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Ostrich Farm Budget and Cash Flow
This information should be completed by any one who is considering entering the ostrich business. It will be an invaluable aid in determining your costs and expenses.The information printed below is provided and used by permission of Zoann Parker, Associate Extension Agent Lancaster County - January 23, 1995 Document Number: 28503256.
No changes have been made to the prices used in the example, and you are strongly recommended to obtain up-to-date and local prices which are prevalent in your area.
The Ostriches On Line Livestock Quick Quote Center will provide you with the latest pricing for ostrich livestock for farming in any country in the world.
Under No Circumstances are Ostriches On Line representing that these figures will reflect the costs or profits for your business.
SAMPLE OSTRICH CHICK BUDGET Starting with a male and female chick purchased at three months and sold at 12 months of age. -------------------------------------------------------------------------- 3 TO 12 YOUR ITEM MONTHS OF AGE ESTIMATE -------------------------------------------------------------------------- RECEIPTS Chicks sold $18,000.00 __________ Meat $0.00 __________ Leather $0.00 __________ TOTAL RECEIPTS $18,000.00 __________ -------------------------------------------------------------------------- VARIABLE COSTS Cost of chicks $9,000.00 __________ Feed costs $60.00 __________ Utilities $6.00 __________ Supplies, misc. exp. $6.00 __________ Insurance $720.00 __________ Interest on three birds $607.50 __________ Marketing costs $100.00 __________ TOTAL VARIABLE COSTS $10,499.50 __________ -------------------------------------------------------------------------- FIXED COSTS Build., equip., fencing $200.00 __________ Insurance, taxes $2.00 __________ TOTAL FIXED COST $202.00 __________ -------------------------------------------------------------------------- TOTAL COSTS $10,701.50 __________ -------------------------------------------------------------------------- RETURNS Net returns over variable cost $7,500.50 __________ Net returns $7,298.50 __________ -------------------------------------------------------------------------- INITIAL RESOURCE REQUIREMENTS * Land: 1 acre * Labor (per pair): 60 hours * Capital: Chicks ($9,000) Buildings, equip., fencing = $2,000. Total capital invested = $11,000 SAMPLE OSTRICH YEARLING BUDGET Starting with a 13-month old male and female to be sold at 18 to 20 months. -------------------------------------------------------------------------- BREEDERS YOUR ITEM FOR SLAUGHTER VALUE OF BIRDS ESTIMATE -------------------------------------------------------------------------- RECEIPTS Yearlings $25,000.00 $0.00 ________ Meat* $0.00 $2,200.00 ________ Leather* $0.00 $1,200.00 ________ TOTAL RECEIPTS $25,000.00 $3,400.00 ________ -------------------------------------------------------------------------- VARIABLE COSTS Cost for chicks $18,000 $18,000.00 ________ Feed costs $89.60 $89.60 ________ Utilities $2.00 $2.00 ________ Supplies, misc. exp. $2.00 $2.00 ________ Insurance $2,160.00 $0.00 ________ Interest on investment $1,215.00 $1,215.00 ________ Marketing costs $100.00 $5.00 ________ TOTAL VARIABLE COSTS $21,568.60 $19,313.60 ________ -------------------------------------------------------------------------- FIXED COSTS Buildings, equip., fencing $100.00 $100.00 ________ INSURANCE, TAXES $5.00 $5.00 ________ TOTAL FIXED COSTS $105.00 $105.00 ________ TOTAL COSTS $21,673.60 $19,418.60 ________ -------------------------------------------------------------------------- RETURNS Net returns over variable costs $3,431.40 ($15,913.60) ________ Net returns $3,326.40 ($16,018.60) ________ -------------------------------------------------------------------------- *Value for slaughter is wholesale price of products, not price received on the hoof INITIAL RESOURCE REQUIREMENTS * Land: 1 acre * Labor (per pair): 30 hours * Capital: Yearlings ($18,000) Buildings, equip., fencing = $500. Total capital invested = $18,500 OSTRICH BREEDER BUDGET One breeding pair purchased at two years of age. -------------------------------------------------------------------------- ITEM YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 ESTIMATE -------------------------------------------------------------------------- RECEIPTS Price per chick $4,500 $4,500 $4,500 $4,500 $4,500 _______ Number of chicks sold 5 8 11 14 17 _______ TOTAL RECEIPTS $22,500 $36,000 $49,500 $63,000 $76,500 _______ -------------------------------------------------------------------------- VARIABLE COSTS Feed adults $850 $850 $850 $850 $850 _______ Feeding chicks for 3 months $25 $40 $55 $70 $85 _______ Utilities $400 $400 $400 $400 $400 _______ Supplies, vet, misc. exp. $200 $200 $200 $200 $200 _______ Custom hatch* $5,625 $9,000 $12,375 $15,750 $19,125 _______ Insurance $4,400 $4,400 $4,400 $4,400 $4,400 _______ Interest on breeder pair $314 $314 $314 $314 $314 _______ Marketing costs $250 $400 $550 $700 $850 _______ TOTAL VARIABLE COSTS $12,064 $15,604 $19,144 $22,684 $26,224 _______ -------------------------------------------------------------------------- FIXED COSTS Cost of breeders $7,857 $7,857 $7,857 $7,857 $7,857 _______ Build., equip., fencing $500 $500 $500 $500 $500 _______ Chick house $400 $400 $400 $400 $400 _______ Micro chip reader and chip $375 $375 $375 $375 $375 _______ Incubator and hatch* $0 $0 $0 $0 $0 _______ Brooder room $20 $20 $20 $20 $20 _______ TOTAL FIXED COSTS $9,152 $9,152 $9,152 $9,152 $9,152 _______ ------------------------------------------------------------------------- TOTAL COSTS $21,541 $24,756 $28,296 $31,836 $35,376 _______ -------------------------------------------------------------------------- RETURNS -------------------------------------------------------------------------- Net returns over variable cost $10,436 $20,396 $30,356 $40,316 $50,276 _______ Net returns $1,284 $11,244 $21,204 $31,164 $41,124 _______ Net present value over five years (time use of money)** $78,554 _______ -------------------------------------------------------------------------- * Producers can either use custom hatching facilities or learn to do the hatching. ** Net present value is used to calculate the returns from a long-term investment at the time the investment is made. INITIAL RESOURCE REQUIREMENTS * Land: 2 acres * Labor (per pair): 30 hours * Capital: Breeders ($55,000) Buildings, equip., fencing = $5,800. Total capital invested =$60,800 -------------------------------------------------------------------------
Author/Reviewer: Zoann Parker, Associate Extension Agent Lancaster County January 23, 1995 Document Number: 28503256