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Growing Through Sustainable Partnerships

Because SMFI believes that outsourcing is a viable and attractive model to propel the company’s growth, it has built, through the years an extensive network of third-party owned and operated facilities that include farms, hatcheries, processing plants, warehouses, distributions.

These third-party suppliers are engaged in an agreement with SMFI to grow chicks, hogs, and cattle to marketable size, at the least possible cost. In this contracts farming agreement, SMFI provides the chicks, superior hybrid pigs, feed, veterinary medicines, and technical support while the contract partner provides the lands, poultry and piggery houses, labor, and security. So while the contract farmers take care of the “rearing” part of operations, SMFI handles all sales and marketing.

MAGNOLIA FRESH CHICKEN CONTRACT FARMING

SMFI’s Poultry Live Operations cover a vast network of over 100 breeder farms for Grandparent and Parent stocks, 21 hatcheries, and more than 1,400 contracted broiler farms that currently supply majority of the country’s annual broiler capacity.

Since 2004, SMFI has spearheaded a successful transformation of its broiler chicken grow-out operations from traditional naturally ventilated poultry houses to tunnel ventilated facilities. Resulting in more stable broiler supply and superior performance, the new technology also delivered higher incomes to contract growers who have invested in tunnel ventilated facilities.

Resulting in more stable broiler supply and superior performance, the new technology also delivered higher incomes to contract growers who have invested in tunnel ventilated facilities. Learning from this effort, the tunnel ventilated system has been adapted in pig breeding and growing facilities. By the end of 2010, 60% of its broiler chicken and 18% of its pig growing capacity were already using the tunnel ventilation system. The company also convinced its contract partners to install automated feeding and drinking systems as well as to replace rice hulls as litter material in poultry houses with plastic slats.