During one of the AgroFM radio broadcasts, Petro Bagachevich, an expert on financing the agrarian sector, explained why the organic poultry industry in Ukraine is a promising and profitable sector, writes “Agro-Center”.
In Ukraine, family farms are becoming increasingly popular. Organic poultry farming may become very profitable for these farms. Breeding birds is marginal, and domestic chicken will always be valued more than industrial.
For example, Petro Bagachevich even provided calculations for a small family farm. On 100 hectares of land, one can grow 350 organic chickens monthly. In turn, it is 4200 birds a year. Sales profit, on average, may amount to half a million hryvnias. Thus, in a year, one can get a net profit of 85-100 thousand hryvnias.
“This is the amount that will be left for the development of a farm after allocating money for salaries (up to 100 thousand hryvnias), repair of equipment, feed, etc.”,
explained Petro Bagachevich.
It is important to understand that organic production requires considerable expenses. Especially at the beginning, when it is necessary to prepare the soil for growing feed, obtaining organic certificates, etc. However, these costs are compensated as the cost of organic chicken is slightly higher.
“The organic product is not made for the general public yet. But demand for it is growing so there are no problems with implementation,”
said the expert from IFC.
As an option for development, Petro has mentioned an opportunity for officially registered farmers to take a loan for development. After receiving the money, a company can increase the number of animals, hire workers, improve production and find new sales channels. These changes, in turn, will help to increase profits.
Experts believe that organic poultry farming is faster and more cost-effective than, for example, the production of organic milk.