cobb focus three 2011

8/3/2019 Cobb Focus Three 2011

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Today K&Ns is the epitome of a fullyvertically integrated poultry business fromthe production of Cobb parent stock to

the chain of highly rated K&Ns ChickenStores selling chicken and value-addedchicken products in 15 of the largest citiesin Pakistan.

It was all so different when the founder,Khalil Sattar, a college student, began a

small broiler farm with 1000 chicks in 1964.

At that time there was no commercialpoult ry p roduc tion in Pakist an. Allchickens were backyard poultry known asDesi, grown mainly by families in smallnumbers around their own homes in the

villages.Pakistan was a young independent

nation, and malnutrition was amajor problem, with one out offour children dying before theage of five. Poultry wouldprovide the quickest and leastexpensive source of the proteinneeded to improve nutrition

and Khalil Sattar had the visionto see this potential.

His first flock was rearedin a spare shed at his familysedible oil business. His successin selling these b ro ile rs to

l oc al ho te l sencouraged himto expand his farmingactivities, confounding theperception at the timethat farm grown chickenswere inferior to backyard

poultry or birds bought atthe roadside and slaughteredunder Halal rules in frontof the customer.

However, this was verymuch a start-up venturefor Khalil. With availabilityof day-old chicks limitingindustry growth , hedecided in 1974 to movei n t o b r e e d i ng a n d ,regarding eggs as the bestform of protein, he began

supplying commercial egg

producers with day-old pullet chicks. Haim was also to put the industry onsound footing, making it commercia

viable.

His initial venture with layers took hto the Babcock Corporation locatedIthaca, upstate New York. Since 197through an exclusive franchise agreemeK&Ns is the sole producer and distribut

of Babcock pullet chicks for Pakistanmarket.

Broiler breeding began in 1981increase the supply of day-old broichicks to commercial broiler farme

At that time K&Ns was selling broichicks to farmers who grew them up5-6 weeks. The business focus then won increasing volume - importacommercially for K&Ns but aldeveloping a strong backbone for tindustry.

focusW O R L D W I D E

K&Ns leads industrygrowth in Pakistan

THREE 201

Zambia: HybridPoultry 50 years on..........................3

Balkans: Agrozivmoving ahead................................3

Compartmentalization: Globalperspective...4& 5

Seminars around theworld...................................6&

News of our people...........................................................

US flock awards.................................................................8

in this issue

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CHANGING CONSUMER PERCEPTION OF FARM REARED CHICKEN

The growth of Cobb distributor K&Ns in

Pakistan has provided a model for thedevelopment of the countrys poultryindustry which rates among the top tenproducers in the world. More than 45years ago Khalil Sattar recognised thepotential to move from domestic toindustry scale production and hiscompany has triumphed through manyups and downs in the market.

Adil Sattar (second left) and his father Khalil (second right) withDuncan Granshaw and Mohammad Ismail of Cobb at one ofK&Ns stores in Lahore. Above, possibly the worlds largest chickbillboards - 18 x 6m (60 x 20ft) - as displayed in Karachi,

Lahore and Islamabad


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In 2001 K&Ns returned to broiler growingwith larger scale, controlled-environmentfacilities, which laid the foundation forthis type of production in Pakistan.

Up to then most producers had less than5,000 broilers per shed, fed them manuallyand usually housed birds in thatched roof

sheds.Currently K&Ns has six broiler growing

facilities, each with capacity for 250-300,000 birds. The Cobb 500 broilers aregrown to 36 days, averaging 1.87 kg witha 1.75 to 1.85 feed conversion ratio.

For all the farms and other operationsback-up generators are essential as powerbreakdowns occur regularly, can beunpredictable and last six to eight hours attimes.

K&N s s t rong commi tment tocooperation and industry development

encouraged new entrepreneurs, pushing updemand for day-old broiler chicks. Thislead to increased placement of parentstock, so that in 2007 Pakistan was one ofthe top ten poultry producers in the worldwith over eight million broiler parent stockproducing more than 800 million birds a

year.The expansion had also been triggered

by high prices following the drastic dropin production in 2004/05 when Pakistansuffered badly from bird flu.With over production in 2007/8 and a

reported bird flu case in a remote area,poultry prices crashed once again. Add tothis a 68% increase in feed cost and heavylosses were made with a 40% reduction inproduction in 2008/09.

Day-old chick price at the end of 2008dropped to (Pakistani Rupees) Rs. 1-4(2008 Rs 80 = US$1) with some breeding

companies even giving away day-oldbroiler chicks against a production cost ofover Rs 20 per chick. Consequently, almost40% of producers closed, reducing thesupply of day-old chicks and increasingtheir price. As demand recovered there wasa shortage of parent stock.

