White-feathered broiler chickens are ready for market at 42 days. What is the approximate feed cost from chick to mature bird?

The economic profitability of broiler production equals the selling price of broilers minus their production costs; thus, the economic viability of broiler farming hinges on both production costs and market prices.

1. Factors Affecting Broiler Production Costs

All expenses incurred during the broiler‑raising period should be included in the production cost of broilers, such as feed, chicks, veterinary medicines and vaccines, labor, utilities, depreciation of housing and rearing equipment, bedding materials, and other miscellaneous costs.

The unit cost of a broiler is calculated as follows: feed-to-meat ratio × average feed price + chick cost (chick price ÷ survival rate ÷ market weight) + (veterinary and vaccine expenses + labor wages + utilities + depreciation + other expenses) divided by the number of birds marketed.

Accordingly, the factors influencing broiler production costs include chick prices, broiler survival rates, feed-to-meat ratios, market weight, feed prices, veterinary and vaccine expenses, labor wages, utility costs, depreciation, and other miscellaneous expenses. Among these, the feed-to-meat ratio, average feed price, and chick cost play particularly significant roles in determining overall production costs.

① Feed-to-meat ratio

The feed-to-meat ratio, also known as the feed conversion ratio, is the ratio of feed consumed to the final market weight of broiler chickens. It is closely linked to feed quality: inferior feeds result in a higher feed-to-meat ratio, whereas high-quality feeds yield a lower ratio.

The feed-to-meat ratio is influenced by rearing and management conditions. Under favorable rearing and management, broilers exhibit a lower feed-to-meat ratio; conversely, a higher ratio is observed—particularly when feed wastage, disease incidence, and low survival rates significantly impact the feed-to-meat ratio.

Broiler breeds also have a significant impact on the feed-to-meat ratio. Broilers with rapid growth rates and strong disease resistance exhibit lower feed-to-meat ratios, whereas those with slower growth and weaker disease resistance have higher ratios.

② Average feed price

Average feed cost refers to the ratio of the total feed expenses for broiler chickens to the total amount of feed consumed.

The quality of feed is closely linked to both the minimization of feed costs—specifically, whether the product of each feed mill’s price and its feed-to-meat ratio for broiler production reaches the lowest possible level—and the growth rate of broilers. If broilers grow slowly, their production costs will correspondingly increase.

③ Chick cost

Chick cost = chick price ÷ (survival rate × market weight).

The two largest components of production costs are feed and chick expenses. As the rearing period lengthens, the feed‑to‑gain ratio increases, while chick costs decline as bird weight rises. Extending the broiler rearing period to boost body weight also leads to higher expenditures on housing depreciation, labor, veterinary medicines and vaccines, and utilities; however, these additional costs have only a relatively modest impact on chick expenses.

2. Broiler sales price

The market price of broilers at the time of marketing significantly affects the economic profitability of broiler production. Therefore, producers should stay informed about market conditions and adjust their flock‑in dates and sizes based on local chick‑rearing capacity and demand for live birds, in order to maximize returns. However, it is important not to simply wait indefinitely for prices to rise by extending the birds’ rearing period, as older broilers experience declining feed‑to‑gain ratios, higher mortality rates, and may be harder to sell due to excessive body weight. Consequently, producers should align marketing schedules with prevailing market trends and their own operational realities to ensure timely placement of birds on the market.

[Case Study] Analysis of Profitability in Broiler Farming

At present, it typically takes about two months from cleaning and disinfecting the poultry house to the complete sale of all broilers. During this period, all broiler‑raising expenses and sales revenues are used as input data for calculating farming profitability.

1. Production cost of live chickens

All expenses incurred during the broiler rearing period shall be included in the cost of this batch of broilers, including feed, chicks, veterinary medicines and vaccines, labor, utilities, depreciation of housing and rearing equipment, bedding materials, and other miscellaneous costs.

If the broiler’s overall survival rate is 95% and the average market weight per bird is 2.00 kg, then the unit cost of the live broiler is calculated as follows: {feed‑to‑gain ratio × average feed price + chick cost (chick price ÷ 0.95 ÷ 2.00) + expenses for medications and vaccines + labor wages + utilities + depreciation + other expenses} divided by the number of birds marketed.

Typically, on average, poultry farmers spend about 700 yuan per 1,000 chicks for medications and vaccines, translating to roughly 0.35 yuan per kilogram of live broiler weight. For heating with coal stoves, the cost of electricity, water, and coal amounts to approximately 0.10 yuan per kilogram of live broiler weight. Other expenses—such as bedding materials and consumables—are offset by revenue from manure sales and feed bag proceeds. Given that most farmers in practice allocate depreciation and labor wages to profit rather than to costs, when calculating the cost of a broiler, the unit cost can be simplified to: {feed-to-meat ratio × average feed price + chick cost (chick price ÷ 0.95 ÷ 2.00) + 0.35 + 0.10}.

The key factors influencing broiler production costs for farmers are the feed-to-meat ratio, average feed price, and chick price.

1.1 Feed-to-Meat Ratio

Assuming an average feed price of RMB 3.00 per kg and a chick price of RMB 2.80 per bird, the unit cost of broiler chickens is:

The unit cost of a live chicken equals: feed-to-meat ratio × 3.00 + 2.80 ÷ 0.95 ÷ 2.00 + 0.35 + 0.10 = feed-to-meat ratio × 3.00 + 1.92.

1.2 Average Feed Price

Assuming that, under typical rearing conditions, the feed-to-meat ratio for a certain type of feed is 2.0 and the price of a chick is RMB 2.80 per bird, the unit cost of the broiler chicken is:

The unit cost of a live chicken = 2.0 × average feed price + 2.80 ÷ 0.95 ÷ 2.00 + 0.35 + 0.10 = 2.0 × average feed price + 1.92.

1.3 Chick Cost

Chick cost = Chick price ÷ (0.95 × 2.00).

Assuming an average feed price of RMB 3.00 per kg and a feed-to-meat ratio of 2.0, the unit cost of the broiler is:

The unit cost of a live chicken = 2.0 × 3.00 + chick cost + 0.35 + 0.10 = 6.45 + chick price ÷ 1.90.

2. Sales Price

Assuming the selling price of live chickens is RMB 8.40 per kg, the revenue from sales of live chickens is RMB 8.40 per kg.

3. Profitability Analysis of Broiler Production

3.1 If the broiler reaches a market weight of 2.0 kg, with a survival rate of 95%, a feed-to-meat ratio of 2.0, an average feed price of 3.00 yuan/kg, and a chick price of 2.80 yuan/chick, then the break-even price for this batch of chickens should be 7.92 yuan/kg.

3.2 If the selling price of live chickens is 8.40 yuan/kg, then the revenue from sales is 8.40 yuan/kg, and the profit per kilogram is 0.48 yuan/kg. If a farmer sells 10,000 broilers, the actual income will be 9,600.00 yuan.

3.3 Assuming all other conditions remain constant, for every 0.05 change in the feed-to-meat ratio, the cost of a live broiler will change by RMB 0.15 per kilogram.

3.4 Assuming all other conditions remain constant, for every RMB 0.05 per kg change in feed prices, the cost of live chickens will change by RMB 0.10 per kg.

3.5 Assuming all other conditions remain constant, for every RMB 0.50 per chick change in chick prices, the cost of broiler chickens will change by RMB 0.26 per kilogram.

3.6 Assuming all other conditions remain constant, for every RMB 0.10 per kg change in the selling price of live chickens, the revenue from live chicken sales will change by RMB 0.10 per kg.