“Raising Poultry on Pasture for Profit” Indiana Small ......“Raising Poultry on Pasture for Profit” ... Farm • 150 leased acres in Owen Co. • Grass-fed beef, rangeland
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“Raising Poultry on Pasture for Profit” Indiana Small Farms Conference Josh Egenolf WE Farm
• Farm on a human scale –40 acres under production
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Why poultry on our farm? Ecological Role – Every animal fills a niche and adds to production. These are pasture sanitizers and fertilizers. Financial Role – Every animal fills a needed financial niche. Poultry have a short lifespan. Quick return on investment. Quick response to market demand. Diversification on farm is key; Ecological and Financial. We want to leverage our natural and financial resources.
Is Poultry Right for You and Your Farm?
• Start small• Keep it simple
(modular, light, and portable)
• Be conservative in your expectations
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Considerations: 1). Do you have a market? Retail/Wholesale? 2.) Is processing available? Proximity? Cost? Scheduling? 3.) Do you have access to feed? Affordability? 4.) Do you have access to hatchlings? Timing? 5.) Do you have the resources necessary? Time/labor? Infrastructure? Capital? Land?
General Cycle: 3-4 wks in brooder; 6-7 weeks on pasture 10 weeks or 77 days = 7-10# bird or 3.5-5# carcass Source of Chicks - Freedom Ranger – Freedom Ranger Hatchery in PA (www.freedomrangerhatchery.com) Why Freedom Rangers? - U.S. spinoff of the French Poulet Rouge = higher vigor than Cornish Cross and high carcass quality (especially skin) Ordering – preorder in advance and get vaccines Shipped overnight mail to your closest post office Receiving – get a call from post office, drive home, put them in the brooder
Brooder and Brooding“Get them off to a great start.”
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Brooding is a critical time. You are now “momma hen” for the next 3-4 weeks. Basic Needs: heat, light, food, water, grit, freedom from harm, and space. Be prepared 2 weeks before expected chicks arrival.
The Brooder
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Coarse substrate with 6” pine shavings. Wet down to promote probiotic growth.
The Brooder
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2 heat lamps with hovers that are adjustable and enough room for all chicks. Chicks will find the sweet spot.
The Brooder
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2 Bell-Matic waterers with minimum 10 gal. supply.
The Brooder
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3-4 PVC feeders, 5 ft. long.
The Brooder
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Roll movie. Tips: -Wet down bedding @ 2 weeks, 1 week, and 3 days prior. Test heat lamps 3 days prior and monitor internal temps Test water system 3 days prior Have feeders in place, full, and sprinkled with grit. Have feed and grit on-site.
Picking Up Chicks
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Roll movie. Wait for the phone call and go get your chicks. Expect a 6 a.m. call on Sunday! Considerations: Have your brooder ready and plenty of space in your car. Chicks should be noisy when you get them. If not, they’re unhappy. Check them at post office if quiet. Get documentation if there’s a problem. Drive home quietly and keep them warm and draft free Unload the boxes in the brooder. Be gentle. Look for problems and dead/weak birds. Note dead chicks as hatchery will reimburse up to 24 hours after delivery. Expect 1% loss. Double check temps, water, feed, and leave them alone – recheck every 3-4 hours.
Week 1: The Most Critical Time
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Roll movie. Remember: YOU are MOMMA in week 1. Chicks are fragile and most vulnerable in the first 5 days. Heat: 90-100 degrees days 1 – 5. Back off 3 -5 degrees per day starting on day 6. Monitor temps closely; adjust as necessary. NO DRAFTS: vent heat high if necessary. Provide Natural Light: helps with vitamin D production and sanitation. Feed: Free choice to feed and mineral. Watch feeder height. Monitor intake. Water: Free choice to water. Watch waterer height. Monitor intake. Smell: Lightly mix the bedding on day 5. Mixing is key; no need to add new. Calm Chicks are happy chicks: Absolutely don’t frighten them. Wild kids and dogs are not welcome around them. If they’re noisy they’re happy. Clear the dead and weak: look for, remove, inspect, and note dead chicks or systemic illness. KEY: Be present and vigilent.