This led in 2008 to K&Ns reaching anagreement to become a Cobb grandparentfranchise producing Cobb 500 parent stockfor their own breeding programme andsupplying other breeding companies tohelp rebuild the industry.

The decision was made after split-house trials with both Cobb andcompetitor breeds, assessing parent stockperformance, broiler feed conversions andgrowth rates, says Khalil Sattar, chairmanand chief executive of K&Ns.

We discovered the closest internationalcompetitor of Cobb required superior

quality pellets and high density feed whicould not be readily and extensively maavailable in the country with the marginnature of nutrition, says Adil Sattexecutive director of K&Ns.

Broilers of other breeds did not compewell as we found the Cobb 500 broiler be the most cost effective. On the breediside, Cobb parent stock performed as was any other and consequently we choCobb.

We feel that with Cobb 500 in Pakistwe can contribute positively towarenabling farmers to produce a live kg chicken at least cost and in the moefficient manner.

In 2011/12 K&Ns expects to produce million layer and broiler chicks.

In the 1960s and 1970s, obtaining sareliable sources of poultry feed was insurmountable challenge in Pakistan. Thled Khalil to set up his own feed mill produce feed for K&Ns operations Karachi in 1971. With the growing need

feed for the integrated productioperations in Central Punjab province aNorthern areas of the country, a feed mestablished by a multi-national companat Lahore, was acquired by K&Ns to taadvantage of low cost feed ingredienavailable in the Central part of Pakistan

The growth of commercial poultproduction through the decades changthe mindset of consumers towards farraised broilers and eggs, helped by lowprices and greater availability. Today De

D I S T R I B UT OR PR OF I L E : K&N s , PA K I S T A N

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Top, K&Ns processing plant; bottom, its

grandparent farm near Abbottabad


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A NN I V ER SA R Y C E L EB R A T I ON

It was a real privilege to be present at the50th anniversary celebrations of Hybrid

Poultry in Lusaka, Zambia in June.This is an outstanding commercialmilestone and it was clear from thepublicity surrounding the event thatHybrid have established themselves as akey player in the agricultural communityand are widely recognized for theircontribution to the Zambian economy. Itwas great that this milestone alsocoincided with the 10th Anniversary of

their partnership withCobb as a grandparentdist )"M//n$37nYGx,[OnP]xx,aUbYx,[OuYg][Ol,YVafZGYY]g]YeGYG,[Ox,[x,[PUccobhYb]x,[OsPOoPUg]x,[OrPUZY]xjYY[OtYGhPUUZx,Y]xjYY[OtYY]xPUb]x,[Og],[j[jYUinGfGUZVZcG,[OiPUa]ebgZGYG,[OrPUZeewGbcYGOPaaaacZY]


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C OM PA R T M ENT A LI Z A T I ON : T H E NEX T S T EPS

When first proposed by the OIE (the worldorganisation for animal health) somesix years ago, the concept ofcompartmentalization was designed toprovide an additional level of confidenceand credential beyond geographicalborders or zones traditionally adoptedduring a notifiable disease outbreak. With compartmentalization, industry

and governments not only consider thephysical boundaries but also theepidemiological factors, including

management practices and biosecurity, thathelp define an effective separation betweensubpopulations in the event of disease.The concept is aimed at helping withinternational trade and disease controlduring an active disease crisis episode inthe exporting country.

For trading during a disease crisis,compartmentalization can help with themovement of commodities where country

or regional diseasef reedom assurancescannot be authorized.Secondly, for diseasecontrol or eradicationprocedures, progressivecompartmentalizationsteps in a country mayenable a more strategicapproach for governmentrisk analysis and disease preventionmethods within a geographic area.

While the purported benefits arestraightforward for exporting countries,importing countries and suppliers of

valuable commodities, implementation hasbeen more challenging.

Qualified biosecurity systemsThe OIE has clearly provided a

framework for compartments, but theresponsibility lies with individual countries

for the specific details required finf ras tructure , t ra ining

independent government staff assess and approve sites, athe notification of approvcompartments.

In various cases, implementati Stage 2 has been a joint effobetween industry and governme

With the elite poultry breediindustry, exporting companihave a clear understandinof the need to have qualifi

biosecurity systems to help ensure thtrade disruptions are limited in the eve

of a disease crisis within the country origin.For governments, having approv

compartments for a defined subspecimay not only improve the quantity anfrequency of disease surveillance withthe subpopulation, but should also provigreater transparency and traceability livestock with regards to biosecurity anepidemiological factors.

