CluckCore Integrated Poultry Group — Products & Services
The broiler value chain, the unit economics and the product and service offering underpinning CluckCore.
Section 6 · Business Plan
Products & Services
The broiler value chain, the unit economics and the product and service offering underpinning CluckCore.
| Line | Description | Margin character |
|---|---|---|
| CluckCore Fresh Range | Whole chickens; portion packs (legs, wings, breasts); offal (liver, gizzards, feet) | Commodity, thin, feed-cost-driven |
| CluckCore Processing Services | Contract slaughtering, portioning, packaging, labelling | Fee-based, higher, asset-light margin |
| CluckCore Bulk Supply | Wholesale boxes, restaurant packs, catering trays | Volume, moderate margin |
| CluckCore Cold Chain Logistics | Refrigerated transport, storage & distribution hubs | Service, infrastructure annuity |
| CluckCore Value-Add (Phase 2) | Marinated, ready-to-cook, IQF frozen products | Branded, highest margin |
The revenue mix is the crux of the investment case. For the sponsor’s
margins to hold, processing fees, cold-chain and value-added
lines must contribute a large and growing share, the plan
assumes roughly half of revenue comes from these higher-margin services
and products by FY2031, with commodity bird sales the balance. If the
mix reverts toward commodity sales (where margins are thin and
feed-driven), blended EBITDA margins fall sharply toward the industry
band. This mix assumption deserves the most careful diligence of any in
the plan.
The broiler value chain & unit economics
Poultry economics are best understood per bird. The table reduces the
plan to the economics of a single broiler through CluckCore’s chain,
distinguishing an own-bird sale from a contract-slaughter (service)
bird, the two very different margin profiles that the blended plan
combines.
| Per-bird economics (indicative) | Own bird (product) | Contract slaughter (service) |
|---|---|---|
| Live-bird / feed cost | R58 (grown or bought) | R0 (farmer’s bird) |
| Slaughter & processing cost | R14 | R14 |
| Cold-chain & distribution | R6 | R3 (often farmer-collected) |
| Total cost to CluckCore | R78 | R17 |
| Revenue (≈1.6kg dressed) | ~R95 (R59/kg blended) | R28 slaughter fee |
| Gross margin per bird | ~R17 (18%) | ~R11 (39%) |
| Working capital tied up | High (owns the bird & feed) | Minimal (fee only) |
The contrast is the whole strategy in miniature: the own-bird
product line is thin-margin and working-capital-heavy
(CluckCore carries the feed and live-bird cost), whereas the
contract-slaughter service is high-margin and
asset-light (the farmer carries the bird; CluckCore rents out
its abattoir). The plan’s above-sector margins depend on the service and
value-added lines growing fast enough to lift the blend, which is both
the opportunity and the key risk. A bird processed as a service earns
less absolute rand but far more margin per rand of capital employed, and
it is the reason the abattoir-as-a-service model is central, not
incidental, to the returns.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of CluckCore Integrated Poultry Group (Pty) Ltd.