Organic poultry farming is an attractive niche for family farmers. It gives more gross profit. In addition, small farmers can not compete with big producers, who produce ordinary chicken on an industrial scale. This was told by Petro Bagachevich, the expert on financing the agricultural sector of IFC, on the air of AgroFM.
According to his calculations, a small family farm with 100 hectares of land can stably grow for sale 350 organic chickens a month. This is 4,200 sales per year.
For them, you can have about 0.5 million UAH. The annual profit will make 17-20% from the specified income, that is approximately 85-100 thousand UAH.
“This is the sum that the farm will have for development. It is already without labor payment (up to 100 thousand UAH), repair of equipment, feed and the like,” Bagachevic explains.
Of course, organic production has high costs, especially at the start, when it is necessary to prepare the soil for cultivation of the forage, obtain organic certificates and the like. But the selling price of such products is also higher.
“The organic product is not massive. The demand for it is growing, so there are no problems with selling,” the IFC expert notes.
In addition, having a gross profit of up to 20% and officially registered production, a farmer can borrow a development loan from the bank. And use these funds to increase the herd, to hire more workers, improve production processes, develop sales channels, and therefore create the prerequisites for obtaining even higher profits, he summed up.
By the way, recently the company “Agroecology” announced plans to grow organic chicken meat. According to their calculations, it is much faster and more cost-effective than, for example, making organic milk.