Khanya Eggs Business Plan — Key Performance Indicators
The production, cost and financial indicators monitored per flock cycle, with the thresholds that trigger management intervention.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice
- 1. Executive Summary
- 2. The South African Egg Market
- 3. Avian Influenza: The Risk That Defines This Business
- 4. SWOT and Competitive Position
- 5. The Five-Stage Roadmap
- 6. The Funding Ladder
- 7. Flock Performance
- 8. Feed Strategy
- 9. Point-of-Lay Pullet Sourcing
- 10. Biosecurity
- 11. Route to Market and Pricing
- 12. Operations and People
- 13. Regulation and Compliance
- 14. Unit Economics
- 15. Capital Expenditure
- 16. Financial Projections
- 17. Break-Even
- 18. Sensitivity and the Grant Question
- 19. Risk Management
- 20. Implementation Roadmap
- 21. Returns
- 22. Key Performance Indicators
- 23. Key Assumptions
- 24. Conclusion
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Stage Capital Schedules
- C. Appendix C: Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Funding Application Checklist
- F. Appendix F: Glossary
The following are recorded daily or weekly and reported monthly. Three of them, hen-day production, mortality and the financial records behind them, are gate conditions, and every funder in Section 6 will ask for them.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Hens in lay |
Average birds in production |
21 000 by Year 5 |
The volume driver; everything scales from it |
|
Hen-day production |
Eggs laid ÷ hen-days |
Above 80% from Stage 3 |
The gate condition at every stage |
|
Mortality |
Birds lost ÷ birds placed |
Below 6% per cycle |
Each point is roughly R120 000 of Year 5 gross margin |
|
Feed conversion |
Kilogrammes of feed per dozen eggs |
Tracked monthly |
Feed is 56.2% of direct cost |
|
Feed cost per egg |
Feed ÷ eggs sold |
R0.97 at Year 5 |
The single largest line in the cost of an egg |
|
Gross margin per hen |
Gross margin ÷ average hens in lay |
R372.70 at Year 5 |
Divided into fixed cost it gives the break-even flock |
|
Direct sales share |
Direct and local trade ÷ total eggs |
Above 55% |
The channel mix that makes the blended price work |
|
Saleable percentage |
Grade A eggs ÷ eggs laid |
Above 94% |
Cracks and seconds are pure margin loss |
|
Biosecurity audit |
Scored audit against the protocol |
100% compliance |
HPAI is uninsured and uncompensated |
|
Debt service cover |
EBITDA ÷ interest and scheduled principal |
Above 1.5x from Stage 5 |
The Stage 5 gate condition |