South African Poultry Association
“OPPORTUNITIES EXISTING
WITHIN THE BROILER VALUE
CHAIN”
Opportunities – Broiler Value Chain
Welcome
Thank you for the opportunity
Aim – Small Broiler Growers
Opportunities – Broiler Value Chain
Introduction
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Active Partnership
SAPA
Department of Agriculture
Government Approval/Commitment
Seed capital approved
Most of small farmers are growers
Establish a labour intensive world class Processing Plant
Situation – Gauteng - Roll out program
Purchase existing facility/grass roots facility
Compliance
Ownership - % of “New Co”
The process
Sales – Factory shops -Franchise
Independent valuation
Historically disadvantaged individuals – Own and manage
Opportunities – Broiler Value Chain
The subject – “Opportunities existing within the
Broiler Value Chain”
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Aim
Production
Processing
Sales & Marketing
PRACTICAL SOLUTIONS
Opportunities – Broiler Value Chain
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Don’t be overwhelmed
All companies start with humble beginnings
Entrepreneurs – Unemployable
Industry examples
 Chubby Chicks
 Early Bird Standerton
 County Fair
 Rainbow
 Sovereign Foods
 Country Bird
Opportunities – Broiler Value Chain
Broiler Production
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Ask for help – Broiler companies
 Broiler management
 Vaccination/Veterinary advice
 Medication
 Record keeping
 Accounting – cost control
 Staff training
Broiler value chain
Fully Integrated Broiler
Partially Integrated Broiler
Partially Integrated Broiler
Feed Mill
Hatchery
Growing
Growing
Processing
Processing
Sales & Marketing
Genetics
Breeding
Hatchery
Growing
Processing
Rendering
Value Adding
Sales & Marketing
Retail /Wholesale Outlets
Sales & Marketing
Opportunities – Broiler Value Chain
Broiler Production (cont.)
Sapa members – Second-hand equipment /Building Material
Provide “Tools” to manage broiler
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Feed /Genetics
Insulation
Heating
Drinkers
Feeders
Isolation/Cycle Length
Water Purification
Vaccination / Medication
Ventilation
Opportunities – Broiler Value Chain
Broiler Production (cont.)
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Broiler cages
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Building Construction
Coccidiostat
Shavings
Performance
Agri lamps
Bio-Security
Add value to by-products – manure
Contract Grower – Medium-sized company
SUMMARY :
- LOW COST PRODUCER
- BUILD WHAT YOU CAN AFFORD
Percentage Culls Mortality House_1 vs
House_2
10
9
8
7
% Culls
6
5
4
3
% Culls Mortality
House_1
% Culls Mortality
House_2
2
1
0
1
4
7
10
13
16
19
22 25 28 31
Days
34
37 40 43 46 49 52
2500
Weight Gained per Day House_1 vs House_2
Weight (g)
2000
1500
1000
Weight House_1
500
Weight House_2
0
1
4
7
10 13
16
19 22 25 28 31 34 37 40 43 46 49 52
Days
Opportunities – Broiler Value Chain
Broiler Processing Sales & Marketing
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Differentiate yourself
New Zealand example
• Formatting
• Fair trade
United Kingdom
• Buy British
• Carefully prepared by South Africans
Opportunities – Broiler Value Chain
Broiler Processing Sales & Marketing (cont.)
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Product categories – Labour intensive
• Oven Stuffer
• Chicken Nibbles
• De-boned chicken
• Smoked Breasts
• Enhancement – Taste frozen
• Enhancement/Marinades/Fresh
• Cornish hens
• Gels – Low value, Patties, Schnitzels
Opportunities – Broiler Value Chain
Broiler Processing Sales & Marketing (cont.)
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Sales – Major Chains
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Trade Agreements
Price Competitive
Merchandising
Advertising
Opportunities – Broiler Value Chain
Broiler Processing Sales & Marketing (cont.)
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Sales
• Live sales
• Factory shops- Not only chicken franchise
• Individual delivery
Opportunities Broiler Value Chain
CONCLUSION:
Any Questions ?
The Common Denominator for success is :
Work
Work
Work
“Its very simple; If you are going to be thinking, you might as well think BIG”