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
benefits, such as enhancing access to larger customers or processors, as well as improved
collaboration and sharing of knowledge and resources among cooperatives (as discussed above).
The need for clustering has been specifically
highlighted by the DPFO for broiler
growers. If broiler growers are not
clustered near an abattoir, the cooperatives
are likely to be limited in their business
activities to the selling of live birds only.
Thus, when feasibility studies are done,
cooperatives that have access to market in
an area where there is scope for additional
producers should be encouraged.
Linked to clustering is the potential for the
development of secondary cooperatives.
Secondary cooperatives are made up of a
number of primary cooperatives. These can
be used to perform value added functions
that could be shared by primary
cooperatives, such as marketing, packaging,
labelling, etc. They can also be used to
INFO BOX: Example of Key Challenge
with Collaboration as a Solution
A specific significant concern for
cooperatives is the high cost of grain.
If a grain storage facility were to be
provided to a secondary cooperative in
an area with many cooperatives, this
would assist in reducing the shock of
market fluctuations. Cooperatives
may be encouraged to collectively
invest and do this themselves or this
may even be one of the options for
equipment assistance under the
conditional equipment lending plan.
manage bulk buying activities for inputs. Secondary cooperatives are a beneficial way for
cooperatives to work together to improve market access. In the same information sessions,
training and networking events described above, cooperatives should be informed of the
potential for secondary cooperatives and SEDA should, where viable, assist in the establishment
thereof. This may also enhance the leadership structures involved in collaboration, because
there will be clear structures in place and not simply verbal agreements between cooperatives.
Facilitate partnerships with large producers:
The research chapter above illustrated scope for developing broiler farmers to work with large
broiler producers. This opportunity could be enhanced through SEDA’s assistance. Large
producers could be contacted to determine the specific minimum requirements cooperatives
would need to adhere to for such partnerships. SEDA would then be able to encourage and
support cooperatives in meeting those requirements before facilitating an introduction between
the producer and the cooperative. Where a potentially successful partnership can be forged, the
producer would take over the provision of technical support and would also provide feed, day
old chicks, and transport for broilers to their abattoir.
Encourage product diversification:
Interviews with large producers and with industry experts indicated saturation in the broiler
market in many instances. Without the necessary clustering or transport or large community
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