Poultry Farming: A Money Spinner!

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POULTRY FARMING: A MONEY SPINNER.
Poultry farming comes in different practices;
1. Egg production
2. Meat(broiler) production
3. Cockerels Production
4. Ornamental and Rare bird rearing
5. Parent stock(fertile egg production)
6. Turkey production
7. Quail farming
8. Ostrich farming. etc.
In Nigeria, the demand for poultry products far outweigh the supply, hence it is a money
spinning venture for every willing entrepreneur. The uniqueness of poultry
industry is that it has room for persons with large source of fund(millionaires) as well as
starters with little capital. With as low as N5,000 one can venture profitably into this
industry and yet with as much as a billion Naira, one will just be brushing the surface in
Nigerian poultry industry.
Poultry farming is suitable for professionals
such as veterinarians, animal husband men,trained farmers, poultry specialist as well as
school leavers, non experts and persons with a willing heart to learn and no matter the angle
or level one is entering the industry from, training, peer reference and consultancy is a
conditio sine qua non for success in the industry. Many had entered poultry farming
and came out burnt, some others are in it reaping fortune; the dividing factor is ‘information’. Entering poultry industry blindly is suicidal! For the sake of the Nigerian market, I will in these series deal first with the two major aspect of the industry and highlight the potentials.
EGG PRODUCTION.
Going into poultry production for the purpose of egg production means you intend to raise laying hen. They could be from Day-old-chicks (DOC), or stock as Point-of-Lay(POL) birds.
Layers can be reared on Deep liter system or Battery Cage system. Caged birds need more
capital but the merits include; easy of management, cleaner eggs, safety from breakages, minimal feed wasteage, reduced
water contermination and maximized space. A unit of cage from my company with the
capacity of 120 birds cost N90,000. Most cages come with automatic drinkers; some even
come with full automation meaning, feeding,manure management as well as egg collection systems; are all automatic thus greatly
reducing human contacts, disease spread and labour cost. Cage system is therefore the
appropriate system for large scale farmers. Beginners with limited resources could start
with deep litter system. It is affordable, litter material are readily available. The major
requirements are conducive housing and more intense management of the water, feed and litters. The roof in all cases should be heat repealing, made from asbestos, thatch etc.
Vent, created to let out heat, wall should be less than two feet high, ‘curtain’ from sacks or
tarpaulin provided to prevent entrance of rain water to prevent incidences of coccidiosis and other enteric diseases.
Beginners should minimise the cost of poultry house construction and utilise local materials as equipments so that the limited resources could be channel into productive running cost such as DOC or POL and feed. To give you an idea of cost as of today, a million naira, if
meticulously utilized can construct a poultry house that could hold five thousand birds.
From our company too, persons that want to enter the venture with cages with all the added
advantages, could purchase same with about N4.2million for 5,000 birds. We also supply
DOCs and POLs. DOC cost between N120 to N210/chicks depending on time of the year and hatchery. Beginners could start with POL, these are birds in their fourteen to twenty
weeks of Age,(birds often start dropping their first egg from 22weeks to 24weeks of age).
Advantage of acquiring Point Of Lay birds is the reduced risk. Prices of POL at press time
ranges from N750 to N950/bird.
In budgeting for feeding, a bag cost about N2,200 today and could feed 100birds for 3
days.
Let me open your understanding to how profitable egg production could be under proper management, a bird at good lay point generate between N6 to N10/day as gross
profit. This means that a flock of 100 laying birds could generate N800 profit per day, and about N24,000/months hence by implication 1000birds could generate N240,000/month and
10,000 bird farm, a N2.4million profit per month. At the end of the 54 to 72weeks of lay,
the spent layers would be sold for nearly the equivalent amount with which the POL is
purchased. You can see that egg production is terrifically profiting. The demand for eggs is seemingly insatiable.
MEAT PRODUCTION.
I will briefly explain what meat production entails in poultry farming. The meat is call
broilers, fryers, poultry or simply chicken. To succeed on this side of the industry, the farmer must target eateries, hotels, and cold rooms or
start ones own outlet. Breeding broilers for live sales is only sustainable under small scale
and seasonal. For a farmer to be successful in broilers, he should rear between 1000 to 10,000
birds and above per batch. Harvest should be at least weekly. A large poultry house is
needed. Provision of constant electricity is necessary for lighting and cold room.
Broiler production entails purchasing DOCs(broiler), brooding, and raising them for six to seven weeks. Feeding is ad libitum(i.e continuously). Well managed flock will weigh between 1.8 to 2.4kg within this period and upon dressing, weigh between 1.4 to 1.8kg/
bird which is the standard weight for most eateries. Some companies that buy live birds
pays between N410 to N600/kg live weight.
Eateries and some cold rooms pay N600 to N820/bird dressed weight. Profit expectation
from raising broiler is between N150 to N250/bird.
Factors to consider before venturing into broiler production also include but not limited to the following: good source of DOC, conducive housing, good feed, technical know how, heat for brooding, cold room facility, defeathering machine, and a ready market.
The demand for broilers is ever high and with the ban on importation on poultry product,
the sky is the starting point for any bold entrepreneur.
Which ever aspect you wish to participate in, always seek and pay for consultancy, employ
experts or get trained and start gradually.
In my next series I will go into the next two form of poultry production. I will also, in
similar series, give hints on how to avoid common pit falls in poultry farming. For further consultation, call.
08099515923,08074349597,08136241647.
Email: contact@farmergiantltd.com

