focus W O R L D W I D E THREE 2012 €5M EXPANSION FOR COBB ESPAÑOLA in this issue Cobb500: ‘A balanced product that satisfies everyone’ Why Cobb is winning favor in Russia.............4 and 5 With the Cobb500 enjoying its highest ever sales in Spain, Cobb Española is investing €5 million ($6.3m) this year in expanding hatchery and farm output. In the last six years the franchise distributor has doubled sales to four million parents a year through gaining a bigger share of the market in Spain and Portugal and developing new markets in north Africa. The Spanish are consuming an average of 22 kg (48.5 lb) of chicken a year, with Cobb representing 44 per cent of the market. Across north Africa Cobb Española is selling more than one million parents / year to Morocco and Algeria where it has exclusive distribution rights and developing new business in Tunisia. The increasing popularity of Cobb in Spain is because it suits all sectors of the production chain, says general manager Rafael Gil junior. “It’s a balanced product that satisfies everyone from the breeder farmer to the processing plant.” The first opportunity for expanding production came in 2006 with the purchase of the former Hybro grandparent facilities 250 km (156 miles) north of the Cobb Española’s headquarters at Alcalá de Henares – months before the Hybro breed was acquired by Cobb-Vantress, Inc. The acquisition by Cobb Española brought the Hybro hatchery at Dueñas and associated rearing and breeding farms. As Steve Chapple explains in the main article inside, this ultimately brought a dilemma – whether to expand the two hatcheries or go for a new one. The recently opened hatchery at Dueñas has a capacity of more than five million chicks / year and has been designed to allow for expansion to double this number. continued on page 2 ‘New concept’ seminars in China and Australia.....6 New thinking at World Technical School...................7 Cobb Germany organize hatchery workshop and Wimex visit............................................................................7 Brazilians visit Siloam Springs.......................................8 Irvine’s host Cobb Africa technical school................8 Trucking award for Cobb-Vantress..............................8 Rafael Gil outside the new hatchery in northern Spain. Premier award to Russia One of southern Russia’s largest poultry producers, GAP Resourse, has received one of Cobb’s premier awards for breeder performance. The organization’s chief breeder technologist Pavel Ivanenko tells us on page 5 why they consider Cobb the best choice. €5m EXPANSION FOR COBB ESPAÑOLA continued from page 1 I asked Rafael about the decision to build a brand new hatchery. “The origins of Cobb Spain are at Alcalá de Henares, just north east of Madrid. That is where our first hatchery was located and near to our grandparent farms, he explained. “In 2006 we thought it would be a good idea to expand our facilities to a different area. We did need more product but we also thought that having two grandparent production centers would be beneficial. So, we bought the hatchery here in Dueñas and three farms from Hybro who had recently finished their operations here. Since then we have invested in this area with more farms and other investments until we got to the point where we needed more hatchery space. The board of directors at Cobb Spain considered two main options: one was to expand one of the two existing hatcheries and the other was to build a brand new hatchery and close the other two, and that was what we did.” He explained that although the investment was a little higher, they now had a great asset that could be utilized for the greatest benefit to the company. This hatchery has double the production capacity of their two old hatcheries. “We have also designed this hatchery for 100 percent future expansion,” Rafael explained. “The production rooms are already sized for future expansion and we can easily double the capacity of the setter and hatcher rooms when the time comes.” I asked Rafael if he had visited any hatcheries prior to making the decision to go with Chick Master, “I went to the Cobb-Vantress Lafayette parent stock hatchery in Tennessee after the 2011 Atlanta Show with your sales manager Gregory Vanputte. It was impressive,” Their new hatchery boasts 24 Avida A8-82 two-zone setters and 8 Zephyr C-272-82 hatchers with stainless steel interior panels. The machines incorporate all of the latest Chick Master safety and energy saving features such as variable frequency drives, hot water heating for a fast warm-up to temperature after setting using the copper coils in the setters, and the Break Glass in the The other significant development is the stake in the company now held by Cobb Germany which replaced one of the Spanish shareholders in 2009. Cobb-Vantress owns 50 percent of the business with Rafael Gil senior retaining his family’s share. “This has been a positive