Profitability

[BrianRme]

So I have been running numbers and trying to budget for the coming year. I have room for about 600 Does eventually but wanted to start out with 30 or so this year to learn and get things working.

I was working on numbers and figured the following.

1 Doe = 6 kits per litter and 4 litters per year. That is 24 salable rabbits at an average of 5 lbs so 120 lbs of rabbit for each Doe that you have. (I am being conservative on litter size as it is always better to estimate production on the low end for budgeting)

With the ratio of 120 lbs : 1 and a sale price of $1.50 / lb of live weight then each Doe will raise $180 in income per year.

So my 30 Does should gross $5400 each year.

If I ramp up to 100 Does for year 2 the sales are $18,000
300 Does - $54,000
600 Does - $108,000

Does this sound reasonable? I know that this is just sales and I have not taken into account the expenses for feed and what not, I am just trying to figure out a reasonable amount of gross sales that can be expected.

Can you let me know your thoughts?

 

[TwoAcreDream]

Have you pushed the pencil on your expenses yet ?
Feed
Cost of Cages
A building.
Good breeding stock
Are you planning on buying a few and then slowly building ?
Or buying a lot of ready to breed does ?

Do you have past experience with rabbits ?

 

[BrianRme]

I have a background in animal husbandry and an education in finance and animal sciences. I grew up on a factory pig farm. I have had every animal as a pet and currently do poultry and breed dogs.

I am looking to get into rabbits as another income stream. I am working on expenses. I have my feed supplier working out numbers on feed. I have 2 guys pricing cages.

I have 2 large greenhouses that I am recovering with insulated caverall tarps for housing. They are each 140 feet long by 30 feet wide.

I am looking to start with 30 Does this year and grow it from there. Slow and steady wins the race. Work out the bugs on the 30 and when that is running smoothly then grow from there.

 

[michaels4gardens]

You will have to find very low priced feed to make a profit @ $1.50/lb retail priced feed in the us is $16. To $20 / 50 lbs or .40/ lb whole house feed efficency ( does, bucks, kits) is around 4/1 --at the high end a live rabbit could cost you as much as $1.60/ lb just in feed cost

 

[BrianRme]

I am paying $14/50lb for chicken grower, so I am hoping the rabbit feed will come in around the same price.

Large farms make money off of rabbits, why would it be impossible to copy them and make money to? Large volumes dictate lower feed prices and volumes of scale. I am just waiting for a quote to come in to start figuring out costs

 

[MamaSheepdog]

See if you can find a local mill for rabbit feed. I am paying $11 per 50lbs. if picked up at the mill, $12 if I meet the truck when it is doing a run to pick up other feed that they don't produce themselves.

Have you spoken to the processor to see if they can market the volume you hope to produce?

 

[grumpy]

Feed will be about 80% of your expenses. Once you're up and running.
Too conservative with the does, you can bump them up at least one more
litter per year and add a .5 or .75 kit per litter average.

$28.60 per hundred on my feed (Kent 17% commercial). They just bumped
it $12.00 a ton this week. Your first year figures "will make you cry".
Just keep on keepin' on. Ya can't 'em sell if you don't have 'em. Look for markets
with a better profit margin than a buck-sixty. Develop as many different
avenues of sales that you can.

best of luck to you.

grumpy.

 

[Ramjet]

I haven't sold a whole lot of rabbits but even so they pay for themselves , slowly. I sell one rabbit and pay for the feed for the rest for a month .... then again , I don't have 600 does. Only 5 does a buck and grow outs.

Those that don't sell .... cut into the grocery bill.

I'm paying $14.50 / 50lbs for feed now , down from ~$16.85 / 50.

 

[Miss M]

You said you've had every kind of animal as a pet... that does include rabbits?

If not, I'd start much smaller, as rabbits have their own learning curve.

It's definitely not impossible to make money on rabbits. We have several commercial producers on this forum, including Grumpy. It isn't easy to get there, though, and it pays to have all your ducks in a row ahead of time.

 

[Zass]

You said you've had every kind of animal as a pet... that does include rabbits?

If not, I'd start much smaller, as rabbits have their own learning curve.

Now that's a fact!

