How to improve margins in poultry production

Smart Production

How to improve margins in poultry production

2 Minutes

The poultry industry is highly globalized. On the one hand, this opens up additional opportunities to cut costs and to conquer new sales markets. On the other hand, supply chains spanning the entire globe entail serious risks for the profitability.

Given the generally low prices, an insufficient availability of raw materials, inefficient use of raw materials and bad quality can prove to be fatal. Prices too high in relation to the quality, cutting of the wrong animals or supply difficulties of fattening farms are typical cost drivers.
Digital solutions enable the poultry processors to meet these challenges systematically and in a highly efficient manner. The optimization of raw material use and raw material availability by means of targeted cutting and packing management plays a decisive role. Another central issue is a flexible pricing that is based on the determination and verification of quality parameters for the payment of fattening farms and that defines a quality-based price for every flock.

How a medium-size enterprise became  one of the most innovative poultry vendors  in the Baltic region

From rearing to the production of over 240 products, the Eastern European poultry producer covers the entire production cycle. Besides the domestic market, the company supplies Denmark, Finland and the Netherlands and aims to be the most innovative vendor in the Baltic region. Compliance with strict EU quality standards and a highly efficient production are essential for achieving this goal. According to the company, one prerequisite is a homogeneous digital environment with standardized interfaces between ERP systems, machines and equipment.
The company chose the solutions by CSB and combined them with its group-wide ERP system. The overall solution ensures maximum transparency and consistency: Double entries and input errors are ruled out, weak points and potential problems can be identified and fixed immediately thanks to the integrated architecture, thereby reducing the operating costs substantially. What is more, the production can be adjusted smoothly and fast to new market trends as well as to new regulatory requirements.
The use of the CSB-System also enables comprehensive automation of the processes with full inventory and production control. As a result, throughput times were reduced considerably, productivity saw a double-digit increase, quality was improved and the error rate was reduced drastically. Lastly, the company is now able to guarantee specific product features due to the audit-proof traceability of all process steps and raw materials, for example antibiotic-free animal rearing and feeding.

You can find further approaches to optimisation in poultry production in our white paper 7 digital optimization boosters for poultry producers