The poultry industry in Mzansi continues to attract new farmers, and agricultural economist Lunathi Hlakanyane believes it will be one of the top three commodities this year. In this episode, we learn more about the economics behind running a poultry farming operation in Mzansi.
In this episode of Farmer’s Inside Track, Tinyiko Khoza, a Centurion poultry farmer, is our guest. She breaks down a few of the crucial factors that affect new farmers’ profitability and cost-efficiency.
Visit the local agricultural department
Khoza says that it is important to conduct market research before establishing a poultry business. She adds that the department of agriculture might have all the marketing-related information you would require, including information on funders.
“The cost differs from small-scale farmers compared to commercial farmers in poultry, because poultry farming is a numbers game. What I mean about this is that the more you spend on input, the less you’ll pay.”
Farmers on a smaller scale will naturally begin with a smaller number, perhaps [one hundred] or more, but they will also pay more. Khoza points out that commercial farmers can save money by purchasing in large quantities.
She explains that the standard part of establishing a small farm is that you cannot negotiate like a commercial farmer, which is expensive.
“The commercial farmer has an upper hand in negotiating the prices. As a small-scale farmer, you don’t get the power to negotiate for prices, you take what is given or presented to you.”
Khoza covers a lot during the session, including:
- The high cost of producing broilers due to high input and output expenses;
- The high cost of operating a broiler farm in Mzansi; and
- Specifications for running a broiler business.
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