The warnings and cautions given by people on this site aren't trying to convince you it's impossible or talk you out of it. Instead, we are trying to bring everything important to your attention to help you succeed!

My own words of caution would be to make sure you can sell as many rabbits as you intend to produce.

 

[ckcs]

Do you have a processor lined up? If so what are they paying per lb. I know there is a list on arba.net and the prices are horrible. Only 1 processor is showing a price about $1.50 per lb, so maybe the amounts are out of date. If you are planning on selling locally consider 30 does, say 5 litters a year, 7 rabbits per litters will be 20 rabbits per week you will need to get rid of. At 600 does you'd be moving a whopping 400 rabbits per week. There must be money to be made as Grumpy has a fantastic setup and I'm guessing he isn't doing it solely because he loves rabbits.

 

[grumpy]

Do you have a processor lined up? If so what are they paying per lb. I know there is a list on arba.net and the prices are horrible. Only 1 processor is showing a price about $1.50 per lb, so maybe the amounts are out of date. If you are planning on selling locally consider 30 does, say 5 litters a year, 7 rabbits per litters will be 20 rabbits per week you will need to get rid of. At 600 does you'd be moving a whopping 400 rabbits per week. There must be money to be made as Grumpy has a fantastic setup and I'm guessing he isn't doing it solely because he loves rabbits.

Thanks ckcs: I like rabbits and can easily sell all of my production as
processed fryers out of a 25-doe herd.
If that was my only avenue of sales, that's the size rabbitry I would have.

But....that's not the case with me. I've got four (4) avenues of sales.
And I'm looking for more than that. I always look for other ways for sales.

I've got my "first" buyer @$2.00 per pound. We are working up to 100
head of fryers per week as our eventual goal. "NO" I'm not going to divulge
their name. I've done that in the past and have had my throat cut by so
called "good-buddies". I don't need friends like that. :evil: :evil:

The second is @$1.85 per pound, regardless of size. But, they're not as
steady as the first. They made up the bulk of my larger sales my first year.

The third is @$1.69 per pound. This is my last resort for live sales. I barely
make a profit with this one because of the trip I have to make delivering
fryers. A 130 mile round trip quickly cuts into what little profit I'm making
anyways. I've got to transport at least 50 head to make any decent money.

Fourth, is processed fryers out of my residence @$4.50 per pound dressed.

Manure sales are "okay" during the spring and early summer. It buys some
feed for me.

Breeding stock is another venue. But, you've got to hold the rabbits quite a
while before they're matured enough to show their conformation. This is a
tough market to try and forecast. Space is another factor on selling breeding stock.

Plus, with breeding stock sales, you've got to be a hard-nose on your prices.
Each week you hold them, their price must increase accordingly. Otherwise
you'll lose money on them.

Anything you can do to make the job easier, quicker, more efficient, MUST
be done. Time is money. Plus, you've got to be ruthless in your culling
procedures. There is no place for sentimentality in a commercial operation.

 

[BrianRme]

Yes I have raised rabbits as a kid. I read a lot and do my research. That is why I am on here. 30 does is a small start. Set up is pretty cheap. Cages are $20 per hole. Auto water system in $3 per hole.

I have a bunch of markets.
My last choice is the processor that will pay $1.60. That is why I am using them for budgeting.
I also live in an area with a large population of Italian and Portuguese. I live on a very busy road and sell eggs, chicken meat, turkey meat and guinea meat from the farm gate. I get a lot of people stopping in and a lot of people asking me for rabbit. Going price for a live meat rabbit is $12. That is $2/lb live weight. Slaughtered, inspected and frozen $4 - $6 per pound.

Also, there are a few restaurants in the area that are interested, (at least they say they are) in serving locally produced rabbit meat.

I understand that the first year will not make money. After capital costs and because my volume will be to low thus making my feed costs higher as I will not be able to buy in bulk for the first year.

Year 2 and 3 are the years if all works out that I will start turning a profit.

 

[Schipperkesue]

My advice is start small and work your way up. It takes a little time to create your markets and build demand. An acquaintance of mine jumped into the business with two feet. She was told there was a market and a demand and all looked rosy at the start. Soon she had a ton of kits an no one to buy them. It ended badly. Very badly. I started with enough rabbits for my own consumption and gradually am building my market. Demand for my rabbits in an area where people generally don't eat rabbit is increasing. Good luck to you!

