SAPA started collecting statistics from DPFO members in an endeavour to create awareness of common industry concerns from developing farmers.

Transcription

1 SAPA Quartely DPFO Stats Reprt 3Q2014 SAPA Quarterly DPFO STATS Reprt fr the Third Quarter f 2014 (3Q2014) Statistics prvides tls that yu need in rder t react intelligently t infrmatin yu hear r read. In this sense, statistics is ne f the mst imprtant things that yu can study. Surce: STATwiki 1. Intrductin SAPA started cllecting statistics frm DPFO members in an endeavur t create awareness f cmmn industry cncerns frm develping farmers. Develping farmers statistics are key t the measurement f the perfrmance in the sectr. Statistics is the science f learning frm data. Data are used fr decisin making, planning, research, etc. The data presented in this reprt is btained frm the analysis f the DPFO survey results. The aim f the DPFO statistics is t extract infrmatin frm the survey results in rder t better understand the circumstances f the develping farmer. Mst peple dn't realize hw essential statistics is. Our daily life is surrunded by the prducts f statistics. The pricing, packaging and marketing were determined thrugh studies that used statistical methds t determine the best marketing decisins. We encurage all develping farmers t participate in these statistical surveys. The develping farmers statistics bjectives are t: Identify areas f specific demand r pprtunity fr prvisin f prducts by lcal develping pultry. Identify challenges r barriers faced by develping pultry farmers t perate successfully in the industry Identify key sectr segments and analyse key develpments in such segments Identify prducts that SAPA culd prvide t develping farmers t enable grwth in this industry The methdlgy fllwed in undertaking the statistics is aimed at prviding a general verview and theretical understanding f the develping pultry industry in Suth Africa. The pultry industry is brken int the fllwing main sub-sectrs: In the briler industry: briler hatcheries, briler grwers, briler cntract grwers and abattirs farmers and in the egg industry: pint f lay rearers and The Suth African Pultry Assciatin - 1 -

2 SAPA Quartely DPFO Stats Reprt 3Q2014 layer farms. The grwth r decline f an industry frm year t year is ne f the mst telling factrs abut its perfrmance. Briler and egg prductin shw a psitive rates f grwth. The survey f the develping pultry farmers is cnducted in rder t gain a greater understanding f the needs, pprtunities and challenges faced by these develping pultry farmers. The DPFO survey is cnducted telephnically and interviews farmers all ver Suth Africa. In rder t cnduct the survey, a database f develping farmers was cmpiled. The database was created frm different databases prvided by: DAFF SAPA registered members Silverpath Cnsulting Call-Centre Silverpath Cnsulting Pty Ltd was tasked t cnduct the survey. The call centre staff members wh interviewed the farmers, speak all eleven fficial languages. They were als recently trained in telephne etiquette and attained certificates. Fr the briler industry, Ms Ireen Lekabe is cnducting the hatcheries - ; Ms Olga Leshabane the Briler grwers and cntract grwers and Ms Gladys Mbnyane the abattir surveys. Fr the egg industry, Ms Ireen Lekabe is cnducting egg farmers starting frm day-ld chicks and farmers starting frm pint f lay surveys. Ms Cynthia Ncube is in charge f the call centre staff and can be cntacted fr assistance at cynthia@silverpath.c.za 2. Reprt fr the Third Quarter f 2014 (3Q2014) This reprt represents the third quarter f 2014 and is thus based n data received frm July 2014 t September 2014 (3Q2014). 2.1 Summary f Interviews dne during the reprting perid: 3Q2014 This reprt deliberates results n the briler and egg industry survey fr emerging farmers that was cnducted fr the perid f July 2014 t September 2014 (3Q2014). In ttal 465 farmers were interviewed, which includes thse wh reprted t have stpped farming and thse wh cmpleted the questinnaire and excludes unavailable/unreachable farmers. This reprt had 26 interviews less when cmpared t the previus quarter s interviews; 5% less than the previus quarter that can be ascribed t 9 farmers that were unreachable 1 and 31 farmers that stpped farming during the 3Q2014. In the briler industry respnses fr the questinnaire were received frm 9 hatcheries, 342 briler farmers and 19 cntract grwers (excluding thse wh were unavailable r unreachable at the time f the survey), see table1. The number f respndents frm the tw categries f the briler industry has decreased as cmpared t the previus quarter. During this quarter nly 31 briler farmers reprted t have stpped farming, whereas in cmparisn t the first quarter 2014, 64 and farmers reprted t have stpped farming. Frm table1, ne can als learn that many emerging farmers are cnfident t venture int ther branches f the briler industry namely hatcheries, abattirs and cntract farming as the number f develping farmers in these categries is still quite lw but increasing gradually. In the egg industry survey fr emerging farmers, respnses were received frm 75 egg farmers; this represents a decrease f 4 farmers interviewed when cmpared t the previus quarter (see table 1). During 1 Unreachable farmers are thse farmers wh are nt cntactable via telephne r thse are thse farmers wh refuse t participate in the survey The Suth African Pultry Assciatin - 2 -

3 SAPA Quartely DPFO Stats Reprt 3Q2014 this quarter f the survey 6 egg farmers reprted that they had stpped farming. Frm table 1 and table 2 the number f develping egg farms is still belw cmpared t the briler farms but grwing in a psitive slp, this still ges t shw that egg farmers are really interested in prducing eggs and encuragement is still needed influence develping farmers t enter int egg farming. Emerging farmers in the egg industry have rm fr grwth and culd be sustainable given that per capita egg cnsumptin grew by 3.9% between 2011 and 2012 and is frecasted t grw by 3% 2 in Accrding t the results f the survey, develping pultry farmers are still much vulnerable t bth internal and external industry shcks with n means f absrbing these shcks i.e. high feed csts, increasing pullet prices, institutinal financial assistance, transprt csts and cnstraints t market access. Furthermre develping pultry farmers are faced with a challenge f cntributing t prductin grwth and cmpetitiveness f the industry, with the view that a significant cntributin wuld be at least +/-15%, currently we estimate that emerging briler farmers are cntributing 4% t natinal briler prductin and emerging egg farmers are cntributing 1% t natinal egg prductin. 3 Table 1 Interview Respnses Farmers interviewed: 2Q2014 Farmers interviewed: 3Q2014 Percentage difference Briler farmers ,9% Egg farmers ,9% Briler cntract ,8% grwer Briler hatchery 9 9 Briler abattir ,9% TOTAL ,4% The next table shws the actual number f interviews resulting in a cmpleted questinnaire 2&3 writer s frecast 4 writer s calculatins The Suth African Pultry Assciatin - 3 -

