How to read the result
The margin shown is before tax, before loan repayments and before building depreciation, unless you enter your fixed costs. It answers one question: at these prices, does a broiler batch or a laying cycle bring in more than it costs?
The production cost compares directly with the market price. At the end of 2025, farmers put the cost of live chicken at 250 to 280 DA per kilo. As long as the selling price stays above it, each kilo sold leaves a margin. Below it, each kilo deepens the loss.
Two prices decide almost everything
On a poultry farm, feed is often two thirds of costs, and the selling price changes from one season to the next. In 2026 the chick went from 50 to 140 DA in two months, and live chicken from under 260 to over 400 DA per kilo. The sensitivity table shows what happens to the margin when these two prices move, and the feed price beyond which the farm no longer covers its costs.
The maize and soybean meal in the feed are mostly imported: their price follows the world market and the exchange rate. A serious study never relies on a single feed price.
Why a profitable farm can run short of cash
With broilers, all the money goes out before the sale: chicks on day one, then heavier and heavier feed until the birds leave. The cash need of a batch is therefore close to its full cost. With layers, pullets are paid at once and eggs bring money in week after week: it takes several months to get back to zero.
This amount is what a banker looks at to size a working capital loan. The monthly table shows it; the investment credit simulator computes the matching repayment.
Frequently asked questions
Read next
- Farming and livestock projects: from idea to financing
- Investment credit simulator
- Cash and working capital: why a profitable company can go bankrupt
- NPV, IRR and payback of a project
- The business plan an Algerian banker reads
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