2019 has just passed and many are immersed in the joyous atmosphere of Christmas and New Year. These few days, many people ask us and want to know how much profit one poultry farmer can make from commercial poultry chicken farming business. So we walked into a small village in China to investigate the net profit of a 20,000 layer chicken breeding in the year 2019.
Now in the northern part of China, it is Winter and cold season. Facing the cold wind, we meet Mr Sun-a farmer who has just been engaged in farming for two years.
He told us that he had raised 20,000 eggs in total, and this year brought him a net profit of 100,000 USD
This year’s egg prices can be described as amazing. In the first half of the year, the price of eggs experienced several rounds of increase, and the laying hen profit is good. This rising continued until the end of the year, and egg prices were still float at a high level, and there was no decline in the off-season. Coupled with the recent emergence of the African swine fever epidemic, which has indirectly promoted the popularity of poultry eggs and chicken meat, prices have continued to rise.
From January to March this year, the price of eggs was at a low point, with an average price of 0.9428USD per kilogram of eggs. Such a price can only just reach the break-even point, without losing money. He told us that the cost of an egg is around 0.4285 USD, which is very hard every day, and no profit.
Egg prices rose from April, with egg prices at 1.1428USD per kilogram. Over the following months, egg prices continued to rise, reaching a maximum of 1.7143USD / kg. Compared with the initial price of 0.9428USD per kilo, it has doubled.
Mr Sun raised a total of 20,000 laying hens. In this chicken capacity, the egg production per day is 1267 kg. In 2019, the average net profit for eggs for the whole year is 0.21428USD per kilogram, and the net profit for the year is 100,000 USD.
When we talk about the profit , Mr Sun’s face is full of happiness. A few years ago, he and his wife were looking for work. Leave hometonw and working around not only made very little money, but sometimes the boss deducted his salary. In addition, the child is going to school, lacks the accompany of his family, his character becomes very lonely, and Mr Sun’s parents are older and need to be taken care of. “When I was worried about the future, I saw a message that raising chickens could make money, so I went out to survey, study, and then tried laying hens.”
When we expressed our congratulations on the success of his poultry farm, Mr Sun said that he planned to buy a new car, which would make it easier for him to pick up and drop off his children to school. “I haven’t earned any money in the past few years working for others. Our house is very old and this year I build a new one .”
2019 is a year in which egg prices and chicken meat prices have been rising all the time. Many laying hen breeders and broiler breeders have made good profits from it.
The first is the impact of African swine fever and environmental protection policies. African swine fever has killed a large number of pigs, which has resulted in a shortage of pork and insufficient piglets. And China’s strict environmental protection policy has forced many small pig farms to close. The combination of these two factors has resulted in very high pork prices. Eggs, chicken meat as a substitute for pork, have also risen with the rise in pork prices.
The second is the impact of the Sino-US trade war. During the Sino-US trade war, many American meats could not be imported quickly to make up for the shortage of Chinese meat, which led to rising prices for Chinese chicken and eggs.
The third is to improve the intelligence of farming automation. With the development of science and technology and the improvement of management level, more and more farmers understand and master the breeding technology and breeding knowledge. Now the application of automatic chicken cages, automatic egg collecting system, automatic feeding machine, automatic manure removal system, and automatic temperature control systems in chicken coops has increased the efficiency of raising chickens and reduced the average cost of breeding each egg.
The 20,000 layer laying farm owned by Mr Sun is currently only a small-scale farm in China. With the increase of farming profits and large-scale effects, many 100,000 and 200,000 laying hen farms are being continuously constructed, while the original small farms and 5,000 or less laying hens are gradually being eliminated by the market.
Performance of Chinese listed farming companies:
In 2019, except for layer chicken farmers make big money, many broiler farmers are also making a fortune. The price of broiler chickens increased from 1.42857USD / kg at the beginning of the year to the highest 3.42857USD / kg. It subsequently stabilized at 2.57143USD/ kg. The development of Shengnong, a Chinese listed company, benefited from the rise in chicken prices, and the net profit for the year was 582.85 million. Yisheng’s annual net profit was 328.57 billion . Wen Group’s net profit in the first three quarters of 2019 was 857.14 million.
After we visited the farm, when we were going to leave, Mr Sun told us that he plan to expand chicken farming next year, invest in a hen house with 20,000 layer chickens, add automatic egg collecting equipment, and remove dung by the belt. This equipment can save labor costs and improve efficiency. The belt manure removal system can also better handle chicken manure, which is more in line with the current environmental protection requirements of the Chinese government.
Now in Kenya, Nigeria, Uganda, Botswana, South Africa, Zambia and other African countries, the farming industry is also very profitable. Many of our customers, through our layer chicken cages, broiler chicken cages, brooder cage, and automatic feeding, Intelligent systems such as automatic egg picking and automatic manure removal improve production efficiency ,develop from small farms to medium-sized or large farms.
After our visit ,we write this article and share with you. And no matter which country you come from ,we want to know : How is your profit in poultry farming in 2019 ?
Please tell your poultry farming profit in 2019 and your breeding experience, The first 10 sharing ,you will have the chance to get our chicken cage discount coupon of $ 50. We waiting for your sharing.
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Email: steven@dingtuopoultry.com / steven@dtpoultry.com