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

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

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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 4-5: Proportion <strong>of</strong> Cooperative Bus<strong>in</strong>ess Type<br />

3% 1% 4%<br />

4%<br />

16%<br />

1%<br />

4%<br />

1%<br />

5%<br />

29%<br />

Abbatoir<br />

Broiler Production<br />

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

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

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

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

Transport<br />

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

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

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

Egg Production<br />

32%<br />

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

Figure 4-5 above <strong>in</strong>cludes all responses provided, with <strong>the</strong> figure represent<strong>in</strong>g each bus<strong>in</strong>ess<br />

function as a percentage <strong>of</strong> total responses. There is some overlap between responses with most <strong>of</strong><br />

<strong>the</strong> cooperatives who produce broilers also conduct<strong>in</strong>g <strong>the</strong> sell<strong>in</strong>g <strong>of</strong> broilers.<br />

Of <strong>the</strong> cooperatives surveyed, <strong>the</strong> majority (85.7%) sell live<br />

broilers, and only two <strong>of</strong> <strong>the</strong> cooperatives manage an abattoir.<br />

This may be partly due to <strong>the</strong> health standards which exist <strong>in</strong> <strong>the</strong><br />

<strong>in</strong>dustry and which may prove to be difficult for cooperatives to<br />

comply with. An additional factor affect<strong>in</strong>g <strong>the</strong> low proportion<br />

The majority (85.7%) <strong>of</strong><br />

co-ops surveyed sell live<br />

broilers<br />

<strong>of</strong> cooperatives runn<strong>in</strong>g an abattoir is <strong>the</strong> level <strong>of</strong> technical skill required and <strong>the</strong> expense <strong>of</strong><br />

obta<strong>in</strong><strong>in</strong>g refrigeration equipment and trucks that are required for <strong>the</strong> operation <strong>of</strong> an abattoir.<br />

Only two <strong>of</strong> <strong>the</strong> 28 cooperatives<br />

surveyed operate an egg lay<strong>in</strong>g<br />

bus<strong>in</strong>ess. This is a very low proportion<br />

consider<strong>in</strong>g that with<strong>in</strong> <strong>the</strong> South<br />

African market, egg production makes<br />

up one fifth <strong>of</strong> <strong>the</strong> total pr<strong>of</strong>it <strong>in</strong> <strong>the</strong><br />

poultry <strong>in</strong>dustry<br />

There are several areas <strong>of</strong> bus<strong>in</strong>ess <strong>in</strong> which greater<br />

opportunities exist for cooperatives to operate. Only<br />

two <strong>of</strong> <strong>the</strong> 28 cooperatives surveyed operate an egg<br />

lay<strong>in</strong>g bus<strong>in</strong>ess. This is a very low proportion,<br />

consider<strong>in</strong>g that with<strong>in</strong> <strong>the</strong> South African market egg<br />

production makes up one fifth <strong>of</strong> <strong>the</strong> total pr<strong>of</strong>it <strong>in</strong><br />

<strong>the</strong> poultry <strong>in</strong>dustry. Additionally, when asked<br />

whe<strong>the</strong>r broiler or egg production was a better<br />

bus<strong>in</strong>ess for develop<strong>in</strong>g farmers, a DPFO<br />

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

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