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

Research Report: Addressing the Needs, Opportunities and Challenges of Cooperatives
and Collectively Owned Enterprises in the Poultry and Related Industries
Table 4-9: Interactions of large broiler producers with developing farmers
Business
Broiler Producer 1
Broiler Producer 2
Broiler Producer 3
Work with
developing
farmers?
Main Function (if yes)/ Reason why (if no)
Need large quantities and only deal with large-scale
farmers who can guarantee the quantities they
require
Supplied with feed and day old chicks and act as
contract growers
Supplied with feed, assistance with facilities and day
old chicks and act as contract growers
Three large broiler producers were interviewed regarding their interaction with developing farmers
and potential opportunity for interaction with cooperatives and collectively owned enterprises.
They were posed questions around their interaction with and support of developing poultry farmers.
Two of these large producers confirmed that they work with developing farmers.
The role of developing farmers in their interaction with large broiler producers is quite specific. Large
producers make use of smaller farmers for two reasons. The first is that they need additional supply
to supplement their own operations and the second is in order to benefit small farmers as a means
of corporate social responsibility.
Contract growers for
large producers are
provided with all of the
inputs required to grow
broilers
The two broiler producers who work with small-scale farmers
facilitate this interaction by providing inputs and technical
assistance and the small-scale farmer then acts as a ‘grower’ for
these producers. In order to become registered as a contract
grower, small-scale farmers need to already have the necessary
equipment for the growing of broilers. In addition to this, they
must comply with the safety and health regulations of the
industry. Once a small-scale farmer applies to be a contract grower the producer will conduct an
inspection. If the farmer meets the requirements, the producer will supply technical assistance,
medicine, feed and day old chicks. It is then the responsibility of the farmer to rear these birds until
the point where they are ready to be slaughtered. Once ready for slaughter, the producer will then
purchase the birds back from the small-scale farmer, deducting the costs of inputs provided.
This interaction between large producers and contract growers
represents a positive opportunity for poultry cooperatives.
Large producers represent a relatively stable source of demand
for growers. Many of the poultry cooperatives interviewed
commented on concerns with customers. A number of the
cooperatives in the Margate region had been providing live
birds to a local abattoir which has since closed down. This is a
problem for any cooperative that relies on one main customer.
This interaction between
large producers and
contract growers represents
a positive opportunity for
poultry cooperatives
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