Chicken farming seems to be a low-cost point of entry into the food production system. Many emergent producers are solicited into his sector by offerings of standardized production systems. Typically, a farmer will be offered day old chicks, feed, chicken batteries or structures and “pure” bred chickens appropriate to this system of production, in addition to an off-take system that promises to establish the farmer as a chicken farmer.
Farmers are offered this as a lucrative opportunity with almost everything already decided and planned for. These offerings deliver the same technology, chickens, feed and markets similar to what we would expect from larger producers, and this is how this is sold to farmers. Farmers are thus promised a production system similar to larger and established producers as means to enter the market.
The offering above seems lucrative as farmers are offered “state of the art” equipment and processes. From this, it seems reasonable that a farmer would be profitable, as this is what others are doing. This system unfortunately holds untold dangers for emerging farmers. This article will elaborate on why this kind of approach is not conducive to emerging farmers, and what they can do to establish themselves as chicken farmers.
The first issue to be raised is the fact that a farmer adopting this “ready-made” system will be entering the system, and the competition in it, with no real advantage. If all producers adopt the same system, then no one has a comparative advantage. Adopting these systems pushes a farmer to a place where only large producers have any advantage. Hence, adopting such standardized systems undermines competition in the sector and leaves smaller producers at the mercy of larger producers who can offer the same chickens for lower process, based on their economies of scale. The lesson is that farmers need to find ways to bypass the costs of the inputs and infrastructure in order to be competitive. They need to understand that their activities are determined by the choice of production system, and this system closes off opportunities to innovate.
Farmers need to see their adoption of technology as a choice of production methods. Allowing someone else to control all of these factors, allows the farmers enterprise to be controlled by bigger market forces that push out smaller producers.
What can farmers do to enter the economic system, or chicken value chain, so that they are in control of the development of their own enterprises? What real options do farmers have in this regard? In buying a ready-made system, farmers should note that profits are already built-in when these are acquired. The farmer is being farmed by such ready-made system. This forces the farmer to raise prices making her products uncompetitive.
Farmers need to consider innovating and build alternative production systems, and we need to see this as a means to change the value chains wherein a chicken farmer operates.
Farmers need to enter the value chain downstream of the production system. They need to find ways to create the inputs themselves in order to be competitive. Doing so will allow them to sell at more competitive process, as they are eliminating the profits others make as they sell feed and other inputs to chicken farmers. Prices determine everything, and if a farmer can sell at more competitive process, they will capture markets and get ahead. Can a farmer not source or produced chocken feed themselves? Can we not produce suitable feed by harvesting wastes and crops from additional system? What synergies can be found with other biological systems, like worms, or insect farming? Are free range chickens not perhaps a better idea? How can such a system be constructed? Perhaps a lower volume of chickens can be sold at higher profits? Farmers need to consider all options and engage in their value chains to become competitive. Remember, everyone is in competition with supermarkets and there are opportunities to beat these prices. Farmers can do so by commanding their whole value chain.
Upstream, farmers are often locked-into off-take agreements, based on the acquisition of standardized production systems. Here, farmers need to be aware of the profits that are already built into the system. It is likely that farmers will be “farmed” in such a system as the original sellers of these systems have already build in their profits. Farmers, if they by-pass the system, have the opportunity to create a production system that enables them to gain the profits that others aim to capture.
Farmers are also able to create their own markets and this is how they can by-pass existing retailers and thus farmers can gain this profit for themselves. Farmers need to be aware that their own communities buy on the open market and thus profits leave the local community, making everyone less wealthy. The sim is to capture these profits and let the value circulate in the community. Should a farmer be able to by-pass retailers and create their own markets, they will be able to sell at below retail level, and in this way secure local market and profits for themselves. The long term impact on the community will be positive. Everyone will be eating better for cheaper, and this will make capital available in local communities for additional enterprises to thrive. Farmers can start this cycle of virtuous development in local areas only if they are able to build their enterprises in such a way that they can deliver cheaper than the supermarkets. Please see my lectures on the Start up Tribe where I explain how to build a circular enterprise that conserves and builds value in local communities.
