Masana Poultry Farm is a business that
specializes in the raising and broiling of live chickens,
and currently operates out of the Mhlala Development
Centre’s (MDC) Incubator Facility near Thulamahashe in the
Bushbuckridge Region. Masana Poultry Farms was born from a
MDC programme in 2001 aimed at providing technical training
in addition to training facilities to develop and create
knowledgeable and profitable chicken broilers. The
Co-operative members are employee-owners and operators of
this business. They have complete dedication and investment
in seeing this business succeed into the future and beyond.
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Masana Poultry Farm is a simple business
that takes advantage of the large and growing demand for
live chickens in the region. The business was awarded “Best
income generating poultry farm 2006” by the Bushbuckridge
Municipality.
Masana would like to increase its market penetration by
marketing to large scale industrial poultry processors in
addition to maintaining its sales to the public. Masana
currently operates at a positive cashflow basis but does not
yet possess adequate funds to erect its own building and
facilities.
The objective of TechnoServe’s intervention strategy is to
develop Masana Poultry Farm into a profitable broiling
business that returns value to its members and create a
sustainable commercial entity through provision of business,
technical, and mentorship services over a three year period.
Masana Poultry has only been a client of TechnoServe for
about five months. In that time TechnoServe has facilitated
in breaking the stalemate between Masana and their current
land owners, the Mineworkers Development Agency (MDA), which
had persisted for eight months prior to TechnoServe’s
involvement. Negotiations were re-opened, an exit contract
signed, and the relocation timeframe of 1 September 2007
agreed to. In this way, TechnoServe hopes to help Masana in
achieving one of its main objectives: to operate on
propriety a fully owned and registered premises and
facilities.
However, the Municipal approval process
for Masana could dramatically delay all relocation plans.
There is a six step approval process for land applications
involving site visits, mayoral
committee approval, health inspections and other difficult,
time consuming activities. It is difficult to make
contingencies against this outside risk, and the client’s
development plans can be severely compromised by low
capacity in the Bushbuckridge municipality. Thus, there is
still much scope for TechnoServe intervention in order to
try and alleviate this risk and speed up the process.
Currently, Masana has 6 chicken sheds with +- 1300 chickens
per shed. Their long term plans involve expanding by
increasing the number of sheds as well as the capacity of
the sheds to 3000 chickens per shed. By doing so, they will
be able to employ more people with approximately one worker
per shed.
At present, Masana are buying chicken feed at a high price
from an unreliable supplier. By cutting out the middleman,
Masana hopes to be able to acquire chicken feed (a major
input expense) at a reduced price and be able to supply
chicken feed to the public and small scale chicken keepers
and raisers.
Another improvement to the business would be the
installation of electricity. By providing heat in the sheds,
Masana would be able to create a more conducive environment
for broiling chickens.
Masana also aspires to buying their own truck so that they
would be able to transport their own baby chickens.
Currently their supplier in Pietersberg delivers them;
however this is not a favourable situation as the chickens
arrive weak and exhausted from the heat. A truck would also
be used to collect sawdust for the sheds and to lift the
employees to and from work.
A huge impediment to Masana’s plans for expansion is the
lack of finance. They have succeeded in securing a Business
Trust seed capital grant for R100 000 start-up capital, but
they still require R800 000 to fully equip their new
premises. Masana, with TechnoServe’s assistance, are in the
process of preparing an application for commercial finance
from ABSA bank.
Masana sees TechnoServe’s involvement focused around
financial assistance and training. “TechnoServe has
contributed a spirit of confidence and we now feel more
self-reliable… We can see TechnoServe being helpful in the
future.”
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WILLIAM NYATHI
William Nyathi is the owner of Masana Poultry Farm.
He was working on the mines from 1984 to 1992 when
he was retrenched. His immediate employment prior to
Masana Poultry was with the MDC. He has 8
dependents, 5 of whom are at school. He does have a
bank account and attempts to save each month.
William Nyathi believes that the best solution to
rural poverty is to create employment through the
establishment of projects. |
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ELLEN NYATHI
Ellen Nyathi, one of the cooperative members, says
she enjoys working at Masana. She has been working
at Masana for approximately two years. Masana has
changed her life because now “at the end of the
month I am getting something.” Ellen has four
children ranging from age 14 to age 8 months. Her
husband works in the plumbing business, although he
does not have formal training for the plumbing
business. Ellen does not have a bank account and nor
does she save. She pays someone R600 per month to
look after her children while she is working. |
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Masana Poultry Farm |
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