Compartment expectationsTo implement compartments, countri

have responded in different ways to set uthe procedures and assessments for thapproved compartments.

Some governments are using the Ostandards as a bas ic out l ine fcompartmentalization. By only utilizithe OIE standards as the primaframework for their compartmenthese governments allow companies demonstrate the robustness of thebiosecurity programs, epidemiologic linand disease surveillance systems to methe OIE definitions for compartments.

Other governments have additional

provided industry with stringent criterto eliminate potential areas of seinterpretation or leniency. These strguidelines include clearly definchecklists for biosecurity and managemeprocedures, expectations for faciliinfrastructure, surveillance testing abiosecurity measures that go well beyothe basic framework of the OIE criteria. A f inal example of Stage

implementation is the EU compartmestandard that provides benchmark criterfor EU member countries. These E

Epidemiologic isolation of farms is important for disease prevention. Biosecurity measures andcompliance are, however, essential for compartment approval

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Preparing for the inevitable withreassurances in placeby Dr KATE BARGER, veterinary groups and quality assurancemanager/veterinarian at Cobb Europe


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C OM PA R T M ENT A LI Z A T I ON : T H E NEX T S T EPS

Standards are more specific and provideadditional detail to basic OIE criteria.

Once the national or governmentalrequirements are known, industries andindividual companies can begin toimplement Stage 2 by actively developingthe documentation and implementingbiosecurity measures to meet anyadditional compartment standardsexpected by their governments. Ascompanies complete their internal workand achieve compartment recognition bythe veterinary authority of the countrywhere their production locations aresituated, compartmentalization can thenbecome a reality.

Establishing operations as compartmentselevates the company and the industry toa higher status of biosecurity and healthduring times of disease occurrence.

While the process and implementation isindeed a burden and requires an incredibleamount of attention to detail, mostcompanies have found that theserequirements have improved the objectives

and assessments of the i r da i lymanagement procedures as well astransparency of their biosecurity actions.

The next step for compartmentalizationi s S t age 3 and w i l l c r i t i c a l l ydemonstrate the functionality of approvedcompartments. This phase involvesrecognition, and in some cases evaluation,of the defined compartment by theimporting country. At the recent May 2011OIE meeting in Paris, a luncheon meetingwas attended by approximately 165 OIEdelegates to learn more about the UK

compartment scheme. Presentationshighlighted the UKs collaborative effortbetween government and industry todetermine the necessary criteria forcompa r tmen t s and th e a c tua limplementat ion and approval of compartments for poultry breedingcompanies located in Great Britain.

Calm before the stormWhile events like this to promote the

compartment process are vital, speakersalso stated that importing/exportinggovernmenta l di scuss ions aboutcompartments must now take place

during the time of disease freedom. Thperiod - essentially the calm before tstorm - is vital to many exports and proving that the compartments asustainable.

To facilitate this phase of understandibetween governments for the purpose international trade, small changes a

already taking place. For examplupdating export health certificates include the text compartment statements related to disease freedom

just a portion of the work that needs to completed.

For the actual recognition and approvof compartments to take place, texporting government must be transparewith the standards and assessmenthey have provided to approve tcompartment, and also be willing openly share this information with t

importing government.By sharing this information in advanfor recognition of the compartment, tultimate goal will be to avoid blankcountry-wide restrictions and lengthtrade delays during notifiable diseasituations. This was the original goal whthe OIE began work on compartmen

years ago, and is still the goal for industand governments today.

In a perfect world there will be no nefor a Stage 4 the real test of tcompartment concept during a diseacrisis. But, as we all know, it is best to prepared for the inevitable and to haadditional reassurances in place lobefore they will be needed!

Strict procedures for vehicles and personnel entry are critical to ensure epidemiologic separation

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SEM I NA R S A R OUND T H E W OR L D

As part of the commitment to provideworld-leading support to customers, Cobb

Europe hosted their technical seminar inFriesland in northern Holland.

Our customers did us proud andwe had excellent representationfrom grandparent distributorsand parent stock customers,writes Euan Meldrum, CobbEurope marketing manager.

Delegates came from all parts of theEurope Middle East Africa region fromIreland to Saudi Arabia and Sweden toSouth Africa. The programme was devisedfor them to learn about specific aspects of

poultry production with practical visits andpresentations each day,The first day covered

industry matters aroundthe world along witheconomics of poultryproduction. Days two andthree saw the delegatessplit into broiler orbreeder groups andcovering hatchery andproduction. The daysfollowing covered healthand ventilation, includinga visit to the Pluimvee-praktijk Noord & Oost( N o r t h a n d E a s t o f Holland Poultry Practice)

for practical demonstrations.The 18 members of the Cobb family who

gave presentations during the five-dayevent were joined by twoindustry experts - Dr RonMeijerhof who spoke about theeffect on incubation on broilerperformance and Dr TonyMarangos on optimal broilernutrition for the Cobb products.

