Professional Documents
Culture Documents
Table of Contents
Executive Summary .......................................................................................................................3
Profile/Background ................................................................................................................... 3-4
Mandate ..........................................................................................................................................5
Corporate Statement .....................................................................................................................5
a. Vision.......................................................................................................................5
b. Mission ....................................................................................................................5
c. Values ......................................................................................................................5
d. Objectives................................................................................................................5
Organization Structure ............................................................................................................. 5-6
Business Environment ............................................................................................................... 6-7
a. Products and Services ............................................................................................8
b. Channel of Distribution .........................................................................................9
c. Critical Needs of Existing Market ......................................................................10
d. Target Market ......................................................................................................10
e. Competition .................................................................................................... 10-11
f. Product Positioning Map .....................................................................................12
Strategic Issues .............................................................................................................................13
Objectives/Strategic Performance Measures ............................................................................14
a. Piggery Product Life Cycle .................................................................................14
b. Marketing Mix ............................................................................................... 14-15
c. Business Level Strategies to meet target objectives ..........................................16
d. Operational Strategies .........................................................................................17
e. Production Process ......................................................................................... 17-18
f. Piggery Supply Chain .................................................................................... 18-19
g. Performance Management System ............................................................... 19-20
h. Action Plans ..........................................................................................................21
i. Monitoring and Control ................................................................................ 21-22
Financials ......................................................................................................................................23
Executive Summary
Profile/Background
10. The Fiji Corrections Service since 2009, through its Farm Units [Bakery, Joinery, Tailor,
Poultry, Vegetables and Piggery] have embarked on a number of initiatives to generate
income earning opportunities from the available land resources at its disposal, and more
recently out of the inmates' skills either already existing or developed within.
11. The SBU Piggery Farm apart from commercial objectives is also focused on its obligations
In line with the Peoples Charter which is to enhance the development of improved food
security within the FCS through better farm development and through greater consultation
with stakeholders ensuring self sufficiency
12. FCS Piggery farming generally is the rearing and commercial production of pigs (boars and
sows). Its legal mandate is in line with the Peoples Charter includes the following:
a. to grow sustainable commercial industry for food security while reducing imports
b. to adopt SBUs as a training ground for employment opportunities for inmates as
part of the Rehabilitation process;
c. to ensure viable SBUs which will culminate into the formation of the Fiji
Corporation of Rehabilitative Enterprise (FCORE).
13. Comparably with Poultry, Feed has proven to be the most important component -
cheaper option to cook pig’s meals using fish, cassava, rice (recently) and other special
ingredients is the main advantage.
14. Feed Cost for 2013 totaled $100,427.18 (first 3 quarters); 2012 amounted to $96,427.57
compared to the cost of not cooking materials which averages $453.70 daily. ($453.70 x 365
days =$165,600.50). In 2013 this trend continued where approximately same savings is
achieved; but producing our own feed is the best solution.
15. There are at least three (3) large chains comprising of producers/processors/wholesalers and
retailers. These account for 75 % of the total pig meat supply. Traditional ‘magitis’ or feasts
absorb approximately 25 % of pork produced in the country. The remaining 75 % goes to
butchers for retailing and processing. Currently we cannot compete with the big companies
but can supplement the smaller customers on a real time basis where orders given within 30
to 60 minutes for live and dressed deliveries is achievable.
16. As of 31st October 2013 ( first 3 quarters only) a net profit of $149,412.90; December 2012 a
net profit of approximately $107,858.00. This figure represents an increase from 2011 from
$95,987.00. (An improvement of $11,871.00). Aside from this as mentioned earlier Piggery
is a star performer in which other moderate/average performing SBUs are ‘piggy backing’
for various reasons.
17. During the fourth quarter 2012 the Department was privileged to receive a donation of
$30,000 from the Chinese Embassy which was allocated towards improving development
needs in Poultry and Piggery SBU Units. The Chinese Embassy has previously donated funds
for development purposes in recent years. However, FCS paid more funds to supplement the
new Piggery shed 2 which should be completed by end Dec 2013.
Mandate/Legislation/Act/Policy
18. The Departments Commercial and Enterprise Unit is guided by its legal mandate to operate
under the relevant clause of the Fiji Corrections Act of 2006 under Part 10 Clause (a) – (d)
which stipulates the following provisions:
Corporate Statement
19. This in a nutshell is the statement:-
a. Vision -To develop and sustain a commercially viable Piggery Enterprise Unit
b. Mission - To provide fresh, healthy produce to our customers, as well as provide a safe,
friendly working environment for our employees.
c. Values - Passion and Commitment to the SBU Unit along with honesty and integrity
d. Objectives:
(i) Short Term - Maintain firewood, fish, rice and cassava supplies, Maintain feed
supplies to piglets, Maintain hygiene and medication support to piglets in particular, To improve
the current financial performance of the Unit, To focus on profitable value-added activities
(ii) Long Term - To expand cassava plantation as feed supplement, To secure safe and
long-term corporate markets, To secure safe and long-term corporate markets, To enhance
rehabilitation capacity through Piggery enterprise, To handover a viable Piggery enterprise to
FCORE
Organizational Structure
20. The Unit has adequate experience and basic training in piggery management. The
management and administration Team comprise of 7 inmates holding specialized
positions. Other laborers are required during cleaning and restocking.