For company info visit: http://www.farmergiant.net

AgroChemical show in Lagos. 16 and 17 July 2013

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AgroChem Trade Show in Lagos, Nigeria on 16th & 17th July 2013
 

“AgroChem Trade Show” in Lagos, Nigeria on 16 & 17 July 2013.
There is good Export potential for Agrochemicals and other related Agro Inputs in Nigeria , including Public Health Products.
 
Overview of Nigerian Market.

Nigerian Companies consume in excess of $3.58 billion worth of chemicals per annum but produce just $ 380 million. The base Chemical sectors, which consists mainly of petrochemicals, accounts for over 70% of the total chemicals market in Nigeria. 
There is a large market for agro- chemicals in Nigeria. The market, dominated by eight large companies was estimated to be N500 ($ 1 2 million). The market and marketing of Crop Protection Products ( CPP) in Nigeria are unorganized and not properly regulated. The trade deregulation has brought all kinds of traders into the CPP market making it difficult to determine various market shares and sizes.
It is estimated that the private sector agrochemical companies supply about 70% of the total CPP demand of approximately N500 million. The total CPP supply is usually composed of 30% herbicides, 40% insecticides, 15% fungicides, 8% growth regulators and seed treatment chemicals, and 7% rodenticides, nematicides and others. Over the years, there has been little growth in the size (in quantity terms) of the CPP market.
The registered distributors supply to large-scale farmers either directly or through their local agents at the retail level. It is estimated that by volume, 60% is sold to the large-scale farms through direct sales by the companies and distributors and 40% through government agencies and ADPs to small-scale farmers.

Venue in Nigeria   

The Exhibition in Lagos will be held at “10 DEGREE EVENT CENTRE, A2 BILLINGS WAY ROAD, OREGUN INDUSTRIAL ESTATE, OREGUN, IKEJA, and LAGOS, NIGERIA.  

Contact Farmergiant Nigeria Limited, for import or investment opportunities in Agrochemicals.
+2348099515923
+2348136241647
Email: paul.adoyi@farmergiantltd.com
http://www.farmergiantltd.com

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COST OF SETTING UP 5000 BIRD POULTRY

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COST AND EXPECTATION IN POULTRY.
Cost of setting up 5000 capacity Poultry In
Nigeria
1. Building:
A single building that can contain three rows
of cages would be suitable. The width should
be a minimum of 12meters and length of
should be 35meters. Utilize the cage detail
below in construction bearing in mind that
each row will have a gutter.

