Khanya Eggs Business Plan — Operations and People
The daily operating rhythm, the staffing establishment as the flock scales, and the owner's role at each stage of the roadmap.
Operations and People
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- 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
- 12.1 The team
- 12.2 Daily discipline
12.1 The team
|
Role |
From |
Responsibility |
|---|---|---|
|
Founder and manager |
Stage 1 |
Everything at Stage 1: husbandry, sales, records, deliveries and compliance |
|
Poultry attendant |
Stage 2 |
Daily feeding, watering, egg collection and house hygiene |
|
Second attendant and driver |
Stage 3 |
Second house rotation and the weekly delivery round |
|
Grading and packing staff |
Stage 3 |
Grading, packing, tray handling and despatch records |
|
Farm manager |
Stage 4 |
Day-to-day husbandry, batch records, biosecurity and staff supervision |
|
Sales and accounts |
Stage 4 |
Trade relationships, invoicing, credit control and the retail relationship |
|
Feed mill operator |
Stage 5 |
Milling, mixing, ingredient purchasing and ration quality control |
|
Retained veterinarian |
Stage 1 |
Health programme, vaccination, disease investigation and the quarterly biosecurity audit |
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
|---|---|---|---|---|---|
|
Labour cost (R’000) |
48 |
138 |
318 |
620 |
1 050 |
|
Owner remuneration (R’000) |
96 |
132 |
186 |
246 |
312 |
|
Combined payroll (R’000) |
144 |
270 |
504 |
866 |
1 362 |
|
As a share of the fixed cost base |
50.0% |
52.5% |
51.3% |
50.1% |
49.3% |
|
As a share of revenue |
56.3% |
25.6% |
15.6% |
10.4% |
7.4% |
Combined payroll falls from 56.3 per cent of revenue in Stage 1 to 7.4 per cent by Stage 5, and that fall is the largest single contributor to the margin expansion. Owner remuneration is treated as a real cost from Stage 1 at R96 000 rising to R312 000, and it is included in the fixed cost base against which the break-even flock in Section 17 is calculated, which is why that figure can be relied upon.
12.2 Daily discipline
- Eggs are collected at least twice daily; an egg left in the house is a cracked or dirty egg.
- Feed and water are checked morning and evening; a hen that runs short drops out of lay and takes a week to return.
- Mortality is recorded by house every day and removed to the disposal pit immediately.
- Egg numbers, feed consumed and mortality are recorded by house daily, these are the three numbers every funder in Section 6 will ask for.
- Houses are cleaned, disinfected and rested between batches without exception; all-in all-out by house is the structural defence in Section 3.