Category Archives: agribusiness

Poultry Farm Records Keeping – Part II

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This is a follow on from https://kungu.farm/2014/06/08/farm-record-management/ which goes into more detail into the details of records management that we have developed over the years

The image below illustrates a sample page for tracking daily information for one of our flocks

Daily Record Sheet for Poultry Farm Flock

The key pieces of data collected

  1. Feeding plan – when and how much drinking water & feed are provided
  2. Any mortalities during the day and root cause analysis
  3. What medication has been provied in the water or feed
  4. Egg production – these are picked from the hatching boxes every hour to reduce damage, egg eating and brooding (when the hens sit on the eggs), with a production percentage computed and tracked

A summary of this information is sent via SMS message to the Operations manager daily e.g.,

House A 17kgs, water 3jerricans, alive hens 229,B in good condition water 2jerricans, feed 10kgs, alive chicks 193

How do you keep records on your farm?

Surviving the COVID Lockdown – A Farmer’s Perspective

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March 31, 2020 will forever be etched into our minds, as the President of Uganda announced a 14 day lockdown with no movement of private cars, only motorcyles, lorries and pickups allowed.

At first glance I can say that we were very fortuate, as our most senior staff at the farm had left the day before to see his wife through childbirth for their second child who was due April 9th, but came April 2nd. He would definitely have missed the birth and first days had he stayed a day longer.

This was the test of the processes and tools that we had put in place since we started this joruney in January 2013:

  1. Feed preparation
    • This is fully outsourced although we control the formulation process, and fully mixed, packed food is delivered to the farm in 100kg bags. We weigh on delivery and cross check with the order made. This proved to be the right call as the trust relation with the feed mixing provider meant we did not have to be present at all times, and transactions could be completed remotely.
    • During this process due to stockout of the 10% concentrate formulation we successfully moved to a 5% concentrate formulation
    • The feed is prepared once a week, which reduces the need for adding preservatives to keep it for longer, and provides an opportunity to make quick changes based on feedback from the birds – always measured by productivity
  2. Farm Records Management
    • On a daily basis we track the total feed and water consumption, production (number of trays per house) which provided remote visibility into how the farm was running
    • In addition we track finer details such how many eggs were picked per hour, how much feed and water is given in the morning and afternoon. This helps spot trends and changes in behavior based on weather and other factors
  3. Production and Sales Management
    • Previously we delivered to our customers which removed visitors from the farm, helping us manage biosecurity and good old security since no visitors are allowed to come in and eggs to leave. However with the lockdown this changed due to transport constraints
    • All deliveries were pre-paid before pickup as no credit was allowed, intially payments were made to the bank (via agent banking) however now this had to change to mobile money due to movement restrictions
    • Stock management – we agressively manage our stock having order levels at 120% of production, and carefully managing our customer deliveries to keep them happy. This was put to the test with a double punch of 3-week lockdown extension and start of Ramadhan, which pushed prices to below cost and at one time we had 800 trays (over 2 weeks of production)
    • Price management – we track and manage egg sales price based on the cost of feeds
  4. Farm Operations – we have regular activities at the farm to maintain the health of the birds which include
    • Monthly deworming followed by Newcastle vaccination
    • Scheduled pre-emptive veterinary service visits to check on the stool, and look for any signs of sickness as well as assess overall biosecurity controls. Additional visits would be triggered by changes in feed & water consumption plus productivity
    • Movement Sticker – we got this one through application to the Ministry of Works, as the farm is a registered legal entity that also files taxes with URA, so proof of need was not difficult to provide
    • The two staff who were at the farm during this period did a tremendous job earning themselve a 50% monthly salary bonus, for holding the fort.
    • The production manager had 2 daily checkin calls (or more)

The lockdown has now been eased with a partial re-opening started, which has pushed up demand and has provided a window for us to complete renovations and prepare for a new flock coming in on June 9, 2020.

What have been your lessons for running your farm operations during this lockdown? What will you change and improve for the future?

