Many of those who undertake to raise backyard chickens find that they end up spending more for eggs and meat than they would from the supermarket even if backyard chicken flock start-up costs are not included. Depending upon where you live, however, this need not be the case. Small flock backyard chickens can not only pay for themselves and the eggs and meat your own family uses, but can turn a small profit as well.
What is a Small Flock Operation?
First, let’s start with a definition. For the purpose of this discussion I am defining a small backyard chicken flock as one of twenty birds or less. Larger scale operations have a different set of economics. While the principles discussed here may apply to either large or small chicken flock operations, let’s focus solely on the smaller hobby operations. Small flock backyard hobbyists are generally those who simply wanted to have tighter control over their own food supply. Some thought it would be cheaper than buying eggs or chicken meat in the supermarket and have been sorely disappointed up until now. A few went into it for profit thinking they could sell the eggs to friends and neighbors and make a little extra spending money. For the most part, those who thought raising their own eggs was cheaper or they could profitably sell eggs from their small flock have found themselves sorely disappointed.
Higher Egg Prices may not Work for All
Some try to go upscale and bill their eggs as free-range eggs from happy chickens and highlight the difference between their operation and that of the production battery chicken farms where the chickens are kept in tiny wire cages for their entire lives and then disposed of when their production falls off (usually after the first year). They market their eggs at $5 or $6 dollars a dozen, compared the supermarket price of $2-3 or less per dozen. If you don’t keep roosters, that your best bet for getting your small flock to pay for its own upkeep. Others, though, have trouble finding customers who are more concerned with the manner in which the chickens are raised and treated than they are in paying the lowest price possible.
Get $72 per Dozen
For these people, the key to making their small chicken flock profitable is the roosters, but if your flock also contains a combination of roosters and hens, you can get $10/ dozen for eggs and even $72 per dozen for day old chicks (at $6 each). If you raise the chicks yourself for about five months , you can get $5-10 for the young roosters and average about $15 each for the pullets. The key to profitability in small flock chicken operations isn’t in the sale of fresh eggs. It is in the sale of hatching eggs, chicks and young chickens to others who are looking to start or build upon their own flocks. That requires roosters to fertilize the eggs.
Choosing the Right Breed
Mixed breed chickens sell for much less, so you’ll want to have only one breed in your flock unless you can keep each breed separated 24/7 with separate pens. Depending upon where you live, different breeds might have greater or lesser demand. Cold-weather tolerance is important in the North of the United States, while heat tolerance is more important in the South, for example. Some want fancy breeds for show, others are interested in prolific egg-layers or fast-growing meat producers. Research the breeds and decide which is going to be best for you.
Chicken Swaps and Craigslist
Most rural areas offer “chicken swaps,” which are like flea markets for farm animals. While some may charge a small set-up fee, most are free and allow anyone to come in and set-up to sell their chicks or adult chickens. Craigslist’s Farm and garden section is another great way to sell your birds or eggs. A small incubator for hatching chicken eggs costs about $40 and holds 41-42 eggs at a time. Using accounting’s principle of conservatism, let’s assume a 33% hatch rate for each batch. Fourteen day-old chicks at $5 each will fetch $70 paying for the incubator in one 21 day batch. That’s $70 for three and a half dozen eggs, compared to $7 if you’re getting $2/ dozen. Hatching eggs and selling day-old chicks costs you nothing more than selling fresh eggs after the incubator (and an automatic egg-turner) are amortized. If your hatch rate is higher than one out of three, then your profit goes up accordingly.
Selling Adult Chickens
Raising the chickens and then selling the older birds incurs additional costs and the higher price you may get for older pullets is likely to be eaten up by the cost of feed and any losses you incur over the five months that you care for the birds. It also takes much more coop and outdoor space than the typical backyard flock of less than 20 birds. In the end, it is most likely going to be less profitable than selling day-old chicks.
Selling Hatching Eggs
You can also sell hatching eggs to others who have their own incubators, but for a much lesser price than day-old chicks. This type of sale also has no additional costs, but requires careful treatment of the eggs and it’s helpful to provide clear, concise chicken hatching directions for your customers. Both hatching egg and day-old chick sales are very seasonal, especially in areas of the country where it gets very cold during the winter. Plan accordingly, and set aside some of your spring profits to care for your ongoing expenses during the winter months according to accounting’s principle of matching.
How Much Can You Realistically Earn with Backyard Chickens?
You’re not going to get rich, or even make a living with your small, backyard chicken operation. You can however, get the birds to pay for themselves while providing your family and friends with a source of clean, fresh eggs and/or chicken meat. By following the route described above, you can also earn yourself some additional pocket money. It can be a great small business for your children that practical lessons in small business accounting, marketing, and the responsibility of caring for living creatures while providing them with a regular source of spending money. As always, check the local zoning and rules governing the sale and keeping of animals in your town before you start.
