Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698084653015.pdf (Swaziland)
Ministry of Agriculture ESWATINI LIVESTOCK GROSS MARGINS JULY 2023 LIVESTOCK GROSS MARGINS Ministry of Agriculture P.O.
BOX 162 MBABANE TEL: +268 2404 6362 © 2023 i Table Contents Foreword ...................................................................................................................................... iii Introduction ................................................................................................................................... 1 Apiculture Enterprise (TOP BAR) ................................................................................................ 2 Apiculture Enterprise (LANGSTROTH HIVE) ............................................................................ 3 Aquaculture Enterprise ................................................................................................................. 4 Broilers Enterprise ......................................................................................................................... 5 Dairy Cows Enterprise (25 Dairy Cows) .................................................................................... 6 Dairy Cows Enterprise (5 Dairy Cows) ...................................................................................... 8 Feedlot Enterprise ....................................................................................................................... 10 Goat Breeding Enterprise ........................................................................................................... 12 Goat Feedlotting Enterprise ....................................................................................................... 13 Indigenous Chickens Enterprise (Breeders) .............................................................................. 14 Indigenous Chickens Enterprise (Chick Producer) ................................................................... 16 Indigenous Chickens Enterprise (Chick Grower) ..................................................................... 18 Layers Enterprise ......................................................................................................................... 19 Pig enterprise (Porkers) .............................................................................................................. 21 Pigs Enterprise (Weaners) ........................................................................................................... 23 Rabbits Enterprise ....................................................................................................................... 24 ii Foreword iii Introduction A gross margin (GM) is the difference between the gross income and the total variable costs of production.
Total variable costs (TVC) include production costs, operational costs and marketing costs.

Gross margins exclude overhead cost such as insurance, fixed costs and interest.

Thus gross margins are not a measure of the profit of a particular enterprise.

When calculating whole farm profit it is necessary to consider these overhead costs in addition to enterprise gross margins.

A gross margin changes as inputs prices change.


They are of great importance to assist the farmer in deciding on which enterprise to venture into.

Break- even Price (BEP) This is the amount that a farmer can charge for a particular commodity in order to cover all production costs.

For the farmer to realise profits it is important to charge a price above the BEP.
N.B It is an important tool for the farmer to determine the price of the produce BEP = Total Variable Costs Total Yield Break- even Yield (BEY) This is the quantity of produce a farmer is expected to produce in order to cover all the production costs.

It is important for the farmer to target yields above BEY in order to realise profits.

BEY = Total Variable Costs (TVC) Price N.B.