2020 Plans

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As the rest of the world is making New Year resolutions we have solidified our 2020 plans

  1. Grow current flock from 2,200 to 3,200 which is our installed capacity. This will enable us to leverage our 6 year learning journey and start turning it into profit
  2. Start livestock farming – this is part of our long term strategy of vertical integration and multiple revenue stream. The plan is
    • The livestock will be zero grazed and growing the numbers organically
    • Start goats herding from the does that we own but do not have a home. Construction of a goat pen
    • Diary farming – start with a heifer mid year as we figure out the feeding needs and processes
    • Immediately we shall get access to dung and urine which will improve the yields of our banana plantations
  3. One of our plantations seems to have a persistent infestation of Digitaria scalarum Chiov. (gramineae) commonly known as lumbugu, and despite all the hard work the soil quality too does not seem to be improving. So we are going to cut this down around the March rains, and plant sweet potatoes, followed by a maize & beans combo to provide alternate soil usage. This will provide a needed 18 month fallow period to better yields post 2021. The plan is to use the biomaterials – stems & leaves  mulch for the one which will be retained to give the necessary soil protection.

Looking forward to a busy 2020

An Alternate Business Model for Small Holder Farmers – Free Range Indeginous Chicken

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The commercial poultry business is now the rage with the increased demand for eggs and broilers, however it is fraught with peril due to the flock management needs, unstable prices of feed ingredients, weather (oh yes ask any farmer what the effects of the heat wave have been), feed formulation knowledge and not forgetting disease management due to the high numbers maintained in closed spaces. This business model requires specialized breeds whose genes have been formulated to grow fast (meat), have high productivity (layers) if managed well. This raises the capital and operational costs, which many cannot afford.

Based on our experience with commerical poulty, we would like to share an alternate business model, and our current progress with it, as a way of stimulating home-based agribusinesses. These are local birds, indeginous yes, which many have shunned over the years for kuroiler breeds (unfortunately we are not a big fan) so went back to our roots.

What are the major challenges with indeginous breeds that have been put forward:

  1. Diseases wipe them out
  2. Low productivity (eggs) and low weights (meat)
  3. Long growth times to achieve milestones
  4. Predators – rats, dogs and “humans”

In our experience, the business model and thinking is that the business model is what is wrong, leading to mismatched expectations. The commercial approach fot indeginous birds is not selling bulk in low value, but low numberrs of high quality and value.

What is our approach:

  1. The value of the local flock cannot be realized quickly, and has to be built over time so that it it self sustaining
  2. Leverage the learnings from the commerical poultry to fix some of the issues such as:
    • Disease management – follow the vaccination schedules for the commercial breeds to build immunity and reduce infection
    • Low productivity – supplement the diet with 30-50% commercial feeds to fix any deficiencies
    • Local additivies – leverage local plants such as aloevera, pupmkins, yams,  tree leaves (will provide names later), millet, sorghum, popcorn to supplement the diets
  3. Infrastructure:
    • Housing – ensure adequate space for the birds to spend the night away from predators such as dogs, and rats (yes we lost 10 1-month chicks)
    • Keep the place clean – oh yes this requires investment, but reduces on disease outbreaks
    • Feeders and drinkers – for local birds, are you kidding me, they can scavenge! Oh yes, look after them well and they will multiply
    • Free range area – demarkate an area for the birds to move around looking for food and scratch around, otherwise they collect diseases as they roam and also are prey for predators. We have not gotten to this stage yet but are getting there as the numbers grow
  4. How do we intend make money through the sale of:
    • Breeding stock – pullets and cocks since their lineage can be traced
    • Cocks for traditional ceremonies like kwanjulas, gifts to parents
    • Yellow yolk organic eggs at a premium
    • Pullets and cocks for food – very tasty for special occasions
  5. What do the numbers look like? This is a summary of the numbers in a way that makes sense on growth. All the chicks were brooded by their mothers
Month Additions Losses Notes
October 2018 3 – Initial stock – 1 Cock and 2 pullets
November 2018 6 pullets,

18 chicks

 1 pullet,

9 chicks

 Purchase of pullets.