Weeks 2-4: Get Them Ready for Life on Pasture
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Remember: You are weaning these guys. The pasture environment is much different. Heat: Back off 3 -5 degrees per day starting on day 6 until you get to 70 degrees, then turn off the lamps. Venting: introduce more outside air. Vent from the top of your brooder, down. Monitor ammonia. Mix and add some bedding as necessary. Feed: Start ratiioning. Continue to add grit every 3 -5 days. Introduce green material. Monitor intake. Water: Free choice to water. Be sure to keep the water trough and supply clean. Consider adding some Apple Cider Vinegar to the supply. ¼ cup per gallon. KEY: Harden them off for pasture life – Don’t overpamper them.
Weeks 5 - 10: Making the Best Chicken on the Planet
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Moving them to Pasture: Have some extra help. Make sure your tractors are ready. Check the weather forecast. Have a secure container for the move. Minimize stress during this transition. INFRASTRUCTURE: Finish all pasture infrastructure before the chicks arrive to the brooder. Believe me; time will run out.
Pasture Equipment
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10 x 12 high tunnel tractor. (materials) Cost is $170/tractor. Can build in an afternoon with a couple folks and some practice.
Pastoral Poultry Husbandry
• Plan all 6 -7 weeks of moves – start to finish• Arrange tractors in staggered position• Expect 1 week of training• Move every 12-24 hours• Monitor the weather – Prepare for storms and
intense heat
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Planning the moves. Have a grazing plan for all livestock and fit them into it. Choose smooth, well-drained land – think about storms. Think about grass height. Prep and manage. Difficult to follow cattle 3 days behind. Cows graze faster. Keep feed and water supply close Arranging tractors. V pattern works best unless cornering. Focus on complete pasture use and labor efficiency. To Fence or Not? Adds security, but costs more time and labor. Consider guardian dogs. Train your chickens. Move slowly and be prepared for some injuries. Move tractors first, then feed and water. Monitor feed and water intake. Keep feeders and waterers clean. Add chlorine to water and clean algae as needed. This is critical to supply. Adjust feeder and waterer height to match breast height of chickens. Monitor for disease and weak birds. Separate and/or kill sick and the weak. Daily Moves. 24 hour moves are o.k., just monitor birds and ground conditions. Monitor the weather. Strong storms must be reckoned. Secure tractors and have bedding available.
Buffalo Gnats New on the scene. Look for birds piling up and smothering one another. Treat with vanilla extract spray. Cold Birds. Look for birds piling up. Hardening them off is critical. Must not be wet for long. Hot Birds. Look for panting and stroke. Orient tractors to maximize shade and provide cool water. Jumpy Birds. You have predator stress. Kill it or secure the birds better. Lame birds. Look for crazy leg syndrome. Birds unable to stand. Indicates a vitamin deficiency. Use minerals and nutritional yeast to treat. Will solve in a day or two. Cannibalizing. If your birds are eating one another, then decrease the density of birds per tractor and/or increase the amount of protein in their ration. KEY: Have a plan, be proactive, be observant and patient.
The Daily Chore
• Move during the cool part of the day• Do a quick walk-by of all tractors• Move all tractors• Fill the water • Feed and clean
1 person can take care of 500 birds in 45 minutes
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KEY: Be efficient and vigilent. Address problems immediately.
Slaughter Preparation
• End up in an accessible spot• Ensure processing is 100% ready• Withhold grain 18-24 hours• Late night v. early morning loading
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KEY: Minimize stress for the chickens and for you.
Transport to Slaughter“Calm Chickens Make Tasty
Chickens”
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Load birds in the dark. They’re much less active and calm Gather them quickly, but carefully. Count birds from each tractor as you load them. Use crates or be able to restrict piling. < 50/group is best if no crates. Consider temps during transport. Shield from cold winds Insulate from hot roadways Shield from rain Allow extra time for loading and transporting. Murphy’s Law will prevail. A peaceful loadout and transport is your goal KEY: Minimize stress and allow for extra time.
Processing“Don’t Screw Up 10 Weeks of Hard
Work.”
