Preface:
The farmer will need to budget R119 880 to grow 4000 Day old chicks over 32 days. Considering a 4% mortality, the farmer will be paid R124 684.8 , 7 days after collection. Profit of R4804.80 on 4000 birds. 3.86% ROI over 32 days. This increases to 8% if you can produce without any mortality.
This contract is between GroChick (hereinafter referred to as “GroChick”) and [Farmer Name: ] (hereinafter referred to as “Farmer”).
1. Scope of Work
GroChick will sell all inputs, including feed, bedding, medication, and day-old chicks, to Farmer. Farmer will use their facilities to grow 4000 chickens every week from day-old chicks to 32 days, at which point they should weigh between 1.8-2.2kg. Data should be collected on the average mass of the chicks daily. Workers should sterilise their hands and equipment. Mortality should be recorded daily. Feed consumption should be recorded daily. Water consumption should be recorded daily.
Coop preparation:
Chicken coops should be prepared at least 1 week before a fresh batch of chicks is delivered. Fresh bedding will arrive the day after the coop is cleaned and collect bags of manure for waste removal.
Coop cleaning:
Coops need to be cleaned on the same day that the chickens are collected. This date is 32 days after the day old chicks arrive at the farm. The manure should be collected in feed bags and loaded onto a truck to send for waste removal. The coop should be disinfected with a prescribed cleaning agent which is supplied by a vendor on GroSpace. The coop must be prepared for the following batch of chicks which will arrive in 7 days according to a planned schedule.
2. Payment
Farmer will order the inputs list3d below on GroSpace. Payment for this order will secure the order. The order is only valid for 7 days after which time the order is automatically cancelled. Farmer will be paid the input cost of feed, bedding, medication, and the cost of day-old chicks plus R1.25 per kg. The input costs are as follows:
- Feed: R10.2/kg of finished product
- Bedding: R0.625/kg of finished product
- Medication: R0.32/kg of finished product
- Day-old chicks: R3.84/kg of finished product
Total inputs: R14.985/kg
- Farmer income: R1.25/kg = R16.235/kg
Farmer will be paid a projected R62,500 every 32 days after the mentioned input costs are considered. This will be the case for an all in all out method of farming. This is for 25 000 birds per 32 day cycle. Currently the farmer will be farming on a weekly supply schedule of 4000 day old chicks.
3. Quality Standards
The chickens must meet the following quality standards:
- Weight: 1.8-2.2kg
- Health: Free of disease
- Appearance: Clean and free of feathers
If a chicken does not meet the quality standards, Farmer will be paid R0.75/kg plus the input costs mentioned above.
4. Termination
Either party may terminate this contract at any time, for any reason, by giving 30 days’ written notice to the other party.
5. Governing Law
This contract will be governed by and construed in accordance with the laws of the Republic of South Africa.
6. Entire Agreement
This contract constitutes the entire agreement between the parties and supersedes all prior agreements, representations, and understandings between the parties, whether written or oral.
7. Severability
If any provision of this contract is held to be invalid or unenforceable, such provision will be struck from this contract and the remaining provisions will remain in full force and effect.
8. Waiver
No waiver of any provision of this contract will be effective unless in writing and signed by both parties.
9. Notices
All notices and other communications under this contract will be in writing and will be deemed to have been duly given when delivered in person, upon the first business day following deposit in the United States mail, postage prepaid, certified or registered, return receipt requested, addressed as follows:
If to GroChick:
GroChick RN20 New Thorndale, Johannebsurg South Africa
If to Farmer:
or to such other address as either party may designate in writing from time to time.
10. Headings
The headings in this contract are for convenience only and will not affect its interpretation.
11. Counterparts
This contract may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this contract as of the date first written above.
GroChick
By:
[Signature]
Farmer
By:
[Signature]