move for the company with Cobb Germany very supportive of our investment and expansion plans,” says Rafael Gil junior. The investment takes place against a background of economic difficulties for Spain. “The supermarkets are putting a lot of pressure on producers,” he says. “There are a few big players at retail level and lots of players at industry level, and uncertainty too about rising feed prices.” The economic difficulties have increased consumer preference for whole birds rather than portions or processed products, with whole chickens selling at €2 per kg. Most of the chicken is eaten at home – 17.5 kg out of the 22 kg / person / year with fresh chicken accounting for 95 percent of sales. Steve Chapple, marketing manager of Chick Master, recounts his visit to the new Cobb Española hatchery in June New hatchery opens with sights on further expansion “ I met Rafael Gil, Cobb Española's general manager, at a nearby breeder farm. His family has had a relationship with Cobb that goes back 42 years when the business was an independent franchise. We drove the few miles back to the hatchery under cloudless blue skies through vast arable countryside famed for its nearby Ribera del Duero vineyards. The hatchery is very impressive from the outside with a huge Cobb logo beaming out from the attractive cream and brick red walls rising imperiously above immaculately landscaped gardens. 2 €5m EXPANSION FOR COBB ESPAÑOLA Pictures clockwise from far left: Juan Carlos Abad, technical director of Cobb Española, inspecting chicks; Rafael Gil jnr in the new hatchery; Ana Garcia, responsible for quality control, working in the laboratory at the hatchery; the hatchery team and the setter room; the grandparent farm, one of three at Dueñas purchased from Hybro. and manage, this is one of the good things about your equipment. They are easy to clean and the ventilation flow is very nice – the air easily reaches all of the eggs.” Cobb is using the 82-egg tray that places two trays per frame. “It is a good smaller tray, very manageable on the farm and excellent for transportation. They also work very well especially with our automation equipment,” he added. As we toured this facility I was introduced to Vidal Hernandez the hatchery manager, who was in his office carefully studying his Maestro control system screen. This is Chick Master's new hatchery management and control system which brings all the information generated by the incubators and all other connected equipment in the hatchery to a single point for analysis that allows for highly proactive and informed management. Cobb Española is the first European hatchery to use this system. “I can see the status of each incubation system as well as the ventilation equipment, water chiller and much more,” said Vidal. “It is easy to use, very informative and a great tool to help me do my job even better.” This hatchery also has a Chick Master designed and supplied energy management system. A large part of the system is roof mounted so we climbed up to the attic to have a look. The impressive central duct connects the main air intake via ultra violet light treatment and a heat recovery coil to their three air handling units. I was intrigued to ask Rafael about the decision to go with this heat recovery and energy management system in this seemingly very hot country, Rafael soon put me straight, “Let me tell you that of all the different areas of Spain this one is the coldest. It is 600m above sea level and can get down to 15˚C below zero in winter. Most people have the image of Spain that is the Mediterranean in the South where the climate is always very mild but the center of Spain is very different.” It is projected that with these conditions, Cobb Española will save enough to pay for the heat recovery system in less than two years. Pictures courtesy of Chick Master. hatchers providing extra security and time in the unlikely event of a critical situation. The first eggs were set just six weeks prior to our meeting, so I asked Rafael how the start-up process had gone. “It went well, like all new hatcheries we have the typical issues because all of the machinery is new so we have to continually make adjustments until we are happy. We are impressed with the quality and results we are getting now but probably the quality we will have in two months’ time will be better still as we find the settings that work best.” I asked how his team had found the experience of working with the Avida setters. “It really is an easy machine to use 3 COBB BUILDING SALES IN RUSSIA Why Cobb is winning favor in Russia By Irina Likhacheva, sales director of Cobb Russia It is easy to manage a uniform Cobb flock – that is why the benchmark for production peak has considerably increased and accounts for 86–87 percent or sometimes even higher. The Cobb female has a high persistency (over 80 percent during 8–10 weeks) and high feed efficiency on low density feeds resulting