View a PDF of our brochure for prospective producers
Transcription
View a PDF of our brochure for prospective producers
Home-grown Success: Opportunities For Independent Contract Producers MIS 2694-4446 broc.indd 3 7/28/09 3:08 PM MIS 2694-4446 broc.indd 4 7/28/09 3:08 PM thank you for your interest in raising poultry for perdue Our company has been part of the agricultural community since 1920. That’s the year my grandparents, Arthur and Pearl Perdue, started our company by selling table-eggs from their poultry farm. A decade later, my grandfather started hatching eggs and switched to selling chicks to other farmers. He quickly established a reputation for providing the best quality chicks, and for his honesty and integrity. He passed those traits on to my father, Frank, who transformed our company into an industry leader, and who made the PERDUE® brand a household name synonymous with quality. The same values continue to guide our company today. We remain a family-owned company committed to quality. And the trust we’ve built with our partners in the agricultural community remains at the foundation of our business. At Perdue, we know that quality begins on the farm, with healthy birds raised by producers who share in our commitments to quality, poultry welfare and environmental stewardship. If you decide to become an independent contract producer for Perdue, you’ll find that our standards are strict, but that’s what it takes to meet the expectations our customers and consumers have of the PERDUE® brand. We value the role our producers play in maintaining our company’s reputation for quality, and we will work closely with you to help you succeed. Our family shareholders and I are dedicated to keeping Perdue a family-owned company built on quality. We are committed to measured, strategic growth and innovation in marketing and products –– a course that will keep Perdue strong and competitive. I invite you to “grow with us.” Chairman of Perdue Inc. MIS 2694-4446 broc.indd 5 7/28/09 3:08 PM Why Grow for Perdue? We’re a family-owned company and we never forget that we started as a family farm. As both a leading poultry and grain company, we’re a trusted name in the agricultural community. Perdue is committed to agriculture and to maintaining the independence of the family farm. Charles Booth Pickin’ n Scratchin’ Farm Breeder Producer He’s a numbers guy. A former Certified Public Accountant, in fact. And all he was looking for was a smart investment. Charles picked Perdue and within a year he had two breeder houses. “I’m a CPA. I don’t have any previous agriculture experience. And I’ll tell you right now, support from From being the first to successfully brand poultry to our ever-expanding roster of value-added meal solutions and our innovative advertising campaigns, we’re creating demand for our products, growing market share and keeping the PERDUE® brand relevant and exciting. We’re the number-one brand of premium fresh chicken in our marketing area, and a leading foodservice supplier. We sell to the leading names in retail and foodservice, and we ship our products around the globe. Your Perdue poultry houses will incorporate the most-advanced designs and technology to create optimal growing conditions for the birds, improving performance while reducing labor. We’re with you every step of the way, and our flock supervisors’ ongoing guidance will help you maximize your flock performance –– and income. All along the way, you’ll have the support of the industry’s most-advanced technical services department, including experts in poultry health and nutrition. “ Of all the business ventures I could get into, Perdue was the most appealing — especially for the profit margin. ” –– Charles Booth, Breeder Producer start to finish –– including my flock supervisor –– has been the greatest asset for me.” We developed our own breed of chicken, and remain the only company with a proprietary breed. Our chickens are naturally healthy, with performance advantages you won’t find in any other bird. 2 MIS 2694-4446 broc.indd 6 7/28/09 3:08 PM A Growing Relationship The contract grower relationship has been part of the way Perdue does business for more than half a century, and with good reason: it’s mutually beneficial to producers and to our company. Contract growing became an industry standard in the 1950s, and evolved out of economic necessity. Prior to contract growing, farmers purchased baby chicks and feed from poultry companies, hoping to sell their flocks at a profit when the birds reached market age. It was a risky proposition for farmers, who, in many cases, literally “bet the farm” on each flock. A poultry disease outbreak or a bad turn in livestock prices often meant financial ruin for farmers. While the basic concept of the poultry contract has changed little in more than 50 years, the contract grower relationship has evolved. To help new or expanding producers, our contracts include “new house agreements,” which provide a base income