Introduction
In this article, I share VERY practical, real-world relevant tips on performance metrics you can calculate daily, weekly, monthly, and at the end of the year to accurately determine at every stage if your poultry farm business is performing optimally. .
These performance indices are NOT aggregate measures. In other words, they are NOT measured in monetary terms. Instead they do NOT have units as they are ratios, usage rates and percentages that help to (a) establish a normal trend of your farms behavior (b) quickly identify/detect deviations from that trend, so you can take corrective/timely measures.
Please note that these measures are tried and tested, and are actually embedded in a custom spreadsheet software application I built for a client who runs a twelve thousand (12,000) layer poultry farm business.
You can quickly and easily calculate performance indicators to check the health of your farm
You’d be interested to know that this customer actually enters ALL the data into the software application on his laptop, using completed copies of a custom record-keeping form I designed (after a farm visit that involved a review of records). existing/necessary) for use by farm staff DAILY.
He once shared with me how he spotted some anomalies in the data recorded by the supervisor, using the automatically calculated performance indices in the software.
The point here is that KNOWING the performance measures you can calculate to VERIFY how well your farm is doing in terms of OPERATIONS and FINANCES is crucial.
You can do it yourself as the calculations are really simple and easy to use. However, when you manage a large (or growing) agricultural business, you may reach a point where you would be more valuable if you were spared the hassle of having to do such calculations manually.
Instead, you can automate your calculation (using custom software like mine) and spend your time managing your farm business smarter by studying trends in your yield rates over time to make timely decisions/ effective that lead to overall results. cost effectiveness.
Here are three (3) VERY useful poultry business performance measures that you should know about and use regularly:
1. Mortality rate (%)
Over the course of the laying cycle of a flock of birds on a poultry farm, deaths or losses will occur for various reasons. It could be a disease outbreak, a fire, predators, etc. The important thing is that steps are taken to prevent it from happening again.
Accurate documentation of such losses must then be made, and any necessary adjustments made to the inventory records.
There is NO farm that does not have mortalities. However, farm management should keep it to a minimum. You will be able to monitor the mortality rate easily by calculating it daily. That way, you can spot any changes, taking timely action, so there are no surprises at the end of the month!
By the way, when you keep track of this index, you will have an easier time reconciling unexpected dips in egg production.
To calculate the Mortality Rate (%):
Number of dead birds x 100
———————–
(Initial Stock + Closing Layer Stock) x 0.5
2. Hen day production (%)
Properly documented mortality records will help to accurately estimate the day’s production of the hen, which is the number of eggs produced divided by the total number of laying birds on the farm during the period considered, assuming that each bird lays one egg per day.
It is well known that it takes about 26 hours for a bird to lay another egg after the previous one. That is why we do not expect to set a 100% production target for hen day for our flock. Instead, it would be reasonable to expect 80-90% of the birds to lay eggs each day, so if our calculations return results within that range, it would suggest reasonably satisfactory performance.
To calculate Hen Day production (%):
Number of eggs produced x 100
———————–
(Initial Stock + Closing Layer Stock) x 0.5
Your hen day production will fall to reflect recorded mortalities, unless you calculate as shown above. Understanding this will help you compare your results to other farms who may not be aware of this subtle difference.
Keep in mind that this calculation method really helps you check whether or not your birds are becoming less productive, as it prevents losses that occur from making birds that are still alive appear to be laying less frequently, something that it can cause you to start worrying or taking unnecessary things. corrective actions.
3. Feed rate (grams per bird)
Available farm records and literally all indicate that each laying bird should eat about 100 to 105 grams daily.
To calculate the feeding rate (grams per bird):
Total kilograms of food x 1000 x 100
——————————
(Initial Stock + Closing Layer Stock) x 0.5
Using the total kilograms converted to grams) fed to your layers to divide the total number of birds handled daily will tell you how well they are feeding; whether they are underfed or overfed.
Each condition has its own implications. Underfeeding could lead to poor laying; overfeeding translates to waste and of course higher cost of production, which you definitely want to avoid less of your profit margins!
By calculating your feeding rate for each cage or battery pen on a daily basis, you can quickly check and confirm if your birds are getting the correct amount of feed they need. It would also help you keep track of your food stock balance and thus help plan new purchases.
IMPORTANT NOTES:
one). In order to achieve a “weighted” and therefore more realistic result, the formulas described above use as denominator an average derived from the sum of the initial and final stocks of laying birds.
two). If you do NOT have a reliable paper-based farm data record system diligently maintained by your competent on-farm staff, you will NOT be able to depend on the results you get when calculating these performance indices. It would be as they say about the computer: Garbage In, Garbage Out (GIGO)!
RESUME
Many people run poultry farm businesses here. Many plan to start. Some hope to borrow money from banks or friends/family to launch their own. Unfortunately, very FEW, like their catfish farming counterparts, have ANY knowledge of what it takes to smartly eat the business data analytics aspects of their companies.
A solid understanding of how to measure the operational performance of your farming business is essential to ensure long-term success. The three hints I have discussed above can help you in this regard. Learn to use them.
But that’s only ONE side. You also need to know how to measure the financial performance of your farming business and possibly compare it to other farms or even a generic standard.
There are at least three financial performance ratios that can be calculated to tell you whether or not your farm business is growing..
They will tell you if you have done better at the end of this year compared to last year or two (2) years earlier. They will also tell those who invest in your business (or want/plan to) how strong your farm business is financially, compared to last year, etc.
If you’re looking to BUY a farm business, you’ll want to know how to calculate these three (3) ratios to make sure your investment is worth it!
Please note that the financial ratios I mention are NOT aggregate measures like the Income Statement (aka Profit and Loss Report) or the Statement of Net Worth (aka Balance Sheet). They are measures that are NOT unit-based, which makes them (like the farm operation measurement indices discussed earlier) easy to use for comparison.
You can get a special report detailing how to calculate these very powerful agribusiness financial performance ratios from me.