in reduced cost of egg production - an important criteria for the Russian poultry sector. Another distinguishing feature of Cobb is a high number of hatching eggs (96–97 percent, on the average, for whole production period). This is achieved through reduced breakage, cracked and double yolk eggs during the beginning of the laying period. Customers of Cobb also remark on the egg shell quality the shell remains strong during the whole production period with a favorable effect on hatchability. Improving livability is one of the priorities for Cobb with experience in Russia showing that mortality and culling for the period from 24-60 weeks in the best flocks is no more than 6 percent. The high livability of Cobb under recent abnormally high temperatures in Russia has been confirmed this summer. Livability is directly linked to flock economic efficiency: 1% less mortality = 1.5 hatching eggs = 1.2 chicks! Without argument the Cobb500 is a leader in fertility. Today a marked difference in increased hatchability with Cobb – especially after 45th week of age - has been acknowledged by all specialists working in Russia with different breeds. In Russia the average hatchability for the whole production period accounts for over 82% with over 83.5% in the best flocks. This high hatchability is an undoubted merit of the Cobb male. The male is very active, almost aggressive and does not require any special conditions for good growth and mating. That is why the recommended number of males in a unit has been decreased from 14 to 13 per 100 females – adequate to ensure the right number of males for the main flock and also for spiking. Although it is relatively recent that the Cobb500 has been used in Russia, the average chick number is recorded at 125-127 per hen housed, with 130 in many operations, and 135 chicks on the best farms, up to 62 weeks. And this is just the beginning. Cobb breeding stock has received deserved appreciation from Russian customers. Today Cobb broiler breeders are grown in such large-scale operations of Russia as Cherkizovo Group (Lipetsk, Voronezh and Penza regions), GAP Resourse (Stavropol and Krasnodar Krai)), Belaya Ptitsa and Belgrankorm (Belgorod Region), Chelny Broiler (Tatarstan), Severnaya farm (Leningrad region), Verkhnevolzhskaya Farm (Tver region), Elinar-Broiler and Assortment (Moscow region) and Kubansky Broiler (Krasnodar Krai). In 2012 Cobb shipments went to Mary El (Marijskaya Farm), In April the first flock of parents was delivered to SMENA (Moscow region), while in May first flocks went to Kursk region. All Cobb breeding stock is shipped to Russia from the Netherlands and Germany, but in 2013 day-old chicks will be also supplied from the new Cobb hatchery in the Moscow region. Cobb’s experienced and highly knowledgeable technical specialists assist Russian customers to achieve a high genetic potential of the breed. Cobb customers all over the world highly value Cobb technical service and customer support, with training on all aspects of breeding stock and broiler management provided by the company. The Cobb500, introduced to Russia in 2008, already accounts for around a quarter of the broiler breeding market. The genetic potential of the Cobb500 is able to achieve high performance results without any special management techniques. At the same time, it is a ‘very forgiving’ breed that is easy to work with. Cobb breeding stock has been designed for even growth, with the chicks capable of high uniformity from the first days. Many Cobb customers achieve 80 percent flock uniformity even before the first selection, because both male and female lines are selected for broiler traits almost at the same level. The breed has the ability to reach target liveweight on low density feeds. This facilitates management and growing of pullets, while considerably reducing the cost of production. At the same time the volume of consumed feed is increased as well as the time of feed consumption which in turn results in improved flock uniformity and eliminates stresses. Cobb premier breeder award for major Russian producer GAP Resourse, has been presented with one of Cobb’s awards for premier breeder performance. The organization has achieved an average 135.4 chicks / breeder to 63 weeks of age and 133.1 chicks / breeder to 61 weeks in flocks on its Druzhba and Novokorsunskaya sites. The plaque celebrating the achievement was presented to Pavel Ivanenko, chief technologist for broiler breeders with GAP Resourse, by Patrick van Trijp, Cobb Europe regional manager. Patrick van Trijp, [right] Cobb Europe regional manager, presenting the award to Pavel Ivanenko, chief technologist for broiler breeders with GAP Resourse. 