Capturing the lifestyle in Friesland, thegroup learned how much the sea and canalsinfluence the day-to-day activities oflocal people and enjoyed an afternoonscompetitive sailing, with graduation and

dinner in the historic capital of the region,Leeuwarden, on the final evening.

Out and about in Friesland

A visit to the Cobb-Vantress headquarters in Siloam Springs, Arkansas, USA, providedPavel Visek and Milos Zima (pictured fourth and third from right) from the Xavergengroup in the Czech Republic with an insight into how the company is expanding to meetgrowing demand for the Cobb 500.

The visitors discussed with Cobbs senior management group the changing marketsaround the world and its increasinginvestment in both research andproduction facilities, helping to securethe continuing advance in breeder andbroiler performance. They also saw USproduction facilities in Missouri.

Mr Truscott commented: Imextremely pleased that our customer inthe Czech Republic is achieving 141chicks per breeder and sees the demandfor Cobb broilers increasing so thatmore breeders are being placed.

Czech group visits headquarters

Seminars are a very useful way of updating customers with the latest technical advice, as well as enabling them to share experience

and make new contacts. We report on the series of seminars organised by Cobb and our distributors through recent months.

Middle East seminafocuses on success

in hot climateThe challenges of successful broilgrowing in a hot climate was the theme a Cobb Europe seminar for 40 Middle Eacustomers in the Mzaar mountain resortLebanon.

Cobb Europe sales and technical directPelayo Casanovas, the first of eigspeakers, spoke about how Cobb serves tglobal market and how its products againing share in the European, Middle Eaand African region.

Regional sales manager MohammChail gave an update on the markets withthe Middle East, then Cobb geneticist GosVeninga looked into what to expect froCobb products in the future.

Technical topics from the Cobb Euroteam made up the majority of tpresentations with Mark Foote from the Udiscussing incubation principles afactors influencing broiler performancBroiler nutrition was covered by consultaDr Tony Marangos, while Cobb Eurotechnical manager Matthew Wilson sharglobal experiences on growing broilers infeed efficient and successful way.

Cobb Europe veterinarian Dr And

Derkx talked about disease preventimeasures and how to read the signs infectious viral diseases and vaccinatiprograms, getting the right one for eacircumstance.

Cobb regional technical managMohamad Kallas commented: I adelighted to have so many of ocustomers with us in Lebanon. The grogained knowledge not only from mcolleagues but also from each other, facisimilar conditions and challenges in thown markets.

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SEM I NA R S A R OUND T H E W OR L D

The growing importance of Ukraine as a chicken-producing country wasreflected in support for the Cobb Germany two-day seminar in Cherkasyon the banks of the River Dniper.

Cherkasy was chosen because the region is the leading producer ofbroiler meat in Ukraine, and provides the location for one of Europes

largest broiler complexes - Myronivski belonging to MironivskijHleboprodukt.Opening the event James Truscott, Cobb Germany director, said that in

10 years the Cobb 500 had become the market leader in Ukraine.We are grateful to Cobb Germany it not only supplies excellent

service but the product we need, the Cobb 500, commented MaximPisarev, Mironivskij Hleboprodukt director of production.

Many young people were among the delegates. Their keen interestshows why Ukraine is becoming a leader in supplying quality chickenmeat, added Mr Truscott. The country has a great future ahead of it withskilled specialists running the large production facilities.

World technicalschool proves itsvalue

Great future forecast for Ukrainian chicken industry

Forty four participants from 25 countries(pictured below) took part in the 12thworld technical school organized byCobb-Vantress at Siloam Springs,Arkansas, USA.

This year for the first time othercustomers were able to share in some ofthe live presentations through a webcastwhich can still be accessed through thecompanys website.A feature of the 12-day program is the

number of case studies presented to theschool. We introduced case studiesseveral years ago and they now play acentral role in giving the participants reallife experience of specific issues on thefarm and at the hatchery, said GailThorp, Cobb production administratorwho organized the event.

Weve more than doubled the size of

the school since they began and we

always receive very positive feedbackabout their value in terms of sharingcontacts between customers in differentcountries as well as learning and updatingtechnical knowledge.