Farmers are advised to seek further assistance from extension officers who are available in all the regions of Swaziland.
The gross margins have been made possible by the Gross Margin Task Team: Marketing Advisory Unit, Extension Staff, Sector Specialist, Livestock Marketing Unit, Horticulture staff, Centre for Financial Inclusion – FINCLUDE, National Agricultural Marketing Board, NMC, SNAU, SEDCO, DARSS, SMLP – ESWADE, Farmers and World Vision Colour Coding Gross margin is positive and above 35% Gross margin is positive and below 35% Gross margin is negative and not viable 1 Apiculture Enterprise (TOP BAR) Gross Margins for 20 Bee Hives Enterprise (Swazi TOP BAR Hive) Income Honey sales Total Income Operational Costs Beeswax blog Propolis Lemon grass oil White sugar Transport Labour Total Operational Costs Gross Profit Gross Margin BEP (E/kg) BEY (Kg) Unit kg Quantity 600.00 Unit Price 45.00 350g 100g 20ml kg Trips m/days 1.00 1.00 1.00 20.00 2.00 12.00 80.00 200.00 80.00 18.00 700.00 75.00 Amount (E) 27,000.00 27,000.00 80.00 200.00 80.00 360.00 1,400.00 900.00 3,020.00 23,980.00 89% 5.03 67.11 ASSUMPTIONS  Two harvest per year  15 kg per harvest per hive (wax+honey)  Sales are done on unprocessed honey  Farmer has beehives, protective clothing NOTE Top Bar Apiculture enterprise is viable under the above analysis and assumptions 2 Apiculture Enterprise (LANGSTROTH HIVE) Gross Margins for 20 Bee Hives Enterprise (Langstroth Hive) Income Honey sales Total Income Operational Costs Beeswax Propolis Lemon grass oil White sugar Transport Labour Total Operational Costs Gross profit Gross Margin BEP (E/kg) BEY (Kg) Unit kg Quantity 800.00 Unit Price 45.00 350g 100g 20ml kg trips m/days 1.00 1.00 1.00 20.00 1.00 12.00 80.00 200.00 120.00 20.00 700.00 65.00 Amount (E) 36,000.00 36,000.00 80.00 200.00 120.00 400.00 700.00 780.00 2,280.00 33,720.00 94% 2.85 50.67 ASSUMPTIONS  Four harvests per year  10 kg per hive per harvest (wax + honey)  Sales done on unprocessed honey NOTE Langstroth bee hive enterprise is viable under the given assumptions and analysis 3 Aquaculture Enterprise Gross Margins for Aquaculture Enterprise (6000
 Fingerlings) Income Fish Total Income Operational Costs Fingerlings Fish starter Fish grower Fish finisher Lime Transport Labour Total Operational Costs Gross Profit Gross Margin BEP (E/kg) BEY (Kg) ASSUMPTIONS Unit kg Quantity 2,025.00 Unit Price 80.00 units 25kg 25kg 25kg 50kg Trips Months 6,000.00 30.00 50.00 20.00 1.00 4.00 5.00 5.00 670.00 570.00 550.00 110.00 700.00 1,200.00 Amount (E) 162,000.00 162,000.00 30,000.00 20,100.00 28,500.00 11,000.00 110.00 2,800.00 6,000.00 98,510.00 63,490.00 39% 48.65 1,231.38  10% mortality  6 ponds with 1000 fingerlings and  5 months cycle  Average weight is 315kg per fish pond with 1000 fingerlings  5kg of lime is needed per fish pond  6 ponds (each pond is 200m2 (10mx20m))  Feed consumption 2.5% body weight NOTE Aquaculture enterprise is viable under the given assumptions and analysis 4 Broilers Enterprise Item Income Broiler Sales Total Income Operational Costs Day old Chicks Broiler Starter Broiler Grower Broiler Finisher Carmino Lasota Vaccine Gumboro vaccine Wood shavings Virukill Transport Labour Electricity Brooding Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/Chicken) BEY (kg) Gross Margins for 1000 Broilers Unit Quantity Unit Price Amount (E) 1 950.00 75.00 71,250.00 71,250.00 50kg 50kg 50kg 100g 1000D 1000D 18kg bags L Trips cycle cycle cycle Tanks ASSUMPTIONS  Live chickens sold at 6 weeks  For heating purposes, handy-gas is used.
