Agriculture, Financial Model, Poultry Farming

Break-Even, Budget, Budgeting, Cash Flow Projections, Debt Schedule, Excel, Financial Analysis, Financial Feasibility, Financial Model, Financial Planning, Financial Projections, Financial Statements, Forecast, Forecasting, Fundraising, Income Statement, Investment Multiple, IRR (Internal Rate of Return), NPV (Net Present Value), Payback Period, Profitability Analysis, Revenue Projections, Sensitivity Analysis, Startup Financial Models, Three Statement Model | Three Financial Statements, Uses and Sources of Funds

Over the 10-year forecast period, the chicken egg farming model provides a comprehensive Excel spreadsheet template to forecast revenues, costs, and cash flows for the egg farming business. This financial model template forecasts the eggs from the layer hens sold in various sizes and packaging trays at different prices. A forecasting schedule allows planning the annual number of required new layer hens and the required pullets, day-old chicks, and hatchery eggs if the new chicks are produced in-house by breeders.

The model’s timeline uses a 10-year forecast horizon and a different schedule for a monthly budget in year 1.

The highlights of this financial model template are the following ones:

Assumptions – a sheet that summarizes all main assumptions for the forecast:

• General assumptions to set the currency, start year of the financial forecast, weight and area units, labels, price and cost inflation rates, net working capital levels, income tax rate, exit valuation multiple and year, depreciation periods, bank financing, and interest rate assumptions.
• Operational Assumptions include assumptions of relevance to the chicken egg production cycle such as flock-size of layer hens, lifetime schedules from day-old chick to baby chick, pullet to layer hen, target weight assumptions for layer hens and breeders, mortality rates, shell break rates, daily feed consumption for baby chicks, growers, layer hens, breeders, organic by-product assumptions for the poultry egg farming operation, target sourcing of day-old chicks, hatchery assumptions such as hatchability, eggs removed from the hatchery, rejected eggs, eggs produced in own hatchery vs. purchased eggs, egg production per layer hen and breeder, the average weight per egg, breakdown of egg production by size, breakdown of sales by packaging tray type, and the estimation of required area size.
  o Price and Cost Assumptions: Chicken egg sales prices by category and packaging type, sales prices to bird sales end of life, organic by-products, direct cost assumptions for labor, feed costs, purchase costs, electricity, vaccines, nutrients, packaging, and transport cost assumptions; operational expenses for all types of indirect costs. Assumptions for additional revenues.
• CAPEX Assumptions – detailed Forecast with Annual CAPEX assumptions for the egg layer farm per year.

Executive Summary which summarizes the financial statement forecast, free cash flow forecast, operational Key Performance Indicators (KPIs), flock size and egg production volumes, financial ratios forecast, key financial feasibility metrics such as the Internal Rate of Return (IRR), Payback Period, Net Present Value (NPV), expected investment multiple; 10-year lifetime profits and cash flows, a summary of the expected exit valuation at the end of the lifetime period, overview of the expected uses and sources of funds, forecasted enterprise value. The Executive Summary also contains a sensitivity analysis for the expected IRR and summaries for the first year’s monthly budget and the results of the break-even analysis.

Operations Sheet that details the annual operational forecasts of layer hens and models the egg production process. This results in a forecast of the number of eggs to be produced by the farm, new layer hens growing starting either from the purchase of Day-Old Chicks or eggs produced in the hatchery from Breeders, breakdown of sales volume by packaging and egg size, breakdown of other sales volumes such as birds end of life and organic by-products, forecast of egg prices, revenue calculation, feed consumption, direct costs, operational expenses, CAPEX and Fixed Asset Schedule,

Debt Schedule Sheet projects two layers of financial debt and results in a debt summary schedule that can be presented to banks or lending providers.

Financial Sheet with forecasted 10-year Three Statement Model consisting of Income Statement, Balance Sheet and Cash Statement forecast, Financial Ratios forecast, Standardized Income Statement Forecast, Projected Company Valuation by year, Free Cash Flow forecast (unlevered and levered), uses of funds calculation.

Monthly Sheet, which allows to break down the annual budget for the first year for each month. This allows for additional insights into the first year’s budget when developing the egg farming business plan.

Break-Even Analysis: The break-even analysis lets you calculate the required size of the egg layer hen flock to break even at an EBITDA level.

Why do you need this model for Egg Layer Hens?

Starting an egg layer hen operation requires a well-prepared and executed egg farming business plan. Developing financial projections can provide more clarity towards the possible profit margins of the egg business, the funding required, and the expected returns. Using a solid financial model template can be the missing piece to bring the chicken egg farming business towards financial success.

This financial model template comes pre-filled with an example forecast of a chicken egg layer business plan. The forecast can easily be changed when updating the marked assumptions in blue. Plan your next egg layer farm with this financial model template.

Please note, this model is purely for chicken egg farming. For Chicken Meat farming, please use the poultry project financial feasibility model here.

The model comes in two versions, a free PDF Demo version, and a fully editable Excel spreadsheet Version (1.3).

File types:
.xlsx
.pdf