SA Premier Poultry Business Plan — Appendix B: Throughput, Yield and Cost Schedules

Detailed throughput, dressing yield and cost schedules underpinning the revenue build and contribution per bird.

Appendix B: Throughput, Yield and Cost Schedules

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  • B.1 Throughput and mix
  • B.2 Price and cost path
  • B.3 Unit economics per bird
  • B.4 Scale comparison
  • B.5 Break-even by year

B.1 Throughput and mix

Year 1

Year 2

Year 3

Year 4

Year 5

Birds a day

4 800

6 800

8 000

11 000

14 000

Trading days

255

255

255

255

255

Birds a year

1 224 000

1 734 000

2 040 000

2 805 000

3 570 000

Less dead on arrival and condemnations at 0.8%

(9 792)

(13 872)

(16 320)

(22 440)

(28 560)

Birds processed

1 214 208

1 720 128

2 023 680

2 782 560

3 541 440

Own-account birds

753 338

1 238 932

1 579 058

2 226 985

2 905 130

Contract slaughter birds

461 399

481 636

445 209

556 510

637 457

Own-account share of throughput

62.0%

72.0%

78.0%

80.0%

82.0%

Dressed product, tonnes

1 072

1 763

2 247

3 169

4 134

B.2 Price and cost path

Per unit

Year 1

Year 2

Year 3

Year 4

Year 5

Blended dressed price, R/kg

49.48

52.35

55.39

58.60

62.00

Live bird price, R/kg

24.50

25.97

27.53

29.18

30.93

Contract slaughter fee, R a bird

9.60

10.16

10.75

11.37

12.03

Blended contribution, R a bird

12.72

14.34

15.32

15.64

15.96

Live purchases as a share of revenue

60.2%

62.0%

62.9%

63.3%

63.7%

B.3 Unit economics per bird

Per bird processed, own account

Amount

Note

Dressed carcass revenue

R70.41

1.423 kg at R49.48/kg

By-product revenue

R5.22

27.6% of contribution

Total revenue per bird

R75.63

Live bird purchase

(R47.77)

63.2% of revenue per bird

Inbound transport and crating

(R1.35)

Processing cost

(R7.65)

Contribution per bird

R18.88

25.0% of revenue

Contribution without by-products

R13.66

Break-even rises to 7 620 birds a day

Contract slaughter contribution

R2.68

Break-even on toll alone is 31 961 birds a day

B.4 Scale comparison

Plant configuration

Birds a day

Capital

Fixed cost per bird

EBITDA at capacity

Break-even a day

Low throughput, under 2 000 a day

1 950

R22m

R18.04

(1 352 520)

2 296

Small high throughput

4 000

R46m

R14.03

1 315 800

3 663

This plan, single shift

8 000

R75m

R9.70

11 464 800

5 065

This plan, double shift

14 000

R89m

R6.85

30 237 900

6 260

B.5 Break-even by year

Year 1

Year 2

Year 3

Year 4

Year 5

Fixed cash costs, R

19 623 884

20 703 197

21 841 873

28 503 398

30 071 085

Blended contribution per bird, R

12.72

14.34

15.32

15.64

15.96

Break-even birds a year

1 542 758

1 443 738

1 425 710

1 822 468

1 884 153

Break-even birds a day

6 050

5 662

5 591

7 147

7 389

Planned birds a day

4 800

6 800

8 000

11 000

14 000

Break-even as a share of plan

126.0%

83.3%

69.9%

65.0%

52.8%

Margin of safety

-26.0%

16.7%

30.1%

35.0%

47.2%