Some Problems Concerning the Development of a Poultry Meat Industry in Australia
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1 Some Problems Concerning the Development of a Poultry Meat Industry in Australia by Fred. SKALLER* INTRODUCTION Poultry meat can be supplied either from culled laying birds, a by-product of the egg industry, or from specially produced growing birds. The development of a poultry meat industry depends on the latter category, as any quantity can be produced according to consumers demand, whereas the supply of culled hens is limited by the number of laying pullets kept, which is determined by the egg/feed price relationship, and rarely exceeds 2 layers per capita of population. The phenomenal increase in poultry meat production in the United States of America and, more recently, in the United Kingdom and some European countries, has been due mainly to the cheap production of broilers, i.e. a young chicken (usually under 16 weeks of age) of either sex that is tender-meated with soft, pliable smooth textured skin and flexible breastbone cartilage. The rapid growth of the broiler industry and its estimated future development are illustrated in Table I. Two factors have been chiefly responsible for the increasing demand for broilers: attractive prices to the consumer in comparison with beef-made possible by the high efficiency of the broiler industry-and the contant supply of a highly uniform product, particularly suitable for sales by Super Markets and similar retail outlets. The Australian broiler industry has developed rapidly since It has a great future provided it can keep consumer prices competitive with the price of first quality beef. This paper discusses some of the problems confronting the industry in Australia in this period of rapid development. THE PROBLEMS The success of the broiler industry overseas has been made possible by the breeding of a bird highly efficient in converting feed into meat, by the development of scientifically compounded highenergy rations and by efficiency in the use of labour. The main problems connected with the development of the Australian broiler industry will therefore be considered in the following discussion under three main headings: Genetics and Breeding; Nutrition; Management and Economics 1, Genetics and Breeding: The general problem arises from the fact that the desired type of bird must satisfy the requirements not only of the broiler grower, but also of the ha,tcheryman who produces the day-old chick, of the processor, and finally, the consumer. Unfortunately, many of these desirable traits in a broiler are hard to combine in the same bird. For efficient production of day old chicks, high rate of egg production, high efficiency of conversion of feed into eggs and, in particular, * Scientific Poultry Breeders (Australasia) Pty. Ltd., Castle Hill, N.S.W. 20
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3 good hatchability are important characteristics (see) Table II). However, they are all antagonistic to rapid growth rate which is closely associated with heavy adult bodyweight. The processor requires well feathered birds wit.h white plumage, but the genes controlling these c.har,acters can best be obtained from the White Leghorn which is an undesirable meat type. Conformation and broad breast can be introduced from the Game type of fowl, but these types are notoriously low in fertility, hatchability and egg production. 1) The relative figure of 100 represents 72 chicks in this Table. P.S.: To arrive at an estimate of actual cost of 100 day-old chicks produced under variable conditions presented in the above Table, the following two additional factors have to be considered : (1 1 That the production of 15 doz. hatching eggs per layer costs only little more than the production of 12 dozen eggs per layer. (2) That hatching costs remain nearly constant per 100 eggs set independent of the number of chicks hatched from these eggs. Hence actual production costs are really still more in favour of high hatchability than shown in the figures in the above Table. These problems are aggravated for the Australian breeder by the limited genetic foundation material available to him. Importation of suitable strains from a.broad is impossible under existing veterinary regulations, which are necessary to prevent introduction of exotic diseases. The difficulty of combining characters essential for the production of cheap day-old chicks with ra,pid growth rate and good conformation in unsexed chicks has been solved in the U.S.A. by the breeding of separate strains for production of males and females and then crossing them to produce the broiler chick for the grower. The male strains are selected mainlv for conformation and growth rate, neglecting characters determining fecundity, which receive more consideration in developing the female strains. The development of such a highly specialised broiler breeding industry is made difficult in Australia by competition from the Leghorn x Australorp crossbred cockerel, a by-product of hatcheries producing crossbred pullets for the egg industry. These crossbred cockerels have two advantages : Firstly, being a by-product, thev can be sold extremely chea,ply. Secondly, as cockerels they have -an advantage over unsexed chicks from broiler strains; males have approximately IO per cent. better growth rate than groups of unsexed chickens comprising equal numbers of both sexes. Tables III and IV indicate the amount of genetic superiority required by the broiler chick to compete successfully with the by-product Leghorn x Australorp cockerel. Assuming a price differential of g3 in favour of 100 crossbred (L x A) cockerels, (this appears a realistic estimate) broiler cockerels must, at a price of 3/- per lb. live weight, be 0.3 lb. heavier at the same age, and have a feed conversion of approximately 3.2 lb. instead of 4 lb. In the U.S.A. on the other hand, extremely light White Leghorn types are used extensively as layers; the cockerels, being unsuitable as broilers, are killed after hatching. 22
