Publication - Research and analysis

Disposal of spent hens: options evaluation

Published: 10 October 2025
From: Chief Veterinary Officer
Directorate: Agriculture and Rural Economy Directorate
Topic: Economy, Farming and rural
ISBN: 9781836914785

In 2023, Scotland produce around 1.5 billion eggs from a hen population of just over 5 million, representing around 12.5% of total UK output. This means that around 4.8 million hens are slaughtered each year for the purpose of exports, food service markets and pet food.

Supporting documents

Appendix 2 - Abattoir & Added Value Option Four Options Considered (including Capital Costs)

1. New Factory –

Reception Killing Carcass sent for Pet Food - £7.13 million.

2. New Factory –

Reception Killing Protein/Oil Extraction - £12.56 million.

3. New Factory –

Reception Killing Reception killing sent for incineration - £7.5 million.

4. New Factory –

Build to include butchery/further processing - £9.23 million.

Capital Expenditure

Option 1 – Petfood
Live reception area + Killing equipment + Evisceration Line	Total £750,000
Crates	£120,000
Air compressor	£200,000
Hygiene	£100,000
Fork trucks	£40,000
Refrigeration	£160,000
Five Rigid Trucks	£650,000
Tote Bins	£60,000
Conceptual design	£40,000
Sub-Total	£2,120,000
Contingency (10%)	£212,000
Total P&E	£2,332,000
Factory Building	£4,800,000
Contingency (10%)	£480,000
Total - Building	£5,280,000
Total	£7,132,000

Option 2 – Protein/Oil
Live reception area + Killing equipment + Evisceration Line	Total £750,000
Crates	£120,000
Air compressor	£200,000
Hygiene	£100,000
Fork trucks	£40,000
Refrigeration	£160,000
Five Rigid Trucks	£650,000
Centrifuge	£4,500,000
Tote Bins	£60,000
Conceptual design	£40,000
Sub-Total	£6,620,000
Contingency (10%)	£662,000
Total P&E	£7,282,000
Factory Building	£4,800,000
Contingency (10%)	£480,000
Total - Building	£5,280,000
Total	£12,562,000

Option 3 – Disposal
Live reception area + Killing equipment + Evisceration Line	Total £750,000
Crates	£120,000
Air compressor	£200,000
Hygiene	£75,000
Fork trucks	£40,000
Refrigeration	£90,000
Five Rigid Trucks	£650,000
Tote Bins	£60,000
Conceptual design	£40,000
Inline Chill	£0
Sub-Total	£2,025,000
Contingency (10%)	£202,500
Total P&E	£2,227,500
Factory Building	£4,800,000
Contingency (10%)	£480,000
Total - Building	£5,280,000
Total	£7,507,500

Option 4 – Butchery
Live reception area + Killing equipment + Evisceration Line	Total £750,000
Crates	£120,000
Air compressor	£200,000
Hygiene	£75,000
Fork trucks	£40,000
Refrigeration	£500,000
Five Rigid Trucks	£650,000
Tote Bins	£60,000
Cut Up Equipment	£450,000
F/P Equipment	£185,000
Cleaning Equipment	£75,000
Conceptual design	£40,000
Inline Chill	£450,000
Sub-Total	£3,595,000
Contingency (10%)	£359,500
Total P&E	£3,954,500
Factory Building	£4,800,000
Contingency (10%)	£480,000
Total - Building	£5,280,000
Total	£9,234,500

Material Yield Calculation

Spent Hens Yield Analysis Live Weight
Live Weight (GM)	2250	% Yield Loss
Feathers	184.5	8.20%
Blood	44.55	198%
Heads	58.05	2.58%
Necks	177.75	7.90%
Feet	65.925	2.93%
Eviscerate pack	497.25	22.10%
Gizzard Pks	117.9	5.24%
Yield Loss GM	1145.925	50.9%
Carcass Weight GM	1104.075	49.1%

