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Integrated Poultry Industry (IPI)

//17 Mar 2008

Author: Arief Fachrudin

In Indonesia, some poultry industry companies have up-dated their business to the IPI system. This system began in feed manufacturing, poultry breeding and even pharmacy laboratories and has ended up on company farms, poultry partnership businesses, poultry slaughtering and processing of poultry products.
In Indonesia, some poultry industry companies have up-dated their business to the IPI system. This system began in feed manufacturing, poultry breeding and even pharmacy laboratories and has ended up on company farms, poultry partnership businesses, poultry slaughtering and processing of poultry products.

Some people believe this system is like a monopoly because the companies using the system could dominate the market and cause the collapse of their competitors with low finance.

On the other hand, IPI company stakeholders say that this system is a move towards efficiency to help deal with the increasing production costs. The high production costs are caused by the increasing price of feedstuff and energy sources. By using the IPI system a company could stay competitive, grow and survive while improving the quality of products and service.
  • Have your say?
  • Monopoly or efficiency?
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Comments (21)

1.
It sounds like an oligopoly in the making.
MaryF at 17-03-2008 15:11
2.
Working at ING Bank as a branchemanager I know we have good experience in IPI. The main effects are caused by quality controll and managing production. It is not said that the financial position will be better with IPI: it's yust different.
Ing. Kees van Vliet at 17-03-2008 16:35
3.
This update data is very important and useful for us. Hoping that this information will continue run.
Panya Boonprasert at 18-03-2008 01:24
4.
Efficincy, Verry good Concept
Dhruba Manandhar at 18-03-2008 03:43
5.
Hi colleagues; in my openion this kind of p. Indestry is monopolizing and dominated the related businesses in the market,all those mentioned activities are synergistic to each other and competion would not be ignored, they are synergistic but are defferent from sisctific poin of views. the feed stuff is converted to p. production but how to make it effecient, more digestable and more usefull, the competion between poultry and human in term of food/feed is the factor and also the papulation growth, the mediciene cost could be reduced some how by good farm management. thanks
Dr. Abdul Qader Samsor,Livestock advisor / ASAP / UAID at 18-03-2008 05:09
6.
It is good to minimize the wastages of resources.Collecting litter and generating power through gasificatuion would become another feather on their cap.This will make every farm independent of grid power and the power is Green power.
P.Subramanian at 21-03-2008 07:59
7.
Efficiency of course. We have to increase the profit by using an efficient strategy. And the solution is Integrated System.
Rolando at 21-03-2008 12:05
8.
IN FUTURE POULTRY BUSINESS WILL IN THE HAND OF BIG GROUP.
SMALL AND MEDIUM FARMERS AND BUSINESSMEN WILL BE OUT IN PAKISTAN POULTRY INDUSTRY...AND ABOVE SYSTEM KEY TURN PROJECTS WILL HELP THE BIG GROUPS NOT POOR FARMERS,,,,SMALL AND MEDIUM FARMERS COST OF PRODUCTION IS VERY HIGH THAN BIG AND COTROLL HOUSE FARMERS
DR KHALID MAHMOOD SHOUQ at 21-03-2008 15:13
9.
SURLY IPI SYSTEM WILL REDUCE COST OF PRODUCTION AND THERE WILL BE MARKED IMPROVEMENT IN QUALITY .
DR WASEEM AHMED PRODUCTION CONTROLLER MEGA POULTRY BREEDER COMPANY PVT LTD at 22-03-2008 11:50
10.
It is not true that industries are monopolizing and dominating the market. It is mutual need of both i.e. farmer and integrater. For indian market, market is too volatile for small farmer.
uday at 22-03-2008 15:21
11.
more attention should be directed towards production of maize to a sustainble level that will match increasing demand occasioned by high poultry production and human population.
abioye sulaiman adewole at 29-03-2008 16:20
12.
Hi colleagues;In my opinion it is good concept but goverment should moniter the integraters.
Dr.Abdul Muneer at 02-04-2008 07:30
13.
I believe this Integrated operation concept would help in promoting a quality product out in the market, self efficiency to provide the needs for the poultry production and for the integral business as a whole is a great approach in combating production cost and also help insure the monitoring of birds health. Other benefits should soon rise as when they started to build their own biofuel plan using the chicken waste leading them to provide their own energy need and would sum up that they have more than what they needed. Prior to this, actions are to be taken between the operators and the community (provide work for the community) and supply healthy meat product, community deal that no backyard raisers operate so as to avoid the spread of bird disease (health wise) and this will trim down competition. Of course if the companies succeeded to raise such agreement then the raise to success is on, like building their extension farm building, or branching out and if too ambitious then eye for a lead in producing the poultry product selling not only in the local area but in the entire part of indonesia and some export. Shoud I start to suggest our ventilation cooling system though for the environment and climate protection purpose... Huhmm. I wish someone will get interested.
