This document provides an overview of supply chain management for broiler production in Thailand and South Africa. It discusses the key elements of broiler supply chains in each country. In Thailand, the broiler industry is highly integrated and efficient, with large commercial farms producing over 70% of broilers. The supply chain is vertically coordinated to ensure quality and timely delivery. In contrast, South Africa's broiler industry is less efficient, with high feed costs, a reliance on imported maize, and infrastructure challenges that disadvantage smaller producers. Recommendations are provided to improve South Africa's broiler supply chain.

1. Supply Chain Management for Food Security and Trade Facility-Thai and South African Broiler Supply Chain
ARCHANA R. SATHYAN
JLU
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2. Outline
•Introduction
•Supply Chain Management (SCM)
•Global Broiler Production
•Thailand Broiler SCM
•South African Broiler SCM
•Case study analysis
•Conclusion
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3. Plan, do, check,
understand, act & shrink the time!
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4. SUPPLY CHAIN MANAGEMENT
Supplychainmanagementisdefinedasmanagementofallactivitiesinvolvedindeliveringaproductfromrawmaterialtocustomer:procurementofrawmaterials,manufacturing,warehousing, inventorytracking,ordermanagement, distributionanddeliveryacrossdifferentchannels.
(LUMMUS, 1999)
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5. Food supply chain
•An Agri-food supply chain is a supply chain which produces and distributes an agricultural or horticultural product.
2 Kinds
1. Fresh Agricultural products
2. Processed food products
( ARYAMAN, 2006)
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6. 1950-1970
1970-1980
1980-1990
1990-2008
Initiated Logistics 1950
SCM concept
1980
Initiated SCM in service industry 1995
Educational SCM 2007
SCM in manufacturing industry 1985
Evolution of SCM
Concept coined by KEITHOLIVER(1982) Matured Logistics 1970
Modification of HABIB& JUNGTHIRAPANICH, 2010
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7. Customer
Retailer
Distributor
Manufacturer
Supplier
FLOW OF GOODS
FLOW OF INFORMATION
ELEMENTS OF SUPPLY CHAIN
(Modifictaionof CHOPRAANDMEINDL, 2001)
FLOW OF FUNDS
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8. 1.Production(What, How, When)
3. Location
(Where is the best)
4. Transportation
(How & when to move)
2. Inventory
(How much to make & store)
THE DRIVERS
GANESHANet al, 1995
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5. Information(Basis for all decisions)

9. VALUE CHAIN
•Theterm‘ValueChain’-MICHAELPORTERin"CompetitiveAdvantage:CreatingandSustainingsuperiorPerformance"(1985)
•Valuechainanalysisdescribestheactivitieswithinandaroundanorganization,andrelatesthemtoananalysisofthecompetitivestrengthoftheorganization
(PORTER, 1985)
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10. Firm infrastructure
Human resource management
Technology developmentProcurement
Inbound logistics
Operations
Outbound logistics
Marketing and sales
servicesSupport activities
Primary activities
VALUE CHAIN
(PORTER, 1985)
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11. Broiler SCM
Funds flow
Funds flow
Goods flow
Own compilation
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12. Problem statement
•Broiler -Fastest growing and flexible livestock sector
•Satisfy the nutritional need of SSA (59%) & SA (34%) (FARRELL,2013)
•Price competitiveness & convenience
•Effective tool to alleviate poverty
•Major contributor to GDP(24% of Agri. Production in SA)
•South Africa becomes an importer and major consumer?
•Thailand –Emerging exporter?
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13. BRAZIL
M.EAST
1/3rd
•Annual Growth Rate–3-4%
•Growing exporters-China, Argentina and THAILAND
SOUTH AFRICA
•84.6 Million tones
•USA, Brazil & China (53%)
GLOBAL BROILER SCENARIO
(USDA, 2013)
USA
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14. Growing exporter’s market shareNeal et al, 2008
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15. Per capita consumption 19.8 kg/yrProduction -1.6 Million T (9th) Export-0.54 MT (3rd) Growth rate -6.67%
Thai Broiler chain-‘Kitchen of the world’
(www.index mundi.com)
(NFI, 2013)
(USDA, 2013) 3rdlargest exporter
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16. Sl. No
Year
Production
(MillionT)
Growth rate
1
2008
1.170
11.43 %
2
2009
1.200
2.56 %
3
2010
1.280
6.67 %
4
2011
1.350
5.47 %
5
2012
1.550
14.81 %
6
2013
1.500
-3.23 %
7
2014
1.600
6.67 %
Broiler meat production in Thailandfrom 2008-2014
Source:www.indexmundi.com
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17. Percentage of Thai poultry production and producers by farm type
Percentage of poultry productionIntegrated commercial farms
Large commercial farms
Small Commercial/Backyard farms
70% 20% Percentage of poultry producers
98%
NEALet al, 2008
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Charoen Pokphand, Betagro