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Options: On-Farm Facility Rental Custom Processing Considerations: Cost Labor Access/Proximity Scheduling Experience/Capabilities of you and workers Equipment Availability Desired Market Outlets Total # Birds. Per Cycle and Annually Exemption Policy:
Options Comparison
Cost Labor Access Scheduling Skill Req’d
Equip. Req’d
Markets # Birds
On-Farm
Retail only
Small batch
Rental Retail only
Med –LrgBatch
Custom Retail + Whole-sale
Med –LrgBatch
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Our Experience – 200 – 500 Bird Cycles Facility Rental – Maple Valley Farm and Rhodes Family Farm Option requires little capital for equipment and demands lesser skill Great option for beginners – rent the equipment and get the training/experience needed Maintain control over the finished product quality. Limited because you can market only as frozen, whole-bird retail Custom Processing – J & M Poultry – New Cambridge, IN – State Certified and Inspected Only capital required is for transport equipment and demands no processing skill Good for batch sizes > 300 (to justify the travel expense). Drop live birds and pickup packaged and labeled birds the same day. Lose control over finished product quality, but paying for professional service. Receive an inspected and labeled product available for unlimited retail and wholesale within Indiana. I can’t make time to describe processing details here. That’s a whole workshops in and of itself.
Choose What’s Right for You
Custom Processing Works for Us.• Marketing• Labor• Reliability• Cost
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Marketing: We want to wholesale Labor: Custom processing saves time. 3, 14 hour days v. 1, 20 hour day Reliability: Custom work minimizes capital demands, meets our quality criteria, and is accessible in terms of scheduling and distance. Cost: It allows us to maintain adequate profit margins if we control our labor and feed costs.
Processing Resources
• “Pastured Poultry Profits” – J. Salatin• ATTRA.org• YouTube
Receiving and Managing Inventory
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Considerations: Packaging: Vac-sealed or bagged Frozen or Fresh: Refrigeration and transport needs Labeling: Certified and inspected or on-farm Meat Quantity: How much must you transport? Retrieval Timing: Season and time of day Time to Market: Long-term v. short-term storage Our Experiences: - Pacacking: Vac-sealing is > cost, > labor, but superior in quality preservation and presentation. Freezing: Cool carcasses rapidly in ice water to 40 degrees, maintain this temp for 10 hours to avoid cold shortening and let rigor finish, then blast freeze to 0 degrees quickly. Must have freezer space or rent space to do this. Either purchase a commercial vacuum sealer or rent one; the same for blast freezing Explore rental opportunities for each with your local butcher Labeling: on-farm you must meat the minimum requirements Custom processing labels can include your farm’s name and logo. We prefer custom labels for marketing wholesale and/or retail. Meat Transport: You absolutely must maintain 40 degree safe temp. 500 chickens easily fill 12 large coolers and requires a trailer to haul them. Overestimate the space you need. 36, 3.5# birds fil a 12 x 16 x 36” cooler. Consider renting a reefer truck in hot months. Retrieving and transporting meat in cool parts of the day or during cool months makes things better. Storage Duration: Try to market meat within 90 days of slaughter. Cuts down on storage costs. Maintains high meat quality.
Storing and Managing Inventory
• Record harvested yeild: # and lbs.• Print weights on labels• Keep groups separate• Sort and store by weight increments• Track outbound inventory• Don’t sell damaged packages or birds
Marketing Your Birds
• Retail vs. Wholesale• Our Experience:
– $4.50/lb. retail for 3+ lb. birds– 70% of sales through CSA at 90% retail $– 20% of sales at the Farmers Market– 10% restaurant wholesale at 80% retail $– 7000# sold within 90 days as whole, frozen
chickens this way
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Considerations: Retail Sales: “The best chicken on earth must get $4.50/# minimum. Large urban markets may accept $5 - $5.50/# Know your costs, yields, and performance. You must get paid for your work. Market Access: Know who your customers are and how to access them. CSA programs work for the customers and the farmer. Logistics and admin are intense, but income is predictable and so is inventory management. Raise them before you sell them. Farmers markets are boom or bust until you build a following. Logistics and admin are less intense, but income is less predictable and so is market demand. Selling out and backhauling are common. Wholesaling: Develop relationships with independent restaurants and learn their needs. Chefs appreciate superior quality and will pay you for it. Wholesale as a means of advertising. Ensure you’re listed on the menu. Limit wholesaling to < 30% of total sales and < 20% discount below retail. Only sell chefs your very best. No news spreads as quickly and widely as a bad experience by the chef or customer.
Let’s Talk Numbers
It is the combination of a good plan, hard work, keen husbandry, and diligent record keeping and monitoring that allows the opportunity for success.
Have a plan and collect information so you can evaluate it.
