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The composition of the production cost of the chicken farm

September 18, 2020

Chicken production costs are generally divided into two categories: fixed costs and variable costs.   

The fixed cost consists of fixed assets (houses of chicken companies, chicken houses, breeding equipment, transportation tools, power machinery, living facilities, research equipment, etc.)

Variable cost is the funds used by the chicken farm in the production and circulation process, also called working capital, variable cost

Expressed in currency. Its characteristic is that it is completely consumed after only participating in the chicken production process once, and all the value is transferred to the chicken product. Variable costs include expenses such as feed, veterinary drugs, vaccines, fuel, energy, and temporary wages. It is produced

Changes in scale and product output.   


From the results of cost analysis, it can be seen that, in addition to the market price, which is a factor that cannot be determined by the company, the cost control should be completely controlled by the company to improve the operating performance of chicken companies. From the perspective of the production practice of large-scale and intensive chicken farming, the depreciation rate of fixed assets should be reduced first, the proportion of feed expenses in the total cost should be increased as much as possible, and the egg production, live weight and mortality rate of each chicken should be increased, followed by Control the total cost through the price ratio of feed and egg and the price of feed and meat.

Calculation method of production cost


The calculation of production cost is a process of collecting, distributing and calculating the consumption of various materials and various expenses with a certain product object.


The calculation objects of production cost of chicken farms are generally breeding eggs, breeding chicks, broilers and commercial eggs.


Calculation of egg production cost


Cost of each breeding egg = (production cost of breeding eggs - value of by-products) / number of eggs sold by breeding hens


The production cost of breeding eggs is the sum of all costs of each breeding chicken from the time of breeding to elimination. Egg production fee


Including breeding chicken breeding fee, feed, labor, depreciation of houses and equipment, water and electricity costs, medical expenses, management fees, low value consumables, etc. The value of by-products includes income from the elimination of chicken and chicken manure during the period.


Calculation of production cost of brood


Cost of brood = (egg cost + hatching production cost - by product value) / number of chicks sold


The cost of hatching production includes the cost of egg purchase, the whole cost of hatching production process and various marketing expenses, the cost of identification of male and female, the cost of vaccine injection, the freight of chicken delivery and the cost of sales. The value of by-products is mainly the income of unfertilized eggs, soft eggs and male chicks.


Calculation of production cost of chicks and reared chickens


The production cost of chicks and reared chickens is calculated according to the average daily cost of raising and breeding chickens per chicken.


Daily cost of chicks (reared chickens) = (total feeding fee during the period - value of by-products) / number of days raised in the period


The number of breeding days in the period = the number at the beginning of the period × the number of feeding days in the current period + the number of transferred animals in the period × the number of days from transfer in to the end of the period - death


The number of chickens on the farm × days from death to the end of the period


During the period, all the feeding expenses are the sum of 9 items in the production cost accounting contents listed above, and the value of by-products refers to the poultry


The income of excrement and eliminated chicken. The cost of chicken feeding directly reflects the level of feeding management. Feeding management


The higher the level, the lower the daily cost of feeding.


Calculation of production cost of Broilers


Cost per kg broiler = (production cost of broilers - value of byproducts) / total weight of broilers (kg)


Cost per broiler = (production cost of broilers - value of byproducts) / number of broilers on the market


The production cost of broilers includes the sum of the cost of chicken seedling and other expenses in the whole feeding period. The value of by-product is mainly the income of chicken manure.


Calculation of production cost of commercial eggs


Cost per kilogram of eggs = (production cost of layers - value of by-products) / total egg production of hens (kg)


The production cost of laying hens refers to the sum of all the costs of each hen from the time it is put into practice until it is eliminated.