All stories

Economics

Feed price is not feed cost

The cheapest tonne can become the expensive bird. Compare rations by the cost of usable growth, not the invoice alone.

September 15, 2026 · 6 min read · Broiler.ai editorial

Maize and poultry feed pellets being weighed on a precision scale

Feed dominates most independent broiler budgets, which makes a price change feel decisive. But price per bag says little without intake, wastage, formulation consistency and the live weight that feed produces.

Field principle

For planning, multiply expected intake per bird by the delivered price per kilogram—then test what happens when FCR moves by 0.05 or 0.10.

Put every quote on one basis

Convert each offer to the same delivered price per unit of weight. Include transport, minimum-order penalties and any unavoidable handling loss. If starter, grower and finisher prices differ, cost the expected intake in each phase rather than using a simple average.

Then separate price from performance. A ration that costs less but increases feed conversion, extends the cycle or produces uneven birds can reduce margin. The comparison should end at cost per saleable bird, not cost per sack.

Stress the assumptions

A useful budget is a range. Test a higher feed price, a weaker FCR and a lower sale price together. If the cycle only works at the optimistic edge, that is a decision signal before chicks arrive.

Regional figures in Broiler.ai are planning defaults, not live quotations. Replace them with the delivered prices offered to your farm and preserve the date, supplier and unit behind each figure.

This Journal is educational. Field health decisions belong with a veterinarian; legal and food-safety requirements must be confirmed with the authority that applies where you operate.