Hiding out of the rain in Christchurch...

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13 years 11 months ago #23139 by tonyhavens
Hi all,

My family of five arrived in NZ 20 months ago after 18 years in China.

I am now looking to fulfill a long held dream of working on the land - I grew up living on boats, and it has been my business for many years too.

I believe that with my lack of experience/background I would find it very hard to compete with those born to the business, in most farming areas. So I have studying the situation, and think I have found a solution; to this end, I am looking to invest most of my hard earned capital in a Broiler Chicken business near Chch.

Does anybody have any information that might help or know anybody in the business. I worry a bit, because it is a monopsony business, where a contract chicken farmer does not actualy have any control over the inputs - he relies entirely on one of the three main integrated producers to provide chickens, feed and they determine pay and return on investment at the end of the day.

Kindest regards... Tony in Chch

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13 years 11 months ago #330786 by spoook
Welcome Tony, sounds like a big leap but I am sure we have someone to assist you.

There are no bad questions only those that are not asked.
"You are responsible, forever, for what you have tamed"

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13 years 11 months ago #330793 by LongRidge
You will have an interesting hour or so costing out what you need to get back for it to be a reasonable return. Because the land is not being used except for storage (ie it's not growing anything that the animals will eat), the land rental is about $100 per acre per year. I would guess that the building rental is nearer $400 per year, depending very much on size. Electricity/heating about $2500 per year. Your labour is worth about $18 per hour. All plus GST.
Good luck. I guess that you know that LSBs can be Life Sentence Blocks that require good planning to get away from for a day or two holiday. We had a weekend away together last November .... :-)

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13 years 11 months ago #330797 by tonyhavens

LongRidge;317549 wrote: You will have an interesting hour or so costing out what you need to get back for it to be a reasonable return. Because the land is not being used except for storage (ie it's not growing anything that the animals will eat), the land rental is about $100 per acre per year. I would guess that the building rental is nearer $400 per year, depending very much on size. Electricity/heating about $2500 per year. Your labour is worth about $18 per hour. All plus GST.
Good luck. I guess that you know that LSBs can be Life Sentence Blocks that require good planning to get away from for a day or two holiday. We had a weekend away together last November .... :-)

Hi Longridge,

LSB!!..hehe, yes - the property I am looking at is worth about 2.2m, the banks would pony up half. It has two houses (and over five hectares land), and I was planning on installing my Mum in one house - she would be able to look after the chooks (about 70-80,000) when we want a break. I was just looking for some feedback from someone who has raised broilers commercialy, to find out whether it is a good lifestyle/income choice... I really don't want to be "selling insurance" or something, for a living..

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13 years 11 months ago #330806 by sod
Welcome sorry I cant help but someone:) on here can I'm sure.

Having time is a measure of enthusiasm:rolleyes:

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13 years 11 months ago #330824 by Sue
Hi tony, yes I've plenty of background to what you are intending to do. I used to manage the breeder flocks which produced the broiler chicks to grow in the type of enterprise you are looking at!

I'm sure the Company will advise you as to where to go for advice or to speak to other growers to find out the details. Most growing regions have a Growers group who meet regularly to discuss common problems.

Done properly I believe it can give good rewards as payement is based on the quality of the job, eg low mortality and good feed efficiency and kgs to the plant at the end of a run.

You are restricted by the Company as to numbers of birds per batch and number of batches per year, which is dependant on the market requirements, but you can maximise the possible returns bydoing a good job. Attention to detail at placement, attention to ventilation and temperature profiles and ensuring strict hygiene is attended to during clean outs.

If you need any specifics please feel to send me a private message and ask away if you don't want to do so on line. Perhaps a good accountant familiar with the grower payments and expectations would be worth talking to.

So are you looking at 2 sheds of 35,000 bird?
Probably 5 or 6 runs per year so once you have found out the payment per kg X birds x runs per year you will able to work out the returns to service the loan, pay expenses and see if the return is reasonable.

The outgoing owners should be able to give you a rough guide to returns etc over the past years.

As to lifestyle, there are only two really busy periods with broilers. The first week of life and the clean out between each batch!
In between you can have a pretty cruisy lifestyle if the sheds are up to the minute with automatic everything else and all you have to do is walk through 2 or 3 times a day and check it is all going well!

Sue
Labrador lover for yonks, breeder of pedigree Murray Grey cattle for almost as long, and passionate poultry person for more years than I care to count.

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13 years 11 months ago #330825 by Sue
Just read your initial concerns again.
Remember all businesses, especially farming ones, are just as dependant on big monopolies and in a way this gives a certain amount of confidence in returns.

Just think of dairy farmers relying on Fonterra which in turn relies on the world price of milk powder. They determine the quota that each farmer has to supply and is the sole buyer of the milk.
Grain farmers are bound by yearly contracts and prices.
Lamb and beef farmers have very limited outlets for their meat and once again the price they get is determined by the US dollar and the overseas market.

At least with the chicken market it is all virtually internally consumed, so apart from the grain prices fluctuations-which you don't have to buy anyway, the returns are based on your own success in managing the birds and the feed which is supplied to you, to do the very best job you can to get top quality birds to the plant.

Yes, the company will tell you on what date you get your chickens, how many you get,, what date they will be killed and how long you have between one batch and the next.

In return they will monitor how the birds are growing, will give you advice on how to get the best out of them, you will have veterinary advisors on call, you have a united voice through the Growers group you can be a part of and chicken is the most popular meat per head of population and has some way to go before we reach the popularity of kgs/head it is overseas!

Sue
Labrador lover for yonks, breeder of pedigree Murray Grey cattle for almost as long, and passionate poultry person for more years than I care to count.

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13 years 11 months ago #330839 by Jack
Gidday

Tony, that sure wouldn't be for me, but you can be reasured that the advice you get from Sue will be as good as you can get anywhere.

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13 years 11 months ago #330841 by tonyhavens
Hi - I'd like to thank this community, and in particular Sue for answering my query in such an informative manner. Given the size of the investment, and my lack of experience in the sector I have been feeling my way forward with some care - and having read horror sories out of the USA regarding predatory relationships between producers and farmers I have been feeling nervous...

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