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Profitable Poultry: Raising Birds on Pasture Livestock Alternatives Bulletin

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Potential for Profit

Introduction
secure pasture poultry pen

SARE-funded researchers at Wisconsin’s CIAS studied five farms that raise poultry on pasture and found that the systems, while highly variable, yielded a significant profit for growers who fold poultry into diversified farms. Employing a pastured poultry model and moving pens containing 75 chickens once each day brought the farmers, on average, a net return of $2.43 per bird. Researchers found a wide range, however – varying from -$2.82 to $7.05 – depending on feed costs, experience and whether producers strove for profit as a primary goal.

“People are making it work best at lower numbers,” around 1,000 birds a season, Stevenson said, but cautioned that the learning curve is about five years for a grower to become experienced. “By then, people know what they’re doing, their pastures are in shape, and they have figured out their equipment needs.”

Most pastured poultry farmers sell all of the birds they raise even before processing them. Murial Barrett, a poultry producer who raises 10,000 birds a year on pasture in Nebraska, receives about $1.50 a pound for her pastured birds, 61 cents more than grocery store prices.

“It all gets down to the customer,” said Paul Swanson, a Nebraska extension educator specializing in sustainable agriculture who sees growing interest in pastured poultry. “To sell your product, you need a customer and a growing number of people who are interested in better-tasting, higher-quality chickens and don’t like the current system.”

In north central Ohio, Molly Bartlett, who along with her husband operates a Community Supported Agriculture project near Cleveland, charges $2.75 per pound for 800 to 1,000 broilers each season. “We’ve been doing it long enough, and we do so few, we never have a problem selling all we have,” Bartlett said.

CIAS researchers recommend a 1,000-bird supplemental enterprise. At that size, an experienced producer will net about $3,000. Given the dearth of small processors and the need to process on farm, it’s realistic to handle 1,000 birds a year, Stevenson said.

Most farmers who have worked with Swanson on poultry enterprises already had crop farms, and many of them had beef cattle, too. They diversified to improve profits. “Chickens are a size that people don’t hesitate to purchase directly, as a opposed to a quarter or half of beef,” Swanson said. “It’s an opportunity for farmers to try something without a very large investment.”

Many direct-market producers find that poultry is a real lure that brings customers onto the farm, and many of them will buy more than just chicken or turkey when they are there.

Laura Rogers raises 300 to 400 chickens every year in Woodbine, Ky. While her husband works off the farm, she is a significant contributor to the family’s income. She finds she has no trouble selling chickens for $6 and $7 to her neighbors and others in her rural community; her main problem comes in reserving enough birds for her family of four.

“I put them in a field that runs along the side of the road,” said Rogers, who has received two SARE farmer grants, “so the neighbors drive by and see them so they know when they’re getting big enough. Sometimes I have to tell them that some of the birds they see are sold so we can get some.”


Annual Gross and Net Returns per Bird from Pastured Poultry, Four Farms
 
Farm A
Farm B
Farm C
Farm D
 
1997
1998
1997
1998
1997
1998
1997
1998
Gross Returns
$6.70
$8.47
$6.38
$3.80
$12.00
$5.61
$9.36
$7.05
Net Return
$3.81
$3.64
-$0.05
-$2.82
$2.39
$1.33
$7.05
$4.08
# Birds Sold
2,898
2,100
633
420
1,100
2,174
700
986
Center for Integrated Agricultural Systems
University of Wisconsin
click here to see the entire study

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