4 COBB BUILDING SALES IN RUSSIA In Russia we conduct technical seminars for each large customer, with topics chosen by the customer. In March a technical seminar was conducted at Chicken Kingdom for all specialists and workers of Cherkizovo holding company. The topic was optimal development of broilers, with Cobb represented by Bukreneva Galina, technical manager for Russia and CIS, Patrick van Trijp, technical director for Russia, and Matthew Wilson, technical director of Cobb Europe. Similar seminars are planned to feature hatchery, incubation, veterinary issues and breeding stock management. Other technical seminars will be conducted for Belgrankorm, ChelnyBroiler and GAP Resourse companies. Such activity provides for close contacts and training of a much larger number of specialists of each company with great benefit for poultry specialists. Performance results of Cobb breed improve day by day, along with the growth in breed popularity and reputation of Cobb specialists who deal professionally with both technical and commercial issues. We care for our partners and customers and are always eager to provide support and assistance. ‘Our relations with Cobb remain on the highest level’ reproduced from the magazine Animal Husbandry of Russia, June 2012 Group of Agro Industrial enterprises - GAP Resourse - is one of the largest poultry producers in southern Russia. For a few years now the company has been using Cobb500 broiler breeders and has achieved the best breeding performance results for 2011 among all customers of this breed in Russia, which was marked by a special award on behalf of Cobb Europe. This success is featured in our conversation with Pavel Ivanenko, chief technologist for broiler breeders. chicks can be stimulated at the same time and readily achieve peak production of 85%. One further trait of the Cobb breed should also be mentioned – an aggressive male, which helps to ensure a high number of day-old chicks. The Cobb male is noted for its high fertility: peak persistency can be four weeks, as a minimum. Hatchability for the whole flock averages 84%. In general, our specialists consider this breed the most efficient one for using both as broiler breeders and broilers. We are satisfied with the results that we achieve both in winter and summer. Pavel Ivanenko, please, tell us about your company? Resourse is producing over 100 different products from poultry meat and, with a wide distribution network, works with the leading market retailers. The company has many commercial and trade representatives located across seven federal areas and its own distribution pool ranging from Moscow to SouthSakhalinsk. Poultry production is located on 10 parent and 22 broiler farms with under floor heating. What performance results have been recorded in your company in the best broiler breeder flocks? 164.6 and 162 hatching eggs and 135.4 (63.5 weeks) and 133.1 (61 weeks) chicks have been produced on Druzhba and Novokorsunskaya sites (Krasnodar Krai). Hatchability for closed flocks accounted for 83.5-84% with 90% livability. Amount of consumed feed — 300 grams/doc. Uniformity in rearing flocks reaches 90% and livability 98%. How long have you been working with Cobb broiler breeders? Since the middle of 2008. At that time we placed the order for 95,000 Cobb day-old breeder chicks - females. Today the company demand for broiler chicks is satisfied 70% by internal breeding flocks, with the rest supplied as hatching eggs by our business partners. And what about commercial and technical service relations provided by Cobb specialists, are you satisfied? Our relations for all the years that we’ve been working with Cobb has remained on the highest level. This relates to both initial stages of relations to include contract signing and sales administrations as well as technical service to support the breed. There wasn’t a single issue not answered within the shortest possible time. It is also to the benefit of the breed that Cobb conducts technical training of our specialists. Cobb consultants are quick in organizing seminars and training for the workers of our group enterprises. …, why this particular breed has been chosen? Cobb500 is considered the most efficient meat breed all over the world. Fast growth, high uniformity and high livability are marked by both breeder and broiler specialists. We achieve 98% of livability in the 20th week and 90% in the 64th. It is very easy to get 92-95% uniformity in Cobb replacement flock for 140 days of growth. It is easy to manage a good uniform flock: all 5 NEWS FROM AROUND THE WORLD More than 1250 take part in ‘new concept’ Cobb seminars A series of travelling seminars organised by Cobb in China and Australia has provided specialist technical help for more than 1250 participants – and now further seminars are planned in other Asian countries. “We trialed the concept in Australia with great success last November with more than 500 people from our customers taking part,” said Duncan Granshaw, general manager of Cobb Asia. “With the further success of our four seminars at three locations in China, we‘re planning to use same concept in the Philippines, Indonesia and Thailand this year