Often times or once in a while, very active and successful poultry and other livestock farms folds up, mainly due to the inability of the farm owner to finance the day to day running of the farm activities.
Poultry farm |
Pig farm |
Here's the 2major reasons why Farms Folds up;
• Poor Calculation of the Cost of Inputs:
Most farmers don't pay attention to the quantity as well as the cost of feeds drugs the animals consume within a specified period. This puts the farmer in a situation where he doesn't know wether he's growing or not.
• Poor Calculation of the Cost of Production:
Because the farmer is not aware of how many bags of feed the animals consumed to produce a crate of egg or a kilo of meat, he'll definitely not know how much it costs to produce a crate of egg/a kilo of meat.
The farmer's continuous ignorance and negligence to the expenses made on the farm will not let him know wether he's making profit from the sales of the farm produce. The farmer only cares about the quantity of sales been made but don't care about the profit margin.
Overtime, some farm implements/animals will be sold in order to sustain others hoping things will improve. This trend will continue until it is too late and thus, the folding up the farm.
Remedy: Either you employ a farm financial auditor, or you'll be involved in the calculation of the cost of the day to the running of your farm.
At Zulinkx Agro & Vet Services , we handle the farm planning, building, installation, management and marketing of your farm produce(animals).
We're open 24/7
08134750806
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