Business Offer in Poultry & Hatcheries

Published on 29th August 2013

One of the Millennium Development Goals (MDGs) is the provision of adequate and qualitative food for all by the year 2015. An average adult person must consume 2,191k calories of carbohydrate and 53.8 grains of crude protein daily. However, the present level of consumption by Nigerians on the average is 1,200kcal of carbohydrate and 35.1 grammes of crude protein daily. The crude protein deficit could be met cheaply from animal sources in terms of quality and quantity.

One of the ways of achieving this is through back-up of investments in animal husbandry of the nation’s agriculture sector.  Presently, the number of poultry hatcheries and incubators in the country cannot meet the demand of the poultry farmers.

Establishment of this project will therefore be a welcome relief to poultry farmers. Currently, farmers have to book and pay for day-old chicks at the existing hatcheries and wait for months,  in some cases, more than a year  before they can collect. Most of the time, it is by allocation at very ridiculous charges.

One of the greatest problems facing Nigeria today is unemployment which can be attributed to low investment in the productive sector. The market for day-old chicks is guaranteed in excess of  160m day old chicks (DOC) annum per whereas supply is less than 22m day old chicks and  deficit is met by importation, and severe  smuggling,  The present operators manage what we call sellers’ market as they cannot meet the demand of their customers.

Skylark Poultry  Industry the biggest  poultry  industry in India and hatcheries are the biggest mainstay of Skylark. The company has separate hatcheries for Grand Parent, Parent Stock and commercials at 5 different locations in the country. 

Hygiene and sanitary conditions are maintained inside hatcheries. Skylark have a well-established distribution network for the sale of DOC’s and hatching eggs in India. Skylark is the largest producer of DOC and Broilers in India and has come up with modernized, state of the art broiler units with an automatic drinking and feeding systems. Skylark has a present capacity of about 8 million broilers per month which is a huge number as compared to other broiler companies all over the world.  Skylark had earned a big name in the whole sale live poultry trade and is one of the most renowned integrated player in the poultry industry in the world.

Skylark charted its growth plan with diversification into all poultry activities which included Grand Parent (G.P.) operations, Parent Stock (P.S.) operations, Hatcheries, Feed milling, broiler contract farming, poultry equipments, poultry processing and retail marketing.

With a vision to further integrate the poultry value chain and cut down costs, Skylark ventured into Poultry Processing in 2005 to provide hygienic and safe chicken to consumers at reasonable prices by establishing a Poultry Processing Plant in an approved Food Processing Zone near Delhi.

Keeping Consumer health as its prime concern, Skylark went a step ahead and started working on producing antibiotic free chicken which involved a lot of R&D, experimentations and out-tracking on flocks. After a long struggle, integrity & deep involvement, the company got success and became the only company producing antibiotic free, anticoccidial drug free chicken, a milestone in the history of poultry development in global livestock research and a feat that attracted international awards from FAO, ILRI, and many others.

With a  growth rate in excess of 12 % p.a. fully consolidated, Skylark embark on a strategic medium term outward expansion  plan  to  now put forward expertise and experience in modern global poultry management through joint business enterprise offer to poultry farmers in the West African region.

A prospective Nigerian JVP (Joint Venture Participant) is expected to contribute to  this venture with a land mass of about 15-25 acres,  which will  house 2 warehouses (300x60ft),  a  modern feed mill of  about400tph, processing shed, blast freezers, cold rooms, etc and ancillaries, in addition to a  fully paid up equity and Skylark will bring  in equity in form global expertise, technology, grand parent stock (GPS) and parent stock (PS),  management experience and global support. This venture will mark up with a net profit (dividends) of at least USD1. 1 million / p.a. with a 6 month moratorium. On full stream will employ 160-190 regular workers and about    1,500 casual workers per annum.

Conclusively it will also hatch  about  25million  day old chicks scaled annually and transfer the same technology to Nigerians. The project fosters  profit sharing  progression to both parties for a period of about 7-8 years after which Skylark may divest or opt for a management buyout by the chief promoter/JV local  participant.

The project will interest state/local governments, CBOs, FBOs, universities, farmers cooperatives,  medium to large scale poultry farmers, etc and nascent investors in the poultry industries either as a forward or backward linkage.

By Yomi Ige

Agrolink Consultants ltd,  Ibadan.

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