and we’ve now been requested to have a second one in Australia.” The Chinese seminars took place at Weifang, Shenyang and Zhengzhou for representatives from 120 independent customers, with technical personnel from Tyson and the Bruce Zhou (left), Tyson Shandong live management service manager, and Bill Beijing Poultry Breeding Company as well as Cobb. Hewat, Tyson International live production director and head veterinarian, “We were aware that for our customers, distributors and speaking at Weifang. Cobb users it was becoming increasingly difficult to free up personnel to travel to seminars in their home countries or even Leahy, national livestock operations manager, Baiada Poultry, Australia. “It covered all our geographic areas which use Cobb more so overseas,” said Duncan Granshaw. “We also knew that with our expanding number of distributors and all disciplines — broilers, breeders hatchery and nutrition — the highly regarded annual Cobb world technical school over two and all tiers of management, enabling all to interact in a familiar weeks in the USA and the smaller seminars by our technical environment. “Being the first held using this model, the exercise was refined service team couldn’t reach nearly as many as we would like. So we thought we’d also take seminars and workshops with several as we went on and improved by the Cobb experts visiting the local areas before seminars. In this way both Cobb people and presenters to our customers. “The idea of a travelling seminar held at several locations in one our own were sharing information and context. “The benefit, beyond the initial exchange, is building country evolved. In Australia we held five seminar/workshops, each in a different location, and also had several field visits relationships at different levels within both businesses. Maintaining these relationships will be the key to optimising covering broiler and breeder farms as well as hatcheries. “We asked the Cobb users for their areas of concern and tailored performance of the Cobb bird in our market.” Mr Granshaw said this had proved to be a highly successful a seminar to suit the concerns, coupled with field visits. Our team was totally familiar with any problems and with the customer’s model, aimed at all levels within customers, from junior farms and hatcheries before the presentations and workshops. employees just starting in the industry up to senior managers. “The individual customers organized the venues and invited all Instead of giving a generic presentation, they were able to talk the attendees for each seminar, so they were completely about specific and familiar issues.” “The exercise was very worthwhile,” commented Michael comfortable with what was discussed,” he added. “We provided the appropriate presenters from our World Technical Support Team and from our enhanced Asian team. We’ve covered all aspects of the industry from grandparent management through parent stock, hatcheries, broilers and nutrition. “It has proved to be an excellent way of further helping our customers, coupled with the world technical school, regular service visits on a requested and routine basis and visits from the World Technical Support Team we are enabling all Cobb users to get the very best from our The CP China team with BPBC and Cobb world and regional technical advisers at Shenyang. products.” 6 NEWS FROM AROUND THE WORLD World Technical School ‘opens up new alternatives’ Forty-six participants from 25 countries took part in the 13th World Technical School organized by Cobb-Vantress at Siloam Springs, Arkansas, USA. For the second year running, a webcast enabled online participants to share in some of the live presentations, which can still be accessed through the company’s website at www.cobb-vantress.com “The 12-day program we’ve developed uses presentations, visits to facilities and case studies to show customers different methods to obtain information and how to use this data when they return to their own operations,” said Gail Thorp, Cobb production administrator who organized the event. “We’ve again received very positive feedback about the value of sharing contacts between customers in different countries as well as the learning and updating technical knowledge during the school.” Mexican participant Jorge Aguirre, from Pilgrims Mexico, commented: “This provided very valuable experience opening up new alternatives in the way I go about my daily schedule.” The program included visits to the University of Arkansas, breeder and broiler farms, a hatchery, processing plant and the Tyson Foods Discovery Center as well as presentations by members of the Cobb World Technical Support Team and invited specialists. There were also exercises at the local John Brown University where the participants performed tasks designed to foster leadership and team building skills. Students performing a team building exercise at the John Brown University. Toasting Mach