Keeping a few chickens in the backyard is a tradition in many communities across South Africa, but the commercial poultry business is a different beast, with many moving parts that have to sync for a business to succeed. This is the view of Brendon de Boer, the CEO of Country Bird Holdings.
Poultry producers need resilience and resources in the face of many challenges, and those affect everyone. Whether you are a large integrated company such as Country Bird Holdings (CBH) whose business stretches along the value chain from feed production to raising broilers that in turn supply its abattoirs and further processing facilities; or a subsistence farmer raising 500 birds in your garage.
The difference is that the integrated producers have economies of scale on our side, which puts us in a somewhat better place to weather the storms of avian flu, rising feed costs, load shedding and the predatory trade that erodes our market with dumped imports. Smaller producers typically operate alone, and lack any buffer, so that any of the above-mentioned crises can have a devastating impact, and even completely wipe out someone’s livelihood. We’ve seen that too many times.
I have so much respect for those farmers who operate alone and will do whatever is required to keep their business ticking over, who put in the hours to keep their flocks safe, comfortable, fed, and watered. But the ideal situation for any farmer is to be part of a supportive community, not only as a lifeline when times are hard, but also to provide good counsel and the benefit of experience during the good times, when strategic decisions are taken to move a business forward.
At CBH it is our privilege to be able to play that supportive role for several small- and medium-scale producers, and it is an ongoing adventure to look for those poultry people who have the disposition and drive to succeed, who would benefit from getting a leg up into the commercial production space.
Achieving of masterplan objectives
The poultry masterplan called on the poultry industry to invest in expanding production, and to take the steps that will lead to transformation and a more inclusive industry.
We have seen that the best way to achieve these objectives is for the private sector to align with promising producers in the informal industry, and to collaborate with government to provide the practical support in crossing the t’s and dotting the i’s that are required to make funding a reality.
The case study of Northroost Hatchery is the culmination of such a process and represents a very proud day for everyone who collaborated to get this excellent facility off the ground in Limpopo.
And make no mistake, this success story has been a team effort which was dependent on the cooperation of every member – starting with a hard-working, savvy entrepreneur who researched his market thoroughly, to the integrated producers who could share hard inputs, production know-how and daily support, to government officials who shepherded the way through the regulatory landscape to get the funding that would ultimately make the hatchery a reality.
A game-changer for Tigere
At CBH we liked Clive Tigere from the first meeting – a young statistics graduate who had decided to exchange a corporate career for poultry farming. He was very focused on success, he’d researched his market niche, and he was certainly not afraid of going the extra mile.
Quite literally, he did not flinch at the prospect of driving 1 200km every week to collect the fertilised eggs we offered from our facility in Lichtenburg in North West. These eggs would give him the edge in Makhado, where broiler farmers were battling to get good-quality day-old chicks to raise for the live-bird market.
And as Clive tells it, these eggs that called on him to take a 16-hour round trip every week, changed this business. He had been correct in spotting this opportunity. It certainly also changed our perspective. It opened up a new market for us, and it followed logically to introduce Clive to our Limpopo-based colleagues at Bushvalley Chickens, who were closer and better placed to help with day-to-day support.
The next level of collaboration came when Clive approached the IDC for funding to expand his business, and we could assist with the time-consuming and complex processes required – which would overwhelm any entrepreneur who is also trying to run a business singlehandedly. We had decided to formalise a joint-venture agreement between Clive’s KC Hatchery, CBH and Bushvalley, with the aim to establish a bigger, commercially viable hatchery in Makhado.
Believing in the impossible
Making the circle bigger, the Industrial Development Corporation (IDC), the department of trade, industry, and competition (DTIC), and the department of agriculture, land reform and rural development came on board, providing the essential government support that would finally make Northroost Hatchery a reality.
As Imameleng Mothebe, the director of the DTIC’s agroprocessing unit and one of the key partners in the venture, told us, “This is one of the few large-scale black-owned hatcheries, and a key supplier to Limpopo and surrounds. It is led by a young South African, setting an example for the youth, and showing it can be done.
“It also demonstrates what can be achieved through partnerships between the private sector, entrepreneurs, and government. One of the key aspects of the poultry masterplan is meaningful transformation along the value chain – Northroost is a typical example of what can be achieved if all stakeholders work together.”
A wise man once said that to succeed in business you need common sense, the ability to work hard, and luck. And I have to add one more element to that – a community to support you. Looking ahead, our mission will be to look for more projects as strong as Northroost, along the entire poultry value chain, to extract the full value of these lessons in collaboration and the transformative power of teamwork.
- Brendon de Boer is the CEO of Country Bird Holdings. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of Food For Mzansi.
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