Assessment of Cooperatives in the Poultry Industry - 2013.pdf - Seda

2013
Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
Overall the growth rates have been positive, however, the rates of change fluctuate rapidly and have
seen a decline since 2010. The effect of imports is largely held as the cause of this.
Implications for the Cooperatives in the Poultry Industry:
Positive growth rates for the poultry industry overall remain a good indicator for entrants into the market.
However, the slowdown in growth rates of the broiler industry as a result of international competition
may be worth considering when looking at whether egg or broiler production will be more successful by
co-op entrants.
2.4. Value chain
The value chain is a business concept formulated and developed by Michael Porter in 1985. The
value chain was developed in order to provide a better understanding of organisational activities and
their influence on the organisation’s competitive strength. In other words, it evaluates the specific
value that each organisational activity contributes towards the overall spread of products and
services within an organisation.
The value chain can be defined as a model of a business or industry that provides a step-by-step
analysis of the different value that is added to products and services from the moment that the raw
material is received until the point where the final products or services are sold to customers. The
aim of the value chain is to balance adding maximum possible value for minimal total cost.
Porter indicated that value adding
activities are primarily inbound
distribution or logistics, manufacturing
operations, outbound distribution or
logistics, marketing and selling, and
after-sales service. In order to increase
the effectiveness of the primary
activities, secondary activities are
identified as support measures. These
may include purchasing or procurement,
research and development, human
resource development, and corporate
infrastructure.
Within the agricultural environment, a value chain is the process of developing a basic agricultural
product or raw material through the production process, where value is added at each stage to offer
a final, higher value product to the customer.
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