Raising Free Range Chicken

Eating healthy has been gaining ground for the past five years or so in the Philippines.  Organically produced veggies are one of the popular items in weekend markets at the Lung Center of the Philippines in Quezon City and Salcedo Market in Makati City.  Garden enthusiasts are planting herbs like oregano, basil, rosemary, mint in their backyard or pocket gardens so there will always be fresh produce when cooking that favorite pasta recipe or soup.  Suddenly vegan cafes and eateries are sprouting in restaurant rows and malls.  Eating healthy has become the craze as people became aware of the side effects of unhealthy food.  By unhealthy food, I am referring to vegetables, poultry and meat that have been grown using pesticides, fertilizers, growth hormones, antibiotics.

For this article, I will be tackling free range chicken farming as a viable source of income.  I got a lot of help from Dr. Erwin Cruz, a veterinarian who is in the business of growing and selling free range day old chicks.  Free range farming is the growing of chicken which allows the chickens to roam freely and are fed chemical-free feeds.  Antibiotics and growth hormones are not used.  Instead, banana leaves, bamboo leaves, brown rice and other natural supplements are given to help them combat diseases.  The meat of chicken grown using this farming method is the preferred meat source of children with autism, the elderly, persons with cancer and other diseases that are diet sensitive.

As per Dr. Erwin Cruz, free range chicken farming started in 1997 here in the Philippines.  It started as a hobby for some and eventually progressed into a full commercial endeavor.  Free range poultry meat is steadily gaining a following because of its more natural delicious taste and health benefits.  Since chicken growers still prefer to grow the commercial chicken found in supermarkets and markets, it is best to go into business now and be ahead of the pack.

The heart of free range chicken farming is choosing the right quality of day old chicks.  This means that the chicks should come from parents that were raised the same way, that is, free range too.  For those about to venture into business, it is best to follow these tips:

1.  Start small to minimize losses.  Fifty to one hundred heads would be ideal for a start up.

2.  Have a ready market.  Since free range chickens cost double than the ordinary dressed chicken, it is best to know the market.

3.  Have a veterinarian who is well-versed in free range chicken farming for proper guidance.

If commercial chickens are harvested between 28 to 32 days,  the ideal harvest age for free range ones is 60 days.  At that age, the chicken weighs 1.6 kilos and 1.1 kilos when dressed.  If commercial chicken growers can have eight to nine cycles per year, free range farmers can only have four to five a year.  Chicks up to age 21 days are housed in brooding houses where they are given feeds, herbal supplements and artificial light.  On day 22 up to harvest time of 60 days, they are transferred to the ranging area enclosed by a fishnet to graze.  Even if they are allowed to graze, feeds are still given for a high meat recovery and quality.

How much capital is needed to start with one hundred heads?  According to Dr. Cruz, the initial cash outlay is P20,965 broken down as follows:

Housing and equipment P8,660

Operating Costs 12,305

The amount does not include the land used for the farm, at least 500 square meters in size.

On the revenue side, the chicken can be sold at P130 per kilo at farm gate prices.  To illustrate:
     
       100 heads x 97% livability = 97 heads x 1.6 kilos live weight = 155.20 kilos

       155.20 kilos x P130/kilo = P20,175

Housing and equipment costs of P8,660 will be amortized within one year which is equivalent to 5 cycles or grows.

       P8,660/5 = P1,732 amortization per cycle.  This amount will be added to the operating costs of P12,305:

       P1,732 + P12,305 = P14,037 representing production cost per cycle for the first year.

To get the net income per cycle for the first year, production cost of P14,037 is deducted from the total revenue of P20,175.

       P20,175 - P14,047 = P6,138.  The net income becomes bigger as the number of chicks increase and after paying the costs for housing and equipment starting on the second year.