4 SAPA Quartely DPFO Stats Reprt 3Q2014 Table 3 Interview Respnses Briler farmers Egg farmers Briler cntract grwer Briler hatchery Briler abattir 2Q2014 Numbers f cmplete questinna ires 3Q2014 disaggregatin f farmers interviewed Numbers f cmplete questinnair es Numbers f farmers that were unreachable Numbers f farmers wh resumed farming Numbers f farmers wh stpped farming TOTAL Emerging briler and egg farmers The prvincial representatin f the emerging briler and egg farmers survey grup is as fllws 4 : Table 4 PROVINCE Numbers f briler farmers 3Q2014 Percentage f briler farmers Numbers f egg farmers 3Q2014 Percentage f egg farmers Ttal number f farms Percentage f ttal farmers Gauteng 55 15% 11 12% 66 14% Limpp % 19 21% % Free State 22 6% 13 14% 35 8% Mpumalanga 30 8% 8 9% 39 8% Nrth West 20 5% 8 9% 28 6% Eastern Cape 28 7% 2 3% 30 7% Western Cape 5 1% 2 3% 7 2% Nrthern Cape 18 5% 18 19% 35 8% Kwa-Zulu Natal 81 21% 9 10% 90 19% TOTAL % % % 4 This includes the farmers that cmpleted the survey nly. The Suth African Pultry Assciatin - 4 -

5 SAPA Quartely DPFO Stats Reprt 3Q2014 The Limpp Prvince had the mst number f emerging briler farmers fllwed by the KwaZulu Natal and Gauteng, the Western Cape Prvince had the least number f emerging farmers with nly 7 farmer lcated. The Suth African Pultry Assciatin - 5 -

6 SAPA Quartely DPFO Stats Reprt 3Q2014 SAPA Quarterly DPFO STATS Reprt n Briler Farmers fr the Third Quarter f 2014 (3Q2014) The DPFO briler farmers cnsists f briler hatcheries, emerging briler farmers, cntract grwers and abattirs 1. VOLUME Of the sample grup, the ptential number f briler chickens that culd be reared per cycle fr the reprt perid frm emerging briler farmer respndents was The ptential capacity fr briler rearing fr cntract grwers was , which gives a ttal f This is mre than the previus quarter. The survey reveals that emerging briler farmers are perating belw their capacity since the actual number f brilers they had at the time f the survey was fr the emerging farmers and fr the cntract grwers, a ttal f , birds belw capacity, this might be an indicatin that emerging farmers are cutting back n prductin. There was an estimated ttal f brilers rearing in the farms f develped pultry prducers in Suth Africa during the reprting perid, the emerging farmer survey grup represented 3% f the ttal number f brilers reared. 1.1 BROILER CONTRACT FARMERS (CONTRACT GROWERS) The survey included 19 briler cntract farmers r als referred t as cntract grwers. The ttal number f briler that were being raised by cntract grwers at the time f the survey was brilers. Cntract grwers represented 68% f ttal brilers being reared by emerging farmers; this is an indicatin that cntract grwers are the supprting farmers f develping briler prductin, and the main survival f emerging farmers in the industry. Cntract grwers in the survey grup represented the Limpp, Gauteng, Mpumalanga and Nrth West Prvinces. 1.2 HATCHERIES The seven respndents in this categry indicated that they use fertile eggs t hatch briler breeders. They get the fertile eggs frm their wn ccks and hens (briler breeders) and hatch them themselves. The respndents had a ttal f briler breeders during 3Q2014, mre than duble in cmparisn with the previus quarter. Feed Feed is bught in 50 kg bags. The hatcheries paid an average f: The Suth African Pultry Assciatin - 6 -

7 SAPA Quartely DPFO Stats Reprt 3Q2014 TYPE OF FEED 2Q2014 PRICE PER TON (R) 3Q2014 PRICE PER TON (R) % change IN COMPARISON WITH DEVELOPED PRODUCERS BROILER BREEDER FEED PRICE AT R4 215 per tn (R) % CHANGE Pultry laying mash ,2% -R883-15% All mash fr layers ,6% +R498 +9% Pullet develper mash ,2% +R % The prices in the table abve are exclusive f VAT 5 and exclusive f delivery csts. Market The hatcheries sell t: Public Leading Develped Breeders Emerging farmers Price per chick The average price that a chick was sld fr was R5,93 r R593 per bx, 89 cents r 18% mre per chick in cmparisn with the previus quarter, prices excluding f VAT and excluding distributin. Depleted flck Depleted briler breeders are sld live t the cmmunity at an average f 6 weeks f age at between R35.00 and R90.00 per bird, with an average f R53,83 per bird. Challenges t hatcheries Hatcheries are battling t get cnsistency and reliability in the marketplace. 1.3 DAY-OLD BROILER CHICKS Emerging briler rearing farmers Day-ld chicks were btained frm lcal hatcheries r traders, at an average f day-ld chicks were bught during the time f the survey, with 500 day-ld chicks being the mde (mst peple bught 500 dayld chicks at a time). Day-ld chicks are mstly bught in bxes that cntain 100 day-lds, but als bxes that cntain 50 daylds.. Day-ld chicks were bught at a weighted average price f R592,00 per bx f 100 day-lds, R5,92 per dayld chick, exclusive f VAT and exclusive f delivery. The price f day-ld chicks has increased by R0,64 cents r 12% when cmpared t the previus quarter. 5 VAT is excluded since at times might distrt the price, als sme f the farmers are registered fr agricultural VAT where they are exempted frm paying VAT by SARS. The Suth African Pultry Assciatin - 7 -