 Assumed 5% mortality CAUTION Antibiotics may be needed NOTE: Broiler production is viable under the given assumption and analysis 5 Dairy Cows Enterprise (25 Dairy Cows) Item Income Milk sales Male calf sale Total Income Operational Costs Dairy meal Breeding (AI) Calf Grower Drugs Dipping Chemicals Pasture Management Milking Cream Detergent Chemicals Milk Filters Agita (Fly traps) Mineral Licks Milk Replacer Hay Teat dip Transport Consumables Labour Electricity Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/L) BEY (L) Gross Margins for 25 dairy cows Unit Quantity Unit Price Amount (E) L Calves 102,144.00 8.00 6.98 700.00 50kg Straws 50kg 50kg 500g kg 50kg 25kg 350kg Trips Months Months Months Tanks ASSUMPTIONS  80% of herd will be milked at any given time (20 Cows)  Milk yield is average 14L/cow/day  Lactation period is 300 days  Dairy meal is fed @ 4kg/Lactating Cow/Day  450 electricity units monthly @ 1.87kw/h  Hay Bales Consumed/Month/Dry Season  Drugs (Maxitet 500ml, Berenil 300ml, Penicillin 200ml, Supona 385ml) NOTE Dairy enterprise is viable under the given sets of assumptions and analysis.
With few animals like above, the farmer may be compelled to sell milk at a slightly higher price to informal market otherwise formal market takes milk at a slightly lower price than indicated here yet it is very efficient.
7 Dairy Cows Enterprise (5 Dairy Cows) Item Income Milk sales Male calf sale Total Income Operational Costs Dairy meal Breeding (AI) Calf Grower Vet Drugs Dipping Chemicals Pasture Management Milking Cream Detergent Chemicals Milk Filters Agita (Fly traps) Mineral Licks Milk Replacer Hay Teat dip Transport Labour Electricity Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/L) BEY (L) Gross Margins for 5 dairy cows Unit Quantity Unit Price Amount (E) Litres Calfs 17,511.00 2.00 12.00 700.00 50kg Straws 50kg 10L 50kg 500g 25kg 100s kg 50kg 4kg 300kg Trips Months Months Tanks ASSUMPTIONS  80% of herd will be milked at any given time (4 Cows)  Milk yield is average 12L/cow/day  Lactation period is 300 days  Dairy meal is fed @ 5kg/Lactating Cow/Day  E350 electricity units monthly @ 1.87kw/h  3 Hay Bales Consumed/Month/Dry Season  Drugs (Maxitet 500ml, Berenil 300ml, Penicillin 200ml, Supona 385ml) NOTE Dairy enterprise is viable under the above assumptions and analysis 9 Feedlot Enterprise Gross Margins for Beef: 20 Feeder Stock (Feedlot) Item Unit Quantity Unit Price Amount (E) – Own feeder stock Amount (E) – Purchased feeder stock Amount (E) – Fattening ration only Income Beef carcass sales Total Income Operational Costs Feeder Cattle Beefmaker Beefpro 14/ Beef fattening ration Hominy chop Black quarter/Botulism vaccine Hay bale Vitamin B complex Dewormer (cervamec) Transport (Stocking) Transport (Feed transport) Labour Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/ton) BEY (ton) kg 4,400.00 60.00 264,000.00
 264,000.00 264,000.00 264,000.00 264,000.00 264,000.00 each 50kg 50kg 25kg 25D 20.00 72.00 360.00 7,000.00 60,000.00 23,256.00 323.00 - 298.00 140,000.00 140,000.00 23,256.00 - - 107,280.00 576.00 1.00 90.00 550.00 51,840.00 550.00 51,840.00 550.00 - 550.00 1.00 250kg 1.00 100ml 500ml 1.00 Transport 7.00 Transport 4.00 Months Tanks 3.00 5.00 550.00 150.00 450.00 700.00 700.00 550.00 150.00 450.00 - 2,800.00 550.00 150.00 450.00 4,900.00 2,800.00 550.00 150.00 450.00 - 2,800.00 3,600.00 3,000.00 3,600.00 3,000.00 1,200.00 3,600.00 3,000.00 600.00 146,196.00 231,096.00 258,380.00 117,804.00 32,904.00 45% 33.23 2,436.60 5,620.00 2% 58.72 4,306.33 12% 52.52 3,851.60 ASSUMPTIONS  Each animal should be above 400kg live weight at market age  Feeder stock should be at least 200 - 250kg (2.5-3Years Old) 10  Carcass weight, 55% of live weight (kg)  Carcass Price per Kg (E)  Market age (days)  Consumption per beast per day (kg)  Consumption in 3 months, per beast (kg)  Total feed required in 3 months  Bags required (total mixed ration)  50kg of the concentrate (beefmaker/beefbooster/beefmix) is mixed with 200kg of hominy chop  Beef maker (50kg)  Hominy chop (25kg)   Fattening ration is delivered at no cost If the person own the animal, the cost of raising it can amount to E3000 NOTES Feedlot enterprise is viable under the given analysis and assumptions 11 Goat Breeding Enterprise Item Income Growers Total Income Goat Gross Margins for 31 goats Unit Quantity Unit Price Amount E (Y1) Amount E (Y2) Growers 42.00 800.00 33,600.00 33,600.00 67,200.00 67,200.00 Operational Costs Buck Wild game block Sheep and goat pellets Tick greese Panacure Black quarter/Botulism Pulpy kidney vaccine Tetracycline Supona Transport Labour Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/goat) BEY (kg) ASSUMPTIONS each 40kg 50kg 2L 5L 50D 50D 100ml 385ml Trips Months Tanks - 3,500.00 1.00 25.20 2.00 2.00 1.00 2.00 2.00 1.00 1.00 12.00 1.00 360.00 250.00 230.00 587.00
 689.00 150.00 200.00 300.00 700.00 1,500.00 600.00 - 360.00 6,300.00 460.00 1,174.00 689.00 300.00 400.00 300.00 700.00 18,000.00 600.00 29,283.00 4,317.00 13% 697.21 36.60 - 360.00 12,600.00 460.00 1,174.00 689.00 300.00 400.00 300.00 700.00 18,000.00 600.00 35,583.00 31,617.00 47% 847 44.47875  A single Doe costs E1200 and a Buck costs E3500  Farmer uses readily available goat stock of 30 Does & buys a buck annually for breeding purposes  50% twinning resulting to 45 kids per cycle.
A single cycle is assumed to be 12 Months  5% mortality on off-spring  42 growers for sale  Average carcass price per kg is E65.00  Each grower is sold at 18kg  Growing period is 8 months  0.2kg/goat/day*150 days*42goats 12 Goat Feedlotting Enterprise Item Income Growers (Carcass weight) Total Income Operational Costs Feeder stock (Growers) Wild game block Sheep and goat pellets Tick greese Panacure Black quarter/Botulism Pulpy kidney vaccine Tetracycline Supona Transport Labour Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/goat) BEY (kg) BEP (E/kg) BEY (Number of goats) Goat Gross Margins for 31 goats Unit Quantity Unit Price Amount (E) 18.00 50.00 65.00 each 40kg 50kg 2L L 50D 50D 100ml 385ml Trips Cycle Tanks ASSUMPTIONS Farmer buys feeder stock 2% mortality 42 growers for sale Average carcass price per kg is E65.00 Each grower is sold at 18kg Growing period is 8 months Feed Assumption 1.5kg/goat/day*30 days*20goats 50 1.0 36 13 Indigenous Chickens Enterprise (Breeders) Indigenous Chickens Gross Margins (Breeders) Unit Quantity Unit Price Amount (E) Income Growers Total Income Operational Costs Broiler Starter Crumbles Makhaya Grower Makhaya Developer Makhaya Breeder Newcastle vaccine Fowl pox vaccine Gumboro vaccine Paparizine Virukill Karbadust Transport Electricity Brooding Incubation Labour Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/Chicken) BEY (Chickens) Birds 3,648 80.00 50kg 50kg 50kg 50kg 1000D 1000D 1000D g L g Trips Months cycle eggs Months Tanks 107,833.42
