Sun Valley Poultry

[duratanium]

I've been informed that Sun Valley Poultry Thailand have been having problems making payment to rearers of hens over the last month or so and wondered if anyone else has heard of similar problems with Sun Valley? Was told there had been reports on the tv news but we have not heard anything.

Or if you know people who have been paid normally, that would help also.

Could be we are being fed b*llsh*t. but you never know

Thx

I have googled extensively but there seems very little on inet

[Monkeypants]

We are having the same problems with Saha farms, Interim payments and delays on recieiving the monies owed

[Tilapia]

This is why I changed my evap chicken-broiler farm to Tilapia farm, we had 5 houses with the total of 100.000 chickens, I started in 1999 and I quit in October last year, I was fed up with all the rules and the time you had to wait in-between crops + that they were cheating with the feed and the weight for the chickens.

I really feel that the contract farmer is just bending over, while the big integreated companies are taking a dump on them.

Cheers

Tilapia.

[duratanium]

We are having the same problems with Saha farms, Interim payments and delays on recieiving the monies owed

This is why I changed my evap chicken-broiler farm to Tilapia farm, we had 5 houses with the total of 100.000 chickens, I started in 1999 and I quit in October last year, I was fed up with all the rules and the time you had to wait in-between crops + that they were cheating with the feed and the weight for the chickens.

I really feel that the contract farmer is just bending over, while the big integreated companies are taking a dump on them.

Cheers

Tilapia.

Thanks for that. Appreciated.

Seems that big business the world over loves to do the same thing.

At least I can use that as a base for working out my next move regards the chicken rearers.

[Tilapia]

I wish you the best of luck.

Regards

[SAP]

Tilipia

I agree 100% it happens with sweet corn factories, tomato factories, tobacco basically any small factory that is not financially secure.

Then when you deal with the big boys, CP and the works they pay ontime as far as I know, but they have you so screwed down on price and quality that you are hardly treading water.

[Tilapia]

Tilipia

I agree 100% it happens with sweet corn factories, tomato factories, tobacco basically any small factory that is not financially secure.

Then when you deal with the big boys, CP and the works they pay ontime as far as I know, but they have you so screwed down on price and quality that you are hardly treading water.

So true, last year CP wanted me to upgrade the farm with automatic feed-system and I would have to buy a 10-wheel truck to transport the feed as well, total 5mill baht I asked them if I would get paid more for the chicken, and the answer was no, more like the opposite, so I said no to do the upgrade, and they terminate my contract with them. These changed was CP's own idea, not requirements from the EU, it is simply CP's way to get farmers to quit...what a nice company they are

Regards

[Monkeypants]

Tilipia

I agree 100% it happens with sweet corn factories, tomato factories, tobacco basically any small factory that is not financially secure.

Then when you deal with the big boys, CP and the works they pay ontime as far as I know, but they have you so screwed down on price and quality that you are hardly treading water.

So true, last year CP wanted me to upgrade the farm with automatic feed-system and I would have to buy a 10-wheel truck to transport the feed as well, total 5mill baht I asked them if I would get paid more for the chicken, and the answer was no, more like the opposite, so I said no to do the upgrade, and they terminate my contract with them. These changed was CP's own idea, not requirements from the EU, it is simply CP's way to get farmers to quit...what a nice company they are

Regards

Why would CP want you to quit, ?

It just doesn't make any business sense whatsoever?

I have just taken over an established 12,000 capacity broiler farm, built in the last 3 years, all top fans and generator back up, although not automatic feed, but automatic water supply, and Saha Farms come and take away the chikens at approx 45 days, with there own trucks, labour etc.

I am hoping that the Thai broiler market is coming out of the bird flu recession, but I know its a gamble.

One thing that doe's worry me is the price per kilo, and the fact that they do not weigh the chickens as they are loading them into the crates, but they tell you the weight when it reaches the factory.....

All my Thai relations have chicken farms along with fish, and various fruit and veg is always for sale, all have new cars/trucks and are doing quite well out of it, despite the downturn in production over the last 2/3 years.

They used to be able to have a stock turn 5/6 times a year, this is now down to only 4..

[Tilapia]

Tilipia

I agree 100% it happens with sweet corn factories, tomato factories, tobacco basically any small factory that is not financially secure.