8 SAPA Quartely DPFO Stats Reprt 3Q2014 Briler Cntract Grwers Day-ld chicks were mainly btained frm the principal cmpany s hatcheries. An average f dayld chicks were delivered t cntract farmers at a time, this was an increase f day-ld chicks per cycle. 1.4 BROILER REARING Emerging briler rearing farmers The emerging briler farmers interviewed had an actual ttal f brilers n a census basis, but with capacity fr brilers. Their chicken huses were filled at 53% f their capacity during the perid f the survey. Briler Cntract Grwers The briler cntract farmers interviewed had an actual ttal f brilers n a census basis, but with capacity fr brilers. Their chicken huses were filled at 89% f their capacity during the perid f the survey. Ttal Emerging Farmers It is estimated that there are at least +/ emerging pultry farmers. The ttal number f DPFO members that frmed part f this survey represents 21% f the briler industry in Suth Africa. In terms f prductin vlume, it is estimated that small cmmercial farmers represent 4 t 5% 6 f ttal natinal briler prductin; this percentage is expected t increase as transfrmatin f the industry takes place. A cmmercial pultry farmer is defined as fllws: Abattir Briler Eggs Small Cmmercial Farmer < brilers slaughtered per week < brilers prduced per cycle Or < brilers prduced per week < eggs prduced per day Medium Cmmercial Farmer brilers slaughtered per week brilers prduced per cycle Or t brilers prduced per week eggs prduced per day Large Cmmercial Farmer > brilers slaughtered per week > brilers prduced per cycle Or > brilers prduced per week > eggs prduced per day 1.5 FEED Emerging briler farmers Feed is bught in bags cntaining 50 kg. Including VAT and excluding distributin, the price per 50 kg bag and per tn fr the different fd grups, is tabled belw: 6 Estimated value in an annual cycle The Suth African Pultry Assciatin - 8 -

9 SAPA Quartely DPFO Stats Reprt 3Q2014 TYPE OF FEED 3Q2013 PRICE PER 50 KG BAG (R) 4Q2013 PRICE PER 50 KG BAG (R) 1Q2014 PRICE PER 50 KG BAG (R) 2Q2014 PRICE PER 50 KG BAG (R) 3Q2014 PRICE PER 50 KG BAG (R) Starter mash 256,02 269,13 250,85 273,07 292,41 Grwer mash 246,12 255,73 240,63 259,25 271,48 Finisher mash 233,53 241,11 233,48 248,75 258,82 TYPE OF FEED 3Q2013 PRICE PER TON (R) 4Q2013 PRICE PER TON (R) 1Q2014 PRICE PER TON (R) 2Q2014 PRICE PER TON (R) 3Q2014 PRICE PER TON (R) Starter mash 5 120, , ,94 R 5 461,48 R5 848,30 Grwer mash 4 922, , ,66 R 5 184,92 R5 429,52 Finisher mash 4 670, , ,67 R 4 974,92 R5 176,36 Cmparisn with SAPA reprted feed price fr 3Q2014 (VAT excluded in emerging farmer feed price): TYPE OF FEED Average briler feed price 3Q2013 (R/tn) Average Price paid by emerging farmers 3Q2014 (R/tn) Price difference per tn (R) % change Starter mash R4 600 R % Grwer mash R4 600 R % Finisher mash R4 600 R % Frm the tables abve it is eminent that emerging briler farmers pay mre fr feed and face risks due t high feed prices. Feed per chick: The feed that every chick cnsumes at emerging briler farms is frm 2,5 kg t 4,2 kg per chicken with a weighted average f 3,0 kg. Briler Cntract Grwers The principal cmpany pays all feed csts and als delivers t the farm. 2. PRODUCTION 2.1 Emerging briler farmers Live sales 68% f brilers were sld live i.e brilers were sld live during the survey perid, 32% f the survey grup representing brilers were sld slaughtered, since emerging farmers mstly sell live chickens. The Suth African Pultry Assciatin - 9 -

10 SAPA Quartely DPFO Stats Reprt 3Q2014 Sixty seven briler farmers as ppsed t the frty-ne in the survey grup f the previus quarter were slaughtering their chickens at an abattir, there is thus a steady increase f emerging farmers wh slaughters at abattirs. Lcating nearby abattirs which they can utilise remains a challenge. Chickens are sld frm 4 weeks f age t 8 weeks f age with mst farmers selling at an average f six weeks f age Chickens weighed between 1,2 kg and 3,5 kg with an average f 2,1kg when sld. Nt all farmers reprted the weight f chickens at the time f sale, since scales are expensive and nly a small number f emerging farmers wns scales t make crrect measurements. The industry standard is that, a briler weighs n average 1,8 kg at five weeks f age. The mrtality rate fr develping briler farmers cannt be established as yet due t lack f data. In the updated questinnaires in Appendices D and E, mrtality rate will be dealt with. Brilers were sld frm R30,00 t R60,00 per live briler with the majrity being sld at R41,48. The price differs accrding t the age and weight f the brilers being sld and als accrding t the vlume sld r bulk sales at R41,48 per bird (bulk sales receive discunts). The average price recrded is a weighted average fr all ages. Live sales and slaughtered at abattir 32% f the survey grup (19% mre than the previus quarter) slaughtered their chickens at the abattir, t be precise 67 farmers f this survey grup had their chickens slaughtered at an abattir. Mst chickens are sent t the abattir at between 5-6 weeks f age. Accrding t the survey the abattirs charged these farmers between R4,00 and R5,00 t slaughter per briler. Prices charged fr meat was a weighted average f R47,37 per kg which is R2,80 mre than the price charged in the 2Q Briler Cntract Grwers The chickens grwn by cntract grwers are fetched at slaughtering age by the cmpany whm they are grwing fr (principal cmpany). Birds weighed between 1,6 kg and 2,1 kg at the time f end f rearing stage. The majrity f chickens grwn by cntract grwers were fetched by the principal cmpanies at five weeks, while sme f chickens grwn by cntract grwers are grwn t fur r six weeks f age. Graph 1 The Suth African Pultry Assciatin