600.00 291,840.00 291,840.00 34,752.00 107,833.42 34,749.39 7,092.10 260.00 325.00 260.00 135.00 195.00 178.00 2,800.00 1,800.00 6,400.00 12,960.00 2,400.00 1,200.00 213,339.91 78,500.09 27% 58.48 2,666.75 14 ASSUMPTIONS The Farmer already has 20 hens and 3 cocks for breeding purposes Chickens have free access to fowl run with enough greens The farmer already has a haybrooder and incubator Cocks Hens The number of cycles per hen/year The number of eggs per hen/cycle The number of eggs per hen/year Total number of cycles per year (cycles X hens) Total number of eggs per year Percentage hatchability Number of hatched chicks per cycle Number of hatched chicks per hen per year Total number of chicks hatched per year Mortality rate per chick per cycle Number of chick deaths per year Number of growers ((12 x 5 x 20) - 192)) 3 20 16 12 192 320 3,840 80% 12 192 3,840 5% 192 3,648 FEEDING Broiler Starter crumbles 1kg/chick for 6 weeks (50kgs Bags) Makhaya Grower consumed at 90g/day/bird*4104 birds for 8 weeks Mixed Fowl consumed at 60g/day/bird*4104 birds for 2 weeks = Growers 77 276 92 Makhaya breeder consumed at 120g/day/bird*23 birds for 365 days Breedin g stock 20 15 Indigenous Chickens Enterprise (Chick Producer) Indigenous Chickens Gross Margins (Chick producer) Unit Quantity Unit Price Amount (E) Income Day old chicks Total Income Operational Costs Makhaya Breeder Newcastle vaccine Fowl pox vaccine Gumboro vaccine Piperizine Virukill Karbadust Transport Electricity Incubation Labour Water Total Operational Costs Gross Profit Gross Margin BEP (E/Chicken) BEY (Chickens) each 4,428 15.00 66,420.00 66,420.00 50kg 1000D 1000D 1000D g L g Trips Months eggs Months Months ASSUMPTIONS The Farmer already has 20 hens and 3 cocks for breeding purposes The farmer already has a
 haybrooder and incubator Chickens have free access to fowl run with enough greens Cocks Hens The number of cycles per hen/year The number of eggs per hen/cycle The number of eggs per hen/year Total number of cycles per year (cycles X hens) Total number of eggs per year Percentage hatchability Number of hatched chicks per cycle Number of hatched chicks per hen per year Total number of chicks hatched per year Mortality rate per chick per cycle Number of chick deaths per year Number of growers ((12 x 5 x 20) - 192)) FEEDING 3 20 16 15 240 48 720 80% 12 192 576 5% 29 547 Makhaya breeder consumed at 120g/day/bird*23 birds for 365 days Breeding stock 20 17 Indigenous Chickens Enterprise (Chick Grower) Indigenous Chickens (Chicks grower) Gross Margins Quantity Unit Price Unit Amount (E) Item Income Carcass Total Income Operational Costs Chicks Starter Makhaya grower Mixed fowl Newcastle vaccine Fowl pox vaccine Gumboro vaccine Paparizine Virukill Transport Electricity Labour Water Total Operational Costs Gross Profit Gross Margin BEP (E/Chicken) BEY (Chickens) kg 399.00 80.00 1 50kg 50kg 50kg 1000D 1000D 1000D g L Trips Months Months Months ASSUMPTIONS Chickens have free access to fowl run with enough greens The farmer buys chicks Mortality 5% Chickens sold at 4 months Market weight (kg) FEEDING Broiler Starter crumbles 4kg/chick for 6 weeks (50kgs Bags) Makhaya Grower consumed at 90g/day/bird*100 birds for 4 weeks Mixed Fowl Feed consumed at 60g/day/bird*100 birds for 2 weeks = 300 15 285 1.4 The farmer uses incubator to hatch The chickens are not brooding the chicks but a brooder is used instead 6 15 5 18 Layers Enterprise Item Unit Quantity Unit Price Amount (E) Annual Amount (E) Monthly Gross
 Margins for 500 Layers Income Egg Sales (30s) Spent Layers Total Income Operational Costs Layers Laying Mash Virukill Vitamin Stress Pac Fowl Pox Lasota Egg booster (Mineral) Wood shavings Egg trays Electricity Transport Labour Water Total Operational Costs Gross Profit Gross Margin BEP (E/tray) BEY (Egg trays_30s) Trays Number 475.00 5,170.83 55.00 75.00 284,395.83 35,625.00 320,020.83 23,699.65 23,699.65 Number 500.00 438 50kg 5.00 L 10.00 ml 1.00 1000ds 1.00 1000ds 25 4ml 18kg 5.00 Number 5,171 12.00 Months 4.00 trips 12.00 Months 4.00 Tanks ASSUMPTIONS 85% laying percentage per bird per day 3% mortality Cages are used other than deep litter system