Investigating the feasibility of small-scale broiler farming

Engelbrecht, Emma (2011-03)

Thesis (MScEng (Industrial Engineering))--University of Stellenbosch, 2011.

Thesis

ENGLISH ABSTRACT: Small-scale farmers have the opportunity to gain access to markets through a contract farming arrangement. The key question is whether it is financially feasible for a small-scale farmer to enter into a contract. The objectives of this study were to develop a model that could be used to determine the financial feasibility of small-scale contract broiler farming in an intensive production system, compare three different genotypes namely: Cobb500 males X Hybro G females, Ross 308 males X Potchefstroom Koekoek females (crossbred) and the purebred Potchefstroom Koekoek, and evaluate current smallscale farmers’ broiler production by means of a case study. Financial performance indicators such as the net present value, cash flow and profit and loss statements were used to analyze the feasibility of all the scenarios. The model was built in Microsoft Excel. Five hundred, 1500 and 2500 birds/cycle scale of production were analyzed. Results revealed that based on the capital costs used, a 500 birds/cycle scale of production was uneconomical and that a farmer would have to receive R25.01/kg broiler meat in order to break even. The 1500 scale of production showed much better results. A farmer could break even at R17.51/kg meat. The capital investment cost of the 2500 scale of production was so high that the farmer would have had to sell his broiler meat for R18.54/kg. Performance traits of genotypes were collected through an experiment and data was statistically analyzed using ‘Statistica 9’. Results showed that there were significant differences between the cumulative feed intake, feed conversion ratios and the European production efficiency ratio of the different genotypes. No significant difference was found in the liveability of the genotypes. Data on performance traits was used as input into the model so that the economic feasibility of the genotypes could be compared. Results showed that a purebred Potchefstroom Koekoek genotype was not suitable for an intensive production system and that the crossbreed did not perform as well as the broiler breed, but that it would be worthwhile investigating the performance traits of the cross breed under less optimal conditions or in a free-range system. The lower capital costs necessary for a freerange system, together with the high premium paid for free-range broiler meat, may give admirable results in the economic feasibility of a small-scale broiler farm.

AFRIKAANSE OPSOMMING: Kleinboere het die geleentheid om deur kontrak boerdery toegang tot markte te verkry. Die vraag is egter of dit finansieël haalbaar is vir 'n kleinboer om kontraktueel verbind te word? Die doelwitte van die studie was om: ‘n model te ontwikkel wat gebruik kan word om die finansiële lewensvatbaarheid van' n klein-skaalse braaikuikenboer te bepaal onder 'n intensiewe produksiestelsel; verskillende genotipes naamlik: Cobb500 hane X Hybro G henne, Ross 308 hane X Potchefstroom Koekoek henne (kruising) en die suiwer Potchefstroom Koekoek te evalueer en die die huidige klein-skaal boer se braaikuikenproduksie deur middel van 'n gevallestudie te evalueer. Finansiële prestasie aanwysers soos die netto huidige waarde, kontantvloei, asook wins en verlies state was gebruik om die haalbaarheid van die verskeie gevalle te analiseer. Die model is op Microsoft Excel gebou. ‘n Produksie skaal van 500, 1500 en 2500 kuikens/siklus is ontleed. Resultate het getoon dat, gebaseer op die kapitale koste wat gebruik is, 'n produksie skaal van 500 kuikens/siklus onekonomies is en dat ʼn boer R25.01/kg sal moet ontvang om gelyk te breek. Die produksie skaal van 1500 kuikens/siklus het beter resultate getoon. 'n Boer kan gelyk breek teen R17.51/kg vleis. Die kapitale beleggingskoste van die produksie skaal van 2500 kuikens/siklus was so hoog dat die boer R18.54/kg sou moes ontvang het om gelyk te breek. Prestasie van genotipes is ingesamel deur middel van 'n eksperiment en data is statisties ontleed met behulp van Statistica 9. Resultate het getoon dat daar hoogs beduidende verskille tussen die kumulatiewe voerinname, voeromsetsverhoudings en Europese produksie effektiwiteits verhouding van die verskillende genotipes is. Geen beduidende verskil is gevind in die leefbaarheid van die genotipes nie. Inligting oor die prestasie eienskappe is gebruik as insette tot die model sodat die ekonomiese haalbaarheid van die genotipes vergelyk kon word. Resultate het getoon dat 'n suiwer Potchefstroom Koekoek genotipe nie geskik is vir 'n intensiewe produksie stelsel nie en dat die kruising nie so goed soos die braaikuiken gevaar het nie, maar dat dit die moeite werd sal wees om ondersoek in te stel na die produksie potensiaal van die kruis kuiken in minder optimale toestande, soos ‘n vryloop stelsel. Die laer kapitale koste en die hoë premie wat betaal word vir vryloop braaikuikenvleis mag geloofwaardige resultate op die ekonomiese haalbaarheid van 'n kleinskaalse braaikuikenboer toon.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/6701
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