during the early years that a new contract is in place, when the producer is building equity in the investment, and incentives to help producers with the reinvestments necessary to keep their operations competitive. With contract growing, the companies began providing the chicks and feed, along with growing advice, and farmers would raise the birds on their farms. The company maintained ownership of the birds, and paid the farmers a contracted price. Under the modern poultry contract, the producer is responsible for building and maintaining the poultry house according to Perdue’s standards, and for caring for our birds according to Perdue’s grow-out programs, best management practices, biosecurity requirements and poultry welfare guidelines. Perdue provides specially formulated feeds, any necessary medications and expert guidance. The new business model caught on quickly. For farmers, it reduced the financial risk while providing stable, year-round revenue to supplement their seasonal income from crops. For the poultry companies, it meant a consistent supply of birds to meet the increasing demand for chicken. The modern poultry contract is intended to isolate the producer from many of the risks associated with the early grower contracts, while also intending to provide year-round income. The contracts are competitive, and are designed to reward producers for above-average performance. JOHN GRIMES Grimes’ Farm Broiler Producer He’s an NC State grad, a family man, and an experienced row crop farmer. With eight broiler houses generating a healthy profit, he has this to say about joining the Perdue program, “I’m concerned about the investment in my peanuts, my beans, my corn and my cotton. But not about my chickens.” He speaks with confidence about this particular investment because he knows he has consistent support from Perdue, and an investment that is virtually unaffected by weather conditions. Rain or shine, the Grimes family is watching their production grow. 3 MIS 2694-4446 broc.indd 7 7/28/09 3:08 PM The Perdue Opportunity Just as with all other types of farming, being a poultry producer is not a 9-to-5 job; it’s a way of life. But, if you’re seeking the independence of your own business and a “farm” lifestyle, and you’re willing to adapt to the unique demands of raising livestock, becoming a poultry producer may be right for you. Jeff Beddingfield Sunnyhill Farms Breeder Producer He came from the textile industry, and it didn’t take long for Jeff to see this was the investment for him. And he’s built three breeder houses so far. “If you’re looking to spend more time with your family and enjoy a solid investment, Perdue is a no-brainer.” As a contracted business partner working exclusively with Perdue, you’ll be expected to adhere to our standards, just as we have to meet the standards set by our customers. You’ll need to provide continuous care to the birds, checking them multiple times each day, tracking their health and growth, and maintaining the poultry house equipment. You, or a designated caretaker, must be available at all times to respond immediately to any issue with poultry house systems critical to bird health and welfare. You’ll also have to incorporate biosecurity (disease prevention) into your daily life. But, you’ll never punch a time clock, and you’ll have the satisfaction of owning your own business, of helping provide wholesome food to families around the world, and of being associated with a trusted and respected brand. the farm while the other maintains an outside career. Some producers with multiple-house operations have made their poultry farms the primary source of income. For many producers, running the poultry operation is a family undertaking. “ You are your own boss, but if you need help, they’re always there for you. ” –– Jeff Beddingfield, Breeder Producer For many farm families, their poultry houses supplement other farm income, and can often provide the additional income necessary to farm “full time.” For other producer families, one partner may “stay at home” to manage 4 MIS 2694-4446 broc.indd 8 7/28/09 3:08 PM FAQs What does it take to get started as a poultry producer? You’ll need sufficient land, properly zoned and sited for poultry houses, located within one of our growing areas, and access to the capital to build and equip your poultry houses. Perdue will provide you with technical support, but the successful producer must be prepared to provide each flock with constant care and to properly maintain the poultry house and equipment. What kind of investment is required? The cost of building and equipping poultry houses varies depending upon the site preparation, size and type of house, fluctuations in building material costs, and local construction and trade rates. Your Perdue representative can give you an up-to-date estimate for your local growing program. Existing houses may require upgrades to meet current Perdue standards. In addition, and from time to time, additional, potentially