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Practical Poultry Farm Business Performance Calculations
In this article, I share very practical, real-world relevant performance measures that you can calculate daily, weekly, monthly and at the end of the year to accurately determine how your poultry farming business is doing at every stage. works best.
These performance indicators are NOT aggregate measures. In other words, they are NOT measured in monetary terms. Instead they have NO units, they are ratios, usage rates and ratios that help to (a) establish a normal pattern of movement for your farmers (b) quickly recognize/diagnose deviations from that trend, so you can take your time to be active.
Note that these measures are tried and tested, and are actually built into a custom spreadsheet software application I developed for a client who runs a twelve thousand (12,000) fold poultry farming business.
You Can Quickly and Easily Calculate Performance Indicators to Check Your Farm’s Health
You may be interested to know that this customer actually now enters ALL data into the software application on his laptop, using completed copies of a custom record keeping form that I designed (following a farm visit that included a review of existing/required records ) for DAILY use by agricultural workers.
He once shared with me how he detected some anomalies in the data recorded by the monitor, using automatically calculated performance indicators in the software.
The point being made here is that KNOWING the performance measures you can calculate to DETERMINE how well your farm is doing in terms of OPERATIONS and FINANCE is very important.
You can do it yourself, because the calculations are really simple and easy to use. However, when you manage a large (or growing) farming enterprise, you can reach a point where it will add more value if you save yourself the trouble of doing such calculations manually.
Instead, you can automate their calculation (using custom software like mine), and spend your time managing your farming business smarter by studying trends in your performance indicators over time so you can make informed decisions. get the time/effect that leads to the general. profit
Here are three (3) VERY useful Bird Filter Business performance measures that you should know and use regularly:
1. Mortality Rate (%)
During the laying cycle for a flock of birds on a poultry farm, there will be deaths or losses due to various causes. Diseases, fires, predators, etc. may occur. The important thing is to take measures to prevent it from happening again.
Proper documentation of such losses should then be made, with necessary stock record adjustments made.
There is NO farm that will not die. However, farm management should keep it to a minimum. You will easily track the death rate by calculating it daily. In this way, you can detect any changes, take timely action, so that there are no surprises at the end of the month!
Incidentally, when you follow this index, you will find it easier to reconcile unexpected drops in egg production.
To calculate Mortality Rate (%):
Number of dead birds x 100
(Opening + Closing Stock of layers) x 0.5
2. Daily Production (%)
Properly documented records of deaths will help to accurately estimate the Egg Day production – which is the number of eggs produced divided by the total number of birds on the farm during the considered period, assuming that each bird lays one egg per day.
It is known that a bird actually needs 26 hours to lay another egg after a previous one. So we don’t expect to get 100 percent Snow Day production for our flock. It would be reasonable to expect 80 to 90% of the birds to lay eggs each day, so if our calculations result in that range, it would suggest reasonably satisfactory performance.
To calculate the daily yield (%):
Number of eggs produced x 100
(Opening + Closing Stock of layers) x 0.5
Your Daily Production will fall in line with recorded deaths, unless you calculate as described above. Understanding this will help you compare your results to other fields that may not be aware of this subtle difference.
Note that this calculation method helps you to accurately determine whether your birds are becoming less productive, as it does not account for the losses that occur when the birds appear to be still alive and turn less often – something which can make you start to worry or otherwise get unnecessary. corrective actions.
3. Feed rate (grams per bird)
Available records from breeders and researchers all indicate that each bird should eat 100 to 105 grams per day.
To calculate the feed rate (grams per bird):
Total kilograms of food x 1000 x 100
(Opening + Closing Stock of layers) x 0.5
Using the total Kilograms (converted to grams) fed to your breeder birds to divide the total number of birds managed per day will tell you how well they are eating; if they eat too little or too much.
Each condition has its own effects. Malnutrition can cause bad taste; excess food translates to waste – and of course higher production cost, which you definitely want to avoid so you don’t eat into your profit margins!
By calculating your feed rate for each battery cage or pen per day, you can quickly check and make sure the birds are getting the right amount of food they need. It will also help you track your food balance stocks, and therefore help you plan for new purchases.
1). In order to obtain a “weighted” – and therefore more realistic – result, the formulas described above use a weighted average of the opening and closing number of breeding birds as a denominator.
2). If you don’t have a reliable paper-based farm data recording system that is diligently maintained by your skilled staff on the farm, you won’t be able to depend on the results you get from calculating these performance indicators. It will be like what is often said about the computer: Garbage in, garbage out (GIGO)!
Many people run poultry farming businesses here. Many plan to start. A number hope to borrow money from banks, or friends/relatives to start their own. Unfortunately, VERY FEW – like their fish farming counterparts – have ANY of the knowledge they need to intelligently manage the business data analysis aspects of their ventures.
A sound knowledge of how to measure the operational performance of your farming business is essential to ensure long-term success. The three signs I mentioned above can help you in this regard. Learn to use them.
But that’s just ONE side of it. You also need to know how to measure the financial performance of your farming business – and perhaps compare it to other farms or a general benchmark.
There are at least three financial performance ratios that can be calculated to tell you whether or not your agricultural business is growing.
They will tell you if you have improved at the end of this year compared to the previous year or the previous two (2) years. They will also tell people who are investing in your business, (or who want/plan to) how financially strong your farming business is – compared to last year etc.
If you’re looking to buy a farming business, you’ll want to know how to calculate these three (3) ratios to make sure your investment is worth it!
Note that the financial ratios I’m talking about are NOT aggregate measures like the Income Statement (also known as the Profit and Loss report) or the Net Worth Statement (aka the Balance Sheet).. They are measures that are NOT unit based, which makes them (like the agricultural job measurement scales discussed above) easy to compare.
You can get a special report detailing how to calculate these very powerful farm business financial performance ratios from me.
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