11 SAPA Quartely DPFO Stats Reprt 3Q Abattirs Frty-three abattirs participated in the survey. 3. MARKET The final prduct, the live chicken at an age where it can be slaughtered fr human cnsumptin are sld live t: Lcal cmmunity Lcal vendrs, market General public Municipality Pensiners Butchery Street market Shps Individuals Pultry farmers Afgri Schls Hawkers Supermarkets Church Hspitals Department f educatin & health Small percentage sells t abattir Suppliers Catering cmpany Distributrs Spar Black market Casin Spazas Squatter camps Restaurants Infrmal sectr Telkm Pst ffice Tydstrm Crèches Old mutual Health care centre Department f scial develpment Department f agriculture Htel Frmal market The Suth African Pultry Assciatin

12 SAPA Quartely DPFO Stats Reprt 3Q REASONS FOR QUITTING Financial Supprt T expand Financial supprt n transprt T start farming Financial supprt fr transprt Prblem with water and electricity T buy mre feed Abattir Lking fr a clsest abattir T build wn abattir Hatchery Need a clsest place t buy chicks Shrtage f chicks Struggling t get quality chicks Market Expsure t mre/better market Big prducers in the area pushed price dwn Land Issues D nt have land Lking fr a farm Feed Feed is t expensive Climatic cnditin Disease play a majr rle in winter Farmers stpped farming due t t much rain Mrtalities in summer is very high Heavy wind blw their huses Rainy weather cause their chicks t die Crime Theft 4.1 CHALLENGES FOR EMERGING FARMERS/ CONCERNS EXPRESSED DURING THE INTERVIEWS: CONTRACT GROWERS Financial Supprt On transprt T expand Hatcheries The quality f chicks is pr The Suth African Pultry Assciatin

13 SAPA Quartely DPFO Stats Reprt 3Q2014 Need a clsest place t buy chicks Abattir Want t build wn abattir Building wn abattir Feed Feed is very expensive Buy utdated feed Climatic cnditin Mrtalities in summer is very high Illness and Diseases Chick are dying due t lng distance travelling Market Randvaal Rainbw Chickens Super grand Eagles pride Supreme Malty chicken Bush valley Earlybird Farm Mike s chicken Egli Afgri Bambanani BROILERS Financial Supprt Need rganised fundraising T expand Financial supprt fr transprt Want t change briler fr eggs Prblem with water, chicks and electricity Prblems with chicken disease T buy equipment and feed T renvate huses Abattirs Lcatin f abattirs seems t be prblematic in sme areas Building abattir Want t build wn abattir Hatcheries Need a clsest hatchery t buy chicks Shrtage f chicks is a majr prblem Struggling t get day ld chicks The Suth African Pultry Assciatin

14 SAPA Quartely DPFO Stats Reprt 3Q2014 Breeders dn t want t supply Day ld chicks Struggling t get quality chicks Lking fr a clsest hatchery t buy a chicks Day-ld chicks is t expensive Need training Climatic Cnditin Due t cld weather lts f chicks die Illness and Disease Lts f chicks die due t diseases Land Issues Need farming land Feed Need a clsest place t buy feed Feed t expensive Chicks eat lts f feed Shrtage f feed and have t buy utdated feed Struggling t get quality feed Market Expsure t mre/better market Big prducers in the area pushed price dwn Institutins Gvernment nly assist a grup f peple, nt individually Difficult t find a lan Crime Vandalism Nn-payment The Suth African Pultry Assciatin

15 SAPA Quartely DPFO Stats Reprt 3Q2014 SAPA QUARTERLY DPFO STATS REPORT ON EGG FARMERS FOR THE THIRD QUARTER OF 2014 (3Q2014) 1. SURVEY GROUP Eighty five egg farmers were interviewed during the time frame f this reprt. Eight egg farmers stpped farming (sme temprarily and thers indefinitely), therefre nly seventy seven egg farmers are still in business in the survey grup. Of the 77 farmers, nly 9 emerging egg farmers bught day-ld pullets and raised their wn laying flck. The remainder f the farmers (68) had a laying flck r bught pint f lay hens and were prducing eggs fr human cnsumptin. 2. VOLUME The number f layers (egg laying chickens) fr the reprting perid was layers, an increase f 23% r layers mre than the 2Q2014 (n a census basis). The survey represented emerging egg farmers frm nine prvinces. The farmers interviewed had the ptential t keep layers in ttal. The survey represents 1,1% f SAPA estimated laying flck f 23,5m layers. 2.1 LAYER REARING Nine farmers that frm part f the survey grup bught day-ld pullets and reared their wn laying flck. In ttal they had chicks in the 3Q2014 as ppsed t the chicks in rearing during 2Q2014 ver the perid f the survey. They were paying R14,48 per day-ld pullet, 6% mre than the previus quarter, excluding VAT. 2.2 POINT OF LAY HENS Pint-f-lay hens in the laying flck fr the survey perid started laying at an average f 19 weeks ld and were purchased at a weighted average price f R53,19 per hen, 8% less than 2Q2014, excluding VAT and excluding distributin. An average f pint f lay hens were bught at a time, with the mde being 200 i.e. mst farmers were buying a 200 pint f lays at a time during the quarter under review. 2.3 LAYING FLOCK The laying flck f the survey grup ttalled layers. The natinal laying flck fr Suth Africa was 23,5 millin during the time perid the survey was dne. The survey represents 1,1%, 0,3% mre than the 2Q2014, f the natinal flck 7. 7 The survey des nt yet represent all emerging egg farmers. The Suth African Pultry Assciatin

16 SAPA Quartely DPFO Stats Reprt 3Q FEED Feed is bught in bags f 50kg. Excluding VAT and excluding distributin, the price per 50kg bag and per tn fr the different fd grups, is tabled belw. PRICE PER 50 KG BAG(R) Excluding VAT PRICE PER TON(R) Excluding VAT TYPE OF FEED % Change Pultry laying mash 238, ,3% The SAPA reprted layer feed price fr 3Q2014 was R3 337,46 per tn. 3. PRODUCTION 3.1 EGG A ttal f dzen f eggs were sld per week by the survey grup; layers are estimated t lay at an average rate f 3 eggs per week 8. In terms f prductin, small cmmercial egg farmers represent 1% 9 f ttal natinal egg prductin. The weighted average price charged per dzen eggs was R13,44. The SAPA recrded prducer price fr eggs fr 3Q2014 was R10.86 per dzen. 3.2 CULLS Culls were mstly sld at the age f 57 weeks but als up t 100 weeks f age. They were sld live at a weighted average price f R38,88. The SAPA recrded prducer price fr culls fr the 3Q2014 was R28,31 per cull. 4. MARKET The final prduct, eggs fr human purpses as fd are sld t: Cmmunity Clleagues Hatchery Hspitals Schls Spazas Supermarket Whlesalers Stalls Spars Creches Warehuses Cash & Carry 8 Dzen per week ttal numbers f layers during the perid f the survey 9 Estimated value in an annual cycle The Suth African Pultry Assciatin

