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    Moet & Chandon ink partnership with premier restaurant Oysters & More

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    Sarova introduces new brands as it diversifies into standalone restaurants

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    Tatu City Partners with Konza to Attract Investors to Kenya

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    Price of bread rises to Ksh55

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    Tatu City partners with Konza to attract investors to Kenya

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    Tatu City Partners with Konza to Attract Investors to Kenya

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    LG unveils premium monitors

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    Samsung Galaxy S21 is now out,pre orders open in Kenya

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    Emirates among first airlines to try IATAs’ digital platform for COVID-19

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Kenyan Business Feed
  • Home
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    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Ann Kananu takes over as Deputy Governor but….

    Ann Kananu takes over as Deputy Governor but….

    New land Scandal pits Kalonzo vs Ruto

    New land Scandal pits Kalonzo vs Ruto

    Sarova introduces new brands as it diversifies into standalone restaurants

    Sarova introduces new brands as it diversifies into standalone restaurants

    KEBS bank accounts frozen over 2 billion

    KEBS bank accounts frozen over 2 billion

  • Markets
    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Sarova introduces new brands as it diversifies into standalone restaurants

    Sarova introduces new brands as it diversifies into standalone restaurants

    Tatu City Partners with Konza to Attract Investors to Kenya

    Tatu City Partners with Konza to Attract Investors to Kenya

    LG unveils premium monitors

    LG unveils premium monitors

    Price of bread rises to Ksh55

    Price of bread rises to Ksh55

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    Brace for harsh times as fuel pump price hikes

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    6.5 million register new mobile money accounts in 2020 -CBK

    6.5 million register new mobile money accounts in 2020 -CBK

  • Real Estate
    Tatu City partners with Konza to attract investors to Kenya

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    Tatu City Partners with Konza to Attract Investors to Kenya

    National Bank and Octagon ink 100 billion service partnership

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    Real Estate: Cytonn invites bids for this 4 acre piece of prime land in Kilimani

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    Kenyan Firm awarded Most Innovative Community Developer 

    Cytonn Real Estate completes The Alma Phase 3; 120 units set for handover

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    LG unveils premium monitors

    LG unveils premium monitors

    Pesalink appoints Gituku Kirika as CEO

    Pesalink appoints Gituku Kirika as CEO

    Samsung Galaxy S21 is now out,pre orders open in Kenya

    Samsung Galaxy S21 is now out,pre orders open in Kenya

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    2021: realme to release more smartphone in Kenya

    Samsung banking on technology personalisation to increase market share

    Samsung banking on technology personalisation to increase market share

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    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Whatsapp to block users this February following new policy

    Whatsapp to block users this February following new policy

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    Tough times ahead as taxis set to increase fares

  • World Business

    Twitter CEO finally breaks silence about banning US President Donald Trump from the platform

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Millions Abandon Whatsapp over new Contentious Policy, Signal, Telegram record growth

    Trump threatens to slash US funding to World Health Organization

    A year later, WHO still insists on visiting China to probe virus origin

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    F1 superstar to miss Sakhir GP after testing positive for coronavirus – Statement

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    Boeing’s 737 Max Cleared to Fly in the US After Crashes

    Guinness forced to recall contaminated brand

    Guinness forced to recall contaminated brand

    WTA Names Kenya as Africa’s Leading Tourist Destination 2020

    WTA Names Kenya as Africa’s Leading Tourist Destination 2020

    United States: Close Contest as Trump Declares himself Winner

    United States: Close Contest as Trump Declares himself Winner

    Terror group Al-Shabaab collects almost as much tax as the Somalia government – Report

    Terror group Al-Shabaab collects almost as much tax as the Somalia government – Report

  • KBF
    • All
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    Reprieve for Kenya as China says this about its loans

    Reprieve for Kenya as China says this about its loans

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Emirates among first airlines to try IATAs’ digital platform for COVID-19

    Tatu City partners with Konza to attract investors to Kenya

    Tatu City partners with Konza to attract investors to Kenya

    KRA Goes After Rich Individuals, Firms Over Sh250 Billion

    Digital Services Tax a desperate move caused by bad governance

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    Wairegi leaves Britam after 40 years, in-comes Tavaziva Madzinga

    Moet & Chandon ink partnership with premier restaurant Oysters & More

    Moet & Chandon ink partnership with premier restaurant Oysters & More

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    Ann Kananu takes over as Deputy Governor but….