Piggery
Team Leader
Admin
Records/Cust.
Service
Animal
Cooking Washing Feeding Cassava
Husbandry
The Fiji Pig Association continues to work with Government to address a growing crisis in the
industry as subsidized pork products, processed in Australia, continue to flow into the country.
The Association has reported up to a 40% reduced demand for pigs from some farms in the first
three months of 2013 reflecting saturation in the market caused by the imports
“Unfortunately this downward trend will continue. The Canadian and European subsidized
processed pork products are selling at wholesale below the best price our unsubsidized industry
can offer and this is seriously affecting the market and all the farmers big and small,” said Simon
Cole, Association President.
A further indication of the negative effect the subsidized imports are having on the industry is the
decision by the Fiji Meat Industry Board (FMIB) to stop purchasing pigs from their small
farmers for the present because of oversupply.
“For many of these farmers the FMIB outlet is the market of last resort, if they lose the FMIB,
they could very well go out of business,” he said.
“Instead of investing and growing our farms, as we have been over the last few years, we are
now downsizing. The smaller farmers really have no options and some will be in serious trouble
if nothing is done soon. Once these farmers leave the industry they are unlikely to return given
the investment required.”
He said that after reviewing options in consultation with industry partners Fiji Meat Industry
Board, Fiji Master Butchers Association and the Fiji Crop and Livestock Council (FCLC) it was
decided that there is no alternative but to ask Government to impose a 32% duty on all imported
pork products similar to duty that now protects Fiji’s chicken industry.
b. Channel of distribution
The goal of distribution and supply chain management is essentially to get the
product to the right place, at the right time, in the right quantities, at the lowest
possible cost.
Most of the pig sales are by means of the direct channel, that is sold at the Enterprise
farm or through indirect means that is arranged through the network in which
payments are received and processed through the Institutions and the
customer/clients arranges their own transport to pick up at the Piggery Farm or pay
a transportation fee of $20.00 within Suva; $30.00 outskirts and $40.00 Navua and
Nausori.
FCS Farm
Corporate
Organisations
Institutions Wholesalers
Farm Sales
Retaliers
The target market needs are fresh and healthy pigs at affordable price and
accessible at locations that are convenient. The farm produces healthy pigs that are
priced reasonably. Refer to Figure (Annexure A –Product/Pricing/Total Value)
Live Pigs of different weights and prices.
The identified key segments for the project include individuals, government
departments, Institutions and corporate consumer market segments. In terms of
similarities, all segments whether individual, corporate or otherwise seek the health
and taste benefits of the produce (pigs). They regard the product as an excellent
source of protein, and as an alternative to beef, chicken and especially for traditional
obligations or special functions
The corporate market segment is however more lucrative as compared to the other
segments. This is attributed to the fact that the segment has a greater growth rate,
growth potential and is more profitable.
The main marketing strategy for this SBU will be the centered around superior
performance in the following areas:
Quality products.
Timely and Consistent supply
Fair Pricing
Well packaged and labeled items
e. Competition
Based on our industry analysis we have noted that Vuda Piggery, Wahleys, Leylands
holds 75% of the market share and the remaining 25 % is distributed between
Backyard farms including Fiji Corrections Service Piggery Farm. Refer Figure 6(a)
and 6(b) on the following pages
Since we hold a small share of the market our strategy dictates that we target the
niche market where major players have not concentrated on and focus our
marketing mix of product, price, promotion and distribution on satisfying the niche
markets specific needs and wants. This would include steady and usual clients.
Our direct competitors in our niche market will be other farm producers specifically
if they have a competitive advantage in terms of other variables such as location and
close proximity of farms, modern technological processes, better price offerings and
an abundance and regular supply of similar products. The Unit will face indirect
competition from the major established players. At the moment we are facing
limited competition as being reflected by our Sales increases.
