"Don't count your chickens before they're hatched"
Entering the business
Establishing a poultry hatchery in Africa can be a good way to enter the poultry industry. Starting very small in your backyard to starting a medium sized hatchery in a small warehouse is becoming easier.
Partly, this is due to the availability of reasonably good quality low cost incubators on the market that cater for a smaller producer. Availability of fertile egg supply is increasing and the transportation of fertile eggs is not too onerous.
Market
In most regions there is a good market that is small backyard farmers wanting to grow broilers for live sale in their neighborhood. If the sales of day old chicks and feed can be combined then this can be a very lucrative business.
Knowledge
As this business does not require any growing of chickens but simply incubating and hatching chicks there is limited risk involved. A limited knowledge of poultry farming is required unless the business intends to support its customers who grow the chicks.
Inputs
Obtaining quality fertile eggs at a good price is key to the success of the business. Handling of these eggs within the hatchery including storage, incubation and hatching at the correct temperatures and humidity is key to achieving a good hatch-ability.
Profitability
Costs of processing these fertile eggs into chicks include the following:
Fertile egg cost for example $0.40 per egg.
Processing cost - (Labor, power, water, chemicals, vaccines and depreciation) for example $0.25 per egg
Cost per chick $0.65
Some countries in Africa the retail pricing of a broiler day old chick can be as high as $1.00 per chick.
Set up costs
Some of the costs involved in setting up a small hatchery would include the following:
1) Incubator machines.
2) Hatcher machines.
3) Air-conditioning - for egg storage and air conditioning of incubation rooms.
4) Water cooling - Depending on the machine size.
5) Sorting tables.
6) Candling table.
7) Transfer table.
A hatchery producing 5,000 chicks per week can be set up for less than $15,000 if the building is rented. There are key aspects such as bio-security that cannot be neglected but in general, as chicks are "processed within the machines" this business can be set up almost anywhere.
I have only covered a few aspects on this subject. Contact me for more information on jeremy@igallus.com