significant, investments may be required to meet new and/or higher standards as, among other things, technology, legal regulations or best management practices evolve. How much can I expect to earn? A Perdue representative can show you cash flow examples for the growing programs in your area. As with any business, careful financial and tax planning are essential to the success of your poultry farm. What does Perdue provide and what costs do I incur? You are responsible for building and equipping your poultry houses, and for maintaining the house and equipment. Perdue will deliver our birds to your farm; provide feed, veterinary care and any necessary medications; and pick up the birds or eggs from your farm. You provide the labor to care for the birds and for repairs and maintenance to the house and equipment. Depending upon the growing region, producers are responsible for utilities, including electricity. You’ll also need to budget for the cost of upgrades, some of which may be required by Perdue to keep your operation competitive. “ What are my obligations? Your specific obligations are defined in the contract and your Perdue representative can provide you with a sample copy for your growing program. Since the grower contract and any other agreements discussed above are legally binding agreements, and this brochure only provides a brief summary of these agreements, we encourage prospective producers to have all the documents reviewed by your own legal counsel to be sure you understand their obligations before you commit to the purchase or construction of a poultry house. What factors will affect my income? Your actual income will depend upon the number of houses you own, your loan payments, re-investments in upgrades and your competitive performance. There may be times that Perdue has to balance supply and demand in the market, which may result in increases or decreases in targeted bird weights or time between flocks. Your contracted base pay and any payments under a new house agreement will not change, but these adjustments in production may increase or decrease your total income within a given period of time. Poultry is an agricultural commodity, and market conditions will affect your income and profitability. There is also the risk of losses from extreme weather conditions or disease, which can impact your potential profitability. Since you own the poultry farm, you should carry sufficient insurance to, among other things, protect your business from catastrophic losses or business interruption. GREg & Mary Ann taylor GMA Farms Breeder Producer A year after joining the Perdue program, Greg says everything is running smoothly. This program is so user-friendly, Greg has been able to continue running other businesses, while using this investment to work towards How are poultry houses financed? Perdue does not finance poultry houses. Farm Credit agencies and commercial banks finance most poultry houses. Terms usually range from 10 to 20 years. Financing is also available through leasing companies and agricultural loans through local lenders. Your Perdue representative can provide you with information on lenders in your area and assist you through the process. We’ve managed to stay above our projected (profit) numbers, which is nice, of course. –– Greg Taylor, Breeder Producer retirement. “I knew nothing about this to begin with. But Perdue explained everything and has been there, right from the beginning.” Greg says that he has had no complaints, ” whatsoever. And his profits have stayed above projections. 5 MIS 2694-4446 broc.indd 9 7/28/09 3:08 PM OUR GROWING PROGRAMS Independent contract producers raise our chicken and turkey meat birds and manage chicken breeder flocks. Perdue contracts with producers on the Delmarva Peninsula (lower Delaware and the Eastern Shore of Maryland and Virginia) and in parts of Alabama, Florida, Georgia, Indiana, Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Virginia and West Virginia. Andy & Darla eaton with their children Alyssa & Peyton A & J Eaton Farm Turkey Producer After working as a Perdue flock supervisor, Andy decided it was time to invest in his own poultry operation. Andy and his uncle partnered to start a turkey operation. He knew from experience it was a great opportunity, and the chance to become his own boss and spend more time with his family clinched the deal. (See chart for a list of counties in which we have grow-out or breeder operations. Please contact us for information on current growing opportunities in your area.) “ Being my own boss is the number one advantage of being in business with Perdue. ” –– Andy Eaton, Turkey Producer BROILER Chicken producers raise the meat-type birds for our processing operations. Depending upon the size of birds needed for each plant’s production requirements, producers will grow one-day-old chicks to 4 weeks of age for Cornish up to approximately 8 weeks for our larger birds. TURKEY Perdue offers two turkey grow-out programs –– hens and toms –– to raise birds for our Washington, Ind., turkey-processing operation. In both programs, producers operate side-by-side houses for brooding/rearing and for finishing. The brooding and rearing stage covers the first six to eight weeks. The birds are then moved to adjacent finishing houses until they reach the proper weight for processing. The hen program grows one-day-old poults to approximately 18 weeks, while the tom program grows poults to approximately 20 weeks. BREEDER Perdue also contracts with independent breeder producers. Breeder farms operate one of two types of houses: pullet houses are used to raise breeder stock from chicks to maturity; breeder houses are used to produce eggs for our hatcheries. 