17 SAPA Quartely DPFO Stats Reprt 3Q2014 Clinic Infrmal market Lcal public Tuck shps Butcheries Pensiners Hawkers Tp layers Guesthuses Plice statin Crrectinal service Restaurants Bakery Shps Bed & breakfast Farmers Cmpany Pst ffice Small business Department f agriculture Extensin fficers Gvernment prject Gvernment emplyees Distributrs Lcal market Frmal market Cmpany Retailers Pubs Htels 5. REASONS FOR QUITTING Type f Farming Want t try smething else Financial Supprt T expand Need financial supprt t start farming Renvating On transprt Hatchery Lking fr the clsest place t buy layers Shrtage f chicks Waiting fr the chicks t be delivered Feed Feed is t expensive Market The Suth African Pultry Assciatin

18 SAPA Quartely DPFO Stats Reprt 3Q2014 Lking fr a better market Getting n prfit Crime Nn payment Persnal reasn Sickness Illness and disease Prblem with disease it kills lts f chicks Climatic cnditin Due t cld weather lts f chicks die 5.1 CHALLENGES FOR EMERGING FARMERS/ CONCERNS EXPRESSED DURING THE INTERVIEWS: Financial Supprt T expand Struggling t get chicks Fr transprt Struggling n feed and chicks Prblem with water and electricity T buy mre pint f layers T buy mre feed, labur and equipment s T renvate the huses Shrtage f layer supplier T build a strage Pint f Lay Hens Cannt find, had t buy ut f prductin chickens Lking fr a cheaper layers Waiting fr the chicks t be delivered Struggling t get medicatin results n killing lts f chicks Struggling t find a place t buy POL Land Issues Lking fr a farm D nt have land Feed Feed is expensive Spend a lt n transprt t cllect feed Need a place where feed is sld in bulk Buy utdated feed Illness and Diseases Lts f chicks dies due t diseases Chicks die due t lack f feed Crime Want credit and dn t want t pay (Nn-payment) The Suth African Pultry Assciatin

19 SAPA Quartely DPFO Stats Reprt 3Q2014 Theft Market Lking fr a better market Getting n prfit Prblem with cmpetitrs Packaging price is t expensive Lking fr a clsest place t buy packaging Institutins Gvernment nly assist a grup f peple, nt individually Climatic Cnditin Mrtalities in summer is very high Came acrss lts f prblem due t t much rain The Suth African Pultry Assciatin

20 SAPA Quartely DPFO Stats Reprt 3Q2014 CONCLUSION SAPA is in the prcess f extending its base frm which stats are recrded and reprted n and extends an invitatin t all DPFO members t participate in future. A message t all DPFO members: Please expect a call frm Ireen Lekabe / Olga Leshabane / Gladys Mbnyana. They have a dedicated number fr emerging farmers where emerging farmers are encuraged t call and make use f this pprtunity t be heard. The cell number dedicated t emerging farmers is / / , and can be cntacted Mnday t Friday frm 08:30 t 16:00. The address is ireen@silverpath.c.za / lga@silverpath.c.za / gladys@silverpath.c.za. Kindly leave a vice message r send a please call me and yu will be cntacted at the earliest pprtunity. Yu can als make use f the pprtunity t address ther issues. The statistics recrding-team wrks clsely with Mr Mses Mdise, the Develping Pultry Farmers Crdinatr frm SAPA s ffices in Hneydew. PLEASE NOTE: Any and all infrmatin, data, knw-hw, dcumentatin, materials and ther cmmunicatins, written r ral, which are disclsed r prvided t SAPA r its designees by a SAPA member shall be regarded as cnfidential infrmatin belnging t that member and will nt be disclsed t any ther member The Suth African Pultry Assciatin

21 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIXES APPENDIX A Statistical Terms and examples Statistical methds can be used t summarize r describe a cllectin f data; this is called descriptive statistics. In ur case the cllectin f data is the stats that we cllect frm emerging briler, egg, chick prducer farmers and abattirs. Belw please find an example f calculating a weighted average: A farmer sells 50 chickens live at R40 per chicken t a hawker. His neighbr sells 10 chicken live at R20 per chicken t the same hawker. The average price that the chickens were sld at was: (R40+R20)/2 = R60/2 = R30 per chicken The weighted average price that the chickens were sld at was: (R40*50)+ (R20*10) divided by = R R200 divided by 60 =R2200/60 =R36.67 This means in effect that the chickens f the farmer with the 50 chickens carries mre weight when determining the average price that the chickens were sld at. This is als the reasn that in the stats reprt, the weighted average is used. The Suth African Pultry Assciatin