The program included visits to the

University of Arkansas, breeder anbroiler farms, a hatchery, processing plaand the Tyson Foods Discovery Center well as presentations by members of tCobb World Technical Support Team an

invited specialists.

More than 80 Cobb customers and otherkey players from the Hungarian chickenmeat industry came together for thetwo-day seminar near Inrcs, nearBudapest, to hear presentations fromthe world renowned specialists.

The event , organised by CobbGermany at the Bodrogi Kria Hotel, wasintroduced by director James Truscott

and Lszl Korsi, sales manager forHungary, who said the aim was to helpcustomers take full advantage of theCobb 500 genetic potential.

Technical presentations covered theimportance of accurate incubation in

providing for the chicks temperatureneeds (consultant Dr Ron Meijerhof)heat stress related to different climaticconditions (Dr Andrea Molnr) and theimportance of ventilation in achievinggood environmental condi t ions(Matthew Wilson, Cobb Europe technicamanager). Winfridus Bakker, parent stoc

specialist in the team, explained how toachieve top results during the peakproduction of a Cobb 500 parent flockwhile nutritionist Tony Marangosdiscussed nutritional strategies for theseflocks.

Renowned specialists for CobbHungarian seminar

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Cobb-Vantress, Inc Tel: +1 479 524 3166 Email: [email protected]

Cobb Europe Ltd Tel: +44 1206 835835 Email: [email protected]

Cobb-Vantress Brasil, Ltda Tel: +55 (17)3267 9999 Email: [email protected]

Cobb-Vantress Philippines Inc Tel: +63 2 634 3590

cobb-vantress.com

Roger Vessell, who has

been appointed directorof world marketing forCobb-Vantress, bringsover 26 years of sales andmarketing experience.

He has been seniormarketing manager forthe past five years withHolt Caterpillar at San Antonio, Texas.Previously he was vice president -sales and marketing with Columbia300 in San Antonio and held brand

management positions with RawlingsSporting Goods.

He obtained his BSc in socialsciences from the University ofMissouri Rolla, and is currentlycompleting his MBA from MissouriState University.

Roger and his wife Joan, who have twosons and a daughter, will be relocatingto Northwest Arkansas.

Dr Annsofie Wahlstrm hasbeen appointed as nutritionistfor Cobb Europe to servecustomers in Europe, the MiddleEast and Africa and also beinvolved in nutritional aspectsof research.

For the past seven years shehas been working with Swedenslargest feed company, Lantmannen

Lantbruk, where she waspoultry feed nutritionistand product manager for

broiler, turkey and breederdiets.

She gained a mastersdegree in animal sciencefrom SLU, the SwedishUniversity of Agriculture,and then a PhD In 1999

studying diet and hybrid interactions laying hens.

Cesar Coto has joined t

Cobb North America TechnicService Team, responsible fproviding technical advice customers throughout CentAmerica and the Caribbean

Cesar, who has been technical manager for DSNutritional Products in th

same region, is a graduate of the Universof Arkansas where he completed a PhD poultry science in 2010 as prograassociate in the laboratory of Dr PaWaldroup.

He began his studies with a five-yeprogram in animal science in his natiCosta Rica and after an initial two-yeperiod with DSM resumed his studies the University of Arkansas, gaining MS in poultry science and then agribusiness.

Jerry Moye, presidentof Cobb-Vantress, wasn a m e d t h e 2 0 1 1Industry Leader of the

Year by the PoultryFederation during the52nd Annual PoultryFest ival in Rogers ,Arkansas, USA.

The award formerlytitled Man of the Yearhas been awarded since 1955 and recognizesthe outstanding achievements of poultry andegg executives and their contribution to theindustry.

Jerry completed in 2010 a three-year term onthe Poultry Federations board of directors and

is currently serving another term - he is one ofthe very few directors to serve two consecutiveterms as chairman.

During his tenure, there was never a job toosmall or too large for him to tackle and hisleadership as chairman is well recognized,says the Federation.

Poultry Federationhonor for Jerry Moye

NEW S OF OUR PEOPL E

Georges Inc, located in Springdale, Arkansas, was the recipient of the USCobb 500 Sold Flock Survey Award.

The award is given to the top producing complex with the highest average totaeggs per hen housed. Chance Bryant and Bob Ickes from Cobb presented the award

to Ricky Pinkerton, Georges breeder manager.Chance Bryant comments: George's breeder personnel have worked very

hard, remained focused on the basics and functioned as a team, makingtremendous improvements over the last few years to achieve this performance

We congratulate them on earning this well deserved award."

Flock survey award for Georges

Joining the team

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cobb focus three 2011

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