NPI grows from strength to strength
Namib Poultry Industry (NPI) is growing from strength to strength despite the rising cost of feed and fluctuating commodity prices.
"About 82% of our expenses are for feed," said Louis Kleynhans, NPI general manager.
He said the company prides itself on the fact that all their chickens are only fed a vegetarian diet, despite this having a cost implication for the company.
The rising prices of grain and maize, however, compound the challenges faced by Namib Poultry. Since 2016, the cost of feed has increased by a staggering N$196 million. However, thanks to their improved effectiveness in terms of feed turnover ratio, the company has managed to stay afloat. "Without this improvement, Namib Poultry would have faced the unfortunate possibility of closure," he said.
Growth continues
Despite these challenges, NPI embarked on an expansion project in July of last year.
The company increased its factory capacity, enabling them to work a double shift and slaughter 112 000 chickens per day, equating to 560 000 per week.
"We have also acquired an automatic cut-up machine, which efficiently cuts each chicken into nine pieces. Additionally, the implementation of a smart packer and an 80-tonne carton freezer has significantly reduced freezing time to just 10 hours, compared to the previous 24-48 hours required in the blast freezer," Kleynhans said during a site visit to the premises.
In terms of storage, Namib Poultry has made substantial progress.
They have added an extra holding room, increasing their storage capacity to 1 700 tonnes.
This has eliminated the need to rent storage space elsewhere, saving on costs. However, despite their efforts, the company currently still holds 2 500 tonnes, exceeding their target of 1 000 tonnes of stock on hand. "This surplus can be attributed to lower-than-expected sales, influenced by the presence of smuggled competing products from other countries,” he said.
"About 82% of our expenses are for feed," said Louis Kleynhans, NPI general manager.
He said the company prides itself on the fact that all their chickens are only fed a vegetarian diet, despite this having a cost implication for the company.
The rising prices of grain and maize, however, compound the challenges faced by Namib Poultry. Since 2016, the cost of feed has increased by a staggering N$196 million. However, thanks to their improved effectiveness in terms of feed turnover ratio, the company has managed to stay afloat. "Without this improvement, Namib Poultry would have faced the unfortunate possibility of closure," he said.
Growth continues
Despite these challenges, NPI embarked on an expansion project in July of last year.
The company increased its factory capacity, enabling them to work a double shift and slaughter 112 000 chickens per day, equating to 560 000 per week.
"We have also acquired an automatic cut-up machine, which efficiently cuts each chicken into nine pieces. Additionally, the implementation of a smart packer and an 80-tonne carton freezer has significantly reduced freezing time to just 10 hours, compared to the previous 24-48 hours required in the blast freezer," Kleynhans said during a site visit to the premises.
In terms of storage, Namib Poultry has made substantial progress.
They have added an extra holding room, increasing their storage capacity to 1 700 tonnes.
This has eliminated the need to rent storage space elsewhere, saving on costs. However, despite their efforts, the company currently still holds 2 500 tonnes, exceeding their target of 1 000 tonnes of stock on hand. "This surplus can be attributed to lower-than-expected sales, influenced by the presence of smuggled competing products from other countries,” he said.
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