Spent Hens Yield Analysis Portions% Yield of individual parts Bone In
Carcass Weight after (EV) GM	1104.1	% Yield
Breast	220.815	20.0%
Legs	165.61	15.0%
Thighs	182.17	16.5%
Wings	156.78	14.2%
Backs	191.00	17.3%
Portion Weight GM	568.60	51.5%

Spent Hens Yield Analysis Portions% Yield of individual parts Skinless/Boneless
Meat Weight after (EV) GM	568.6	% Yield
Breast	375.28	66.0%
Drumsticks	15.52	2.7%
Thighs	30.48	5.4%
Wings	6.08	1.1%
Backs	6.77	1.2%
Rib Back	4.55	1%
Tail Back	4.47	1%
GM	405.49	37%

Labour

Option 1 - Petfood
Staff Required		Annual Cost
Fork Truck	1.0	£33,370
Cleaning	1.0	£33,370
Hanging	4.0	£133,478
KiIl back up	1.0	£33,370
Crate wash	1.0	£33,370
General Clean	1.0	£33,370
Abs/Holiday cover	1.4	£48,052
Maintenance	1.5	£56,937
Distribution	1.0	£33,370
Direct Labour	12.9	£438,685
Management	1.0	£39,981
Administration	1.0	£33,370
Indirect Labour	2.0	£73,351
FTE	14.9	£512,036

Option 2 – Protein/Oil
Staff Required		Annual Cost
Fork Truck	1.0	£33,370
Cleaning	1.0	£33,370
Hanging	4.0	£133,478
KiIl back up	1.0	£33,370
Crate wash	1.0	£33,370
General Clean	1.0	£33,370
Protein Operation	8.0	£204,800
Abs/Holiday cover	1.4	£48,052
Maintenance	1.5	£56,937
Q/C	1.0	£33,370
Direct Labour	20.9	£643,537
Management	1.0	£39,981
Administration	1.0	£33,370
Indirect Labour	2.0	£73,351
FTE	22.9	£716,888

Scenario 1 – Using 4.8 million Scottish hens

Option 1 – Petfood
Capex	£7,132,000
Live weight - Kg	2.25
No of Birds	4,765,809
No of Live Bird - Waste 0.5%	4,527,519
Carcass Wt. - 1.1kg	4,980,270
Portion Wt. - 0.568 kg	2,571,631
Sales @ 10p/Kg	£257,163
Cost of Birds £0.25 / bird	£1,191,452
Sales - Petfood @ £0.1 / Kg	257,163

Cost of Sales
Material	£1,191,452
Labour Direct	£438,737
Total	1,630,189
Gross Margin	-£1,373,026

Overheads
Salaried Staff	£73,351
Water	£350,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£200,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£10,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£10,000
Repairs	£8,000
Garment Rental	£15,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£60,000
Distribution	£85,000
General Operating Supplies	£5,000
Lab Cost - Technical	£25,000
Depreciation - 7 /25	£343,743
Total	1,606,194
Net Profit	-£2,979,220

Option 2 – Protein/Oil
Capex	£12,562,000
Live weight - Kg	2.25
No of Birds	4,765,809
No of Live Bird - Waste 0.5%	4,527,519
Assume 0.9kg useful output	4,074,767
Sales @ 90p/Kg	£3,667,290
Cost of Birds £0.25 / bird	£1,191,452
Sales - Protein/Oil @ £0.9 / Kg	3,667,290

Cost of Sales
Material	£1,191,452
Labour Direct	£643,537
Total	1,834,989
Gross Margin	£1,832,301

Overheads
Salaried Staff	£73,351
Water	£395,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£350,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£95,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£20,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£75,000
Repairs	£50,000
Garment Rental	£20,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£85,000
Distribution	£125,000
General Operating Supplies	£10,000
Lab Cost - Technical	£28,000
Depreciation - 7 /25	£1,986,571
Total	3,750,022
Net Profit	-£1,917,721

Option 3 – Disposal
Capex	£7,507,500
Live weight - Kg	2.25
No of Birds	4,765,809
No of Live Bird - Waste 0.5%	4,527,519
Sales @ 0.0p/Kg	£0
Cost of Birds £0.25 / bird	£1,191,452
Sales - Disposal Plant	0

