreciation of birds (laying birds) this does not apply to broilers.
Miscellaneous e.g. insurance of building and equipment
Variable costs
These are those costs that vary depending on the number of chicken you have. They include the following:
Feed costs – is the major item that takes 73% or over
Labour cost – 7%
Mortality – 5% throughout the growing period
Fuel for brooding and litter – 2%
Veterinary and pharmaceutical costs – 3%
Transport and marketing costs – 10%
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Pig industry sustains livelihoods of many families in Kenya. Pig rearing has been one of wellestablishedindustry
in Kenya following growing export markets and increasing number of health
conscious consumers. Pig production if efficiently managed has great potentials for increasing
protein supply in Kenya. Smallholder pig farms in Tharaka-Nithi County have been facing
varying and dismal profits. The main objective of this study will be to establish which
institutional arrangements and management factors affect the profit efficiency of small-holder
pig farmers in Tharaka-Nithi County. A multi-stage purposive sampling technique will be
adopted to collect cross sectional data of eighty (80) smallholder pig farmers in Maara
Constituency by the use of semi-structured interview schedules. The work will employ Data
Envelopment Analysis to come up with profit efficiency rankings among the farmers and
stochastic frontier profit function will be used to analyze the factors that affect profit efficiency.
The data will be processed using STATA and DEA Frontier packages. The findings could be
useful to the stakeholders of the pig industry sub sector to formulate policies pertaining to pig
enterprise inputs, marketing issues and financial products and also can establish benchmarks
which can be used as a package for enhancing and stabilizing profit efficiencies of smallholder
pig farmers which in turn could help improve the Kenya economy.
An Overview of Livestock Sub-sector in Kenya Perspectives, Opportunities and Innovations for Market Access for Market Access for Pastoral Producers Recent statistics point that the livestock sub-sector in Kenya accounts for approximately 10% of the National Gross Domestic Product (GDP). This is 30% of the agricultural GDP. It employs about 50% of the national agricultural workforce and about 90% of the ASAL workforce. 95% of ASAL household income comes from this sub-sector. This is despite the fact that the sector receives only 1 % of the total annual budget allocation. The livestock resource base is estimated at 60 million units comprising of 29 million indigenous and exotic chicken, 10 million beef cattle, 3 million dairy and dairy crosses, 9 million goats, 7 million sheep, 0.8 mi camels, 0.52 mi donkeys and 0.3 million pigs. (Strategy for Revitalizing Agriculture (SRA) 2003) Kenya is broadly self-sufficient in most livestock products but is a net importer of red meat mostly inform of on-the-hoof animals trekked across the porous boundaries of neighbouring countries- Somalia, Ethiopia, Sudan, Uganda and Tanzania. Livestock supply in Kenya results from a complex set of interactions between Kenya and its neighbours and the traditional Middle East market and their respective livestock populations, demand and market prices. Kenya is part of a regional market where livestock flow according to markets and price differentials in a liberalized system throughout the region as a whole and where Nairobi represents a focus of demand for the region Supply of red-meat from domestic cattle, shoats and camels falls short of demand, and is almost permanently augmented by a traditional livestock trade drawn in from neighbouring countries, especially Somalia, Tanzania, Sudan and Ethiopia in varying quantities according to demand, which maintains a supply/demand
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