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Agricultural industry

Barkat Frisian Agro Limited Embarks on Poultry Layer Farming Initiative

Strategic Insights

— 1 min read

In a bid to boost supply chain resilience and optimize costs, Barkat Frisian Agro Limited has unveiled a strategic investment plan to establish poultry layer farming operations. The initiative aims to meet 20% of the company's current daily egg requirement of 1,000,000 eggs, with the production capacity expected to be around 200,000 eggs per day. The project, worth PKR 690 million, will see the establishment of two poultry farms, one of which will be owned entirely by the company, while the other will operate under a joint agreement with a third-party partner.

Key Takeaways:

  • The poultry layer farming initiative aims to bolster supply chain resilience, optimize costs, and provide scalability for the company.
  • The project involves the establishment of two poultry farms with a combined capacity of 225,000 birds, producing around 200,000 eggs per day.
  • The company plans to meet approximately 20% of its current daily egg requirement of 1,000,000 eggs with the initial production.
  • The investment will be sourced through a combination of debt and internal resources, with commercial production expected to commence within 15 months.
  • The company aims to enhance shareholder value by reducing input cost volatility and strengthening profit margins through this strategic capital deployment.
  • One farm will be entirely owned by Barkat Frisian Agro Limited, while the second will operate under a joint agreement with a third-party partner.
  • Management of the farms will be conducted under structured service agreements, with the company maintaining comprehensive oversight and control over its biological assets.

Statistics:

  • The project will cover an investment of PKR 690 million.
  • The investment includes expenditures of PKR 300 million for bird procurement and PKR 390 million for infrastructure and farm development.
  • The two poultry farms will have a combined capacity of 225,000 birds.
  • The production capacity is expected to be around 200,000 eggs per day.
  • The company's current daily egg requirement is 1,000,000 eggs.
  • The project will reduce the company's dependency on external vendors and enhance supply stability amid market and climate disruptions.

Sources:

  • Barkat Frisian Agro Limited, Pakistan Stock Exchange (PSX) Disclosure

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