Enterprise Budgets and TrackingPer Group Cost Analysis
Group
4.8feed conversion: # feed:#meat
$0.91 cost feed/# meat
$1.05 cost butcher/#meat
$0.32 cost purchase/# meat
$2.29 total cost/# meat -BREAK EVEN
$3.42 cost feed/bird
$3.93 cost butcher/bird
$1.22 cost purchase/bird
$8.57 total cost/bird - BREAK EVEN
Summary Yields/%
Total Retail Value of Bird $16.88
Total # meat yielded/bird 3.75
% meat yield: meat v. lw 100.0%
Avg. value/# of meat yielded $4.50
Gross Profit Analysis $8.31
Marginal Reaction $1.97
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Planning Expenses: Have an enterprise budget and tracking system for each group of birds you produce. Fixed Costs (Infrastructure): Brooder, feeders, watering system, tractors, transport equipment, inventory management equipment. Variable Costs (Consumables and Services): baby chicks, brooding supplies, feed, veterinary care, processing costs Your enterprise budget is your best conservative estimation of the performance (yield) of your year, minus your fixed and variable costs. It indicates your likely profit.
Feed Costs: The Most Dynamic and Significant Cost
Cost per Thousand Birds16738 Total feed #
$3,180.22 Total feed cost
66.7% avg. % corn
$0.19 avg. feed cost/#
400 Total mineral #
$284.00 Total mineral cost
$0.71 avg. mineral cost/#
$3,464.22 Total ration feed cost
$0.20 avg. total ration feed cost/#
Cost per 500 Birds
8369 # feed group 1
$1,590.11 feed cost group 1
18.02 # feed/bird group 1
$3.42 cost feed/bird
8369 # feed group 2
$1,590.11 feed cost group 2
18.02 # feed/bird group 2
$3.42 cost feed/bird
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Feed Program and Cost: Ration: 2/3 non-GMO corn and 1/3 non-GMO soy meal, plus complete mineral premix from Midwestern Bio-Ag Week 1: Free choice to feed and grit. Weeks 2 – 10: Provided with 3% estimated live weight in feed. Adjust the ration weekly. Feed Trial: 30% Reduction: Salatin says we birds can get as much as 30% of their dietary needs from pasture. So we took 60 birds and reduced their pasture diet grain ration by 30%. What we found was the cost of the extra grain for the birds on a full 3% live weight ration justified the extra cost of the feed. We so no quality differences between the two groups. Full ration birds averaged 4.7#/bird carcass weight, the trial birds averaged 4.2#/bird carcass weight. Full ration birds got an extra 4 lbs of feed = $0.81 Full ration birds gained an extra 0.5 lbs carcass weight = $2.25 The profit on the full ration birds was $1.44/bird higher. Pennies count for a lot, so do dollars!
Processing Costs
Facility Rental – Self-Bag and Freeze
365 broilers killed
3.84avg. #meat/bird
$1.72 avg. cost/bird
$0.45
avg. cost/#meat butcher
Facility Rental –Custom Bag and
Freeze
484 broilers killed
3.75avg. #meat/bird
$2.63 avg. cost/bird
$0.70
avg. cost/#meat butcher
Custom Processing and Bagging – Self
Freeze
426 broilers killed
3.33avg. #meat/bird
$3.93 avg. cost/bird
$1.18
avg. cost/#meat butcher
Record Keeping Basics“Collect the info you need”
• All income and expense• Mortality per week• Feed Consumption by week• Transition dates and events of note• # birds: taken to and off of pasture• Total lbs. meat yielded and birds processed• Lbs. outbound inventory per sale date• $ sold: retail v. wholesale
Net Profit per Acre is your most meaningful yardstick of performance for your farm. Consider what is possible when you start layering enterprises on the same acreage. Do you think monocropping or single enterprise use can compete with this?
Take Home Messages
• Start with marketing, work back to production when planning.
• Start small, keep it simple, expect mediocrity in the beginning.
• Prepare your infrastructure early.• Fix problems as soon as you see them.• Don’t pamper in the brooder – get those
birds ready for pasture.
Take Home Messages
• Be vigilent, patient, and efficient .• Don’t screw up your hard work at
processing time.• Take care of your inventory and market for
success.• Follow your plan, monitor weekly, adjust to
adversity, and don’t hesitate to replan if necessary.
