Aim:
M-Way aims to restart farming broiler chickens in the short term.
Target:
Install sustainable heating system for 1 chicken coop. A low capital expenditure is advised to allow for future pivots without the weight of a heavy debt responsibility.
Discussion
We have been considering multiple options to farm broilers at your farm. After much thought and calculation the simplest method will be to grow the birds for the live market until an abattoir is erected to slaughter on site. The market is tight at the moment with the price of feed increasing rapidly whereas the price of chickens has remained relatively constant. This has caused a shift in the market which leaves your current operation rather ineffective and not profitable without change. This disparity forces the farmer to think differently. Forget the old technology and invest in clean energy heating systems.
I ran the models for replacing your old technology with new sustainable technology and the result was very positive. I have provisionally decided on a minimal loan application to lower your costs whilst we install simple and sustainable clean energy sources on your farm to warm your chicken coops and produce endless energy for your future expansion.
Your heating will no longer use coal, it is dirty, very inefficient and frankly we have moved past the industrial revolution where this was an accessible resource. It is heavy to transport and its polluting the environment. It’s time to think clean energy along with suitable energy. Your current liability to Eskom is a risk for funders and their unreliable supply is costly and poses a high risk factor for any investor.
Investors such as the Land Bank are interested in a moderate risk profile with a tight spread. Your reliance on Eskom as your only source of electricity and coal for heating is antiquated and damaging to the environment.
You are producing over 34 tons of biomass per 28 day cycle. This is equivalent to a fully laden interlink of potential energy. This energy is being produced every month and you can now use it to power your entire farm.
The Problem
We forecast that the continual increase in electrical tariffs and rolling blackouts aka load shedding from Eskom will surely place your business into foreclosure along with 80-90% of small to medium scale broiler farmers. The effect has already been noticed in January-February 2023 with the steep drop off in day old chicks sales. Farmers are simply not placing day old chicks for the fear of blackouts and subsequent mortalities.
Experience
I personally have run numerous trials over the past 3 months and I have noted a 90+% mortality rate for small scale broiler farming. Without consistent electricity I reverted to using a generator which cost me R5000 above the usual rate to run my lighting. On top of this, I had to get up every 2-4 hours to turn the generator on and off again. I lost 95% of my chicks. 2400/2500 mortalities. This has been mentally and physically draining. The input costs are sky rocketing.
Input costs
Feed has increased by 75-100% yet the price for the live chicken has remained the same as what it was 6 years back. “R45 stock price”. This was when the market was less fragmented and buyers were running to purchase stock from farmers. Over the past 2 years the market fragmented during the PESI voucher campaign by C. Ramaphosa. I now empathise with every small to medium scale farmer which is why I have developed a solution to this problem.
The Solution
Biogas powered broiler farming. Biogas is clean and sustainable. Your waste is the fuel and GroBio is the tool. GroBio is a turnkey solution that implements gas boilers to heat a liquid which heats your chicken coop. It’s simple to install and it is modular which means that you can start off small and grow. Your electricity bill, forget it, your heating bill too.
BioGas is the future
Financial Plan documents
A good idea can be written on a paper napkin in a coffee shop and nothing more will happen unless time is spent to meticulously plan a rollout strategy. First though, you need to understand the financials. You can take aloof below for the working draft of the financial plan needed to implement this strategy. This document will be updated and the changes will be shown live always. Make sure to bookmark this page and add it to your favourites.
Contract farming
If you found this information interesting and empowering, register for a consultation today to discuss sustainable contract farming for GroSpace. If you want to book a consultation within the next 7-14 days click the link below.