success 20 years on Jiri Mach unwraps the celebratory gift from Cobb - watched by (from left to right), Leopold Graf von Drechsel general manager Cobb Germany, Lubor Skalka market manager Cobb Germany, Jerry Moye, Cobb president (centre), and Roy Mutimer, general manager, Cobb Europe. Five hundred guests from Europe and the United States celebrated in July the 20th anniversary of the founding of the Mach Drubez Company in Litomysl, Czech Republic. In that period the family-owned Mach company has become one of the biggest hatchery businesses in Europe, expanding capacity from 10 million to now 165 million broiler chicks / year with 1.5 million breeders in production. The company represents 40 percent of the Czech market and 60 percent of the Slovak market. Sales to other EU countries and Ukraine have expanded considerably in recent years, with hatching eggs also sold to Russia, Iraq and Belorussia. From the very beginning Jirí Mach has focused on the quality of day-old chicks and has worked with the Cobb breed since the first days. “We have benefited from the Cobb500’s breeder feed saving, high hatchability and consistent chick quality,” says Jirí Mach. “We also greatly value the excellent relationship with Cobb Germany and the support we receive from Cobb’s European and worldwide technical teams.” 7 Wimex visit impresses Wiesenhof broiler farmers Twenty five farmers from the Erzeugergemeinschaft Süd-West producer group visited the Wimex operations in the Baasdorf region to learn more about the company, particularly the breeding and performance of Cobb500 parent stock. The farmers, who grow chickens for Europe’s largest poultry meat producer Wiesenhof at Bogen, Bavaria, were welcomed by Gerhard Wagner, founder of Wimex, outlining the historical development of his company and describing its broad-ranging activities today. “The visit provided an extensive overview of our activities for our guests who were impressed by what we’re doing at Wimex and enthusiastic about the performance of Cobb500,” said Graf Leopold von Drechsel, Wimex managing director. Delegates outside Wimex headquarters at Baasdorf. NEWS FROM AROUND THE WORLD Trucking award for Cobb-Vantress More than three million miles (4.8 million km) without one accident for 2011 – that’s the achievement that earned Cobb-Vantress the Grand Champion award from the Arkansas Trucking Association. The association, w h i c h conducts annual awards to recognize fleets with impressive safety records, reports that Cobb drivers logged 3.2 million miles without an accident for 2011 and beat 19 other fleets registered for the competition. “This is a prime example of the dedication to safe fleet operations by Cobb-Vantress and our entire Cobb transportation team. We are extremely proud of our drivers for achieving this accomplishment,” states Merrill Bishop, director of Cobb US transportation. Kevin Jones, Cobb transportation coordinator for Southwest Fleet, is presented with this impressive crystal truck and ‘Fleet Safety Grand Champion’ plaque by Sarah Sheets, director of operations for ATA. Brazilian partner companies visit Cobb global HQ Irvine’s host Cobb Africa Tech School Representatives of some of the leading poultry producers from the Brazilian state of Parana enjoyed a high-level visit to the Cobb headquarters and field operations in Siloam Springs, Arkansas, USA. Origanized by Cobb-Vantress Brasil, the party involving delegates from C Vale – Cooperativa Agroindustrial, Coopavel - Cooperativa Agroindustrial, Copacol - Cooperativa Agroindustrial Consolata and Cooperativa Agroindustrial LAR, were given an insight into the global poultry industry from Donnie Smith, president of Tyson Foods, and Jerry Moye, president of Cobb. “The visit provided an excellent opportunity to share experiences between our Brazilian company, our partner companies and senior Cobb and Tyson executives,” said Jairo Arenázio, general manager for Cobb-Vantress Brasil. More than 100 delegates from nine African countries took part in a three-day Cobb technical school organised by Cobb Africa and run at Irvine’s Zimbabwe at Harare. Twenty international parent stock customers from countries stretching from Senegal to Mauritius were joined by customers from Zimbabwe, contract growers for Irvine’s Zimbabwe and technical staff. “There was excellent participation from all delegates making the school a huge success,” said Patrick Murphy, general manager of Cobb Africa. “The school provided very useful training with guest speakers from four countries.” Managing director David Irvine welcomed everyone to the school at a dinner hosted at his home, and gave a history of the 50 years he has been working with Cobb. Among the other international speakers joining Tom Wierda and Dr Wouter Steenhuisen (pictured during a practical demonstration) from Cobb Africa were Mark Foote and David Brandt. cobb-vantress.com 8
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