What Does It Really Cost To Start Farming?

The expenses involved in launching a farming operation can be prohibitive, as set-up costs and market risks must be considered. But just how much does one need in the piggy bank to get going? Lindi Botha looks at the finances involved in three different farming businesses.

- Lindi Botha

Broiler Production

Chicken farming is the only type of animal production that can provide an income in the short as well as the long term. It can also be carried out nearly anywhere in South Africa, whether in a backyard, on a small to medium-size farm, or as a multimillion-rand enterprise. So says Jan Grobbelaar, the training director at Dumela Poultry Solutions.

Notwithstanding this flexibility, he advises that the prospective farmer start with at least 5 000 chickens for a broiler business. This would require a farm of around 3ha in size.

“The location of the farm is paramount, as it will greatly reduce or increase costs in terms of transport to the abattoir, market and input suppliers. The farm should also preferably be far enough from any other chicken farm to prevent the spread of disease.

“A clean water supply is important. If you’re using borehole water, it should be tested first to ensure it’s not harmful to the chickens.”

An environmental impact assessment (EIA) is required before embarking on commercial broiler production. The cost of this varies from R80 000 to R250 000, depending on the tests and water licence needed.

Grobbelaar stresses the importance of carrying out a thorough market assessment beforehand.

“This will provide an indication of the number of chickens to produce, the frequency of delivery, and the type of product (live birds, freshly slaughtered, frozen or pieces) that customers require.

“The market will also determine if your product will be reared in a deep-litter or free-range system.”

Chickens are dependent on the inside environment of the chicken house, and this is one cost that a farmer should never skimp on.