place more broilers per house than recommended capacity. Hence, they start catching birds at
day 32-33 by giving the first preference to big birds. In both cases the producer may lose the
fast growing period of bird’s life and at the same time they feed extra days for slow growing
birds, especially the females.
Rapid escalation of raw-material prices in the world market causes increase in animal feed
prices. Tax imposed by the Sri Lankan government on imported raw materials influenced
furthermore on local feed price. The price of broiler chicken is being increased with time,
though slowly and not simultaneously with the feed prices. However, further increase in
chicken price has been brought to an end by the maximum retail price being set for whole
chicken by the Consumer Affairs Authority of Sri Lanka.
It is clear that there are no hard and fast rules for maximizing the return from broiler
production. Maximum profit could be achieved by getting a highest margin over the variable
cost. There are two ways to increase the margin. Firstly, returns needs to be increased, either
through achieving higher levels of production or through selling the product at a higher price.
Secondly, the variable cost should be reduced as much as possible. According to Waller
(2007), feed cost is the primary component of the variable cost, accounting for up to 70% of
the total cost. When faced with increases in feed ingredient prices, only way to cut down the
feed cost would be by reducing the nutrient specifications of the feed (Waller, 2007).
Decreasing nutrient levels reduces feed cost but can also decrease the margin. Therefore,
desire to reduce feed cost per ton wants to be balanced against maintaining or maximizing
the margin. The maximum margin is clearly not produced by minimizing feed cost, but is
achieved at the point where the difference between revenue and cost is maximum (Waller,
2007).
Increase in technical efficiency and use of new strategies at the farm are two important
components in maximizing the margin. Sex-separate feeding and maintaining optimum
grow-out period of birds are two strategies that farmers can easily apply to increase the
profitability of the farm. The sexual difference of the birds has made a big difference in
physiological requirements and also nutrient requirements. For example, the FCR of female
broilers is usually higher (less efficient) than that of male birds of the same age, above 30
days or so as the female birds tend to deposit proportionally more fat in the body (Leeson,
2000). Veerapen (1999) showed that Ross 208 male broilers require less feed to produce a
unit of gain in weight, and are more efficient feed converters than females and also male
broilers could be slaughtered 4.5 day earlier than females, saving on feed costs, when raised
separately. The males can be kept for more days after achievement of target slaughter live
weight to achieve a heavier carcass weight and high meat yield for value added broiler
choice cuts and the smaller females can be kept to meet the whole carcass market (Veerapen,
1999). The nutrient requirements of males and females are different due to the faster growth
and higher meat yield of males and there is a possibility of feeding lower levels of protein or
amino acids to the females (Creswell, 2007).
The cycle length is also an important factor when the annual return from the broiler business
is considered. Extending cycle length will increase the return per bird, whereas, shortening
the grow-out time will increase the number of harvests per year. Kleyn (2002) pointed out
that a 38-day cycle length with an 11-day cleanout would lead to an extra harvest per year
compared to the traditional practice of 42-day cycles with 14-day intervals.
The main focus of the poultry industry used to be on growth rate and feed conversion
efficiency during the past. But with the current changes, now and increasingly in the future,
place more broilers per house than recommended capacity. Hence, they start catching birds atday 32-33 by giving the first preference to big birds. In both cases the producer may lose thefast growing period of bird’s life and at the same time they feed extra days for slow growingbirds, especially the females.Rapid escalation of raw-material prices in the world market causes increase in animal feedprices. Tax imposed by the Sri Lankan government on imported raw materials influencedfurthermore on local feed price. The price of broiler chicken is being increased with time,though slowly and not simultaneously with the feed prices. However, further increase inchicken price has been brought to an end by the maximum retail price being set for wholechicken by the Consumer Affairs Authority of Sri Lanka.It is clear that there are no hard and fast rules for maximizing the return from broilerproduction. Maximum profit could be achieved by getting a highest margin over the variablecost. There are two ways to increase the margin. Firstly, returns needs to be increased, eitherthrough achieving higher levels of production or through selling the product at a higher price.Secondly, the variable cost should be reduced as much as possible. According to Waller(2007), feed cost is the primary component of the variable cost, accounting for up to 70% ofthe total cost. When faced with increases in feed ingredient prices, only way to cut down thefeed cost would be by reducing the nutrient specifications of the feed (Waller, 2007).Decreasing nutrient levels reduces feed cost but can also decrease the margin. Therefore,desire to reduce feed cost per ton wants to be balanced against maintaining or maximizingthe margin. The maximum margin is clearly not produced by minimizing feed cost, but isachieved at the point where the difference between revenue and cost is maximum (Waller,2007).Increase in technical efficiency and use of new strategies at the farm are two importantcomponents in maximizing the margin. Sex-separate feeding and maintaining optimumgrow-out period of birds are two strategies that farmers can easily apply to increase theprofitability of the farm. The sexual difference of the birds has made a big difference inphysiological requirements and also nutrient requirements. For example, the FCR of femalebroilers is usually higher (less efficient) than that of male birds of the same age, above 30days or so as the female birds tend to deposit proportionally more fat in the body (Leeson,2000). Veerapen (1999) showed that Ross 208 male broilers require less feed to produce aunit of gain in weight, and are more efficient feed converters than females and also malebroilers could be slaughtered 4.5 day earlier than females, saving on feed costs, when raisedseparately. The males can be kept for more days after achievement of target slaughter liveweight to achieve a heavier carcass weight and high meat yield for value added broilerchoice cuts and the smaller females can be kept to meet the whole carcass market (Veerapen,1999). The nutrient requirements of males and females are different due to the faster growthand higher meat yield of males and there is a possibility of feeding lower levels of protein oramino acids to the females (Creswell, 2007).The cycle length is also an important factor when the annual return from the broiler businessis considered. Extending cycle length will increase the return per bird, whereas, shorteningthe grow-out time will increase the number of harvests per year. Kleyn (2002) pointed outthat a 38-day cycle length with an 11-day cleanout would lead to an extra harvest per yearcompared to the traditional practice of 42-day cycles with 14-day intervals.The main focus of the poultry industry used to be on growth rate and feed conversionefficiency during the past. But with the current changes, now and increasingly in the future,
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