Theft of a mother and her 9 babies,
December 2018 10 chicks 8 chicks Predator birds and wild animals
January 2019 15 chicks, 6 pullets 3 chicks A purchase of pullets from upcountry travels
February 2019 10 chicks 3 chicks Predator birds and wild animals
March 2019 4 chicks 8 chicks Rats killed the chicks so moved the mother to the main house
April 2019 4 chicks 8 pullets Had lots of dogs around the house during mating season so ate the birds in the mornings

As of today, 28 April 2019, we have 2 hens brooding 18 eggs, and a laying hen with about 10 eggs – they tend to start brooding at about 10 – 12 eggs, that seems to be the natural cycle.

2019-04-06 18.24.04

Happily walking around with the main cock

2019-04-06 17.59.51

Chicken house from locally made materials and frugal designs

2019-04-06 17.59.11

Drinker from jerrycan leveraged from commercial deep litter operations

2019-04-06 17.59.17

Locally made feeder usually used in deep litter

This Twitter thread covers similar ground for the construction of the house and how the flock is proceeding https://twitter.com/kungufarm/status/1080144748252418048?s=20

Brooder - view 2

New Flock Brooder – 7 day status update

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The babies are 1 week old just double checking statistics:

  1. Day old
    • Target weight: 35g to 40g
    • Average weight (sample of 100 birds): 38g
  2. 7 days
    • Target weight: 64g to 67g
    • Average weight (sample of 100 birds): 66g
  3. Target date of first egg: December 11, 2018

We are within the breeder’s recommended weight range, so is a good start.

The temperatures are generally warm during the day so no pots for additional heat till 8pm when it starts getting cooler.

The first Newcastle booster dose was also given today via a drop in the eye, we stick to the vaccination schedules like clockwork.

Brooder - view 1

Brooder – view 1

Brooder - view 2

Brooder – view 2

Agribusiness – 5 year Report Card

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The year 2017, is basically gone. It has been a 5 year journey in agriculture starting with our first bath of day-old layer chicks on January 3, 2013. Having walked this journey half a decade, this is a chance to look back on the road passed see what lies head

Wins

  1. Paid off capital investment debt, so now all operations are self funded
  2. Layer production processes strengthened with current flock beating all metrics: time to lay –  17.5 weeks (1 week early), productivity (87%)
  3. Strengthened logistics support system which is the foundation of our business model – feed production is a completly outsourced service
  4. Supported the development of a Poultry Farm Calculator developed by Styx Technology Group

Learnings

  1. Management processes are key to production all the way from human resource management, records keeping,
  2. Revenue projections on paper never reflect on the ground reality
  3. Data is king – we collect, analyse and review operations data on a regular basis, to drive decision making. We have had instances where our thoughts are in one direction, but the data tells a different story. Numbers never lie
  4. Information is power – over time we have learnt to read detailed documentation, experiences from around the world, and scientific papers to get grounding in the business we are in
  5. Make business model decisions and stay firm until they are validated – unlike traditional knowledge and advice, we made a strategic to outsource feed mixing as we were ill equipped, did not have the knowledge, and time but invested time in building a strong relationship with our feed supplier. This paid off as we can focus on core skills – production process improvements and increasing sales revenue
  6. Capital investment has to be strategic – the dream of many poultry farmers is to have high levels of automation such cages, automated drinkers which reduce human intervention, but require 100% more capital.
  7. Human resource management – this is a make or break area within any enterprise. We use semi-skilled labor, leveraging modern HR management practices for performance management, loyalty building to retain staff.
  8. Process, process, process – this is the foundation of decision making, and we keep the decisions to a minimum and explain why. Once this is well understood we have only had to tweak and never change a process.