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    DigiTrust: ICEA Lion Group bets on technology in the rewarding money market field

    KEBS bank accounts frozen over 2 billion

    KEBS bank accounts frozen over 2 billion

    • Agribusiness
    • Banking
      ‘Beware of fake currency’, CBK Warns

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      6.5 million register new mobile money accounts in 2020 -CBK

      6.5 million register new mobile money accounts in 2020 -CBK

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      SIB banks’ foreign investment arm records mild drop in returns

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      Employment Exit Strategy: The smart way to leave job for entrepreneurship.

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Vet on call: Make your broiler farming profitable

by Kenyan Business Feed
May 10, 2019
in KBF
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DR JOSEPH MUGACHIA

By DR JOSEPH MUGACHIA
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Last week, I shared the findings of a study on antibiotics in milk. I received encouraging feedback from farmers, with most saying they had learnt a lot.

I delve into another study presented at the Kenya Veterinary Association Annual Scientific Conference. It was carried out by four researchers from the University of Nairobi, Kenchic Ltd and the World Animal Protection.

They set out to determine the losses caused by poultry welfare issues and the profitability of large and medium-scale broiler production.

The study was carried out in Murang’a, Kiambu, Nairobi, Machakos, Kajiado and Nakuru.

The study gives insights into the reasons Kenya only has a handful of broiler farmers.

It did not include small-scale farmers but it is common knowledge that they are the majority in chicken meat production.

According to the 2009 population census, Kenya had about 26 million indigenous chickens and six million commercial ones.

This made 32 million chickens for 37 million Kenyans at the time. Globally, it is estimated that there are more than three chickens for every person.

Kenyans are estimated to be 46 million but the chicken numbers may not have increased in tandem with the population due to farming challenges.

Data, however, shows that Kenyans have increasingly been consuming more chicken and eggs since 2011 compared with other animal proteins.

The researchers worked with large farms comprising 22,595 birds and medium ones with 1,654 chickens.

In terms of percentage, large scale broiler farmers spent almost half what the medium scale ones spent on flock health.

They also spent three times less in wood shaving and 112 times less in labour and transport.

The mortality cost on the farm was two times lower. This benefit is attributed to the economies of scale. For instance, most poultry vaccines and medicines are packed in bulk, usually for 100-500 birds. When a farmer has less than 100, she still has to buy the pack, resulting in wastage.

The cost of rejection and downgrading of birds and carcasses was high for large scale farmers at Sh129,349 while there was none with small scale producers.

This may have resulted from inadequate care during rearing and transport due to large numbers.

It cost Sh301 to rear a broiler on the large-scale farm and 365 for the medium scale. It also cost Sh172 to produce a kilo of meat on large scale farms and Sh222 for medium scale farms.

Interestingly, the gross profit for producing a kilo of dressed meat on large scale farms was about Sh15 and Sh16 for medium scale farms.

Gross margins and welfare loss per farm.

Gross margins and welfare loss per farm. TABLE | COURTESY

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It means there is no much difference in profit if one produces the chickens only once. This is called one production cycle.

However, the large number of birds in large scale production gives a good multiplier effect.

A farmer should ensure he produces the birds at least four times a year. These are called cycles. A well-managed large-scale farm can have five to seven cycles a year, raising profit to about 47 per cent.

Feeding comprises 63 per cent of the total cost in large-scale farming and 65 in medium scale.

I worked in Iraq between 1998 and 2003 where broiler production was one of our major economic and food security activities.

PROFITABLE BROILER PRODUCTION

We determined that profitable broiler production requires a farmer to keep at least 3,300 birds and four cycles every year.

There were hatcheries supplying day-old chicks, grower farms, slaughterhouses and meat distributors. Meat was finally supplied to consumers through retail outlets like shops, supermarkets and hotels.

The government regulated poultry production, ensuring every level had a sufficient number of productive players to serve the next point of the value chain.

Our programme ensured that the inputs needed were readily available and the produce efficiently moved to the market.

Kenya lacks a regulation mechanism that would prevent under and overproduction of broilers. There are few hatcheries and a high demand for day-old chicks.

This results in farmers being supplied with a fraction of their needs. Consequently, a majority of farmers are ultra-small scale producers.

This keeps hatcheries in business because they sell all chicks but farmers are in a vicious cycle of scarcity and farm closure.

Once the farmers who make losses close down, a meat shortage occurs and new broiler producers flock into production, burn their fingers and the cycle starts again.

Farmers can be organised into cooperatives with clear operation rules and regulations.



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