Cage: Poultry Chicken layers cage in CKD form
Size:
the length: 2.2m
the width: 2.4m
the height: 1.65m).
The estimated cost of the building could be 1.8million to 3 million naira.
The wall should not be more than 0.3meters
and the roof should be of asbestos with a vent
in between.
Required cages:
Utilizing the Premium cage quality; capacity is
120 birds/unit. The 5000 poultry would need 42
units. Total cost is N3,780,000. Cost of
installation is N84,000.
Birds:
Budget N850/point of lay bird or N180/day old
chick. Budget additional N200/POL to raised
them to laying or additional N750/DOC to raise
them to laying. In general budget N5 million to
raise 5000 birds to lay.
Good birds would start dropping at least by 20
weeks. Feeding at this point would be about
0.1kg/bird each day. By the time they peak,
profit expectation should be about N5 to N7/bird
each day.
CALL US. FOR CONSULTANCY: 08099515923.

Agricultural Insurance

FARMERGIANT NIGERIA LIMITED as an Agricultural Insurance Broker,
Offers to aid you as the Parent company underwrites all classes of Agricultural insurance including
Crop insurance
Plantation Fire Insurance
Bloodstock/Livestock Insurance
Poultry Insurance
Fishery/Fish Farm Insurance and
Farm All Risks Insurance etc
Other insurance products relating to agricultural risks includes warehousing insurance, goods in transit insurance among others
We can issue each of the above policies either as stand-alone or as a combination of policies
Our Rates
Although, Farmergiant policies are not subject to subsidies from the Government, we have carried out extensive research and actuarial assessment and are pleased to offer the following rates:
Poultry, Livestock, Bloodstock, Fisheries and piggery policies    – 2.5%
Crop insurance                                – 2%
Comprehensive policies covering crop, harvesting, goods in
transit and storage                                – 3.5%
Farm all risks insurance for plants, machinery and equipment    -1%
Pre-Loss Risk Surveys
We have in-house experts who carry out pre-loss surveys of all farms proposed for insurance. These include Veterinary doctors, agronomist and agricultural engineers who have good knowledge of the risks inherent in agricultural practices whether crop or animal production. They will inspect all the major farms and make recommendations in the overall interest of the farmers, the insurers and the financiers.
Maintenance Service
The Parent company maintains a network of extension officers who are charged with the responsibility of visiting major farms to ensure that they maintain good house-keeping and comply with the recommendations of the experts during the currency of our insurance covers. This is to ensure that the farmers are not unduly exposed to risk of loss without taking adequate measures to mitigate the exposures.

Claims
Our staffs are able to adjust and make necessary recommendations on claims. However, where the other expert knowledge is required, we have retinue of skilled independent consultants who are able to advice on complex claims
Where claims are fully documented, agreed and discharged, we settle same within two weeks of discharge.

POULTRY INSURANCE POLICY (sample of policy)
Whereas the  Insured named in the Schedule hereto has made to the Industrial and General Insurance Plc a proposal and declaration which shall be basis of this contract and be deemed to be incorporated herein for the insurance herein after contained and has paid the premium stated herein.
1.     COVERAGE
THE COMPANY HEREBY AGREES (Subject to the terms and conditions contained herein or otherwise expressed hereon) that if the birds hereafter described be lost by DEATH resulting from ACCIDENT or DISEASE at any time during the period of the insurance stated herein or any subsequent period in respect of which the Insured shall have paid and the Company shall have accepted or agreed to accept the premium required for the renewal thereof the Company will pay to the Insured assessed Value of loss as per the valuation table attached hereto at the time of loss of the Birds.
2.     EXCLUSIONS
This policy does not cover death of birds due to:
2.1     Malicious or willful injury or neglect, unskillful treatment.
2.2     Theft, mysterious disappearance or other unaccountable shortage, including infidelity of the insured( s), Grower( s) or employee of either.
2.3     Newcastle Disease,Infectious Bronchitis, Avian Diphtheria, Avian Leucosis Complex, infectious Coryza, Infectious Bursal (Gumboro) Disease, Chronic Respiratory Disease (CRD), Tuberculosis, Marek Disease, Coccidiosis and Colibacilosis Unless the insured birds  are properly vaccinated at all times and all other necessary preventive measures are taken against the disease(s) continuously. Suitable certificate of Health from a registered  veterinarian to that effect must be produced at the time of the proposal for insurance.
The Company may at any time during the period of insurance call for veterinarian’s . Certificate evidencing such vaccination( s) as falls (fall) due.
2.4     Government slaughter order or slaughter order from any other public authority.