6 MIS 2694-4446 broc.indd 10 7/28/09 3:08 PM State Counties Growing Program Contact Us Alabama Coffee, Covington, Dale, Geneva and Houston Broiler Alabama Coffee, Covington, Dale, Geneva and Houston Breeder southeast@perdue.com • 478-994-7819 Delaware Kent and Sussex Broiler Florida Holmes, Jackson, Okaloosa and Walton Broiler Georgia Baldwin, Bibb, Bleckley, Crawford, Crisp, Dodge, Dooly, Houston Jasper, Jones, Lamar, Broiler Monroe, Pike, Pulaski, Spalding, Taylor, Upson, Wilcox and Wilkinson delmarva@perdue.com • 302-855-5651 Georgia breeder@perdue.com • 252-459-9998 Early Breeder breeder@perdue.com • 252-459-9998 southeast@perdue.com • 478-994-7819 southeast@perdue.com • 478-994-7819 Indiana Daviess, Dubois, Greene, Gibson, Knox, Martin and Pike Turkey Kentucky Butler, Christian, Daviess, Edmonson, Grayson, Hart, McLean, Muhlenburg, Ohio, Todd and Warren Broiler turkey@perdue.com • 812-257-3039 Kentucky Butler, Edmonson, Grayson, Hart and Warren Breeder Maryland Caroline, Dorchester, Kent, Queen Anne, Somerset, Talbot, Wicomico and Worcester Broiler North Carolina Anson, Bladen, Davidson, Harnett, Hoke, Lee, Montgomery, Broiler (Rockingham/Dillon Operation) Moore, Randolph, Richmond, Robeson, Scotland, Stanly, Union breeder@perdue.com • 252-459-9998 North Carolina Bertie, Chowan, Edgecombe, Gates, Halifax, Hertford, Martin, Northampton, Perquimans northcarolina2@perdue.com • 252-348-4350 North Carolina Alexander, Bertie, Davie, Edgecombe, Franklin, Halifax, Hertford, Iredell, Martin, Nash, Northampton, Breeder Pitt, Rowan, Stokes, Surry, Warren Wilkes, Wilson and Yadkin breeder@perdue.com • 252-459-9998 South Carolina Chesterfield, Darlington, Dillon, Horry, Marlboro and Marion Broiler southcarolina@perdue.com • 910-673-4148 Tennessee Cannon, Warren, White and Van Buren Breeder breeder@perdue.com • 252-459-9998 Broiler (Lewiston Operation) kentucky@perdue.com • 270-274-4750 delmarva@perdue.com • 302-855-5651 northcarolina1@perdue.com • 910-673-4148 Virginia Accomack Broiler delmarva@perdue.com • 302-855-5651 Virginia Danville, Halifax and Pittsylvania Breeder breeder@perdue.com • 252-459-9998 West Virginia Hardy, Hampshire, Mineral, Grant and Pendleton Breeder breeder@perdue.com • 252-459-9998 7 MIS 2694-4446 broc.indd 11 7/28/09 3:08 PM the perdue commitment George & Sherri Hoover G & S Hoover Farm Turkey Producer George has roots in agriculture. “I was raised on a farm and always wanted to get back to some kind of farming.” When Perdue’s flock supervisors provide producers on-going counsel throughout the growing cycle to help maximize flock performance. They ensure adherence to our strict standards for food safety, bird health, poultry welfare and environmental stewardship. a ‘for sale’ sign went up at an existing farm near his home, George seized the opportunity to become an independent contract producer. “It was the right opportunity at the right time for me.” Today, he manages a five-house turkey operation in Indiana. “ Perdue offers an incredible scope of resources, including a lot of hands-on training and support. ” –– George Hoover, Turkey Producer 8 MIS 2694-4446 broc.indd 12 7/28/09 3:08 PM Our hatcheries give our birds a strong, healthy start even before they’re born. Automated incubators maintain the ideal temperature and humidity levels, even turning the eggs to mimic the mother hen’s actions. Day-old chicks are vaccinated against common diseases and then transported to independent family farms, where the contract producers have prepared their poultry houses for the arrival of the young birds. Perdue manufactures our own poultry feeds from all-natural ingredients, free of pesticides and carefully blended to meet the nutritional requirements of our birds at every growth stage. These feeds are delivered to the farms of independent contract producers throughout the growing cycle. Gary Howell, Director of Nutrition in Perdue’s Technical Services Department, works with a team of quality control coordinators, feed mill managers, live production managers, scientists and technicians to provide Perdue’s chickens and turkeys with optimal nutrition from quality, all-natural ingredients. 9 MIS 2694-4446 broc.indd 13 7/28/09 3:08 PM www.perdue.com ©2009 Perdue Inc. MIS 2694-4446 broc.indd 2 7/28/09 3:08 PM