Denis Arpafo at 26-04-2008 11:09
14.
IPI or integrated systme management is an effective management style. It contributes to the society food awareness and safety. It helps insure that the product that we are buying or available on the market are free of disease and safe. It also answers the demand on self efficiency by producing the needs to further enhance the production, reduce cost, and measure or conduct studies on how to improve the production style. This leads industrial wave on technology, security and efficiency. Biofuel and continuous increase of grain prices are one good example. The production ability of integrated farms to produce their own feed (organic feeds or grain feeds) reduces their expenditures and the biofuel plant from the waste of the chicken (methane gas) enables them to produce the energy more than what they needed. It is not a monopolizing business but an ideal business strategy. Every business has to come out with a bright idea to take the lead. This would not only benefit the farm producers but also the companies providing them the farm equipment as these would guarantee a sales on their part especially if they companies already acquired their system and move into the idea of Integrated management. Anyway, integrated farms also do give some business contracts on the small farm owners as when they comply with the system requirement et al. Modern housing for disease and climate control.
DENIS ARPAFO : ventilation equipment Sale Department at 29-04-2008 03:32
15.
That's monopoly but covered by efficiency. Everybody knows, they hold this businees from A-Z and they do not give chanc for small farmer to develop.
Afriyanto, practice Veterinarian in Surabaya at 18-06-2008 05:35
16.
I would rather say monopoly, because the is no space for government or other institution to control the system. It would kill small independence farmer.
widodo at 19-11-2008 03:04
17.
I know that in intigrated activity the required investment is very large such as in feed mill and in other allied activities so these companies are able to cut the production cost and thus making big profit which is not possible to individual farmer and they often get losses in poultry and forced to close the poultry activity and these things are creating the monopoly of ipa companies. I am also in the field of repairing poultry palet feed plants and during working in this field I realised the problems and I have found the solution. I have eveloped a mini plant paleting poultry feed which is hygenic and in quality as good as the big plants in the market. The capacity of this mini plant is 100 tones per month, so by forming a group of farmers for 40,000 birds capacity poultry farms we can produce our own palet feed and can reduce the waistage while feeding birds we can reduce the production cost as the feed cost is a major cost so we can save in production cost and earning big profit is guranted possible. My work for the development of plant is in progress and central govt. has granted me the funds for the development of this plant.In this way their will be no threat of monopoly of few companies and small poultry holders will be benifitted and will definately survive and will help in developing the nations economy.
Shaikh Yunus Abdul Rajjak India State-- Maharashtra at 18-12-2008 05:31
18.
Given my more than 20 years of experience with the Brazilian poultry industry, I must say the vertically integrated production system has been proven to be one of the biggest competitive advantage Brazilian poulty industry has compared to its worlwide competitors and peers.
By controlling themselves the key-steps of the production chain - feed mill, GPS, PS and hatchery - while outlining and enforcing the best management practices for their integrated broiler farms, vertically integrated companies secure the best and most homogeneous results for their live broilers.
In cascade, these benefits are extended and enhanced during processing - uniformity of raw material, minimal condemnations either for sanitary or physical problems, maximization of meat generation thru the whole birds and cut-up room and etc.
At the end, not just the companies themselves benefit from the cost optimization and production maximization achieved thru the vertical integration but, mostly, the consumers, who have access to a homogeneous, well-presentted and affordable protein for their daily comsumption.
Fabio Nunes at 12-01-2009 15:05
19.
IPI is very well organised, competent, resourceful, and professional business adminstration. We can locate exactly the quality of our product produced and develop a professional competency.
Dr.R.Balagopal, Professor ( Veterinary) at 03-02-2009 01:41
20.
nothing balance between farmer and big group.
agos at 17-03-2009 03:32
21.
I believe IPI concept would helps Kurdistan to relief this field, for more production and productivity, using the space more effectively, increasing the number of the batches yearly, self efficiency and find opportunity for export, reducing the cost of production, more controlling the diseases and also help to insure and creating jobs. The breeders thinks it is the last way for survive this poultry production sector in Iraq, for that the Government allocated 12 million dollars for enhance this program.
Awder H. Kareem at 31-07-2009 20:47

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