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

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

23.09.2015 Views

Frequency Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries Figure 4-3: Number of Business Functions of Cooperatives Surveyed 12 10 8 6 4 2 0 1 2 3 4 5 6 Number of business funtions Source: Urban-Econ Survey, 2013 The most popular area of business for cooperatives surveyed is within the broiler market. Of the 28 cooperatives surveyed, only three do not deal in the production and selling of broilers. Although the majority of cooperatives work in the broiler industry, there is still a level of specialisation between those who grow broilers; those who breed; and those who work solely in the growing of broilers from day-old chicks. The incidence of business types for all cooperatives surveyed is provided in Figure 4-4 below. Figure 4-4: Number of Responses for each Cooperative Business Type Egg Production Cage cleaning Hen Breeding Broiler Breeding Transport Selling of spent hens Selling of hens Selling of Eggs Selling of Broilers Broiler Production Abbatoir 0 5 10 15 20 25 30 Source: Urban-Econ Survey, 2013 39 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s

Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives and Collectively Owned Enterprises in the Poultry and Related Industries Figure 4-5: Proportion of Cooperative Business Type 3% 1% 4% 4% 16% 1% 4% 1% 5% 29% Abbatoir Broiler Production Selling of Broilers Selling of Eggs Selling of hens Selling of spent hens Transport Broiler Breeding Hen Breeding Cage cleaning Egg Production 32% Source: Urban-Econ Survey, 2013 Figure 4-5 above includes all responses provided, with the figure representing each business function as a percentage of total responses. There is some overlap between responses with most of the cooperatives who produce broilers also conducting the selling of broilers. Of the cooperatives surveyed, the majority (85.7%) sell live broilers, and only two of the cooperatives manage an abattoir. This may be partly due to the health standards which exist in the industry and which may prove to be difficult for cooperatives to comply with. An additional factor affecting the low proportion The majority (85.7%) of co-ops surveyed sell live broilers of cooperatives running an abattoir is the level of technical skill required and the expense of obtaining refrigeration equipment and trucks that are required for the operation of an abattoir. Only two of the 28 cooperatives surveyed operate an egg laying business. This is a very low proportion considering that within the South African market, egg production makes up one fifth of the total profit in the poultry industry There are several areas of business in which greater opportunities exist for cooperatives to operate. Only two of the 28 cooperatives surveyed operate an egg laying business. This is a very low proportion, considering that within the South African market egg production makes up one fifth of the total profit in the poultry industry. Additionally, when asked whether broiler or egg production was a better business for developing farmers, a DPFO 40 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s

Frequency<br />

Research Report: Address<strong>in</strong>g <strong>the</strong> Needs, Opportunities and Challenges <strong>of</strong> <strong>Cooperatives</strong><br />

and Collectively Owned Enterprises <strong>in</strong> <strong>the</strong> <strong>Poultry</strong> and Related Industries<br />

Figure 4-3: Number <strong>of</strong> Bus<strong>in</strong>ess Functions <strong>of</strong> <strong>Cooperatives</strong> Surveyed<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

1 2 3 4 5 6<br />

Number <strong>of</strong> bus<strong>in</strong>ess funtions<br />

Source: Urban-Econ Survey, 2013<br />

The most popular area <strong>of</strong> bus<strong>in</strong>ess for cooperatives surveyed is with<strong>in</strong> <strong>the</strong> broiler market. Of <strong>the</strong> 28<br />

cooperatives surveyed, only three do not deal <strong>in</strong> <strong>the</strong> production and sell<strong>in</strong>g <strong>of</strong> broilers. Although <strong>the</strong><br />

majority <strong>of</strong> cooperatives work <strong>in</strong> <strong>the</strong> broiler <strong>in</strong>dustry, <strong>the</strong>re is still a level <strong>of</strong> specialisation between<br />

those who grow broilers; those who breed; and those who work solely <strong>in</strong> <strong>the</strong> grow<strong>in</strong>g <strong>of</strong> broilers<br />

from day-old chicks.<br />

The <strong>in</strong>cidence <strong>of</strong> bus<strong>in</strong>ess types for all cooperatives surveyed is provided <strong>in</strong> Figure 4-4 below.<br />

Figure 4-4: Number <strong>of</strong> Responses for each Cooperative Bus<strong>in</strong>ess Type<br />

Egg Production<br />

Cage clean<strong>in</strong>g<br />

Hen Breed<strong>in</strong>g<br />

Broiler Breed<strong>in</strong>g<br />

Transport<br />

Sell<strong>in</strong>g <strong>of</strong> spent hens<br />

Sell<strong>in</strong>g <strong>of</strong> hens<br />

Sell<strong>in</strong>g <strong>of</strong> Eggs<br />

Sell<strong>in</strong>g <strong>of</strong> Broilers<br />

Broiler Production<br />

Abbatoir<br />

0 5 10 15 20 25 30<br />

Source: Urban-Econ Survey, 2013<br />

39 | P a g e U r b a n - E c o n : D e v e l o p m e n t E c o n o m i s t s

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