Quote:
I only included my direct expenses and didn't include the cost of equipment, barn, farm insurance, property taxes, etc that were fixed assets or expenses that I would have paid anyway had I not raised broilers.
I had expenses directly related to the broilers beyond chicks and feed:
Bedding
Electricity
Propane
Packaging
Mileage
These all thinned my wallet.
Mac I too calculate this way too and what you are figuring is the Cost Of Goods which in this case are all variable costs.
A variable cost analysis also uses these same costs to compare raising dual purpose verses Cornish hybrids.
Example:
https://www.backyardchickens.com/forum/viewtopic.php?pid=5529058
He, I most of the rest of us know that the other costs are there but are the cost of having the building on our property regardless.
He is showing the variable or direct cost raising chicks. Variable costs are those that increase with the more chicks or decrease with less chicks raised.
Fixed cost on the other hand are cost that do do change regardless of how many chicks are being raised; such as, property taxes, repairs, depreciation, insurance, etc...
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As far as electric goes it can be both a fixed cost and a variable cost. The barn/coop outdoor light would be a fixed cost but the brooder lamp would be a direct cost.
NOW if you want to really break down detail to figure costs and get down right ridiculous about it then keep reading.
If you want to know the exact cost of electric it is easy to figure.
These brooding lamp costs are based on the outdoor temp being constantly below 75F
150 Watt Bulb X 28 days X 24 hours/1000 = 100 KW ()
250 Watt Bulb X 28 days X 24 hours/1000 = 168 KW (Good for up to 75 chicks, add 1 chick for each degree above 50F)
100 KW X $0.11 cost = $11.00
168 KW X $0.11 cost = $18.48
A 250-watt heat lamp suspended 18-24 inches over the brooding area that is completely surrounded by a draft guard 12-18 inches high will brood 75 chicks at 50F minimum room temperature.
By looking at these figures I can see that for fewer than 25 chicks the 150 watt bulb may be a better choice. at 25 chicks using a 150 watt lamp the cost per chick is $0.44 but using the larger lamp would cost $0.74
Now if raising 75 chicks the 250 is the better solution at just $0.24 per bird.
So by looking at these figures can be useful but are not completely necessary.
Now depreciation could be figured this way too but it isn't a generally accepted method since depreciation by nature is a current (this years) cost of a longer term asset and the cost is there irregardless of a full or empty coop.
Edited about feed costs.
Some posters say that cost doesn't matter at all. I don't think this is the right approach either since be shopping around for better feed at the same or even lower price I can raise more chickens or other animals for the same costs. There is also hidden value in purchasing from a local mill such as the mill operator getting to know you and your animals and can offer suggestions to help you improve your animals and efficiency.
