Poultry farming is not just about raising chickens; it’s an opportunity to contribute to food security, create jobs, and build a sustainable business. Alleen Magumbi, a poultry farmer based in Hartebeespoort west of Johannesburg, shared his journey and practical advice on entering this sector during a recent interview. Here’s a step-by-step guide based on his insights and experiences.
Step 1: Have a Vision and Start Small
Magumbi’s journey into poultry farming began unexpectedly. “Some opportunities come from God,” he explains. Although he started as an engineer in the construction industry, he transitioned into poultry farming because of a chance opportunity.
If you’re new to poultry farming, start with what you have. For many South Africans, raising chickens in the backyard is a familiar concept. This foundational knowledge can help you establish a small-scale operation. “It’s not going to be easy, like any business, but you start with what you’ve got and grow from there,” Magumbi advises.
Step 2: Learn the Science Behind Poultry Farming
Raising chickens involves more than just feeding and watering them. You need to provide the right amount of light, feed, and water to ensure healthy growth. The South African Poultry Association (SAPA) offers valuable resources, including training programmes and mentorship from experienced farmers.
“At the end of the day, you need good feed and proper systems to make sure the chicks are healthy. Once that’s in place, you’re good to go,” says Magumbi.
Step 3: Secure Funding and Expand Gradually
Expanding your operation requires funding, which can be a significant challenge. Magumbi highlights the importance of knocking on the right doors and forming partnerships. “Even if you start small, look for contracts with bigger players or approach the government for funding opportunities,” he recommends.
Magumbi’s own journey included acquiring an abattoir in Krugersdorp to improve his supply chain and market access. “It’s not easy, but with commitment and persistence, you can grow,” he adds.
Step 4: Build Market Access
Gaining market access is crucial for success in poultry farming. Start by selling to your local community, then expand as your operation grows. Magumbi’s advice is to demonstrate your dedication and quality. “As long as they see that you’re committed and good at what you do, opportunities will open up.”
His farm in Hartebeespoort produces 550,000 chickens in a six-week cycle and employs 46 staff members. This scale was achieved through consistent effort and leveraging local networks.
Step 5: Address Challenges Head-On
Poultry farming is not without its difficulties. High costs of feed, electricity, and competition from cheaper imports can make margins tight. Load-shedding adds another layer of complexity, forcing farmers to rely on costly generators.
“The anti-dumping tariffs being suspended makes it hard to compete with imported chicken,” Magumbi explains. However, he emphasises that understanding the market and planning strategically can help mitigate these challenges.
Step 6: Explore Opportunities for Growth and Learning
Magumbi underscores the importance of learning from global experts. He recently attended the World Poultry Congress in Paris to gain insights and bring back knowledge to improve his operations. “For me to grow in this space, I need to understand what’s happening globally and apply it locally,” he says.
Action Plan: Requirements for Poultry Farming in South Africa
This action plan outlines the steps, resources, funding avenues, and organisations required to start and grow a poultry farming operation in South Africa. Each step is designed to ensure a smooth process from setup to market access.
Step 1: Define Your Business Vision and Plan
- Decide on the Scale
- Small-scale backyard farming (100–500 chickens)
- Medium-scale farming (500–5,000 chickens)
- Commercial-scale farming (10,000+ chickens)
- Business Plan Development
- Include goals, projected costs, production targets, and potential market access strategies.
- Use templates provided by AgriSETA (Agricultural Sector Education Training Authority) to structure your business plan.
Step 2: Secure Land and Infrastructure
- Find Suitable Land
- Ensure the location has access to electricity, clean water, and good road infrastructure.
- Areas like Hartebeespoort, Bronkhorstspruit, and Stellenbosch are popular poultry farming hubs.
- Build Infrastructure
- Purchase or build chicken coops, brooders, and feeding systems.
- Seek guidance from the South African Poultry Association (SAPA) for optimal design.
- Cost Estimates
- Small-scale setup: R50,000–R100,000.
- Medium-scale setup: R200,000–R500,000.
- Commercial-scale setup: R1 million+.
Step 3: Source Funding
- Government Grants and Loans
- Comprehensive Agricultural Support Programme (CASP): Provides grants for infrastructure, equipment, and inputs.
- Land Bank: Offers agricultural loans with tailored repayment options.
- Private Sector Options
- Banks like Nedbank, Absa, and Standard Bank offer agricultural loans.
- Partner with funding bodies like SEFA (Small Enterprise Finance Agency).
- Community-Based Financing
- Join cooperatives or local farmer associations to pool resources.
Step 4: Acquire Chicks and Feed
- Reliable Suppliers
- Contact companies like Astral Foods or Rainbow Chicken for chicks.
- Look into smaller hatcheries for affordability: e.g., Pioneer Foods Hatcheries.
- Feed Supply
- Use trusted feed suppliers like Meadow Feeds or Nova Feeds.
- Cost Estimates
- One-day-old chick: R10–R15 per chick.
- Feed for one cycle (6 weeks): R25–R30 per bird.
Step 5: Train and Develop Skills
- Training Opportunities
- Enrol in workshops offered by AgriSETA or SAPA.
- Consider short courses at Elsenburg Agricultural College or Cedara College of Agriculture.
- Mentorship
- Join local farmer networks for guidance.
- Organisations like Grain SA and Agricultural Research Council (ARC) offer mentorship programmes.
Step 6: Register Your Business
- Register as a Farmer
- Register with DALRRD (Department of Agriculture, Land Reform, and Rural Development).
- Join SAPA for industry support.
- Comply with Regulations
- Obtain necessary permits for operating a poultry farm.
- Ensure compliance with biosecurity measures and waste disposal regulations.
Step 7: Access the Market
- Initial Sales
- Start by selling in your local community or through informal markets.
- Partner with Retailers
- Approach supermarket chains like Shoprite, Pick n Pay, or Spar for supply contracts.
- Build Processing Capability
- If possible, acquire or partner with local abattoirs to manage processing.
- Example: Magumbi partnered with an abattoir in Krugersdorp to handle slaughtering.
Step 8: Plan for Expansion
- Scale Production
- Increase the number of chicks and upgrade infrastructure as demand grows.
- Secure Bigger Contracts
- Partner with larger buyers like Tiger Brands or food service providers such as KFC.
- Hire Staff
- Employ workers from local communities to assist with operations.
Cost Breakdown for a Small-Scale Operation
| Item | Estimated Cost |
|---|---|
| Land Lease/Setup | R20,000 – R50,000 |
| Infrastructure (Coops) | R30,000 – R60,000 |
| Chicks (500) | R5,000 – R7,500 |
| Feed (6-week cycle) | R15,000 – R20,000 |
| Training and Mentorship | R5,000 – R10,000 |
| Total | R75,000 – R147,500 |
Final Thoughts
Poultry farming in South Africa is a growing industry with potential for job creation and economic impact. Magumbi’s farm aims to increase its staff from 46 to 200 by year-end. While challenges like funding and market competition persist, his story proves that with determination, education, and the right resources, success is achievable.
As Magumbi says, “The most important thing is commitment. You won’t get it right the first time, but gradually, you’ll build something meaningful.”