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5 The Australian broiler breeder is, therefore, in a difficult position until his strains are genetically improved to the stage where unsexed chicks can compete with the cheap crossbred cockerel. An interim solution could be provided by concentration on the development of dominant white male broiler strains to be used with females of L x A egg strains for the production of a broiler chick. Table I indicates the improvement to be ma,de by the Australian breeder to produce a chicken with the efficiency of the present American broiler chick. The present position in regard to commercially sold broiler chicks is presented more authentically in Table V, showing data from a recent experiment conducted by the author, representing many widely sold strains of broiler chickens. Claims are sometimes made that Australian conversion rates are not far bsehind the American average rate of 2.7 lb. feed required to produce I lb. liveweight, a rate which has been improved in recent American Broiler Tests by leading entries attaining rates as low a,s 2.0 lb. feed per lb. liveweight. However, it must be borne in mind that feed conversion rates are meaningless unless related to sex, weight, age of the broiler, and a, specific feed ration. American workers frequently use one of several indices to express some of this relationship : Either pointspread, which equals liveweight minus conversion rate, or a Production Efficiency Index, obtained by dividing feed conversion into bodyweight. 2. Nutrition : American data suggest that 50 per cent. of the present excellent conversion rate of the American broiler was due to better breeding and 50 per cent. due to better rations. Unfortunately, American rations cannot be copied for Australian conditions as the available raw material differs so much. The American ration is based on maize and its by-products, on soyabean meal, fishmeal, meatmeal, a wide range of synthetic products, and cheap sources of animal fat. In Australia?, wheat and its by-products are the chief sources of carbohydrates, meat meal is the main source of protein, the range of synthetic products available at reasonable prices is limited, and there is no cheap supply of aaimal fat which could be used to raise the energy content of a ration. Unfortunately, only limited funds have so far been available to finance original research work in AUStralia, with the aim of developing appropriate Australian broiler rations. A particular problem in compounding poultry rations is caused by lack of uniformity and low quality in meatmeals in Australia. There are deficiencies both in digestible protein content and in protein quality in terms of balance of essential amino acids. It is not surprising that the poultry industry encourages the establishment of an Australian soyabean industry in view of the deficiencies in the quality of the meatmeal available to it from the meat processing industry. Nearly all broiler feed rations are manufactured by highly efficient mills. Improvement in the quality of rations for the poultry industry is dependent on further research work and on co-opeartion with producers of raw materials in production of more suitable sources of protein. 24
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7 3. Management and Economics : Surveys in the U.S.A. have shown the following average cost structure in the broiler growing industry:- Little can be done by the grower to influence the price per ton of feed, but chickens capable of better feed conversion rate are an important factor in reducing his feed bill. The cost of day-old chickens will become more and more important as prices per lb. of liveweight of the finished broiler product decrease, which has to be expected with increasing supplies. Ta,ble VI shows this relationship. Low production costs for day-old chickens are therefore a factor which has to be included in the breeder s programme.. (See Table II). TABLE VI. Labour efficiency is the main cost factor under direct control of the grower. This is mainly a function of the: size of operation. An average grower in the U.S.A. handles approximately 12,000 broilers at a time, turning them over 4-5 times per year. Some efficient growers handle up to 20,000 per man. The Australian industry is developing on the same lines. Difficult problems arise, however, during the transition stage. T his is best shown by a study of Table VII. A grower wit,h a housing capacity of 10,000 broilers per run can operate only if he can obtain his supply of day-old chickens from large hatcheries, which themselves are being supplied with fertile eggs by large multiplication flocks, and if he can supply the finished broiler to a processor who can handle large numbers. Co-operation between the different production levels of the broiler industry and large scale operation are an essential for the efficient functioning of this industry. This does not necessarily mean integration of the American type- though surveys indicate that most American producers consider that contract growing had been beneficial to the producer-but it certainly means co-operation and joint plannin,g. OUTLOOK Further increase in the present high level of meat consumption in Australia is highly improbable. An increase in the consumption of poultry meat can, therefore, be accomplished only by making some inroads into the consumption of red meats, although the decreasing supply of rabbits might create some additional market for 26
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9 poultry meat. Mutton, as a by-product of wool production, should alwa,ys be cheaper than poultry, but beef and veal could feel price competition from poultry meat. However, even the expected doubling of poultry meat consumption would only mean an increase from 4.2 per cent. to 8.3 per cent. of the total meat consumption. There is no doubt that the Australian Broiler Industry will develop during the next decade. A production of 60 million broilers per year in 1970 does not appear to be an over-optimistic target. Such a rapid expansion will create many problems, but it will provide opportunity to recover portion of the large initial costs incurred in the genetic programme to develop efficient broiler strains; it will also provide the required inducement to improve the raw materials used in our broiler rations, particularly our protein sources. It will also justify large scale capital investment in la,rge and efficient units for broiler production and for processing them. The establishment of a system of grading of dressed poultry for quality would be a desirable innovation. The legisla.tion in Queensland to provide for licensing of establishments at which poultry are slaughtered is a progressive move and it is to be hoped similar action is taken in other States. DISCUSSION C. I. A. Beak (N.S.W.): Are there any signs of vertical integration developing in Australia*? Answer: Not integration in its strict meaning, though planning and co-operation is essential as it is not practicable to produce large numbers of broilers without a contract to ensure the sale of the chickens. F. Spicer (Qld.) : Does the Australorp have a place in the female side of the broiler parents? Answer: Probably not. The New Hampshire seems to be a better type in growth and egg production. Australian experience is limited. 28
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