Section 19 · Business Plan
Feed Procurement and Nutrition Strategy
Feed constitutes the single largest operating cost in intensive pig production, typically representing 55% to 65% of total production costs. Effective feed procurement, storage, and nutritional management are therefore critical to the financial viability of the operation. Pork Master Farms will implement…
19.1 Feed Strategy Overview
Feed constitutes the single largest operating cost in intensive pig production, typically representing 55% to 65% of total production costs. Effective feed procurement, storage, and nutritional management are therefore critical to the financial viability of the operation. Pork Master Farms will implement a comprehensive feed strategy designed to ensure consistent access to high-quality feed ingredients at competitive prices, while optimising nutritional formulations for each stage of the production cycle.
19.2 Feed Formulation by Production Stage
Feed formulations will be developed in consultation with a qualified animal nutritionist and will be adjusted seasonally and based on ingredient availability and price. The Company will operate its own on-farm feed mill with a capacity of approximately 200 tonnes, enabling the purchase of raw ingredients in bulk and the formulation of custom rations optimised for the specific genetics, environmental conditions, and production targets of the operation.
| Feed Type | Protein % | Energy (MJ DE/kg) | Key Ingredients | Daily Intake (kg) |
|---|---|---|---|---|
| Sow Gestation | 14-15% | 13.0 | Maize, soya, wheat bran, minerals | 2.2-2.8 |
| Sow Lactation | 17-18% | 14.0 | Maize, soya, fish meal, fat, minerals | 5.0-7.0 |
| Creep Feed | 21-22% | 14.5 | Milk powder, maize, soya, enzymes | 0.1-0.3 |
| Weaner Starter | 19-20% | 14.0 | Maize, soya, whey, acidifiers | 0.5-1.0 |
| Grower | 16-17% | 13.5 | Maize, soya, sunflower, minerals | 1.5-2.5 |
| Finisher | 14-15% | 13.0 | Maize, soya, sunflower, limestone | 2.5-3.5 |
| Boar | 15-16% | 13.0 | Maize, soya, minerals, vitamins | 2.5-3.0 |
19.3 Raw Material Procurement Strategy
The principal feed ingredients are yellow maize and soya bean meal, which together account for approximately 75% to 80% of the feed formulation by volume. South Africa is a significant maize producer, but both maize and soya prices are subject to considerable volatility driven by weather conditions, exchange rate movements, and international commodity markets. The Company will implement the following procurement strategies to manage feed cost risk:
| Strategy | Description | Risk Mitigation Benefit |
|---|---|---|
| Forward Contracting | Lock in prices for 3-6 months of maize and soya requirements | Price certainty; budget accuracy |
| Multiple Supplier Relationships | Maintain contracts with at least 3 feed ingredient suppliers | Supply security; competitive pricing |
| Bulk Purchasing | Purchase in full truckloads to achieve volume discounts | 5-8% cost saving on spot prices |
| On-Farm Storage | 200-tonne capacity enabling opportunistic purchasing | Buy when prices are favourable |
| Alternative Ingredients | Evaluate sunflower meal, canola meal as partial soya substitutes | Cost flexibility when soya is expensive |
| SAFEX Monitoring | Track South African Futures Exchange commodity prices daily | Informed purchasing decisions |
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