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Starting a Free‐Range Laying Flock

extension.illinois.edu

Andy LarsonLocal Foods & Small Farms EducatorUniversity of Illinois Extensionserving Boone, DeKalb, and Ogle counties(815) 732‐2191  ● andylars@illinois.edu

Credit: P

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Objectives

Before you grow an egg business, let’s consider:

• Which layers you should get

• Characteristics of good layer housing

• Best practices for washing, candling, grading, and packing eggs

• Ballpark financial feasibility of starting a small egg business

• And a few surprises…

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Selecting Egg Layers

• Hybrid sex‐links vs. heavies

Credit: Marji Beach Credit: Marji Beach Credit: cskk Credit: Eliot Kimber

Selecting Egg Layers

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STATIONARY CHICKEN HOUSING

Stationary Housing

• Space: 1.5‐2 ft2/bird

• Lighting: 14‐16 hrs/day

• Feeders: 4‐6 oz/bird/day

• Water: cool, clean, plentiful

• Litter: pine shavings, or…

• Perches: 6”/bird, 2” diam

• Nest boxes: 1 box/5 birds

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Ventilation

• Natural or mechanical

• Positive pressure: pushing air through

• Negative pressure: pulling air through

Credit: thepoultrysite.com

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PASTURE‐BASED CHICKEN HOUSING

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Range Housing

• Similar space, feed, and water considerations

• Weight vs. movability

• Protection from the elements

• Protection from predators

Mobile coop with day ranging

Cred

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ansdaughter

Credit: edam

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Cred

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Poultry Do Graze!Cred

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Credit: A

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Nutrition from Pasture

• What do poultry actually get from pasture?

– Up to 5‐20% of diet, depending on: 

• Type and age of bird 

• Quality and quantity of forage

– Vitamins A, E, K, and some B complex

– Minerals, especially calcium

– Protein and amino acids, especially methionine

– Fiber for gut health

Pastured Poultry Nutrition and Forages, ATTRA

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Nutrition from Pasture

• What encourages birds to graze?

– On pasture in early morning and early evening

– Shade/protective cover

– Shorter forages, around 3‐4”

– Palatable plants, especially legumes

– Presence of invertebrates

– Experience

• Avoid over‐grazing/over‐fertilizing

Pastured Poultry Nutrition and Forages, ATTRA

HANDLING EGGS FOR MARKET

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Direct‐to‐Consumer Eggs

• If you are:

– Selling eggs that have not been candled/graded

– Selling eggs on premises where flock is located

– Selling eggs direct to end consumer for personal use

• You DO NOT need an Egg Handlers License

Cleaning/Sanitizing

• Clean bedding really helps with clean eggs

• Even so, nest run eggs are not always perfect

Cred

it: Wally H

artshorn

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Cleaning/SanitizingCred

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Credit:  Ed

 Kohler

Cleaning/Sanitizing

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Cleaning/Sanitizing

Credit: backyardchickens.com

Cleaning/Sanitizing

Cred

it: Youtube

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Cleaning/SanitizingCred

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Cleaning/Sanitizing

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Cleaning/Sanitizing

Clean eggs!  Now what?

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Visual Inspection

• Some imperfections are visible on the surface

Candling

• Using a bright light to look for imperfections inside the egg

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Candling

• Check size and integrity of air cell

Candling

• Look for cracks, meat spots, body checks, etc

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Grading/Packing

Grading/Packing

• Several points of identification on label

• Plus your license number

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Storage/Transport

• Eggs must be stored below 45°F

Storage/Transport

Credit: Wikimedia

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BACK‐OF‐THE‐ENVELOPE  FINANCIAL FEASIBILITY

Will your egg business pay?

• Fixed costs 

– Amortized over useful life

• Building and production equipment

• Storage and handling equipment

• Transportation and marketing equipment

– Costs of doing business

• License, insurance, taxes, legal, permits, fees, software, interest

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Will your egg business pay?

• My variable costs (per dozen – estimated)

– Feed: $1 

• $0.20 per lb x 175lbs per day / 35 saleable dozens

– Labor (production and handling): $1

• 3.5 hrs per day x $10 per hour / 35 saleable dozens

– Packaging: $0.25

• Average – more cartons than cases

– Marketing: ~$0.50 (depending on market)

– Total: $2.75 in variable costs

Will your egg business pay?

• My marketing cost example: deliver to grocery

Oklahoma Farm‐to‐School Distribution Cost Template

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Will your egg business pay?

• If I want to make $20,000/year EBITDA:

– $1/dozen margin => sell 20,000 dozens/yr

– (20,000*12eggs)/365 days = 657 eggs/day

– ~10% shrink → 657 + 66 = 723 eggs/day

– 723 / 75% laying = 964 hens

– What can your markets absorb?  How will you sell 383 dozens/week?  At what price to make $1?

SOME THINGS I DIDN’T THINK OF…

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Plan for: Variability

• Size, quality, quantity, demand

Plan for: Winter

• Heat, pasture, feed, water, marketing

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Plan for: Vacation

• Chores, egg handling, markets

Plan for: Manure

• One hen can produce ¼ lb of manure per day

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Plan for: “Retirement”

• Quality & quantity go down as hens age

Thanks!

• What questions do you have?

Andy LarsonLocal Foods & Small Farms EducatorUniversity of Illinois Extensionserving Boone, DeKalb, and Ogle counties(815) 732‐2191  ● andylars@illinois.edu