SA Premier Poultry Business Plan — Key Performance Indicators
The throughput, yield, contribution per bird and food safety indicators reported daily and weekly, with intervention thresholds.
Key Performance Indicators
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Scale and Business Model
- 3. Registration, Food Safety and Compliance
- 4. Market and Customers
- 5. SWOT and Competitive Position
- 6. Operations
- 7. Financial Plan
- 8. Break-Even and Debt Service
- 9. Investment Analysis
- 10. Sensitivity and Scenario Analysis
- 11. Risk Analysis
- 12. Implementation Roadmap
- 13. Key Performance Indicators
- 14. Key Assumptions
- 15. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Throughput, Yield and Cost Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this plant should be managed. Three of them — dressed yield, contribution per bird and the live bird price — are calculated daily rather than monthly, because the spread moves continuously and appears in a financial ratio a year after it appears on the floor.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Dressed yield |
Eviscerated carcass weight divided by live weight received |
73.0% |
Two points is worth R3071016 of annual EBITDA — more than a 12% move in processing costs |
|
Contribution per bird |
Revenue per bird less live cost, inbound transport and processing |
R18.88 |
The spread is the business. It is visible daily and appears in a cover ratio a year later |
|
Live bird price per kilogram |
Invoiced live cost divided by live weight received |
At or below R24.50 |
Contribution reaches zero at R34.17. Headroom is 40% |
|
Birds processed a day |
Birds slaughtered divided by trading days |
8 000 single shift, 14 000 double |
Break-even is 5591 a day at the Year 3 mix |
|
Own-account share of throughput |
Own-account birds divided by birds processed |
Rising from 62% to 82% |
Own account earns R18.88 a bird against R2.68 on toll |
|
By-product recovery per bird |
By-product revenue divided by birds processed |
R5.22 |
27.6% of contribution. Without it break-even rises to 7620 birds a day |
|
Dead on arrival and condemnations |
Birds rejected divided by birds received |
Below 0.8% |
Deducted before processing; every rejected bird carries its full purchase cost |
|
Working capital employed |
Receivables plus stock less payables |
Tracked monthly against the facility |
Exceeds the R24 000 000 facility from Year 4. Earnings must be retained |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.30x from Year 4 |
Negative in Year 1. Covenants must be tested from Year 3 |
|
Grower concentration |
Largest grower share of live bird supply |
Below 20% |
A board policy rather than an aspiration, across 10 to 15 contracted growers |