Submitted by: Steve Richards, CUCES Agribusiness Agent
Whether you are a homesteader raising backyard chickens or a chicken producer looking to sell ready-to-cook chickens at the farmers’ market, you have probably wondered how much it costs to raise, process, and sell chickens from start to finish. This is a complex question, as many different costs are involved.
To this end, Clemson Cooperative Extension has developed an easy-to-use chicken cost calculator. This calculator can be found and downloaded at https://coopcentersc.org/other-resources/. A video presentation on the same webpage walks you through each field on the calculator to fine-tune the tool for your operation.
What do you need to get started?
To get the most from this tool, you should have the following information available:
• Costs to raise a chicken: the cost of the baby chicks, the feed costs, how long it takes to feed a chicken to maturity, and how much time you spend doing it (or paying someone else).
• Processing costs: you may have to time each activity to see how long it takes to perform each task. This translates into labor costs, even if you perform the activities yourself. Equipment costs are reflected in interest (if you borrowed money) and depreciation (writing off the cost equipment over its useful life)
• Supply costs: bags, staples, labels, and ice for chilling.
• Selling costs: frozen storage, farmers’ market vendor fees (if applicable), advertising, and transportation/delivery costs.
• Overhead costs: annual costs to maintain farm insurance, business licenses, repairs, depreciation, interest, taxes, and owner’s pay (if you didn’t already count this in the labor cost earlier)
What results to pay attention to?
The worksheet’s pricing and profit & loss tab has an analysis of whole birds versus portioned birds and a breakeven price for each scenario in the tan-colored fields. How does the breakeven price compare to what you are charging? What net revenue does your operation expect to receive from your efforts?
Next Steps
The chicken cost calculator results may lead you to change your production costs, price, or both. Contact your local Clemson Extension Livestock Agent for assistance in making these changes. An agent directory can be found at https://www.clemson.edu/extension/livestock/team.html
Clemson University Cooperative Extension Service offers its programs to people of all ages, regardless of race, color, gender, religion, national origin, disability, political beliefs, sexual orientation, gender identity, marital or family status and is an equal opportunity employer.