Cost of Sales
Material	£1,191,452
Labour Direct	£405,316
Total	1,596,768
Gross Margin	-£1,596,768

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£25,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£40,000
Repairs	£8,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£65,000
General Operating Supplies	£5,000
Lab Cost - Technical	£12,000
Depreciation - 7 /25	£510,214
Total	2,019,665
Net Profit	-£3,616,433

Option 4 – Butchery
Capex	£9,234,500
Live weight - Kg	2.25
No of Birds	4,765,809
No of Live Bird - Waste 0.5%	4,527,519
Portion Wt. - 0.568 kg	2,571,631
Sales @ 1.5p/Kg	£3,857,446
Cost of Birds £0.25 / bird	£1,191,452
Sales - Butchered @ £1.5/Kg	3,857,446

Cost of Sales
Material	£1,191,452
Labour Direct	£2,638,628
Total	3,830,080
Gross Margin	£ 27,366

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£45,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£20,000
Expenses	£15,000
Insurance	£95,000
Computer Equipment	£4,500
Telephones	£6,000
Office stationary	£3,000
Cleaning Materials	£45,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£95,000
Repairs	£60,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£90,000
General Operating Supplies	£20,000
Lab Cost - Technical	£45,000
Depreciation - 7 /25	£756,929
Total	2,603,380
Net Profit	-£2,576,014

Scenario 2 – Increasing throughput to 8.5 million hens

Option 1 – Petfood
Capex	£7,132,000
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Carcass Wt. - 1.1kg	8,882,500
Portion Wt. - 0.568 kg	4,586,600
Sales @ 10p/Kg	£458,660
Cost of Birds £0.25 / bird	£2,125,000
Sales - Petfood @ £0.1 / Kg	458,660

Cost of Sales
Material	£2,125,000
Labour Direct	£438,737
Total	2,563,737
Gross Margin	-£2,105,077

Overheads
Salaried Staff	£73,351
Water	£350,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£200,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£10,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£10,000
Repairs	£8,000
Garment Rental	£15,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£60,000
Distribution	£85,000
General Operating Supplies	£5,000
Lab Cost - Technical	£25,000
Depreciation - 7 /25	£343,743
Total	1,606,194
Net Profit	-£3,711,271

Option 2 – Protein/Oil
Capex	£12,562,000
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Assume 0.9kg useful output	7,267,500
Sales @ 90p/Kg	£6,540,750
Cost of Birds £0.25 / bird	£2,125,000
Sales - Protein/Oil @ £0.9 / Kg	£6,540,750

Cost of Sales
Material	£2,125,000
Labour Direct	£643,537
Total	2,768,537
Gross Margin	£3,772,213

Overheads
Salaried Staff	£73,351
Water	£395,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£350,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£95,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£20,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£75,000
Repairs	£50,000
Garment Rental	£20,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£85,000
Distribution	£125,000
General Operating Supplies	£10,000
Lab Cost - Technical	£28,000
Depreciation - 7 /25	£1,986,571
Total	3,750,022
Net Profit	£22,191

Option 3 – Disposal
Capex	£7,507,500
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Sales @ 0.0p/Kg	£0
Cost of Birds £0.25 / bird	£2,125,000
Sales - Disposal Plant	0

Cost of Sales
Material	£2,125,000
Labour Direct	£405,316
Total	2,530,316
Gross Margin	-£2,530,316

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£25,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£40,000
Repairs	£8,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£65,000
General Operating Supplies	£5,000
Lab Cost - Technical	£12,000
Depreciation - 7 /25	£510,214
Total	2,019,665
Net Profit	-£4,549,981

Option 4 – Butchery
Capex	£9,234,500
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Portion Wt. - 0.568 kg	4,586,600
Sales @ 1.5p/Kg	£6,879,900
Cost of Birds £0.25 / bird	£2,125,000
Sales - Butchered @ £1.5/Kg	£6,879,900