18. Breeding companyUS/UK
Breeding farm
Hatchery
Company farmContract farm
AbattoirProcessing companyWholesalerSuper markets
Other outlets
Wet markets
Export
33%
G. Parent stock
Parent stock
D.O.C
Live birds
Slaughtered birds
Extra parts
Whole birds/parts
Premium/pre cooked Domestic market
Vertical IntegrationModification of NEALet al, 200818

19. Integrated FirmLandEVAPHolding facilitiesFarm labourFirm veterinarian
Farm feed company
Broiler production farm
Firm processing
Firm hatchery
Infrastructure
Services
Vaccine
D.O.C
Finished BirdsModification of NEALet al, 2008
Flow of inputs and information to a broiler farm
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20. 1. Production
•Feed-cassava
•30 years of experience
•Tropical climate & plains
•Intensive farming
•Regular evaluation
•HACCP3. Location
•Concentrated in middle Thailand
•Closeness to importers4. Transportation
•Good (80.8%)
•Shipment to Japan(2 weeks) 2. Inventory
•Well equipped slaughter houses and processing
•3.4% increase in consumption 5. Information
•Tax relaxation –ASEAN
•Favorable Govt. policies
•Forecasting
•)
THE DRIVERS-Quality and quantity at right time
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21. BACKYARD POULTRY
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22. Why do small holders go far behind???
•Can not compete!
•No contracts! no loans! high interest rates!
•HPAI outbreak, changed farm standards
•Moving to duck/livestock sector
•Native chicken no export! Limited Supply Chain
•Household consumption/income/cock fight
•Scavenging types
•73% no vaccination!
•No veterinarian, only volunteers
•Home consumption/Aggregator/Consumer
(SUDSAWASD, 2008)
(NEALet al, 2008)
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23. South African Broiler chain
39kg/yr
•Production -1.4 million T
•Consumption -1.7million T (9th)
•Expected increase in consumption- 7%
•Importers-Brazil (53%) and The Netherlands
•Export -0.01 Million TJOUBERTet al, 2013SAPA, 2012
Per capita consumption-
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24. Genetic material (imported)
Cobb 500, Ross 308
Grandparent operations
Parent rearing farm
Breeder houseHatcheries
Integrated farmsContract grower farms
Independent producersAbattoirprocessingImports33%Distribution
Exports
2.2%
Retail
50.87%
Wholesale
25.91% Restaurants 15.19%
Domestic consumption
Commercial feed industry
Others 5.83%
7 companies
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25. Broiler meat export and import quantities in SA from 2003-12
DAVIDS, 2014
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26. Brazil USA SA(DAVIDS, 2014) Broiler efficiency benchmarks-Comparison with major players and SA
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27. Lack of day old chicks!
Transaction cost very high! Long distance!
(Lovell, 2014)
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28. Lack of abattoirs and freezers!
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Olden days

29. Small growers supply 12% of broiler production
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30. Transportation isexpensive
(JOUBERTet al, 2014) (LOVELL, 2014) Poor condition of roads!!!!!!!
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31. (JOUBERTet al, 2014)
(Louw, 2011) 1. Maize is the major feed-import from Brazil! 2. A few feed companies dominate the market3. Increased price of maize
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32. % Change in broiler and feed price (SA)
(DAVIDS, 2014)
Feed cost -157%
Price of chicken -61%
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33. (LOVELL, 2014) (JOUBERTetal, 2014)
Thailand
•Vertical Integration
•Entry barriers to competitors
•Soy & Maize feed(cassava )
•Greater imports of feed (biodiesel)
•Antibiotic stress development
South Africa
•Vertical integration
•Limited share for small holders
•Maize price & dominator feed companies
•Day Old Chicks supply
•Weak infrastructure support(NEALet al, 2008) (NARANONG, 2007) Comparative analysis of Broiler supply chain
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34. Thailand
•Bio security concerns
•pharmaceutical and vaccine free chicken
•Fuel price high
•Antibiotic resistant bacteria from the farms
•Government support
South Africa
•Lack of abattoirs
•Dumping of Brazilian poultry
•Poor condition of roads
•Poor extension and market information service
•Government support less
(NEALet al, 2008) (NARANONG, 2007)
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35. 1.Production
•Day old chicks
•Infrastructure
•Feed supply
•Vaccine supply2. Inventory
•Freezers
•Diversification to processed products5. Information
•Demand forecasting
•Good government policies
•Farmer’s organisations
•Training on marketing and veterinary
•Extension services
•Credit facility
•Antidumping tariff policies4. Transportation
•Good conditioned roads
•Import to neighbouring countries3. Location
•Concentrate big farms near to service centres
Recommendations
(Joubertet al, 2014)
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36. Thank you!
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