Economic Analysis
Case of a farm with 50,000 laying hens
In the case of poultry farms where 50,000 laying hens are being cultivated,
if each hen discharges 120 g of manure per day,
the total daily discharge amounts to 6,000 kg.
For a week, 42,000kg of chicken manure is put into the fermentation machine to go through the fermentation process at a high temperature of 60°C or higher to obtain 14,000kg of de-moisturizedfermented chicken manure, which amounts to nearly 60,000kg a month.
When fermented manure is calculated at 50 KRW per kilogram, a new profit of 3,000,000 KRW per month is created, and the monthly processing cost of 2,000,000 KRW can be saved.
Except for direct and indirect expenses such as electricity, labor, and maintenance cost for vehicles, about 4,000,000 KRW per month can be earned as an additional income.
Also, the chicken manure price is expected to increase as the Fertilizer Control Act is to be amended for providers to use only processed chicken manure for fertilizer production.
| Analysis | Contents |
|---|---|
| Daily discharge per hen | 120g |
| Total daily discharge at a farm | 6,000㎏ |
| Moisture Content | 65% |
| Total Daily Input | 6,000㎏ |
| Required Volume | 6,000㎏ x 7 days = 42,000㎏ |
| Amount of by products generated after fermentation | 14,000㎏ |
| Monthly Production (30 days) | 60,000㎏ |
| Chicken Manure Price | 50 won/㎏ x 2,000㎏ = 100,000 KRW/day, 100,000 KRW x 30 days = 3,000,000 KRW/month |
| Average Outsourced Processing Cost | 2,000,000 KRW/month |
| Expenditure | Electricity 600,000 KRW + Labor cost 400,000 KRW = 1,000,000 KRW/month |
| Average Monthly Profit | By products 3,000,000 KRW/month + Processing cost 2,000,000 KRW/month – Expenditure 1,000,000 KRW/month = 4,000,000 KRW/month |
| Annual Revenues | 4 million KRW x 12 months = 48 million KRW |
| Break-even Point | The cost paid for the fermentation machine can be retrieved after 30 months, and the payback period will be shortened when the chicken manure price is increased. |
Finished by products
Powder
Pellets