Contract poultry growing is fairly popular with foreigners or even OFW with a bit of capital because the farming is systematized and reduces risks for many farmers. However, if you have never had any experience raising poultry under contract in the Philippines, you are likely going to face various sets of challenges that might cut into your margins or put you in the red. These myriad challenges include the following:-
The Local Corrupt Official
There will always be that local official trying to take advantage of you and skim off some cash off you for the certain violations or the flimsiest of reasons. Before you embark on a contract poultry growing enterprise, make sure you have all the permits and paperwork in order to avoid future difficulties.
The Cheating Manager
If you are an absentee owner such as an OFW or a foreigner that is new in the game, you will increasingly have to rely on a local manager to look after your contract growing enterprise. If happens to be dishonest, he will be cheating you on virtually every cost ranging from the chick account to the cost of vaccines and feeding.
Cost of Electricity
The Philippines has one of the highest electricity costs in the world and in the hot summers, you will have to rely more and more on this electrical power to maintain ventilation and control climate to ensure optimal growing conditions for your broilers. That is likely to ramp up the costs of operating your broiler farm. One of the solutions that we have suggested is installing solar panels on your poultry farm to cut down on energy costs over the long term. Solar panel installation is a costly investment and is ideal if you have purchased the land outright or have a long lease.
Theft from Outside
Invest in good security. Your flock might stolen by thieves from outside the farm when they are mature and just about ready for the market so you shouldn’t overlook external risks.
Philippine Typhoons
Typhoons are quite common in the Philippines and if you don’t have a robust poultry house for your broilers, it is likely to be swept away by the storms. You must therefore invest in excellent poultry housing. Don’t scrimp on poultry housing. Hire professionals who will construct a strong and durable poultry house that is suitable for the Philippine weather and climate.
High Costs of Medication
The cost of medication or vet products is quite high in the Philippines so you should factor in when venturing into a broiler farming enterprise.
Stringent Contract Grower Requirements
The leading contract poultry growing companies such as SMFI and Vitarich have very stringent contract growing requirements. Take time with an expert to study these requirements and prepare adequately for the application process. It is important to carry out a comprehensive feasibility study before you decide to venture into contract poultry growing in the Philippines.
Unreliable Landowners
If you will be leasing land, choose a good landowner and sign legal contracts that will guarantee you access to the land for a reasonable duration of time. Some landowners may be “unpredictable” and may evict you if you do not enforce sufficient legal protections for your contract poultry growing enterprise.
These are some of the risks that you should factor in when starting a contract poultry farming enterprise in the Philippines. Do your research first, save enough money and hire a good farm manager to manage your poultry farm. Consider purchasing your piece of land under corporation and if you are renting the land, look for an honest and reliable land owner.