Cost of Sales
Material	£2,125,000
Labour Direct	£2,638,628
Total	4,763,628
Gross Margin	£2,116,272

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£45,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£20,000
Expenses	£15,000
Insurance	£95,000
Computer Equipment	£4,500
Telephones	£6,000
Office stationary	£3,000
Cleaning Materials	£45,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£95,000
Repairs	£60,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£90,000
General Operating Supplies	£20,000
Lab Cost - Technical	£45,000
Depreciation - 7 /25	£756,929
Total	2,603,380
Net Profit	-£487,108

Scenario 3 - Increasing throughput to 8.5 million hens and reducing the input cost

Option 1 – Petfood
Capex	£7,132,000
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Carcass Wt. - 1.1kg	8,882,500
Portion Wt. - 0.568 kg	4,586,600
Sales @ 10p/Kg	£458,660
Cost of Birds £0.15 / bird	£1,275,000
Sales - Petfood @ £0.1 / Kg	458,660

Cost of Sales
Material	£1,275,000
Labour Direct	£438,737
Total	£1,713,737
Gross Margin	-£1,255,077

Overheads
Salaried Staff	£73,351
Water	£350,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£200,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£10,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£10,000
Repairs	£8,000
Garment Rental	£15,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£60,000
Distribution	£85,000
General Operating Supplies	£5,000
Lab Cost - Technical	£25,000
Depreciation - 7 /25	£343,743
Total	1,606,194
Net Profit	-£2,861,271

Option 2 – Protein/Oil
Capex	£12,562,000
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Assume 0.9kg useful output	7,267,500
Sales @ 90p/Kg	£6,540,750
Cost of Birds £0.15 / bird	£1,275,000
Sales - Protein/Oil @ £0.9 / Kg	£6,540,750

Cost of Sales
Material	£1,275,000
Labour Direct	£643,537
Total	£1,918,537
Gross Margin	£4,622,213

Overheads
Salaried Staff	£73,351
Water	£395,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£350,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£95,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£20,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£75,000
Repairs	£50,000
Garment Rental	£20,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£85,000
Distribution	£125,000
General Operating Supplies	£10,000
Lab Cost - Technical	£28,000
Depreciation - 7 /25	£1,986,571
Total	3,750,022
Net Profit	£872,191

Option 3 – Disposal
Capex	£7,507,500
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Sales @ 0.0p/Kg	£0
Cost of Birds £0.15 / bird	£1,275,000
Sales - Disposal Plant	0

Cost of Sales
Material	£1,275,000
Labour Direct	£405,316
Total	£1,680,316
Gross Margin	-£1,680,316

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£25,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£40,000
Repairs	£8,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£65,000
General Operating Supplies	£5,000
Lab Cost - Technical	£12,000
Depreciation - 7 /25	£510,214
Total	2,019,665
Net Profit	-£3,699,981

Option 4 – Butchery
Capex	£9,234,500
Live weight - Kg	2.25
No of Birds	8,500,000
No of Live Bird - Waste 0.5%	8,075,000
Portion Wt. - 0.568 kg	4,586,600
Sales @ 1.5p/Kg	£6,879,900
Cost of Birds £0.15 / bird	£1,275,000
Sales - Butchered @ £1.5/Kg	£6,879,900

Cost of Sales
Material	£1,275,000
Labour Direct	£2,638,628
Total	£3,913,628
Gross Margin	£2,966,272

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£45,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£20,000
Expenses	£15,000
Insurance	£95,000
Computer Equipment	£4,500
Telephones	£6,000
Office stationary	£3,000
Cleaning Materials	£45,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£95,000
Repairs	£60,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£90,000
General Operating Supplies	£20,000
Lab Cost - Technical	£45,000
Depreciation - 7 /25	£756,929
Total	2,603,380
Net Profit	£362,892

