What is poultry economics?
Poultry economics are day-to-day factors that affect the trade of goods and services related to your poultry farm.
Both in supply and demand.
These factors work on a global, national, regional and local scale.
And they push prices up or pull prices down.
Also, they affect the availability and quality of resources.
The law plays a big part in poultry economics.
When legal policy changes, it makes what you can and can’t do (or how you do things) shift.
Society and how we behave affects trade too.
Plus, the technology we adopt influences what we do and how we do it.
From all of the above, there are countless factors affecting how you poultry business operates.
Why is poultry economics important?
Poultry economics says that your poultry farm cannot survive by itself.
It needs reliable suppliers working with you and customers buying from you.
(This is otherwise together as the poultry value chain.)
Without your farm, households and businesses that require chicken products will miss out.
And your suppliers would lack your custom.
Making your poultry farm profitable depends on money-in > money-out.
Good management does some of this for you.
And as prices and costs change constantly, keeping control of profit comes by sound economic research.
Example
Best Practice
Stay informed
Just like a day trader – your command of the price indices of your poultry farming market is your ticket to making gains.
Trading successfully (even in the poultry business) is dependant up your real-time knowledge.
Why?
Because your gains all rely on margins.
What you buy at vs. what you sell at = your profit margin.
Miss the time your costs decrease and your prices increase and miss out on margin.
Always stay on top of prevailing patterns affecting your supply costs and your product prices.
This way you can command greater poultry farming profits.
Further reading: How To Track Your Competitors’ Prices With Google Sheets (Towards Data Science)
Get agile
Agile decision making is profitable.
Doubtless.
Your business environment is always in flux.
Prices, opportunities, costs, competitors…it’s all in constant change, just like the waves of the sea.
Becoming agile is key to taking advantage when you see it.
Being able to move and shake in order to present your business’s strengths in an optimal position for making maximum profit.
This takes practice and investment in itself – but it worth the trouble.
Further reading: 10 ways to think like a start-up and keep your business agile (Sage)
Look for strategic partnerships
Great leverage and commercial advantage can be gained by striking up strategic partnerships.
This is an excellent way of brokering value between business types.
Where your poultry farm has distinct value to offer another commercial enterprise & vice versa –
Consider mutually beneficial programs of work that are easy to set-up and manage that will help both businesses hit their targets.
Further reading: The key challenges in making strategic challenges work (IMD)
Consider value chains of ‘shoulder industries’
Shoulder industries are industries which run alongside yours which you could engage for some lateral support.
Again, areas of common interest don’t always present themselves in your poultry vertical.
Viable strategic partnership opportunities also exist in parallel industries.
You just have to think about it a little.