Cost analysis of opening a 2,000-broiler farm in Burkina Faso

Time : 2024-08-07

As a landlocked country in West Africa, agriculture has always been one of the important pillars of Burkina Faso’s economy. With the growth of population and the expansion of market demand, the poultry industry has become a hot spot for local farmers and investors. This article will analyze in detail the various costs required to open a 2,000-broiler farm in Burkina Faso, as well as the expected economic benefits. All costs will be expressed in Burkina Faso francs (CFA).

1. Land and construction costs

In Burkina Faso, land costs are relatively low, but prices vary depending on the location and quality of the land. Assuming that the land is located in an area close to the main market, the land cost will be relatively high. The estimated cost of purchasing enough land to build a chicken farm is about 3,750,000 CFA.

Construction costs include the construction of chicken houses, broiler cage equipment, ventilation systems, water supply systems, and fences. Given the local climatic conditions, the chicken house needs to have good ventilation and shading facilities to ensure the healthy growth of the chickens. The estimated cost of this part is about 22,500,000 CFA.

broiler cage equipment

2. Chicks and feed costs

In Burkina Faso, high-quality broiler chicks are relatively limited and may need to be imported from neighboring countries, which will increase costs. The cost of each chick is expected to be 600 CFA, and the total cost of 2,000 chicks is 1,200,000 CFA.

Feed is a large part of the cost of raising chickens. Considering the high cost of imported feed, it is possible to choose to use locally produced feed to reduce costs. Each chicken consumes about 20 kg of feed during the entire breeding cycle. Based on 225 CFA per kg of feed, the total feed cost for 2,000 broilers is about 9,000,000 CFA.

3. Labor and management costs

Chicken farming business requires a stable labor force for daily management. In Burkina Faso, labor costs are relatively low. Assuming that 3 workers are hired and each person is paid 112,500 CFA per month, the labor cost for one year is about 4,050,000 CFA.

In addition, water and electricity costs, vaccine costs, and possible medical expenses need to be considered. This part of the cost is expected to be around 2,250,000 CFA.

4. Expected income

The market demand for broilers in Burkina Faso is stable, and the market price of each broiler is about 18,750 CFA. Therefore, the total income of 2,000 broilers is 37,500,000 CFA. After deducting all costs, the net profit is about 13,500,000 CFA.

5. Conclusion

The total initial investment in opening a 2,000 broiler farm in Burkina Faso is about 42,000,000 CFA, including the cost of land, construction, chicks, feed and labor. Although the initial investment is large, it is an attractive investment project considering the stability of market demand and high profit margins. However, investors should understand the local market situation in detail before entering this industry and plan the scale of breeding reasonably to ensure the success and sustainability of the investment.


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