This is an interesting scenario brought about by Dr. Samuel Sewagudde of Genesis East Africa Ltd in one of a poultry Whatsapp group that highlights the challenges poultry farmers face in their business choices. I will use this scenario to provide step-by-step analysis of how to build the data for decision making.
- Each bird eats 125g of feed per day
- The costs of the feeds include transportation so no additional costs are incurred with the feed
- There are no additional costs incurred in the sale of the eggs
- Matama feeds cost UGX 100 per day while Mulegi Feeds cost UGX 125 per day
- At 72% production each bird generates UGX 192 per day (8000 * 0.72 divided by 30) while at 80% production the revenue per bird rises to 213/= (8000 * 0.8 divided by 30).
- The increase in cost of feed is UGX 25/= per bird per day while the increase in revenue is UGX 21/= per bird per day