SERVICES OFFERED

In response to an enquiry from a potential client or an existing client to establish an integrated broiler operation from scratch, (typically referred to as a “Greenfields Project”) I would offer the following services which are arranged roughly in the following sequence:  

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• Establish whether or not the client has knowledge concerning the technicalities of the broiler chicken business.

• Establish the geographical location in which the intended facilities are to be located.

• Establish the envisaged entry point into the general broiler poultry industry. i.e. Full integration required or partial integration entry level: buy in the one-day-old chicks from a breeding company or establish a broiler breeding operation only and supply one-day-old chicks to broiler farmers.

• Establish the production volume target of broiler chickens or one-day-old chicks, as the case may be, envisaged by the client.

• This production volume target should be expressed in terms of the amount of whole broiler chickens to be delivered into the marketplace per week. Example:  175,000 broiler chickens/week. (at this stage the product range or split up of whole chickens into various portions is irrelevant). Or the amount of one-day-old (D/O) chicks to be hatched per week, as the case may be.

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Having established the above details I will formulate a Project Business Plan catering for the selected entry point into the broiler chicken integration spectrum and the target volumes. This would typically include the following activities:

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• At this stage the geographical coordinates of the farm must be supplied so that map plans can be drawn up on Google Earth.

• Unless otherwise instructed, I would use my own discretion as to which brand of equipment to use in all of the proposed facilities.

• Based on the desired weekly volumes, I design the type of poultry houses which would best suit the cycle volumes required.

• As the entire poultry industry revolves around production cycles, I would design the best cycle configuration to be adopted. This includes size of flocks and frequency of placements of the type of chicks envisaged. (Parent chicks if it is a breeding operation producing D/O chicks or broiler chicks if it is solely a broiler chicken meat operation).

• Having formulated the above, I would calculate the amount of single age poultry sites we would require. This is a critical biosecurity consideration in order to adopt a strict “all-in-all-out” concept.

• Based on the above information, I would then develop a completed cycle flow chart in order to ensure strict stocking cycles which allow for adequate down time of each site after depletion of the live chickens. Stringent cleaning and disinfection protocols to be carried out, adequate rest periods are applied, detailed preparations for new stock placements are conducted and then the final arrival of the new birds can safely be executed.

• Finally, I would apply capital expenditure to all of the above. In the case of partial integration the list of assets required would clearly differ from full integration. The two pivotal operations are the hatchery which is part of the Breeding Operation and Abattoir which is part of the Broiler Meat Operation.

• In addition I would design all biosecurity shower blocks, one of which is a dedicated unit for every single-aged production site.

• I also design all roadworks based on the Google Earth map to ensure that traffic into and through the operation do not contravene or compromise biosecurity. Access controls would be installed in strategic places as I deem necessary.

• At this point, all of the above would be combined into the technical part of the business plan.

• It is a prerequisite that at this stage or sooner, I visit the land that has been selected for this project so that I can evaluate its suitability for the project envisaged.

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If the land is found to be suitable, I will commence the second part business plan which will include the following:

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• I will calculate the volumes and descriptions of all input costs for each discipline as the case may be.

• Input costs would then be applied accordingly.

• A final cost per unit will be established.

• According to the production volumes and cycles as calculated, a cash flow projection will be formulated based on the expected market realizations supplied by the client.

• Then the final Capex required can be determined at the forecasted breakeven point in sales turnover, thus allowing the client to budget accordingly.

• Return on capital employed can then be calculated.

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Before I am awarded the contract, I would have already motivated my consulting fee with the client and found common ground and the terms of payment settled.

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On approval of the budget:

• I would adopt a “Clerk of works” role.

• I would liaise with all contractors and equipment suppliers ensuring that all of the suppliers are fully briefed and know what is expected of them.

• I would insist with them on an agreed participation from myself on the actual execution of the project by visiting and auditing construction sites regularly.

• As and when the equipment is installed I will personally in conjunction with the equipment suppliers, commission such equipment, ensuring efficient and correct operating as per my standards in every facility.

• I would consider this to typically be a turnkey type approach whereby I guarantee the efficient and accurate execution of every unit constructed to my own stringent quality and accuracy and the efficient operation of all facilities as I had envisaged.

Post construction phase where the operation needs to kick off into operating mode, I can offer the following:

• Recruitment of all key management who have the necessary experience to start and run the operations successfully.

• Training technical staff where required.

• Conduct training on the ground as and when livestock are placed.

This is the full package which I can offer an aspiring client who desires to enter the fascinating world of modern poultry farming.