Scenario 4 – Increasing throughput to 11 million hens

Option 1 – Petfood
Capex	£7,132,000
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (100%)	6,300,000
Total Birds	11,065,809
No of Live Bird - Waste 0.5%	10,512,519
Carcass Wt. - 1.1kg	11,563,770
Portion Wt. - 0.568 kg	5,971,111
Sales @ 10p/Kg	£597,111
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£1,890,000
Total Cost of Birds	£3,081,452
Sales - Petfood @ £0.1 / Kg	£597,111

Cost of Sales
Material	£3,081,452
Labour Direct	£438,737
Total	3,520,189
Gross Margin	-£2,923,078

Overheads
Salaried Staff	£73,351
Water	£350,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£200,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£10,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£10,000
Repairs	£8,000
Garment Rental	£15,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£60,000
Distribution	£85,000
General Operating Supplies	£5,000
Lab Cost - Technical	£25,000
Depreciation - 7 /25	£343,743
Total	1,606,194
Net Profit	-£4,529,272

Option 2 – Protein/Oil
Capex	£12,562,000
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (100%)	6,300,000
Total Birds	11,065,809
No of Live Bird - Waste 0.5%	10,512,519
Assume 0.9kg useful output	11,563,770
Sales @ 90p/Kg	£10,407,393
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£1,890,000
Total Cost of Birds	£3,081,452
Sales - Protein/Oil @ £0.9 / Kg	£10,407,393

Cost of Sales
Material	£3,081,452
Labour Direct	£643,537
Total	3,724,989
Gross Margin	£6,682,404

Overheads
Salaried Staff	£73,351
Water	£395,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£350,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£95,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationery	£5,000
Cleaning Materials	£20,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£75,000
Repairs	£50,000
Garment Rental	£20,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£85,000
Distribution	£125,000
General Operating Supplies	£10,000
Lab Cost - Technical	£28,000
Depreciation - 7 /25	£1,986,571
Total	3,750,022
Net Profit	£2,932,382

Option 3 – Disposal
Capex	£7,507,500
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (100%)	6,300,000
Total Birds	11,065,809
No of Live Bird - Waste 0.5%	10,512,519
Sales @ 0.0p/Kg	£0
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£1,890,000
Total Cost of Birds	£3,081,452
Sales - Disposal Plant	0

Cost of Sales
Material	£3,081,452
Labour Direct	£405,316
Total	3,486,768
Gross Margin	-£3,486,768

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£25,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£40,000
Repairs	£8,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£65,000
General Operating Supplies	£5,000
Lab Cost - Technical	£12,000
Depreciation - 7 /25	£510,214
Total	2,019,665
Net Profit	-£5,506,433

Option 4 – Butchery
Capex	£9,234,500
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (100%)	6,300,000
Total Birds	11,065,809
No of Live Bird - Waste 0.5%	10,512,519
Portion Wt. - 0.568 kg	5,971,111
Sales @ 1.5p/Kg	£8,956,666
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£1,890,000
Total Cost of Birds	£3,081,452
Sales - Butchered @ £1.5/Kg	£8,956,666

Cost of Sales
Material	£3,081,452
Labour Direct	£2,638,628
Total	5,720,080
Gross Margin	£3,236,586

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£45,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£20,000
Expenses	£15,000
Insurance	£95,000
Computer Equipment	£4,500
Telephones	£6,000
Office stationary	£3,000
Cleaning Materials	£45,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£95,000
Repairs	£60,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£90,000
General Operating Supplies	£20,000
Lab Cost - Technical	£45,000
Depreciation - 7 /25	£756,929
Total	2,603,380
Net Profit	£633,206

Scenario 5 – Including 20% of N Ireland Output achieves 6 million hens in total

Option 1 – Petfood
Capex	£7,132,000
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (20%)	1,260,000
Total Birds	6,025,809
No of Live Bird - Waste 0.5%	5,724,519
Carcass Wt. - 1.1kg	6,296,970
Portion Wt. - 0.568 kg	3,251,527
Sales @ 10p/Kg	£325,153
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£378,000
Total Cost of Birds	£1,569,452
Sales - Petfood @ £0.1 / Kg	£325,153

Cost of Sales
Material	£1,569,452
Labour Direct	£438,737
Total	2,008,189
Gross Margin	-£ 1,683,036

