EGG – LAYING CHICKEN BATTERIES:
A FRAME – 3 LAYER DESIGN
The egg industry experiences a high degree of competition between its participants.
Industries with high degrees of competition are characterized by the following:
1) Industry Participants (chicken famers) are price takers – you accept the price
offered for your eggs at any point in time as quoted by the market.
2) Products (eggs) are essentially homogenous – an egg is an egg to the
consumer, although egg size is a differentiating factor.
3) Profit margins are very narrow in a competitive industry - thers is a small gap
(profit) between what you receive for your eggs (egg price at any time) and what
you pay to produce those eggs (feed, batteries, etc)
The South Afircan National Poultry Association estimated that the average producer
price for eggs of all sizes in South Africa was R9, 22 per dozen during March 2010.
(See Figure 1).
Graded eggs (which comprised 72% of all eggs sold in South Africa during March 2010)
fetched a price of R9.63 per dozen. It is apparent that the gap between what you
receive (R9, 63) and what you pay (R9, 22) is very narrow.
Why are we telling you something that you know?
We have a product that will ensure that the gap between what you receive (R9, 63) and
what you pay (R9, 22) is widened. This profit gap is 41c on average currently in South
Africa for graded eggs of all sizes. Individually, you may have very good deals with
some buyers who will pay you slighly more for your eggs, or you are able to cut back on
some expenses. All these actions will widen the 41c gap to something bigger and thus
more profitable.
The product that we market will help you to cut down on the expenses side of the profit
equation. In other words, we want to bring the R9, 22 down for you. Our business (Tanix
Trading) has done some research on the prices of chicken batteries available in South
Africa, and found that these prices range from R35 to R50 per chicken.
Our price with full installation, anywhere in the Republic of South Africa, is
approximately R25 per chicken!
What does this mean for your businesses’ profitability?
Let me show you:

Let us assume that every healthy hen lays an average of 200 to 280 eggs per
year. Let us assume that you receive R9, 63 per dozen (March 2010).
Calculation: Total Income from 1 hen per year:
280 eggs:
280/12= 23 dozen
23 x R9, 63= R221, 49
200 eggs:
200/12= 17 dozen
17 x R9, 63= R163, 71
Total expenses for 1 hen per year:
280 eggs:
23 dozen x R9, 22= R212, 06
200 eggs:
17 dozen x R9, 22= R156, 74
Total Profits per hen per year:
280 eggs:
R221, 49 – R212, 06= R9, 43 per hen per year
200 eggs:
R163, 71 – R156, 74= R6, 97 per hen per year

Note, presumably the producer price that Sanpa quotes includes an average of
the battrey prices available in the market:
(This means that the R35 – R50 range per chicken becomes R42, 50 per chicken for
the batteries.)
Let us assume for this calculation that farmers only pay R40 per chicken for their
batteries:
Calculation:



Chickens lay 200 – 280 eggs per year
Batteries (at R40 per chicken)
o We have shown that that with current cost structures the total expense per
chicken for the year is a high of R212, 06 or a low of R156, 74.
With our batteries, these total expenses will come down. But by how much?
The Answer:
We also assume that the price of the batteries is spread over a lifetime of 5 years, this
means that the yearly expenses for batteries are as follows:



Competition = R8 per year on average per chicken
Our Product = R5 per year on average per chicken
The difference in expenses is R 3 per chicken per year
This means that your profits will do the following if you use our product:
Total Expense in the industry at present (with competing products):
280 eggs:
R212, 06 per chicken per year
200 eggs:
R156, 74 per chicken per year
Total Expenses (with our product):
280 eggs:
R212, 06 – R3 = R209, 06 per chicken per year
200 eggs:
R156, 74 – R3 = R153, 74 per chicken per year
Your profits with our product are thus:
280 eggs:
R9, 43 per chicken per year rises to R12, 43 per chicken per year,
which implies that your profits will rise by approximately 32% per
chicken per year.
200 eggs:
R6, 97 per chicken per year rises to R9, 97 per chicken per year,
which implies that your profits will rise by approximately 43% per
chicken per year.
PRODUCT FEATURES:
THE DRINKING EQUIPMENT:
Standard Equipment:
Water tank, water channel, nipple, bell drinker, cage, manger, egg collecting tray and
shelf.
The drinking water system allows for two possibilities:
(1) Water can be connected: Tank is composed of automatic valve and it controls the
quantity of water automatically.
(2) No running water: Water tank is composed of ordinary tank and there is a tank on
each row. Customers need add water on their own accord.
Other parts of the water system include the following:
The catheter, drinking nipple, drinking bowl, clip and water pipe.
The drinking water system of our company is simple, practical and can be used in
conjunction with the other chicken equipment our company sells, or as spare parts in
pre-existing equipment.
CONSTRUCTION OF THE DRINKING SYSTEM:
The water channel needs to
be installed inside the water
tank before the water tank
can be fitted on top of the A
Frame.
THE FEEDING SYSTEM:
Feeding system can be divided into two independent systems:
1) Feeding system: composed of the supports and feed box. Feed box has two kinds of
material, namely galvanized sheet and plastics.
2) The feeding system can also be customized to customer specifications, flexibility is
something we pride ourself on, if it is possible, we can do it.
Our troughs have the ability to feed 120 chickens per cage.
On customer’s request, different troughs made from different materials can be
organized to suit customer’s requirements.
FEEDING SYSTEM CONSTRUCTION:
Open feeding trough:
1) 24g galvanization sheet
2) Thickness of sheet is 0.3mm.
THE CHICKEN BATTERY:
A-type Description - 3 layer:
The size: height: 1.8 m (battery), width: 0.5 m per compartment, height: 0.32 m per
layer and the whole length of the battery is 2 m.
The specification: 4 compartments per layer, 5 chickens per compartment, and the Atype battery can accommodate 120 chickens in total.
Material: The cage is made of electro galvanization wire, and the shelf is made of
electro galvanization angle iron.
Space: 49 x 34 x 35 cm (one compartment – capacity 5 chickens)
Lifespan: 4-5years
Cage type:
Box front – 50, 8 cm
Box height (front) – 43.18 cm
Box depth – 40, 64 cm
Box height (rear) – 38, 1 cm
Feeding space per bird is approximately 529 cm2.
Feature: Our chicken batteries are made from high anti-corrosive galvanized steel,
which is durable and long lasting. As for the surface treatment, we believe the hotgalvanization process is superior, because the South African environment is harsh and
unforgiving as you are well aware and needs a material that can last. Other materials
are available upon customer request.
CONCLUSION:
We are a very flexible company, and it is our aim to provide the best value for money
products to our clients at all times. We believe that our clients know their business much
better than what we do, so we would like to help you obtain the products best suited to
your needs. We have a wide ranging supplier base and therefore can find you anything
you need, just send us a very detailed description of your needs and we will see what
we can do.
CONTACTS:
Dylan Janos
Cell:
082 519 6928
Email: [email protected]
Fax:
021 855 3294
Charl Botha
Cell:
082 504 5401
Email: [email protected]
Postal Address: 5 Cone Close
Somerset West
7130
Note: The prices quoted in this prospectus are subject to change based on currency or other economic
fluctuations of a significant magnitude.