22 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX B Summary f the previus three quarters (4Q2013 t 2Q2014) After attaining the list t include nly develping farmers that perate in the pultry industry, a ttal f 647 farmers were identified. Undertakes were made t survey all 647 f the farmers. Hwever, many f the develping pultry farmers were either n lnger farming r were nt cntactable. This resulted in a survey f 425 farming farmers in the database. A further 222 stpped farming were telephnically interviewed. Thus, a ttal f.647 farmers were interviewed. The farmers identified were surveyed telephnically in either English r in their hme language, where necessary. The questinnaire used in the survey is prvided at the bttm f the reprt. The call centre staff members wh interviewed the farmers, speak all eleven fficial languages. They were als trained in telephne etiquette recently. The spread f the develping pultry industry ver the varius prvinces as well as the cncentratin f prductin in each prvince creates a picture f the industry. Briler prductin dminates the agricultural sectr and it is the main supplier in prtein terms f fd than all ther animal prteins cmbined fllwed by beef. The main challenges highlighted by develping farmers are a lack f finances and a lack f equipment. Other challenges include: inapprpriate premises, t many cmpetitrs, high mrtality rates f birds, and a lack f electricity and water. Limited dispsable incme will have a negative effect n per capita cnsumptin grwth, the cntinuus threat f pultry diseases and higher input csts and cmbating these thrugh efficiencies. Lack f market infrmatin, and the lw literacy levels f develping farmers. Briler meat is prduced thrughut Suth Africa with Limpp, Gauteng, Mpumalanga and KwaZulu Natal Prvinces being the largest prducers. The number f birds slaughtered has significantly increased. The egg industry is fragmented with a few majr players and a number f small and medium-sized prducers. Egg prductin takes place thrughut the cuntry, and rearing f gd quality pullets requires an extreme cld temperature; that is why Gauteng seems t be pullet rearing capital f Suth Africa. The laying cycle f layers is 72 weeks. The price f eggs increased cntinuusly thrughut the prductin years, this increase were caused by the high feed prices. Key recmmendatins twards imprving supprt fr pultry farmers includes a prgramme t assist in the fllwing ways: mbilisatin, prject planning, enterprise develpment and access t finance, mentrship, skills develpment, training and educatin. It is, therefre, recmmended that a database f preferred service prviders be established, based n an apprpriate screening and qualificatin prcedure. Encurage/ Facilitate develping farmers t partner with each ther and with large prducers. Encurage prduct diversificatin, leadership develpment and prperly manage expectatins. Encurage establishment f businesses that take advantage f market gaps. The main sub-sectrs: briler, egg, hatcheries, cntract grwers and abattirs farmers are represented in the maps belw and are shwn in the fllwing clurs: Briler Green The Suth African Pultry Assciatin

23 SAPA Quartely DPFO Stats Reprt 3Q2014 Black Egg Red Hatchery Yellw cntract grwer Blue Abattir The maps shw the lcality f surveys dne ver the past 3 quarters. Map1: Ttal Birds by Prvince fr furth quarter 2013 The table belw illustrates the specific figures fr each prvince. PROVINCE N: Briler Farmers 4Q2013 N: Egg Farmers 4Q2013 Gauteng Limpp Free State Mpumalanga 34 5 Nrth West 23 8 Eastern Cape 24 4 The Suth African Pultry Assciatin

24 SAPA Quartely DPFO Stats Reprt 3Q2014 Western Cape 6 4 Nrthern Cape Kwa-Zulu Natal 34 7 TOTAL Map2: Ttal Birds by Prvince fr first quarter 2014 The table belw illustrates the specific figures fr each prvince. PROVINCE N: Briler Farmers 1Q2014 N: Egg Farmers 1Q2014 Gauteng Limpp Free State Mpumalanga 27 3 Nrth West 19 5 The Suth African Pultry Assciatin

25 SAPA Quartely DPFO Stats Reprt 3Q2014 Eastern Cape 25 3 Western Cape 13 1 Nrthern Cape 3 13 Kwa-Zulu Natal 26 5 TOTAL Map3: Ttal Birds by Prvince fr secnd quarter 2014 The table belw illustrates the specific figures fr each prvince. PROVINCE N: Briler Farmers 2Q2014 N: Egg Farmers 2Q2014 Gauteng Limpp Free State Mpumalanga 27 7 The Suth African Pultry Assciatin

26 SAPA Quartely DPFO Stats Reprt 3Q2014 Nrth West 16 7 Eastern Cape 23 2 Western Cape 2 0 Nrthern Cape Kwa-Zulu Natal 51 6 TOTAL Our call centre is already the best available in the cuntry, cllecting statistics frm farmers every quarter. The call centre has three permanent recrders, prficient in all eleven fficial languages. The statistician are equipped t answer questins relating t the industry, t give infrmatin n all agencies which prvide supprt t farmers and give a number f legislative dcuments, membership infrmatin t jin SAPA, give names f different suppliers, hatcheries, equipment suppliers, manufacturers, feed suppliers, medicatrs, ventilatin suppliers, infrmatin abut animal health and ther infrmatin abut the pultry industry. We wuld appreciate the cmmittee s assistance t give a better service and that all DPFO cmmittee members t supprt quarterly statistics. The Suth African Pultry Assciatin

27 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX C: Briler day-ld hatchery questinnaire BROILER DAY-OLD HATCHERY QUESTIONNAIRE Date f call? UNIT CONTENT Cntact Details Cntact Persn Cntact Number Name f the farm / Cmpany Address Pstal Address Twn Municipality Prvince Survey Intrductin Are yu still selling day-ld chicks? EGGS Where d yu buy the fertile eggs frm? In which twn? Hw much d yu pay per egg? Hw many in a bx? Hw many bxes d yu buy at a time? Cmpany R Eggs Per bx MARKET Wh are yur clients? In which twn are they based? The Suth African Pultry Assciatin

28 SAPA Quartely DPFO Stats Reprt 3Q2014 Hw many d yu sell? Per day Per week Per mnth What is yur selling price per day ld chick? Chicks Chicks Chicks R Hw many chicks per bx? Per Bx COMMENT: New details abut the Farmer Anything that yu want SAPA t knw? DESIGNED AND CONDUCTED BY: The Suth African Pultry Assciatin

29 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX D: Briler cntract grwer questinnaire Date f call BROILER CONTRACT GROWER QUESTIONNAIRE UNIT CONTENT Cntact Details Cntact Persn Cntact Number Name f the farm / Cmpany Address Pstal Address Twn Municipality Prvince Survey Intrductin Are yu still grwing chickens fr (name f the cmpany) Cntract Grwing Which cmpany d yu grw fr? (ask new entrants) When Chicks arrive: Number f Hw many d yu receive at a time? chicks Number f Number f DA's(Dead n Arrival) chicks What is yur mrtality rate? % Hw many birds dies in a mnth? N f Brilers What is the size f yur structures / hw may birds can be accmmdated in yur structure / what is maximum number f birds yu have space fr? The Suth African Pultry Assciatin

