Efficient Production: a poultry perspective

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1 Beef & Lamb Stakeholder Conference Efficient Production: a poultry perspective David Speller Applied Poultry

2 Who is Applied Poultry?

3 3 Main Applied Poultry Contract Farming Poultry in the UK (Approx 1.5M birds daily) OPTIfarm 24/7 global poultry monitoring & consultancy Peru, Canada, Australia, Portugal, Italy, Holland Innovation/ Research

4 Efficiency & Basic Numbers For The UK Broiler Sector

5 Basics Stats UK is mainly an integrated sector in some form 19 million birds per week processed (3,150 lorry loads/ wk) Eat 22 million birds per week 40% in weight eaten imported (7.6 million birds worth) Market growth 4-5% per year (population growth + Kg /capita) Average modern farm 4 sheds with 45,000 birds/ shed Average farm labour ,000 birds/ stockman

6 Basics Stats Cont d Our farms are all in all out for biosecurity reasons Average kill age 36.5 days 33 days, rest 38 days) Average weight 2.25Kg 1.9kg, 2.4kg) Average DLWG 61.6 g Extra 1g at day 7 = 8.8g at day 28 10g at day 7 is 1 days growth at the end Average Food conversion on our farms 1.52:1 (Best 1.46)

7 Why The Drive For Efficiency & Our Use of Innovation?

8 Our Challenges Birds reach kill weight quicker year on year Financial margins are tight UK & Globally Recruiting farm staff is difficult Aiming for the continual reduction in medication use Consumers perception is not always positive A more demanding bird, skills demand on staff, market sensitivity, tighter margins leading to increased risks

9 Efficiency Journey

10 Phase 1 Ask why, and if going to alter it you need information Chicks live on the floor so heat the floor first UFH facility Why vent at that rate - CO 2 levels needed, first real time CO 2 sensor fitted How does the birds feel when venting Temperature, Relative Humidity and air flow needed How much are they eating and drinking Feed and water meters needed How much are they growing Automatic weight scales needed What happens when I am not in the sheds First CCTV

11 Lots of Data

12 Phase 2 How does a bird feel, what is welfare really like New legislation leads to fresh focus Drinker auto flushing for small chicks Eyenamics and behavioural monitoring leading to welfare scoring Broiler welfare directive (EU) Impact of introduction of daylight Thermal Imaging allows better detail than static sensors Odour / emissions innovation, Ozone, static charged dust, odour abatement chemicals, Drager Tubes

13 Behavioural Data

14 Phase 2 Cont d New innovation motivators Renewable Energy Government incentives meant renewable energy became standard on energy hungry intensive units Biomass initially Solar panels AD plants Wind turbine Ground source and Air Source heat pumps

15 Phase 3 How to combine knowledge to raise new questions and look for more answers and drive efficiency New biosecurity designs Software systems to analyse data Ways to get data off farms without suitable internet Embrace innovation from outside agriculture Trial novel solutions to problems, e.g. sound analysis Odour / environmental emissions innovation Incorporate global knowledge being gathered

16 Biosecurity

17 Phase 4 Use knowledge and innovation for commercial reward Challenge traditional thinking & boundaries: Remote control a farm in Australia, improving farm from bottom to top performer Consult on a farm in the UK where the equipment suppliers have struggled, lifting margins by 18% Reducing insured risks through monitoring and advising in real time Operate in a predictive and pro active way Monitor staff and where necessary identify areas where training needed (e.g. Peru work)

18 Phase 4 Cont d OPTIfarm monitoring Efficiency driving, performance enhancing, welfare monitoring, investment monitoring, risk monitoring, skills support services, commercial trials monitoring, genetic management monitoring, etc

19 Innovation Is Our Future Focus For Further Efficiency Gains

20 Where now for us We have started a new phase of possibilities The sky is the limit Robotics for labour saving and sensing and all the data that will generate Advanced camera analysis, such as faeces analysis, automatic CCTV analysis Early detection E Noses Real time gut health sensors Further sound analysis Chicken visual aspect analysis Possibilities around individual animal management within large batches

21 Lessons Learnt & Possible Pitfalls

22 Lessons Learnt There are always efficiency gains to be made If you are naturally innovative that is just who you are Initial lessons in gaining efficiency can be costly Many people doubt you (internally and externally) Being disruptive upsets the normal way of business and can be viewed as a threat Staff have to be on board

23 Pitfalls of Being Innovative Cost Poor internet speeds limit some innovative solutions New things don t always work in farm environments Expectation Reality Some things can be difficult to prove 100% The more you innovate the more you want to innovate

24 The Challenge of Efficiency Ensuring the market doesn t take all the gains with you doing more and spending more for the same or less Ultimately if you don t become more efficient the market may leave you behind as others do become more efficient and you will never catch up, this may be UK or Global It is a bit of a hamster wheel, but that is the same for all industries, continual improvement is a must

25 So as to Beef & Lamb? Specifics may or may not be relevant to your sector but the mindset is absolutely relevant. Focus on your very real challenges and don t think they cant be solved think what do you need to solve them, data, experience, technology, money, all of these can be got? or is it just the mental mindset

26 Thankyou for Listening David Speller MD/ Founder Applied Poultry