Can you still make money raising chickens this year? The guy calculates an account and sees how high the risk is
The chicken industry has been in the spotlight in recent years, and many people are looking to earn extra income by raising chickens. However, with the ever-changing market and increased competition in the chicken industry, is chicken farming still a profitable business? This article will analyze the profit potential of the chicken industry and explore the risks involved in a small account.
Advantages and attractiveness of raising chickens
The chicken industry has some distinct advantages, which is one of the reasons why many people consider entering the industry. Here are some of the advantages of chicken farming:
1. Stable demand: Chicken and eggs are an important part of people's daily diet, so there is a stable market demand.
2. Relatively low threshold for starting a business: Raising chickens usually requires less start-up capital and land than some other agricultural projects.
3. Short cycle return on investment: The growth cycle of chickens is relatively short, and investors can see returns relatively quickly.
4. Sustainability: The chicken industry can achieve sustainable operations, and with proper management, the flock can maintain production.
However, the chicken industry also faces some challenges and risks that need to be carefully considered.
Consider the risks of raising chickens
1. Price volatility: The profitability of the chicken industry is largely affected by fluctuations in chicken and egg prices. Changes in market supply and demand and seasonal fluctuations can cause price fluctuations.
2. Diseases and health problems: The flock is vulnerable to various diseases, which can lead to the death of the chicken or the decline in production. Managing the health of your flock is an important task.
3. Fierce competition: The chicken industry is highly competitive, especially on larger farms. Low prices and high-quality products can be the key to attracting customers.
4. High management requirements: Successful chicken farming requires effective management and careful attention. Chicken farmers need skills such as feeding, vaccination, feed management, etc.
Guy's chicken profit calculation
To get a deeper understanding of the profitability potential of the chicken industry, let's take a look at a guy's calculations that took into account some key factors. The guy plans to raise 2,000 laying hens on his family farm and plans to sell eggs. Here are his calculations:
1. Investment cost: The cost of buying 2,000 laying hens is about 100,000 yuan, including the purchase of chickens and feed.
2. Feeding cost: The monthly feeding cost (including feed, medicine, drinking equipment, etc.) is about 5,000 yuan.
3. Egg production: each laying hen lays an average of 300 eggs per year, and 2,000 laying hens can lay a total of 600,000 eggs.
4. Egg price: The guy plans to sell it at a price of 0.6 yuan per egg, with a total sales of 360,000 yuan.
5. Profit: After subtracting investment costs and feeding costs from total sales, the guy expects a net profit of about 160,000 yuan per year.
This guy's calculations show that the chicken industry may have the potential to be profitable in his case. However, this calculation does not take into account potential risk factors such as price volatility, health problems and competition. Therefore, he needs to carefully manage and consider these risks.
conclusion
The chicken industry still has some potential for profitability, but running the industry successfully requires careful consideration and management of various risk factors. Investors should do good market research, learn chicken raising skills, and have a sound business plan. In addition, regular review and adjustment of business plans is also key to ensuring the profitability of the chicken industry.
In conclusion, chicken farming may still be a profitable business, but it is not without risk. Only those who are willing to invest time and effort to manage and deal with risk will be successful in this industry.