Then when you deal with the big boys, CP and the works they pay ontime as far as I know, but they have you so screwed down on price and quality that you are hardly treading water.

So true, last year CP wanted me to upgrade the farm with automatic feed-system and I would have to buy a 10-wheel truck to transport the feed as well, total 5mill baht I asked them if I would get paid more for the chicken, and the answer was no, more like the opposite, so I said no to do the upgrade, and they terminate my contract with them. These changed was CP's own idea, not requirements from the EU, it is simply CP's way to get farmers to quit...what a nice company they are

Regards

Why would CP want you to quit, ?

It just doesn't make any business sense whatsoever?

I have just taken over an established 12,000 capacity broiler farm, built in the last 3 years, all top fans and generator back up, although not automatic feed, but automatic water supply, and Saha Farms come and take away the chikens at approx 45 days, with there own trucks, labour etc.

I am hoping that the Thai broiler market is coming out of the bird flu recession, but I know its a gamble.

One thing that doe's worry me is the price per kilo, and the fact that they do not weigh the chickens as they are loading them into the crates, but they tell you the weight when it reaches the factory.....

All my Thai relations have chicken farms along with fish, and various fruit and veg is always for sale, all have new cars/trucks and are doing quite well out of it, despite the downturn in production over the last 2/3 years.

They used to be able to have a stock turn 5/6 times a year, this is now down to only 4..

CP want the farms to stop, because there is an overproduction of chickens at the moment, the export market is down big time, and EU have set a max limit on what Thailand can export to the EU.

Before the bird-flu it was a ok business, there were about 8-9 companies who did contract farming, now it is down to around 5, and they do talk together. They are in total control of how much profit or loss you will make, They supply the day old chicks, the feed, the medicine, the transport, and they buy the chickens back from you.....They control everything, so no chance of making money if they dont want you to.

Regards

[Monkeypants]

Tilipia

I agree 100% it happens with sweet corn factories, tomato factories, tobacco basically any small factory that is not financially secure.

Then when you deal with the big boys, CP and the works they pay ontime as far as I know, but they have you so screwed down on price and quality that you are hardly treading water.

So true, last year CP wanted me to upgrade the farm with automatic feed-system and I would have to buy a 10-wheel truck to transport the feed as well, total 5mill baht I asked them if I would get paid more for the chicken, and the answer was no, more like the opposite, so I said no to do the upgrade, and they terminate my contract with them. These changed was CP's own idea, not requirements from the EU, it is simply CP's way to get farmers to quit...what a nice company they are

Regards

Why would CP want you to quit, ?

It just doesn't make any business sense whatsoever?

I have just taken over an established 12,000 capacity broiler farm, built in the last 3 years, all top fans and generator back up, although not automatic feed, but automatic water supply, and Saha Farms come and take away the chikens at approx 45 days, with there own trucks, labour etc.

I am hoping that the Thai broiler market is coming out of the bird flu recession, but I know its a gamble.

One thing that doe's worry me is the price per kilo, and the fact that they do not weigh the chickens as they are loading them into the crates, but they tell you the weight when it reaches the factory.....

All my Thai relations have chicken farms along with fish, and various fruit and veg is always for sale, all have new cars/trucks and are doing quite well out of it, despite the downturn in production over the last 2/3 years.

They used to be able to have a stock turn 5/6 times a year, this is now down to only 4..

CP want the farms to stop, because there is an overproduction of chickens at the moment, the export market is down big time, and EU have set a max limit on what Thailand can export to the EU.

Before the bird-flu it was a ok business, there were about 8-9 companies who did contract farming, now it is down to around 5, and they do talk together. They are in total control of how much profit or loss you will make, They supply the day old chicks, the feed, the medicine, the transport, and they buy the chickens back from you.....They control everything, so no chance of making money if they dont want you to.

Regards

Thankyou Tilapia,

But I still can't see why the major growers would want you to either make very little, or even worse no profit at all.

They would be out of business along with the contract farmer in no time.

I reckon I have got it.........

The very fact that to build a decent sized broiler house costs around 1.2 mill and that the majority of thai contract farmers get a business loan from the bank in order to set up, then t CP for example, would pay back the loan payment to the bank before paying the farmer the nett price, after feed vaccine etc.