2.5     Earthquake, War, Invasion, Act of foreign enemy, Hostilities (whether War be declared or
not), Civil War, Rebellion, Revolution, Insurrection, Mutiny, Tumult, Military or ‘Usurped Power or any consequences thereof.
2.6     Nuclear energy of any kind
2.7     Fire not covered except if incorporated by Endorsement.
3.    LOSS ASSESSMENT
The loss assessment shall be done on the basis of the cost of production at the time of death worked out on the agreed sum insured of the poultry birds.
4.    NO CLAIM DISCOUNT (NCD)
Premium on renewal is to be reduced by 5% after a claim free year.
5    SUM INSURED AND PREMIUM
Sum Insured (S.I.)
Layers:            Value of Birds at point of lay
Broilers:        Value of Birds at time of sale
Pullets:            Value at the end of rearing period
Cockerels:        Value of Birds at time of sale
Parent-Stock:         Value of Birds at point of lay
Grand Parent Stock:    Value of Birds at point of lay

CONDITIONS
1.    NOTICE: Every notice and communication to the Company required by this policy shall be made in writing to the nearest office of the Company through which this insurance is effected.
2.    IMPROPER DESCRIPTION: This policy shall be void, and all premium paid hereon shall be forfeited to the Company in the event of misrepresentation, improper description or non-disclosure of any material particular.
3.    CHANGE OF HAZARD: Before each renewal of the insurance, the Insured shall give a written notice to the Company of the disease, injury or physical defects which the birds had been or are suffering from.
4.     REASONABLE CARE: The Insured shall at all times exercise all reasonable care and diligence in the selection of employees and chicks and shall provide that every birds insured has sufficient and proper balance standard feed, water and shelter and shall keep secure, all fences, yards, sheds and cages and shall use and exercise every precaution and in every manner provide the same care and attentions as if no insurance had been effected. The insured shall not introduce or permit to be Introduced any disease infected bird among any insured stock or upon any part of his premises nor allow/permit the insured stock to mix with diseased or infected poultry or enter into sheds, buildings or any other place where such affected poultry are. The insured shall also arrange for any poultry suffering from any disease to be completely separated or isolated from the remainder of his stock immediately upon the discovery of the illness and shall take all necessary and proper Precaution to protect the healthy stock from any danger of infection. Biosecurity measures must be put in place.
5.    INSPECTION: The Insured shall permit the authorized representatives of the Company at all times to inspect the poultry hereby insured at the premises of the insured and also furnish any information which the Company may require and shall comply with all requirements applicable to the poultry industry under the statutes, rules or regulations stipulated by Government or any other Authorities. The Insured shall also comply with the directives/risk improvement measures which may be issued by the Company from time to time.
6.    MAINTENANCE: The Insured shall have proper and adequate Veterinary facilities and must ensure good house keeping of the farm. Poultry should be acquired only from approved standard Hatcheries. Proper record of daily stock position, feed consumption and egg production must be well maintained  by the Insured. The Veterinarian’s Certificate should be submitted (as prescribed) for the replacement of poultry added during the currency of the policy).
7.    CANCELLATION: The Company may at any time, by giving seven days notice in writing by registered letter to the Insured at his last known address, cancel this policy in which case the Company shall return to the Insured a proportion of the last premium corresponding to the unexpired period of insurance.
