How to Forecast Sales of a Chicken Egg Farm

There will always be demand for chicken eggs worldwide as it is the most accessible and widely available breakfast option. Eggs also have various food uses both as meals and confectionaries.

If you plan to engage in chicken egg farming, you should have enough industry know-how and technical expertise or hire an expert who will manage the business. Like animal husbandry, a chicken egg farm is quite risky since you deal with live animals.

Forecasting sales for chicken egg farms require you to identify various factors that affect the profitability and sale of your business. The two key determinants are production volume and prices. And there are sub-factors affecting production volume and prices.

1. Production Volume

In computing the production volume, the chicken breed, the average egg produces per hen d, growing period of hens, and average production days are the factors you should consider. The mortality rate also lowers the production volume. At the same time, the average area per chicken can increase or decrease the mortality rate. The more stressed the layer hens are in a small space, the less egg production.

a. Chicken Breed

Chicken layer hens can be of different breeds. The breeds raised for egg production included the Novogen Brown, Easter Eggers, Blue Plymouth Rock, and Rustic Rambler. And the eggs produce vary per breed.

· Novogen Brown Egg Layer — is characterized as most adaptable to its environment. It can produce an average of 395 eggs in its lifetime.

· Easter Eggers — this breed produces approximately 280 eggs. As its name implies, their eggs come in different colors.

· Blue Plymouth Rock Chickens — this egg layer produces about 300 large to extra-large brown eggs per year.

· Rustic Rambler — produces about 260 to 280 brown eggs in its lifetime.

b. Growing Period

You will buy either old-day chick or pullet to grow into layer hens when producing for the first time. Purchasing an old-day chick means a longer growing period. Week 1 to 6 is the brooding period in which the chicks need more care and energy on their diet. Week 7 to 20 is the growing period and the time before production. The production period starts at Week 21 up to Week 80. However, productive life may also differ per variety.

The layer hens grow until the 40th week, which also affects the size of the eggs. At the start of the production, the hens produce small eggs until they reach into large or extra-large during the peak of their egg production.

c. Mortality Rate

Mortality should be considered for raising the layer hens and during egg production. On average, 5% is allotted for the mortality of raising the layer hens. On the other hand, the source of losses during egg production is the cracked eggs, about 3%.

d. Average Area per Chicken

Battery cages are not suitable for the well-being of the layer hens. They should be enough space per layer hen. On average, an indoor space of 1.5 sq ft is allotted per hen, then 20 sq ft per bird for roaming outside.

2. Prices

Prices will differ on the kind of eggs. Brown and white eggs also have different prices. Brown eggs have higher prices than their white counterpart.

The larger the eggs, the higher the prices. The breed of layer hens can also differ in the sizes of eggs produced. So, choosing the right breed of layer hens can significantly affect the profitability of your chicken egg farm.

3. Other Revenue Sources

Other revenue sources can be derived from selling the hens after their productive life. You may also opt to sell day-old chick as additional income. Chicken manure can also be sold in the nearby farms which grow plants and crops.

Forecasting sales for chicken egg farms requires identifying the factors affecting production volume and selling prices. Production volume is affected by the chicken layer breed you will raise, growing period per chicken, and mortality rate. Prices are affected by the color, size, and number of eggs per packaging type.

Utilizing a financial model template when forecasting your chicken egg farming sales will help you have more accurate results. This financial model template for Chicken Egg Farm is equipped with the critical metrics necessary for sales forecasting and evaluating financial economics.