# How To Use Excel Formulas From One Sheet To Another Practical Poultry Farm Business Performance Calculations

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## Practical Poultry Farm Business Performance Calculations

Introduction

In this article, I share VERY practical, real-world tips on KPIs that you can calculate daily, weekly, monthly, and year-end to accurately determine whether your poultry business is performing optimally at each stage.

These performance indices are NOT aggregated. In other words, they are NOT measured in money. Instead, they have no units, they are ratios, utilization rates and percentages that help (a) establish a normal trend of your farms behavior (b) quickly identify/identify deviations from that trend so you can take timely/corrective action.

Note that these measures are tried and tested and are actually built into a custom spreadsheet software application I built for a client who runs a twelve thousand (12,000) layer poultry farm.

You can quickly and easily calculate performance indicators to check the health of your farm

It would be interesting to know that this client currently enters ALL data into their laptop software application using completed copies of a custom registry form that I created (after a farm visit that included reviewing existing/required documents). farm staff DAILY.

He once told me how he detected some anomalies in the instructor’s recorded data using performance indices automatically calculated in the software.

The point here is that it is critical to KNOW what KPIs you can calculate to CHECK how well your farm is doing in terms of OPERATIONS and FINANCES.

You can do it yourself as the calculations are actually simple and easy to use. However, if you’re running a large (or growing) farm business, you may reach a point where it would add more value to save yourself from doing such calculations manually.

Instead, you can automate their calculation (using custom software like mine) and spend time managing your farm more intelligently by studying trends in your performance indicators over time to make timely/impactful decisions that lead to overall profitability.

Here are three (3) VERY useful poultry business performance metrics you should know and use regularly:

1. Mortality (%)

During the laying cycle of a batch of poultry birds, deaths or losses occur due to various reasons. It could be a disease outbreak, fire, predators, etc. It is important to take measures to prevent recurrence of the disease.

Then, accurate documentation of such losses must be prepared and the inventory must be corrected.

There is no farm without mortality. However, farm management must keep this to a minimum. You can easily track mortality by calculating it daily. In this way, you can detect all changes by acting on time so that there are no surprises at the end of the month!

By the way, if you follow this index, it will be easier for you to reconcile otherwise unexpected drops in egg production.

To calculate the death rate (%):

Number of dead birds x 100

———————-

(Initial Stock + End Stock of Layers) x 0.5

2. Chicken day production (%)

Properly documented mortality records help accurately estimate a hen’s day’s production, which is the number of eggs produced divided by the total number of laying birds on the farm during the period under review, assuming that each bird lays one egg per day.

It is well known that a bird takes about 26 hours to lay an egg after the previous one. Therefore, we do not expect to aim for 100% hen-day production for our flock. Instead, it would be reasonable to assume that 80-90% of birds lay eggs each day, so if our calculations yield results in this range, this would indicate relatively satisfactory performance.

To calculate the production (%) of the chicken day:

Number of eggs produced x 100

———————-

(Initial Stock + End Stock of Layers) x 0.5

Your chicken day production will fall in a way that reflects the recorded mortality unless you calculate as above. Understanding this will help you compare your results to other farms who may not be aware of this small difference.

Note that this calculation method really helps you check whether or not your birds are becoming less productive, as it prevents the resulting losses from making those live birds less likely to lay eggs – which can cause you to worry or otherwise take unnecessary ones. corrective actions.

3. Feeding rate (grams per bird)

Available data from farms and literates indicate that each egg-laying bird should eat about 100-105 grams per day.

To calculate the feeding rate (grams per bird):

Total volume in kilograms x 1000 x 100

——————————

(Initial Stock + End Stock of Layers) x 0.5

If you use the total number of kilograms fed to the laying birds divided by the total number of birds kept daily, you will know how well they are feeding. if they are undernourished or overnourished.

Each condition has its own consequences. Malnutrition can cause poor egg laying; overfeeding means waste – and of course higher production costs, which you definitely want to avoid so as not to eat into your profit margin!

By calculating the daily feeding rate for each battery cage or cage, you can quickly check and confirm that the birds are getting the right amount of food. It would also help you keep track of your feed stock balance and thus help you plan new purchases.

IMPORTANT NOTES:

1). For a “weighted” and therefore more realistic result, the above formulas use the derived average of the sum of the opening and closing stocks of laying birds as the denominator.

2). If you do NOT have a reliable paper farm record keeping system carefully maintained by competent staff at your company, you CANNOT depend on the results you get from calculating these performance indices. It would be like what is often said about computers: Garbage in, Garbage Out (GIGO)!

SUMMARY

Many people run poultry farms here. Many are planning to start. Many rely on borrowing money from banks or friends/relatives to get their money out. Unfortunately, very FEW – like their catfish farming counterparts – have ANY knowledge of what it takes to intelligently manage the business data analytics aspects of these ventures.

Knowing how to measure your farm’s performance is essential to long-term success. The three indices discussed above can help you in this regard. Learn to use them.

But that’s only one side of the story. You also need to know how to measure your farm’s financial performance – and if possible, compare it to other farms or even to an overall benchmark.

There are at least three financial performance ratios that can be calculated to tell you whether your farm is growing or NOT.

They will tell you if you have done better at the end of this year than you did last year or two (2) years before. They also tell those who are (or want/plan to) invest in your business how strong your farm business is financially – compared to last year, etc.

If you’re looking to BUY a farm business, you’ll want to know how to calculate these three (3) ratios to make sure your investment pays off!

Note that the financial ratios I mentioned are NOT aggregates like the income statement (also known as the income statement) or the net worth statement (aka the balance sheet). These are metrics that are NOT unit-based, making them (like the Farm Operations Measurement Indices discussed above) easy to compare.

You will receive a special report from me detailing how to calculate these very powerful farm financial performance indicators.

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