Our first webinar – a closer look
This last week, ChickenFacts hosted its first-ever webinar. The webinar was in response to a growing awareness that a network was needed to bring together all the small, medium and emerging entrepreneurs in the poultry value chain who were quietly transforming the industry.
The webinar was hosted by ChickenFacts in conjunction with the Centre for Entrepreneurship Rapid Incubator programme at the Walter Sisulu University, in partnership with the Fast-Moving Consumer Goods Supplier Development Initiative in the Eastern Cape.
This is the link to an edited version of the webinar, and in our Closer Look we will explain the presentation and the discussion:
Introduction:
00.14: ChickenFacts researcher Niki Moore introduced the reason for the webinar and the participants introduced themselves.
10.50: Presenter Tim White introduced the session and gave a short background to the hosts.
14.17: Acting Centre Manager for the Centre for Entrepreneurship Rapid Incubator Programme Martha Mamoepa introduced the concept of incubators and described what they did:
The Centre for Entrepreneurship Rapid Incubator programme is based in Umtata, but does not only serve local clients, it is able to liaise with clients in other areas by holding virtual sessions.
Their incubator model consists of three phases: a pre-incubation phase, the incubation phase, and an ‘aftercare’ phase.
The pre-incubation phase consists of an evaluation of the business, finding out what type of intervention they require. Clients range from complete start-ups to established businesses that only need a little bit of guidance or problem-solving. Further training in the pre-incubation stage is entrepreneur-development, and upskilling.
The incubation phase is mostly about product refinement and market assessments. From there it goes to an acceleration phase which creates a go-to-market strategy and getting the client ready for an investor-pitch, if required.
The ‘aftercare’ phase is a support network, taking into account that many small businesses fail within the first two years. The incubator programme offers entrepreneurial support and financial advice.
There are 110 incubators around the country, with 17 in the Eastern Cape. For details about where they are, please get in contact with Martha Mamoepa at mmamoepa@wsu.ac.za
or 072 – 340-7737 or 047 – 501-1544
Value Chain
Tim White took the participants through the poultry value chain fact sheet
20:45 – Reason for fact sheet – the fact sheet was compiled to explain the implications of the Competition Commission review.
21:39 – Value Chain – the value chain was unpacked and described
22:25 – Marketing Channels
23;17 – Background to the poultry industry
24:09 – Statistics about the Broiler Industry
26:05 – The number of people employed in each sector
27:19 – Demand outstrips supply
28:48 – Barriers to entry for small and emerging farmers
- A study revealed that the value chain had a high level of concentration and vertical integration. This means that
- a) a small number of stakeholders had a large amount of control, and
- b) entities that controlled one aspect of the value chain were also able to control other aspects of the value chain.
- The formal industry directly employs almost 100 000 people. It is not known how many people are involved in the informal industry.
- Producer prices have increased by 72% over the last ten years
- Small and emerging farmers produce only 12% of the chicken supply
31:30 – The participants gave their input, with some important points:
-
- Small farmers struggle to access markets
- Small and emerging farmers can import eggs from Spain
- The export markets are wide open
- Animal diseases are a huge challenge
- Compliance is an issue
- Small farmers are immediately disadvantaged by the fact that they have to buy chicken feed from retailers and do not have access to wholesale feed.
The problems faced by all small and emerging farmers are:
– Loadshedding
– Transport costs
– Remoteness of farms or markets
– Shortage of abbatoirs
– Cost of feed
– Supply of eggs.
– Access to markets
– Avian Influenza
– Access to refrigeration
Way forward:
In conclusion, it was decided to have more webinars with specific topics, that government representatives and industry stakeholders will be invited to participate, that other incubators will be included in future programmes, that participants can join a Whatsapp group and e-mailing list. If you wish to be part of this initiative, please send your details to editor@chickenfacts.co.za