Overheads
Salaried Staff	£73,351
Water	£350,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£200,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£10,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£10,000
Repairs	£8,000
Garment Rental	£15,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£60,000
Distribution	£85,000
General Operating Supplies	£5,000
Lab Cost - Technical	£25,000
Depreciation - 7 /25	£343,743
Total	1,606,194
Net Profit	-£3,289,230

Option 2 – Protein/Oil Option
Capex	£12,562,000
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (20%)	1,260,000
Total Birds	6,025,809
No of Live Bird - Waste 0.5%	5,724,519
Assume 0.9kg useful output	6,296,970
Sales @ 90p/Kg	£5,667,273
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£378,000
Total Cost of Birds	£1,569,452
Sales - Protein/Oil @ £0.9 / Kg	£5,667,273

Cost of Sales
Material	£1,569,452
Labour Direct	£643,537
Total	2,212,989
Gross Margin	£3,454,284

Overheads
Salaried Staff	£73,351
Water	£395,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£350,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£95,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£20,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£75,000
Repairs	£50,000
Garment Rental	£20,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£85,000
Distribution	£125,000
General Operating Supplies	£10,000
Lab Cost - Technical	£28,000
Depreciation - 7 /25	£1,986,571
Total	3,750,022
Net Profit	-£295,738

Option 3 – Disposal
Capex	£7,507,500
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (100%)	1,260,000
Total Birds	6,025,809
No of Live Bird - Waste 0.5%	5,724,519
Sales @ 0.0p/Kg	£0
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£378,000
Total Cost of Birds	£1,569,452
Sales - Disposal Plant	0

Cost of Sales
Material	£1,569,452
Labour Direct	£405,316
Total	1,974,768
Gross Margin	-£ 1,974,768

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£24,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£15,000
Expenses	£5,000
Insurance	£24,000
Computer Equipment	£12,500
Telephones	£6,000
Office stationary	£5,000
Cleaning Materials	£25,000
Rates	£24,000
Hire of equipment	£10,000
Fuel	£50,000
Packaging	£40,000
Repairs	£8,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£65,000
General Operating Supplies	£5,000
Lab Cost - Technical	£12,000
Depreciation - 7 /25	£510,214
Total	2,019,665
Net Profit	-£3,994,433

Option 4 – Butchery
Capex	£9,234,500
Live weight - Kg	2.25
No of Birds Scotland	4,765,809
No of Birds Ireland (100%)	1,260,000
Total Birds	6,025,809
No of Live Bird - Waste 0.5%	5,724,519
Portion Wt. - 0.568 kg	3,251,527
Sales @ 1.5p/Kg	£4,877,290
Cost of Birds £0.25 / bird	£1,191,452
Cost of Birds £0.30 / bird	£378,000
Total Cost of Birds	£1,569,452
Sales - Butchered @ £1.5/Kg	£4,877,290

Cost of Sales
Material	£1,569,452
Labour Direct	£2,638,628
Total	4,208,080
Gross Margin	£669,210

Overheads
Salaried Staff	£73,351
Water	£450,000
PMI	£60,000
General Waste Disposal	£50,000
Fork Truck Hire	£45,000
Electricity	£300,000
Effluent Treatment cost	£85,000
PPE	£50,000
Subscription	£20,000
Expenses	£15,000
Insurance	£95,000
Computer Equipment	£4,500
Telephones	£6,000
Office stationary	£3,000
Cleaning Materials	£45,000
Rates	£24,000
Hire of equipment	£50,000
Fuel	£50,000
Packaging	£95,000
Repairs	£60,000
Garment Rental	£30,000
Trade Subscriptions	£600
Sludge/Effluent disposal	£80,000
Distribution	£90,000
General Operating Supplies	£20,000
Lab Cost - Technical	£45,000
Depreciation - 7 /25	£756,929
Total	2,603,380
Net Profit	-£1,934,170

Options 2 and 4 are the only viable models

Contact

Email: animal.health@gov.scot

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