I found when feed was about $12/50# that I could make a profit by keeping a strictly egglaying flock of about 25-30 birds. It seems like people would pay $2/doz but $3/doz was too much. I wish we had a mill in our area for cheaper feed. But if we had a mill then it could only be supported by enough customers to buy feed, meaning more people raising livestock, and then lower prices for eggs since there would be more competition. Also, in the current economy we have found that many of our egg customers are cutting back, buying cheaper eggs. So if the economy ever gets going again and feed prices come back down, here's how we did it (also, with the help of a cost tracking program found right here on BYC from member "raizin")
Buy 125 commercial hybrid chicks at $165 including shipping. Sell 100 at the feed store price of $3 each = $300. Profit= $135. But those 25 chicks I'm keeping are going to eat $430 of feed to POL. Yes, I kept track of every bag of feed, every piece of equipment, increase in electric bill for running the brooder... $430-135 profit of chick sales= $295 in the hole. Chickens start laying productively at 20 weeks (5 months) and average sales of 10 dozen eggs per week (even with commercial egglayers you will only get 80% productivity and I always used 1-2 dozen eggs per week for our family leaving about 10 doz to sell) at $2.50/dz = $25/week or $100/month. $100 - $50 (feed and supplies, my chickens have access to pasture and I have a regular supply of organic veggies from the garden and local grocery store freebies) gives me $50/month profit... But you owe the bank $295 so that takes 6 months to pay off and the chickens are now 11 months old. I know that production starts to decline between 12-18 months of age (production charts on breeders commercial website gives me this info) so I order 125 more chicks for the coming year. The older hens are still laying and selling eggs for the 5 months that it takes to raise the chicks netting another $250 profit, combined with the $135 chick sales profit = $385...still owe the bank $45 to raise chicks to POL. But wait! Sell the 25 hens when the chicks reach POL at $10/hen = $250...now we're about $200 ahead ($250 from hens - 45 still owe the bank for feed on chicks = $205 profit). Generally I would use the $200 to make upgrades to the coop or buy equipment, especially in the beginning. And if you figure your time...forget it, you are never going to make a profit then. So, beginning the second year, I am profiting $50/month from the time the new chicks start laying. But I really only have 6 months of profit before I have to buy new chicks again. I now have 6 months x $50 = $300 profit + $135 profit from chicks sales again this year = $435...YAY!!!!! I now have enough to break even feeding the chicks to POL!!!!! (remember, where I live, it costs about $430 in feed to raise the chicks as long as feed prices remain stable) And this year the $250 from selling the hens will be pure profit. Repeat this year after year...until they raise the price of feed and your egg customers can only afford the $1/doz eggs at Wally World.
So I stopped "raising eggs" and sold the flock when both of us faced losing our jobs and would have to start with new employers ( I am thankful every day that we had savings and marketable skills to obtain new jobs), be away from home for training, and all the assorted expenses of starting new careers in both time and money while maintaining a household with a daughter in college. The $250 from the past year's hens + the $250 for this year's POL flock made for some nice grocery money to tide us over until the new paychecks started rolling in. But so far, I am unclear about next year. I now have just 4 pet birds that we kept. They do give us enough eggs to keep our family of 3 supplied. But even if I would want to start a new egglaying flock next Spring, it would be into the 2nd year before seeing a profit again. The cost of chicks is about the same, but the price of feed is obviously higher. Also, I no longer have egg customers and don't know that the sales would be any better in 2012 than they were this past year. So, I'm on the fence at this point, about ordering chicks next Spring. The cheapest feed I can find of reasonable quality is $15/50# x 4/month = $60. If I got $1/doz for eggs = $10/week = $40/month...doesn't even pay for the feed. My alternative plan is to order the 100 chicks, sell 95 = $285- $135 cost = $150 profit. And if I only raised 5 chicks for our own eggs, my cost to POL would be about $50-60. But could I still sell 95 chicks??? Don't know. On the other hand the local gal pal who normally hatches her own chicks to sell each Spring is not doing it this year so maybe I can tap into her customer pipeline for the commercial chick sales. Most people around here are not picky about breeds, just want good egglayers.
I've made it through the last bad economy in the 1970's and know that it will just take time for things to turn around. As much as we want it to, nothing can speed it up except time. So until Father Time makes the days go by...hmmmmm...profit??? Don't know. Probably depends on where you live and your personalized cost to raise eggs...ummm, chickens.