Summary
Highlights
Andrew, a former corporate banker, reviews the second harvest of 15,000 chickens from his farm. He operates as a contract grower for a larger integrator, growing chicks and receiving a fee based on harvest recovery, average live weight, and feed conversion ratio (FCR), which measures feed efficiency.
The cycle began with 15,000 chicks, 23 dead on arrival, and 21 rejected. Mortality tracking showed significant improvement from the previous cycle, particularly in weeks one and two, primarily due to better temperature management in the open-sided farm. The total mortality for the 31-day cycle was 593 chicks (4%), a 43% reduction from the first cycle.
Despite improved mortality, the average live weight consistently lagged, showing uniformity issues from week two. Andrew attributes the initially high ALW in the first cycle to poor sampling methods. Consistency in daily farm tasks, such as walk-throughs and feed management, is crucial for uniform growth. A significant comeback in average daily gain was observed in week three after addressing management issues.
A thinning harvest occurred on day 28, moving 2,572 chickens at an average of 1.38 kg to improve uniformity. The final harvest on day 31 involved five trucks. Total harvest recovery was 14,330 chickens (96%) with an average live weight of 1.39 kg. A surprising low weight of 1.18 kg for the third truck raised suspicions of potential chicken theft, prompting a visit to the processing plant to understand their processes.
The feed conversion ratio (FCR) is calculated as the total weight of feed consumed divided by the total weight of harvested chicken. For this cycle, the FCR was 1.58, a significant improvement from the previous cycle's 1.7. An FCR around 1.5 is considered good, and this improvement positively impacts revenue.
Operating expenses for the cycle totaled 219,500 pesos, with gas usage being the highest due to a leak. Other costs included utilities, payroll, rice hull, chick paper, disinfectants, harvesting labor, cleaning, and repairs/maintenance (such as a fan, automatic feeding line, and farm tear). The revenue generated was 487,220 pesos (34 pesos per bird multiplied by 14,330 harvested chickens), resulting in a net profit of 267,720 pesos. This improvement in profitability is primarily due to better performance in growing the chickens, as expenses remained relatively stable. Andrew notes that while the income statement shows profit, significant reinvestment in capital expenses (like a new bathroom and heaters) eats into the actual cash on hand, as these do not appear on the income statement but are crucial for improving the farm's operational state.