30 SAPA Quartely DPFO Stats Reprt 3Q2014 MARKET At what age d the cmpany fetch the birds? What is the duratin f yur cycle / at what age d the cmpany fetch the birds? What is yur Feed cnsumptin per cycle? Hw lng d yu stand empty? Weeks days Tns Weeks COMMENT: New details abut the farmer Anything that yu want SAPA t knw? DESIGNED AND CONDUCTED BY: The Suth African Pultry Assciatin

31 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX E: Briler prducer questinnaire Date f call: BROILER PRODUCER QUESTIONNAIRE UNIT CONTENT Cntact Details Cntact Persn Cntact Number Name f the farm / Cmpany Address Pstal Address Twn Municipality Prvince Survey Intrductin Are yu still running a briler prject? D yu currently have chickens? DAY-OLD CHICKS Where d yu buy yur chicks? Cmpany In which twn? What is the price per chick? What is the number f chicks per bx/crate? R Chicks The Suth African Pultry Assciatin

32 SAPA Quartely DPFO Stats Reprt 3Q2014 Hw many chicks d yu place per mnth Chicks Hw many chickens d yu currently have? What is the size f yur structures / hw may birds can be accmmdated in yur structure / what is the maximum number f birds yu have space fr? N f Brilers N f Brilers What is yur mrtality rate? % Hw many birds dies in a mnth? N f Brilers FEED (Excl Vat) Where d yu buy yur feed? In which twn? D yu buy: per bags? per tns? What type f feed: briler all mash starter mash grwer mash finisher mash Hw many d yu buy per mnth? Cmpany kg tns R R R R Bags/Tns MARKET At what/which age d yu sell live chicks? Weeks Wh are yur clients? What is yur selling price? Abattir Hw much d yu pay t slaughter yur birds? R per bird R per bird COMMENT: New details abut the Farmer The Suth African Pultry Assciatin

33 SAPA Quartely DPFO Stats Reprt 3Q2014 Anything that yu want SAPA t knw? DESIGNED AND CONDUCTED BY: The Suth African Pultry Assciatin

34 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX F: Briler abattir questinnaire Date f call ABATTOIR QUESTIONNAIRE UNIT CONTENT Cntact Details Cntact Persn Cntact Number Name f the farm / Cmpany Address Pstal Address Twn Municipality Prvince Survey Intrductin Are yu still running an abattir? Hw many days per week d yu slaughter? Hw many birds are yu slaughtering per day? What is yur slaughtering cst per bird? Days Chicks R per Chick COMMENT: New details abut the Farmer The Suth African Pultry Assciatin

35 SAPA Quartely DPFO Stats Reprt 3Q2014 Anything that yu want SAPA t knw? DESIGNED AND CONDUCTED BY: The Suth African Pultry Assciatin

36 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX G: Egg day-ld chick questinnaire Date f call: DAY-OLD CHICKS ( EGGS) QUESIONNAIRE UNIT CONTENT Cntact Details Cntact Persn Cntact Number Name f the farm / Cmpany Address Pstal Address Twn Municipality Prvince Survey Intrductin Are yu raising yur hens frm day-ld chicks? DAY-OLD CHICKS Where d yu buy yur chicks? In which twn? Hw much d yu pay per chick? Hw many chicks per bx? Hw many d yu buy per mnth? Hw many chicks d yu have at the mment? What is the size f yur structures/hw many birds can be accmmdated in yur structure/hw many birds d yu have space fr? Cmpany R Chicks Chicks Layers Layers The Suth African Pultry Assciatin

37 SAPA Quartely DPFO Stats Reprt 3Q2014 FEED Where d yu buy yur feed? In which twn? D yu buy: per Kg per tns What type f feed: Starter Mash Develper Mash Layer Mash Grwer Mash Hw many d yu buy per mnth? Cmpany Kg Tn R R R Per Bag/Tn TRADER D yu see pint f layers? Hw many chicks yu sell per mnth? What is yur selling price? MARKET Hw many dzen f eggs d yu sell per week? Wh are yur clients? What d yu charge per dzen? CULLS What d yu d with the hens that's t ld t lay? D yu sell them live? What is the average age f yur hen/cull? Wh are yur clients? What is yur selling price per hen/cull? per week R Weeks R COMMENT: New details abut the Farmer Anything that yu want SAPA t knw? DESIGNED AND CONDUCTED BY: The Suth African Pultry Assciatin

38 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX F: Egg pint f lay questinnaire Date f call: POINT OF LAY CHICKEN ( EGGS) QUESTIONNAIRE UNIT CONTENT Cntact Details Cntact Persn Cntact Number Name f the farm / Cmpany Address Pstal Address Twn Municipality Prvince Survey Intrductin Are yu still buying yur hens at pint f laying stage? POINT OF LAYS Where d yu buy yur POL? In which twn? Hw much d yu pay per layer? Hw many in a cage? Hw many d yu buy per mnth? LAYING FLOCK Hw many layers d yu have at the mment? Cmpany R Chicks Chicks Layers The Suth African Pultry Assciatin

39 SAPA Quartely DPFO Stats Reprt 3Q2014 What is the size f yur structures / hw may birds can be accmmdated in yur structure / what is the maximum number f birds yu have space fr? FEED Where d yu buy yur feed? In which twn? D yu buy: per bag per tns What type f feed: Develper Mash Layer Mash Hw many d yu buy per mnth? MARKET Hw many dzen f eggs d yu sell per week? What is yur selling price per dzen? Wh are yur clients? CULLS What d yu d with the hens that's t ld t lay? D yu sell them live? What is the average age f yur hen/cull? Wh are yur clients? What is yur selling price per hen/cull? Layers Cmpany R R per bags/tns Per Week R Weeks R COMMENT: New details abut the Farmer Anything that yu want SAPA t knw? DESIGNED AND CONDUCTED BY: The Suth African Pultry Assciatin