In effect, the farmer is trully locked into the deal and could not, even if he wanted to, get out.

[SAP]

Hi Monkey Pants

I agree with Tilapia, I do not have experience with CP personally, but I am still active in the coporate world of farming.

No matter what enterprise we are in large scale or small scale we need to be cost effective. A company like CP is now all over SE Asia and will choose where it wants to focus production on an annual basis. This will quite often be as simple as what the current and predictive currency exchange rates are and what contracts need and they want to fulfill.

They will take certain care of long time large scale production, only when you are to the scale that it can affect their supply. And seriously I am talking massive scale here. In between they can shut you down, or even gear you up depending on what they need.

In the meantime they will let you build the infrastructure and invest in what ever you feel necessary, and they will ONLY EVER supply you with enough inputs to get the quantity they want and require at the price they can profit from.

Now all of this is not impossible, but as Maizefarmer used to say (and I wish he was still online), unless you put the time and effort, and know that this a 24/7 job!!! Put your money in the bank, or realize this is just a hobbie and you enjoy the lifestyle.

PLEASE REMEMBER IT IS STILL POSSIBLE, JUST DON"T THINK IT IS EASY!!!!

[Tilapia]

Tilipia

I agree 100% it happens with sweet corn factories, tomato factories, tobacco basically any small factory that is not financially secure.

Then when you deal with the big boys, CP and the works they pay ontime as far as I know, but they have you so screwed down on price and quality that you are hardly treading water.

So true, last year CP wanted me to upgrade the farm with automatic feed-system and I would have to buy a 10-wheel truck to transport the feed as well, total 5mill baht I asked them if I would get paid more for the chicken, and the answer was no, more like the opposite, so I said no to do the upgrade, and they terminate my contract with them. These changed was CP's own idea, not requirements from the EU, it is simply CP's way to get farmers to quit...what a nice company they are

Regards

Why would CP want you to quit, ?

It just doesn't make any business sense whatsoever?

I have just taken over an established 12,000 capacity broiler farm, built in the last 3 years, all top fans and generator back up, although not automatic feed, but automatic water supply, and Saha Farms come and take away the chikens at approx 45 days, with there own trucks, labour etc.

I am hoping that the Thai broiler market is coming out of the bird flu recession, but I know its a gamble.

One thing that doe's worry me is the price per kilo, and the fact that they do not weigh the chickens as they are loading them into the crates, but they tell you the weight when it reaches the factory.....

All my Thai relations have chicken farms along with fish, and various fruit and veg is always for sale, all have new cars/trucks and are doing quite well out of it, despite the downturn in production over the last 2/3 years.

They used to be able to have a stock turn 5/6 times a year, this is now down to only 4..

CP want the farms to stop, because there is an overproduction of chickens at the moment, the export market is down big time, and EU have set a max limit on what Thailand can export to the EU.

Before the bird-flu it was a ok business, there were about 8-9 companies who did contract farming, now it is down to around 5, and they do talk together. They are in total control of how much profit or loss you will make, They supply the day old chicks, the feed, the medicine, the transport, and they buy the chickens back from you.....They control everything, so no chance of making money if they dont want you to.

Regards

Thankyou Tilapia,

But I still can't see why the major growers would want you to either make very little, or even worse no profit at all.

They would be out of business along with the contract farmer in no time.

I reckon I have got it.........

The very fact that to build a decent sized broiler house costs around 1.2 mill and that the majority of thai contract farmers get a business loan from the bank in order to set up, then t CP for example, would pay back the loan payment to the bank before paying the farmer the nett price, after feed vaccine etc.

In effect, the farmer is trully locked into the deal and could not, even if he wanted to, get out.

The only way you can make money in the chicken business as a contract farmer, is if you have paid for the whole farm in cash, no loans what so ever, but if you compare the profit to risk, then there is a lot of head-ache.

Today if you want to build a broiler house 12x120m to CP standards. you are looking around 3mill baht with-out the infrastructure, and they will still be able to cheat you on the weight and with the feed, and dont think for a second that they wont do that.

CP gives only female chickens to there contract-farms, it happens that you can get male, but then they are at a lower grade. I've been in the business for 6 years, and they had me by the balls, and I did not like that feeling.

Regards