 

[grumpy]

30 does is a small start. Set up is pretty cheap. Cages are $20 per hole. Auto water system in $3 per hole.

I have a bunch of markets.
My last choice is the processor that will pay $1.60. That is why I am using them for budgeting.
I also live in an area with a large population of Italian and Portuguese. I live on a very busy road and sell eggs, chicken meat, turkey meat and guinea meat from the farm gate. I get a lot of people stopping in and a lot of people asking me for rabbit. Going price for a live meat rabbit is $12. That is $2/lb live weight. Slaughtered, inspected and frozen $4 - $6 per pound.

Also, there are a few restaurants in the area that are interested, (at least they say they are) in serving locally produced rabbit meat.

I understand that the first year will not make money. After capital costs and because my volume will be to low thus making my feed costs higher as I will not be able to buy in bulk for the first year.

Year 2 and 3 are the years if all works out that I will start turning a profit.

Brian:
I haven't crunched the numbers on new cages for quite a spell.
Are you figuring $20.00 per hole for new materials?
And you're just a shade under on your auto-waterer. Not much, but a little.
Again, it's the penny's that will sneak up on you and bite you in the fanny.

I still do not buy in bulk, even though I'm feeding well over a ton per month.
The cost of a bulk container would take several years to recoup.
And..... I believe you end up with more fines when you use the product in
this fashion.

You're on the right track with the correct mindset. Now, it's the
implementation of your ideas that comes into play. Do it correctly and
with caution, I believe you'll be just fine.

Plan more on year #3 for your profits. It'll take a couple of years to get
all the bugs worked out in your system. BTW: It would help to know your
location.

Grumpy.

 

[Mary Ann's Rabbitry]

Make sure you get good commercial stock .. and cull if you have to or you will loose money... Make sure your feed is good ,, not just in price either... You should also consider hay for feed as well.. and not every rabbit is going to be good moms or willing to breed.. you will have misses.. bad mothers ect... You need really good bucks.. and more than one and not more than you need. .. and extra cages and feed for breeder keepers.. and I don't know what your weather is like there.. how hot it gets or how cold it gets.. there is more to it than crunching numbers

 

[michaels4gardens]

I have had a good market in the past from worm farmers buying manure, my last good market was $15 for a processed rabbit to a restaurant. But-- If you have a good show-up at "the Farm gate" that is great--- travel time is on your side.-- when I was breeding over 100 does, I had a bulk bin I made from a concrete drum [off a concrete delivery truck] I just cut the fins out, built a slide gate in the opening, welded legs on it and stood it up on a concrete slab, it easily held a 5 ton delivery. I cut a hole in the top [when it was stood up] and welded a mobil home rim [tire rim] to the top over the hole, I put a tub over the hole for a lid. it worked great, I got better feed quality and fresher feed from bulk delivery [and less fines, and a mch better price on feed] I put a 1/8 inch screen on an angle for the feed to slide down [before it got to my wheelbarrow] the fines fell through, and I shoveled them up and fed then to chickens, or sows in the farrowing barn.

 

[BrianRme]

I am about 30 minutes north of Toronto on the way to Cottage country. My road is the bypass for the the hwy so we get a lot of traffic by the house. Last weekend I sold 40 dozen eggs on Saturday and Sunday.

Vaughan is just south of me. There are about 200,000 people of Italian decent living there. Also my area was initially settled by the Portuguese. Within a 45 minute radius of my house are about 6 million people.

The market is there. I also have a business management background and have done a few product launches. I am good at branding and marketing. A few well placed signs and drinks with the right people and we will see.

 

[dangerbunny]

Don't take this the wrong way but I think you would be miles ahead by getting a good trio and breeding for 6 months before making a big investment. Any kind of livestock is going to have a learning curve and you are better off experimenting on a small scale before investing a lot of time and money into an operation before you have a feel for things.

 

[Ramjet]

Don't take this the wrong way but I think you would be miles ahead by getting a good trio and breeding for 6 months before making a big investment. Any kind of livestock is going to have a learning curve and you are better off experimenting on a small scale before investing a lot of time and money into an operation before you have a feel for things.

I agree 111% .... and then some.