8.    CLAIM PROCEDURE: The Insured or his agent shall upon the occurrence of any event giving rise or likely to give rise to a claim under this policy, give immediate notice by the quickest means within 24 hours to the Company which may instruct an approved Veterinarian on its behalf if deemed necessary for independent investigations and treatment along with any registered Veterinarian by the Veterinary Council of Nigeria appointed by the insured and shall within 14 days thereafter furnish to the Company at his own expense detailed particulars to substantiate the claim as the Company may require and employ immediately at his own expense a registered Veterinarian for treatment and comply strictly with his instructions. In the event of the death of any bird thereby insured, if required by the Company the Insured shall at his own expense have a Post Mortem report, and submit full particulars of his claim to the Company. All dead birds should be separated and shown to the representative( s) of the Company or any person( s) authorized by the Company
9.    SUBROGATION: If the death of any of the poultry birds hereby insured shall be due to negligence, Carelessness or wrong doing of any person, the Insured shall, at the expense of the Company do, and concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing any rights and  remedies, or of obtaining relief or indemnity from the culpable party to which the Company shall be or would become entitled or subrogated upon its paying for or making good any loss or damage under this policy, whether such acts and things shall be or become necessary or required before or after his Indemnification by the Company.
10.    MINIMUM LOSS TO ATTRACT CLAIM: In order to qualify for indemnity under this policy, the following minimum loss must have been incurred:
Broilers
Layers            Above 10% of total stock
Breeding Birds
11.   EXCESS CLAUSE: In the event of any loss for which the Insurer is liable,
the Insured shall be responsible for 10% of each and every claim.
12.     CESSATION OF RISK: This policy shall cease to cover any poultry immediately the Insured sells it or part with any interest in it whatsoever whether temporarily or permanently.
13.     CONTRIBUTION: If at the time of any loss covered by this policy there shall be any other insurance covering the same poultry whether effected by the Insured or not, the Company shall not be liable for more than its rateable proportion thereof.
14.     FRAUD :If any claim under this policy shall be in any respect fraudulent or if any              fraudulent means or devices are used by the Insured or anyone acting on the Insured’s  behalf to obtain any benefit under the policy, all benefits under the policy shall be forfeited.
15.     ARBITRATION CLAUSE: All differences arising out of this policy shall be referred to an Arbitrator to be appointed in writing by the parties in accordance with the statutory provisions on that behalf for the time being in force, and in case of disagreement between the Arbitrators, to the decision of an umpire who shall have been appointed in writing by the Arbitrators before entering upon the reference and an award shall be a condition precedent to any liability of the Company or any right of action against the Company. If the Company shall disclaim liability to the Insured for any claim hereunder and such claim shall not within six calender months from the date of such disclaimer have been referred to Arbitration under the provision herein contained, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
16.     OBSERVATION OF TERMS AND CONDITIONS: The due observance and fulfilment of the terms, conditions and ,endorsements of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers given in the proposal form shall be a condition precedent to any liability of the Company to make any payment under this policy.

Note that you will need insurance policy to secure any Bank loan. Contact us for legal and professional advice free

 

http://www.farmergiant.net

 

 

POULTRY GROWTH STRATEGY. (STRICTLY FOR OUR CUSTOMERS ONLY)

POULTRY GROWTH PATTERN IN 2013
Posted on June 4, 2013 by Adoyi Ado

Find the right growth path for your poultry business in 2013

by Damien McLoughlin, UCD Michael Smurfit Graduate Business School, Ireland
Does your company have the four pillars for a sustained growth strategy

Does your poultry company have an actual plan, beyond working harder, to grow your core business?

There are two questions leaders of every poultry company should be asking themselves right now: Do you have an ambition to grow your business in 2013 and beyond? If so, do you have an actual plan, beyond working harder, to grow your core business?

If you are like most leaders, the answer to the first question is yes and to the second is no. This challenge is particularly significant in the poultry industry this year with issues such as record animal feed prices and downward pressure on bird prices pressing profits down.

