- Mar 1, 2012
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While I have come to the realization that standard bred birds are something to strive for and commit to, I have also begun to try to understand how everyone who is serious about working on birds long term manages the paperwork end of it. How do you manage the business side of things? It's not the most fun part of it all but tracking expenses, setting budgets, goals, etc., is all a part of being able to maintain a productive long term relationship with your Heritage poultry, I would think. I can't seem to find any information on how people do it specific to raising poultry. Or is everyone just turning a blind eye. I've only had one suggestion: Quicken. But doesn't anyone run their "hobby" as a business? Doesn't anyone ever intend to break even or squeak a little profit, at least at some point? Oh, I get it. This is the next newbie phase! Expecting to make a little money!
So, can I hang around, or what?
Welcome to the fray.
First off: No. There is no money to be made in hobby poultry. If you keep track of your expenses against your receipts you'll get depressed and quit. There's a reason commercial poultry operations operate the way they do - the margins are razor thin and the only way to succeed is in volume. I'm in Ohio and drive past a commercial egg farm every week on the way to church. It's huge. Meanwhile, all around them are "Farm Fresh Egg" signs. And they're not huge. So the first thing to get out of your head is that there is any money to speak of in poultry. Why do you think so many people are raising beef cattle or hogs? And they're still poor farmers.
Now, with that out of the way, let's see if we can figure out how to make money in chickens. Two ways: Increase sales and Decrease expenses. Not hard, right? I would recommend starting with decreasing expenses. And I don't mean buying cheap feed because that will end up costing you in the long run. If you have a lot of chickens, you can buy bulk feed for savings, but then you get into storage issues. The trouble with hobby chickens is that it's a lot easier to spend a lot of money for little return on investment buying gadgets, doo-dads, and what have you. Figure out if you really, REALLY need it and then figure out if you can make it yourself cheaper from available materials lying around. I could go on about this for a long time, but suffice to say, if you are real tightwad about spending money on chickens, it helps.
The trouble is, sweat equity - the most common expense for chicken hobbyists - doesn't show up in a balance line in Quicken.
Now for the fun part - increasing sales. What are you selling? Eggs? Meat? Chicks? Hatching eggs? Started pullets?
Basically, the only way to make back your money is to do these in volume. And that involves work. Mostly in marketing. The government has set such high barriers to entry through regulatory compliance that unless you are going to operate on a commercial scale, it's more trouble to get into that you will ever recoup. I would suggest that if you want to make money in chickens and avoid regulatory burdens that you consider operating a hatchery. You won't get rich, but you might make back your feed bill. Sell eggs off the farm. Sell meat off the farm, or live birds.
Here's one arrangement. We have a former Amish lady that will process chickens for $1.00 skinned and cut up or $1.50 plucked and whole. If I were selling meaties, I'd tell my customers that they are buying live birds from me. I'll deliver them to the processor as a courtesy, but they will need to pick them up there. For a consideration, I'll pay the lady ahead of time for them, so all they have to do it pick up. This way, we don't break any laws. But the point is, you have to get creative if you're going to sell on a small scale. Otherwise, set up your farm for processing, get USDA inspected and have at it. But you better be prepared to handle the volume. And you might find that you make more money running a processing operation for friends and neighbors than you do with the poultry themselves. Have seen that happen too.
So, bottom line, there are lots of ways to make money in hobby chickens. There's just no way to make lots of money in hobby chickens. About the only way to make it pay is if you keep track of all your expenses and fill out Schedule C on your income tax showing a nice loss and you just might be able to keep some of what your rich Uncle Sam in Washington wants you to send him.