40 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX G: BROILER FARMERS: ASSISTANCE FROM SAPA REQUESTED / COMPLAINTS / RECOMMENDATIONS ANYTHING THAT EMERGING BROILER FARMERS WANT SAPA TO ASSIST WITH: Request fr SAPA t subsidise feed Prvide small farmers with funds t buy equipment, n transprt cst and als t buy feed Need mre training Help n giving farmers infrmatin n where t buy feed because they buy utdated feed Need funds t expand Prviding infrmatin n where t get funds Help farmers n creating a better market fr them Organised fundraising t assist small farmers t expand Assist with finding suitable land t rent/buy r a farm Assist financially t build abattir and hatchery and als prvide infrmatin n hw t perate it Infrm farmers abut SAPA s cngress Want SAPA t prvide infrmatin n where t buy cheaper quality day ld chicks and feed clse t their farm Assist n finding a clset abattir and hatchery Want t receive bulletin Prviding funds t fix water and electricity Help n finding a supplier f chicks clse t their farm Assist financially t buy medicine fr chicks and t als prvide infrmatin n where t buy it Prvide funds t fix chicks structure and buy mre chicks Need infrmatin n hw t be a cntract grwer T assist them financially n transprt T subsidise farmers Need training n hw t manage their prfit Need a wrkshp t gain experience Prvide infrmatin n hw t becme a cmmercial farmers Assist n building a brehle T find a spnsr fr small farmers Help farmers by lcating abattir Build mre structure and buy chicks fr farmers T try t get rid f the imprt T help them n slving the chicks prblems Assist financially t buy equipment and prvide infrmatin n where t buy it Prvide funds t put security t prtect crime Prvide infrmatin n where t find a clsest hatchery Assist with funds t buy a farm EMERGING BROILER FARMERS COMPLAINTS: Always gives stats infrmatin but SAPA d nt help s they dn t see the reasn why Must stp making empty prmises Want t knw if SAPA is ging t help them with anything regarding the infrmatin that they ask Want t knw what kind f help SAPA is ging t prvide fr them as small farmers SAPA des nt help them as small farmers and lts f farmers are cmplaining SAPA des nt help small farmers as they said they are nly helped themselves Want t knw what kind f market research SAPA is ding and what is they ging t d fr them after that The Suth African Pultry Assciatin

41 SAPA Quartely DPFO Stats Reprt 3Q2014 T invite all farmers t attend the AVI Africa as they als want t attend the cnferences T send sme f SAPA fficial t pay their farm a visit SAPA just want them t pay registratin fee but they dn t give them feedback T send the frm t register Feel s disappinted n the DPFO fficials because they dn t fulfil their prmises and assist farmers Jin the assciatin fr a lng time but they nt benefiting anything frm SAPA Want t knw why the training is t expensive SAPA dn t take actin n farmers cmment BROILER FARMERS RECOMMENDATIONS: Want t appreciate SAPA fr rganising the AVI Africa they learn a lt f things Happy t be a member f the assciatin and want t recruit mre farmers t jin SAPA T keep n sending bulletins t farmers as they help a lt t gain knwledge n running their prject The Suth African Pultry Assciatin

42 SAPA Quartely DPFO Stats Reprt 3Q2014 APPENDIX G: EGG FARMERS: ASSISTANCE FROM SAPA REQUESTED / COMPLAINTS / RECOMMENDATIONS ANYTHING THAT LAYER FARMERS WANTS SAPA TO ASSIT WITH: Need infrmatin n hw t slve the prblem when chicks started t drp prductin Help n finding r creating a better market Help farmers financially t buy feed. Need help n slving chicks diseases Financial help n transprt Prviding infrmatin n where t buy cheaper pint f layer clse t their farm Assist with infrmatin n where t get funds T subsidise small farmers n feed T help financially t buy mre chicks T help them financially t attend wrkshp s that they can gain mre knwledge Assist financially t start wn hatchery Assist them with infrmatin n where t find a clsest place t buy feed as they buy utdated feed Need training Assist financially t buy equipment. T keep n sending bulletins t farmers as they help a lt t gain mre knwledge n running their prject Help n updating emerging farmers with the price f inputs T find a spnsr fr farmers Want smene frm SAPA t cme visit their farm T build mre structure fr farmers Prvide infrmatin n hw t becme a cntract grwer. Train farmers a lt n chicks medicatin T infrm farmers abut wrkshps and meetings. Give farmers infrmatin n where t buy feed n bulk and als in discunt Want SAPA t spnsr with feed as they are struggling a lt Want the extensin fficer t cme and visit their farm. T extend the develping farmers pages n the bulletins as is very shrt. Assist financially t expand Need financial assistant t buy a bigger farm T infrm farmers abut prvincial meetings T buy feed and chicks fr farmers Need infrmatin n hw t becme a cmmercial farmers T assist n finding a clsest hatchery clse t their farm T build farmers wn brehles Help financially t attend the cngress T prvide funds t farmers s that they can satisfy their market T reslve the matter f the price feed as lts f farmers came acrss facing prblem with that kind f prblem Want SAPA t cmmunicate with farmers and als pay them a visit rather than trying t stp the imprt T cmmunicate with the department f agriculture and reach an agreement t subsidize farmers with feed, chicks and funds T lan farmers funds s that they can grw T interfere n slving their prblems with the extensin fficers as they dn t d nthing fr farmers Prvide farmers with advertising bard The Suth African Pultry Assciatin

43 SAPA Quartely DPFO Stats Reprt 3Q2014 Assist them financially t build brehle Prviding feed fr small farmers Assist them financially t buy chicks Lcating a clsest hatchery Help farmers n prviding training n hw t prcess feed mixture T negtiate with sme feed cmpanies t sell 50kg nt 40kg f feed t farmers Prvide funds t help n packaging LAYER FARMERS COMPLAINS: Always gives stats infrmatin but SAPA des nt give the feedback SAPA des nt help small farmers at all she jin the assciatin fr a lng time but there s nthing they get n help frm them Want t knw what SAPA is ging t d with their stats infrmatin as they keep n prviding them with infrmatin but they get n help. T ntify them abut paying the registratin fees because the department f agriculture dn t want t prvide funds fr them because they said they are appearing n the system SAPA nly help big farmers they dn t want t help small farmers T rtate AVI Africa t prvinces s that every farmers must attend smetimes because they can t affrd t pay fr accmmdatin and transprt Want t knw what kind market research is SAPA ding Want SAPA t fulfil their prmises t them and stp prmising them things they will never d Help n slving prblem with their extensin ffice as they always invite their friends wh are nt pultry farmers t attend pultry farmers gatherings Pultry farmers are always left behind The Suth African Pultry Assciatin