However, those who have been in the poultry business for a long time know that there is a problem with prices or costs most years. The question then is: Why do some companies thrive and others do not?

The answer lies in the development of a logical and consistent strategy for growth and the execution of that strategy over time.

Of course, the “S” word, strategy, is anathema to many entrepreneurs, recalling as it does a long and time-consuming process of discussion and debate, with a resulting document that is of little practical use.

However, over the past 10 years, Chris Zook, a consultant with Bain & Co, has developed a set of ideas known collectively as Profit From the Core that offer a practical and useful alternative. These ideas are simple and logical and, in my experience, are intuitively attractive and practically useful to companies of every size. According to Zook, there are four pillars to a sustained growth strategy.

Pillar 1: A business must have a strong, well-defined core with leadership economics in the core of the core

Every business has a core. Most likely it is the part of the business which, more than any other, drives customer loyalty and company profitability. The core is what makes your company unique and is the root of your competitive advantage in the market place.

For example, Nestlé is a company that has effectively defined its core products—coffee and infant formula. These are its competitive advantages, it is the global leader in these markets, and it provides the core through these competitive advantages. What it learns here is relevant to every other part of its business.

Defining your core is the cornerstone of strategy. Do you know (specifically, not generally) what the core of your business is?

One of the world’s largest broiler companies provides an example of core understanding and development. Originally, its core was clearly in the production of broiler chickens. Later, it redefined its core as a protein company, audaciously acquiring an organization twice its size. Later still, a previous CEO returned and made it clear that the company would refocus on its core as a producer of chicken meat while also growing through adjacencies as a world-class animal protein supplier.

In many enterprises, management teams do not agree on the core and some have never even talked about it. By not fully identifying the core or by taking it for granted, companies can prematurely abandon the real core of the business or become involved in growth initiatives that are too far from the core, spread resources too widely and develop confusion in their organizations.

An example of this was an organization in Northern Europe that started 80 years ago as a fishmeal supplier, then moved into animal feed, later animal breeding, biologics and genetics. A venture in the Middle East involving the construction of turnkey plants led to the collapse of this poorly conceived business with the company being sold and restructured. Today, it is successful with a clear mission in the poultry health industry.

Poultry companies should identify their core business and then leverage their strength and success in that core to identify growth opportunities. Many companies have multiple product lines within their core business area of layers, broilers, turkeys, etc. It is worth examining each of these areas in detail and asking which contributes most to growth in sales and profits and to then examine why. For example, Bachoco is the number-one poultry company in Mexico, holding the first or second position in both eggs and broiler sales. Is Bachoco’s core in poultry proteins marketing and branding, or is its expertise in the conversion of grains into poultry proteins?

Pillar 2: Pursue the correct adjacent moves to secure growth within the company (and avoid wrong ones)

Businesses have many options for growth each year, but most growth initiatives fail to generate significant sales or profits. Those most likely to succeed are ones that are close, or adjacent in Zook’s words, to the core of the business. A company can achieve new adjacency growth through products or services, new customer segments, new parts of the value chain, distribution channels, business and geographies.

Returning to our earlier example, Nestlé has grown from its core business of infant formula and instant coffee to enter adjacent businesses such as pet food (adjacent in that they have similar customers, logistics, production, marketing and distribution), which has proved to be very successful.

K&N’s in Pakistan is a great example of a poultry company that has moved from being a breeder to becoming an integrated broiler company built on the core of safe and healthy chicken for the people of Pakistan.

The best adjacency strategies also leverage and reinforce the core business. Examples from China and India are integrated chicken producers who have moved to own their own stores and sell their meat directly to consumers. Al-Watania in Saudi Arabia has even developed its own chain of fast food restaurants.