Tank (5,000L) Labour costs are shared Birds are fully vaccinated before Point of Lay CAUTION Booster Vaccines (Lasota & Fowl Pox) may be needed just before point of lay Feed Assumptions 0.12 kg per bird per day 365 days in production 500 Total number of birds 21,900.00 kg feed per year 438 bags of feed per year (50kg) 310.25 Eggs per chicken per year (85%) 155,125 Total eggs per year 5,170.83 Trays per year (30s) Egg sales Mortality 25 5% of total Egg booster 1kg of the booster per 100kg of feed 4ml to 10ltr of water 50ltr of water with booster given every once per quarter NOTE Layer production enterprise is viable under the given analysis and assumptions 20 Pig enterprise (Porkers) Item Income Porkers Total Income Pig Gross Margins for 15 Sows Unit Quantity Unit Price With 1 With AI Boar Amount (E) Total (E) kg 14,850.00 45.00 668,250.00 668,250.00 668,250.00 668,250.00 Operational Costs Artificial Insemination Sow and boar meal Lactating Sow meal Creep Feed Pig
 weaner Pig grower Pig finisher Farrowsure B Litterguard Eartags M+ pac Pig Pour On Iron Injection Cevamec Supona Pessaries Virukill Labour Transport Abattoir Cost Water 5000L Total Operational Costs Gross Profit Gross Margin BEY BEP 50kg 50kg 50kg 50kg 50kg 50kg 50D 50D 10/pkt 100ml L 100ml 100ml 385ml Tablet L months Trips Tanks kg E/kg - ASSUMPTIONS Boar Sows With AI, two straws per sow is recommended per mating.
A boar would consume 15 bags alone for a single cycle.
Average of 10 piglets born per sow per cycle Mortality of 10% Cycles per year Porkers/growers Carcass weight Delivery on feed is free provided bulk purchase Transport to abattoir is every month 1 15 2 29.2 300 30 2.23 270 55kg 22 Pigs Enterprise (Weaners) Item Income Porkers Total Income Pig Gross Margins for 20 weaners aners Cycle Monthly Unit Quantity Unit Price Amount (E) Total (E) kg 1,100.00 45.00 49,500.00 49,500.00 16,500.00 16,500.00 Operational Costs Weaners Pig weaner Pig grower Pig finisher Virukill Cevamec Labour Transport Abattoir Cost Water 5000L Total Operational Costs Gross Profit Gross Margin BEY BEP pigs 50kg 50kg 50kg 1L 100ml months Trips Tank kg E/kg ASSUMPTIONS Weaners Carcass weight (kg) Consumption Pig weaner (kg) Consumption pig grower (kg) Consumption pig finisher (kg) Cycle (days) 20 55 1,100.00 No.
of bags 320 6.40 7.00 2040 40.80 41.00 30.00 30.00 1500 99 CAUTION Antibiotics may be needed just in case there is an outbreak 23 Rabbits Enterprise Item Income Bunnies Total Income Operational Costs Rabbit pellets Hay bales (round bales) Transport Labour Water 5000L Total Operational Costs Gross Profit Gross Margin BEP (E/Chicken) BEY (Chickens) Rabbits Gross Margins Unit Quantity Unit Price Amount (E) Bunnies 480.00 150.00 50kg bale Trips Months Tanks 77 23.00 4.00 12.00 2.00 457.00 400.00 700.00 500.00 600.00 72,000.00 72,000.00 34,978.78 9,200.00 2,800.00 6,000.00 1,200.00 54,178.78 17,821.22 25% 112.87 361.19 ASSUMPTIONS Number of bucks Number of does The number of cycles per doe/year Total number of cycles per year (4cycles X 20 does) The number of bunnies per doe/cycle The number of bunnies per doe/year Total number of bunnies per year Mortality rate per flock per cycle 1% 3 months ready for slaughter 1 month for gestation Litter size Litters per year Water ml/day Buck consumes 100g/day/buck*365days (kg) Weaner consumes 70g/weaner/day*90days (kg) Doe consumes 100g/doe/day*365days (kg) Total number of bags 2 20 2 40 12 24 480 90 30 12 4 300 1 60 15 77 24 For More information contact Ministry of Agriculture P.O.
BOX 162 MBABANE TEL: +268 2404 6362/6 Crop Promotion Unit P.O.

Box 501 MANZINI TEL: +268 2505 3523 Extension Services RDAs