Figure 5 also show that the major players are in the Value A and B Value Chains
with their quality processes, contractual agreements with reputable wholesalers
and retailers symbolized by the green and orange colors. FCS with Backyard
Farmers would appropriately be classified as Value C Chains
Quality
Processors Processors
Standards
These major players in the market can derive a substantial advantage through
economies of scale effects and through the learning curve and have set the
standards in the industry in which FCS and other small players will have to rise to
the challenge. Suppliers (Competitors’) resources can range from technical,
marketing and financial economies of scale to enable them to create huge barriers of
entry for new entrants/competitors entering their target market.
Quality
High
Vuda(75%)
Wahleyss
Leylands
Backyard
Low High
FCS
Price
Low
Figure 6(a) and 6(b) represents the major players in the market and their
estimated market share in the Positioning Map.
Strategic Issues
22. The main issue from a strategic viewpoint is obtaining maximum advantage in order to
enhance FCS goals:-
Strengths Weakness
Location
Potential Profit Unit Inadequate Office Equipment (Telephone, Fax
Piggery Farm expertise Machine, Stationery, Laptop, Backup Generator
External
Opportunities Threats
Piggery
Maturity
Decline
Growth
Profit/Market Share
Introduction
Development
Time
b. Marketing Mix
Markets are the link between animal products and processor as well as a link
between producers. This is also where buyer and seller meet. In the SBU case this is
either a physical meet at the Farm Office or piggery facility or by phone or through
third party arrangement to deliver the product on a timely basis to its destination.
The SBU Unit must understand this Marketing Mix strategy very well. Our product
philosophy is that we are selling “fresh products that are affordable and
available at convenient locations accessible to the customer”. Once we convey
this message to the customer, it becomes a commitment of service that we will
deliver as promised to meet and satisfy customers expectations. If our marketing
mix strategies cannot support our philosophy and promise than we will disappoint
our customers who will switch to other competitors and discredit our products and
service and the image we are striving to build.
This is one key area where we are failing, that is not being able to sustain the
philosophy by putting in “practice what we preach” so to speak.
Marketing Mix
Market Production
Market Production
Strategies & Strategies &
Strategies & Strategies &
Programs Programs
Programs Programs
d. Operational Strategies that make the difference between success and failure
of Piggery farming.
(i) The critical period we are addressing now is the weaning stage where
the piglet is young and has to build up physically and fight diseases etc
to be strong enough to progress and look after itself sufficiently.
e. Production Process
The purpose of the Supply Chain is to describe the flow of goods and services, and
information from the initial source, the Farm to the delivery of the products through
the various distribution channels to the consumers.
Following the process of Farrowing, Weaning and Finishing, the Pigs are ready for
the market for sale to the consumers through the Supply Chain.
The Business Development Manager and Assistant Marketing Officer are than
responsible for the wholesale, retail and distribution of the eggs to prearranged
markets and end of the line consumers. The availability of transport enables the
products to move from one chain to another and eventually to the consumers
efficiently.
Transport Super -
Markets
Collection,
Pigs for
Cartage, Wholesale
Sale Marketer
Delivery
Finishing Special
Functions
Distributors
Institutions/
Weaning Corporate
Farrowing
End Consumer
g. Performance Measure
The next step is to hold personnel accountable for meeting the targets and
objectives which would be aligned to the KPI’s. This model provides a basis for
h. Action Plans
a. Cash Flow
EXPECTED
EXPENSE
DESCRIPTION ALLOCATION QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4
4-15256-91151-
PIGGERY 260101 30,000.00 70,000.00 50,000.00 30,000.00
SALES
EXPECTED
DESCRIPTION ALLOCATION QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4
4-15256-91151-
PIGGERY 240199 45,000.00 20,000.00 70,000.00 45,000.00
$ 2,785.80 $ 2,785.80
TOTAL STOCK $ 84,739.34
Recommendations
a. Qualified and experienced staff.
b. Business financials
c. Accurate reconciliation and consistent records
d. Review or restructure to realign positions and responsibilities with
revised/newly created job descriptions based on current needs in accordance
with the strategic direction where we want to be in 2015.
e. Proper storage facility at the Enterprise Unit
f. Transportation vehicle for delivery of live and dressed pigs.
g. Research and Development
h. In-House training
i. Review of Performance Appraisal System and introduction of the Balance
Scorecard method.
Annexes
Year Sales
1995 $ 28,721.69
1996 $ 23,407.01
1997 $ 12,655.31
1998 $ 10,544.44
1999 $ 14,239.59
2000 $ 16,278.41
2001 $ 6,745.64
2002 $ 5,028.09
2003 $ 5,981.07
2004 $ 7,838.39
2005 $ 26,676.63
2006 $ 15,376.36
2007 $ 14,538.37
2008 $ 6,586.54
2009 $ 4,374.52
2010 $ 61,431.19
2011 $ 145,556.00
2012 $ 214,595.64
Sept 2013 $ 130,356.39
2014 $ TBC