In the egg business, a successful adjacent growth strategy may be filling a new niche customer market for eggs, such as omega-3 or selenium-enriched. Eggland’s Best is the clear leader in North America in this field, commanding 90 percent of the specialized market, and achieving five continuous years of months with double-digit growth in an overall market that was declining. Their offerings include a range of strongly branded, nutritionally enhanced eggs at a considerable premium to the eggs sold under traditional labels. For a broiler producer, it may be a move into another similar but complementary meat, or indeed further processing. A useful way to engage in this process is to take the definition of the core you have identified for your business and then ask who else might buy these products or what else would we need to do in order to get a new customer group to buy our products. Some have achieved this by specializing in antibiotic-free or even organic meat production. Globally, Brazil has become the expert at exporting frozen meats, and Thailand has specialized in high valued-added poultry meat.

Pillar 3: Become the best at following the customer

The world today is suffering a protein shortage. All over the world malnourishment continues to shorten lives because people do not consume enough protein.

Meanwhile, the dramatic rise in general incomes in Africa and Asia in the past five years is also driving an increase in consumption of cheaper animal proteins, specifically eggs and chicken meat.

If this is so, why do you have to sell your product, why are people not asking you for it?

The reason is that the food industry in general does not follow the customer. Instead, it has traditionally pushed products at its customers. With daily blogs, tweets and posts demanding cage-free, farm-fresh and organic products, we need to listen to what consumers are saying, determine the best route to market and meet their expectations.

Perhaps we can improve meat quality and the customer experience by further investigating parameters such as tenderness, drip loss, cooking loss and shelf life. Take some time to identify parts of your state, country or region of the world that do not currently consume your product. Why don’t they? What would you have to do to change that? The answers should be a fairly long list, and this can be your portfolio of growth opportunities.

Pillar 4: Use repeatable formulas in the business strategy

The final stage in this process is to avoid reinventing your wheel. In finding and investing in adjacent growth opportunities, your company needs to find a way to repeat its formula for success in each new market. Nestlé, for example, has built a repeatable formula based on strong brands, premium prices and wide distribution.

By implementing a repeatable formula in their business plans, companies will find internally they will have more strategic clarity, speed in recognition, decision and action, lower management complexity and more focused innovation. Companies such as Tyson, Sadia and Perdigão all built strong consumer brands and markets. They have stuck to the knitting and invested in areas based on this strength.

Other companies have struggled against this competition, searching for ways to compete in niches that the larger companies cannot enter.

In Africa or the Middle East, companies would be wise to focus on products that cannot be imported, e.g. fresh or chilled meats versus frozen, or shell eggs versus liquid egg products.

Finally, there are examples of companies that have branched into other markets successfully. The sale of composted manure by companies such as Morning Fresh or the use of poultry by-products to build pet food and other business by companies such as Simmons Pet Food Inc. are good examples of growth through adjacencies.

For your own business ask yourself: How successful have you been in the poultry business? How do you serve your customers? How do you produce your product? What are your skills in sourcing materials and inputs? This is the starting point for identifying your repeatable formula.

Defining the core of a company is the foundation to a modern business strategy. The core is what makes a company unique and is the key source of competitive advantage. Leadership economics involves finding an area of unique strength to build on—a set of customer situations, channels, locations or products where the company has a competitive advantage. As we listen to a louder consumer voice now, it is even more critical to shift from the mindset of just being in the poultry business to recognizing your role in a food industry that must feed an additional billion people by 2020. ?

Damien McLoughlin is Anthony C. Cunningham professor of marketing at UCD Michael Smurfit Graduate Business School in Ireland. He presented “Profiting from your Core” to more than 240 members of the poultry industry at Alltech’s annual breakfast meeting during the International Production and Processing Expo, Wednesday, January 30, 2013.
Call Us for consultancy and supply of Day old Chicks, Poit of lay Birds, and Battery cages>

Dr Paul Oche Adoyi
+2348099515923
+2348028686234+2348074349597+2348136241647
Farmergiant Nigeria Limited. Lagos.
Farming, Farming Consultancy and Farm Supply.
http://www.farmergiantltd.com