Failures/Shortcomings

  1. Expansion into fish farming which as expected was a huge learning curve with inadequate local knowledge, so have to grow own knowledge
  2. Building a double storied structure – this was a consequence of having limited space with no options for expansion, however the capital would have been best invested in expansion elsewhere.

Look Ahead

  1. Formalize the paper based processed into clear documentation to help other farmers grow and develop
  2. Leverage partnership with Styx Technology Group to develop an end-to-end Poultry Management System for layers with analytics and business-level metrics
  3. Expand the farm operations to 10k birds which will provide economies of scale that drive profitability
  4. Expand into local indeginous chicken breeds with a different business model that suits them
  5. Vertical integration of dairy, lusuku and indeginous poultry on a single operation location

 

Mulching lusuku 

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Some of the key challenges for a lusuku are weed manageent, maintaining the fertility of the soils plus dealing with droughts especially with the unpredictable rains currently being experienced around the country.

Mulching provides a natural and organic measure of combatting all the challenges above but with its own constraint of finding suitable plant material in appreciable quantities to provide an adequate layer. Our drive to focus on staying away from chemical fertilizers and herbicides/pesticides is a further driver for our push to mulching.

What we have done:

  1. Provided 3 feet separation from the banana stools to the mulch
  2. Addition of ash (from regular charcoal based cooking) in the space without mulch to control nematodes and other pests
  3. Cutting off the dried out leaves to provide additional plant material for the mulch

Just before the next rains in March 2017, we shall look to add cattle and goat dung for manure.

Spacing for mulch around stool

Spacing for mulch around stool

Mulch view 1

Mulch view 1

Mulch view 2

Mulch view 2

Mulch view 3

Mulch view 3

Mulch view 4

Mulch view 4

Setting up Recirculating Aquaculture System for Concrete Tanks 

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As part of the expansion of the fish operations, the next phase is to improve the amount of control over the conditions within the ponds. Currently the water is only changed once in 3-4 days depending on the weather conditions.

The plan is:

  1. Setup RAS circulation with solid settlement and bio-filters (Ultra-violet light based)
  2. Setup a solar system to power the pumps moving the water
  3. Add a covering over the tanks to produce a “green-house” like effect to maintain the water temperatures in ranges that are ideal for tilapia

Settlement and bio-filter tanks

Top view of RAS

Poultry Feed Economics 101 – Changing Feed Supplier Scenario 

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Genesis East Africa

This is an interesting scenario brought about by Dr. Samuel Sewagudde of Genesis East Africa Ltd in one of a poultry Whatsapp group that highlights the challenges poultry farmers face in their business choices. I will use this scenario to provide step-by-step analysis of how to build the data for decision making.

Speaking of Economics, Catherine usually buys layer feed from Matama Feeds Ltd at UGX 800 sh a kg and her birds lay  averagely at  72%. At a recent Farmers Expo she met Augustine who works for Mulegi High Quality Feeds Ltd who convinced her that she would achieve 80% production if she uses Mulegi feeds. Mulegi layer feeds cost UGX 1000 sh per kg. Now if Catherine sells a tray of eggs at UGX 8000, Should Catherine switch and use Mulegi feeds?
In this computation the following assumptions have been made:
  1. Each bird eats 125g of feed per day
  2. The costs of the feeds include transportation so no additional costs are incurred with the feed
  3. There are no additional costs incurred in the sale of the eggs
Using the above information:
  1. Matama feeds cost UGX 100 per day while Mulegi Feeds cost UGX 125 per day
  2. At 72% production each bird generates UGX 192 per day (8000 * 0.72 divided by 30) while at 80% production the revenue per bird rises to 213/= (8000 * 0.8 divided by 30).
  3. The increase in cost of feed is UGX 25/= per bird per day while the increase in revenue is UGX 21/= per bird per day
Therefore changing feed providers means that Catherine will spend an additional UGX 4/= per bird per day, therefore the increase in production does not meet the increased costs of feed.
The moral of the story therefore is increased production does not always translate to increased profitability