When farmers adopt ready-made solutions, they undermine their own agency. There are quite a few examples available on the net on how to build chicken houses for very low costs. We will also hear in the Farmers’ Lab from Caroline McCann on how to build your own with discarded materials like old mattresses. Also see the posting I will make available from Sunny Morgan (https://www.facebook.com/sunny.morgan.3979), and his simple low cost chicken house.
Farmers should also realise the benefits and importance of alternative regenerative and biological systems of production. Because we define conventional farming as farming without nature, biological processes offer a whole range of alternatives. These can enhance competitiveness as they bypass the exploitative system and generate their value. Chickens are very good scavengers and can be fed with food wastes (as long as it is still fresh) and can exploit sources of food like worms in cattle dung, and can also be fed with home grown feed like worms and insects. I recall a farmer in the early days of the Farmers’ Lab who would regularly pick up roadkill as feed for his free range chickens.
Chickens can also be integrated with other systems, like vegetables. Allow your chickens to enter your tunnel every morning. They will first of all eat the insects before they eat your crops. Removing them after half an hour will allow you some pest control and also enrich the soil with the chicken manure. Any produce that cannot be sold can be given to chickens. This is better than composting it. Chicken manure should be composted and the compost should be given to worms and the worm casings given as compost. This more elaborate a biological system, the more value it creates for the farmer. This is how an emerging farmer can beat the system, by constructing a robust biological system at home and selectively harvesting from this.
It may also be good to observe what seeds birds eat in nature, and plant these trees in your yard for chickens to forage on. Indigofera Cylindrica, the Rivierverfbos produces pods with seeds that wild birds love. Consider planting trees in your yard that can feed your chickens. Now you have constructed a system that feeds itself and this is the value you need to beat the competition. Enhance this system with composting, terracing and contouring so you capture water, and integrate the community (as suppliers of food waste as chicken feed) and build a loyalty programme so you capture the market.
This allows us to reflect on how economic system operate, an any entrepreneur should pay attention to this. These systems are ungoverned – which means we leave the outcomes of this system to the interaction amongst people in the economy. This ignores the differences in power, size and ability of different producers. Entering such a system holds dangers that farmers will be enrolled into systems that may exploit them. Farmers need to understand that they can construct more conducive systems for economic entry in and around their farms. These do not have to be grand and large systems but need to be focused on the local scale and exploit advantages a local farmers would have over supermarket systems. These systems are expensive and large and this is their weakest point. Farmers engaging in both upstream input supply and in downstream retail will create certain advantages. In this regard, I have developed training materials on izindabazokudla.com and on the Start Up Tribe. Farmers need to understand that current business models represent the overall system, which is ungoverned and has tendencies to become inequitable. Farmers can only rely on themselves to create better futures for themselves. This is possible, and we can conclude on the key means to achieve this:
Think about the biological systems, digital systems, and community engagement as a broad technological system of engagement with your customers. Design and change this system until it works for you. Biology can save you lots in inputs and make your system efficient. Build your own chicken houses. Produce your own feed or buy it from a local farmer and mix it yourself. Let your chickens eat outside your feed system, and cultivate these inputs yourself by harvesting food waste, planting the right trees and mixing your own feed. Let your chicken be happy!
Build community relations as input suppliers and as marketing channels. Be aware that you may be able to produce at lower cost than retail, and you need to exploit this advantage you have.
Understand economic systems as networks of activity that can be changed. Build your community into your networks, as they are your customers and their patronage is key to your success. Build deep relations and your farm will be supported
Please click the link: https://web.facebook.com/events/224562999452494
Dear Friends of iZindaba Zokudla Please click the link below to attend the iZindaba Zokudla Virtual Farmers’ Lab on the 9th of April at 1300 until 1430.
Please click the link below to join! We will be hosting Toekie Sekgobela from Gung Boerdry in Zuurbekom. Tookie is an organic farmer and trainer and a successful farmers in her own right. Her training academy is in Zuurbekom and is AgriSeta accredited. Caroline McCann from Slow Food Southern Africa will discuss how to start a chicken farm with no money! We will also host Mr Godfrey Leshage a farmer and agricultural consultant and official at the Johannesburg Fresh Produce market. The aim of this Farmers Lab is to understand how to start and thrive as a chicken farmer using basic regenerative and small-scale methods.
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