strategic assessment of the broiler poultry industry in...

International Research Journal of Applied and Basic Sciences © 2013 Available online at www.irjabs.com ISSN 2251-838X / Vol, 6 (6): 858-870 Science Explorer Publications

Strategic Assessment Of The Broiler Poultry Industry In Sistan Region Using The SWOT Model

EbrahimShahraki

Faculty Member, University of Zabol, Iran.

Correspondence Author email: [email protected].

ABSTRACT: This study aims to identify the strengths (S), weaknesses (W), opportunities (O), and threats (T) which the broiler poultry farms of Sistan face and it is aimed to develop suitable strategies for proper management. . According to the present state, using a questionnaire with three groups: authorities (100 subjects), farmers (100 subjects), and experts (100 subjects) a number of 8 strengths, 8 weaknesses, 9 opportunities, and 10 threats were identified and studied. Based on the subject’s viewpoints and using SPSS software, the total frequency, the relative frequency, the prevalence, and rate was calculated for each of the strengths, weaknesses, opportunities, and threats. SWOT matrix was drawn for determination of competitive strategies (SO), review strategies (WO), variety strategies (ST), and defensive strategies (WT). The test was random. The results indicated that “whole year production capability” was the most important strength and “lack of specialist managers” was the most important weakness in the studied farms. In addition to that, the factor “demand for meat among households” was found to be the most important external opportunity while the factor “high death rate” was the most important external threat to the farms. Empirical analysis in the region shows that the broiler poultry farms vulnerability threshold is very high in Sistan and absolutely in need of review strategies and administration of suitable policies in order to alleviate existing shortcomings and to take advantage of the potentials. Keywords: SWOT, Strategy, Broiler poultry, Management, Sistan

INTRODUCTION

There has been different debates on the term management. But it can simply be stated that management is the art of getting the job done by others or the process of programming, organizing, leading, and supervision of other members of the organization and the ability to make use of all the available organization resources to achieve the goals (Austin, 2006). Strategy is the required techniques and their conduction in order to adjust and coordinate the assets for achieving the organization goals or in other words, strategy is the overall policies and programs for achieving certain goals in a way that it can explain the topics, the business, and the companies or organizations

(Bandara, 2002). Thus, strategic management can be defined as the process of guaranteeing system success in achieving certain goals by practicing appropriate strategies (Chase et al., 2006). According to this, one of the main strategic models for poultry farms (rearing broiler poultry), in profitable and non-profit or state farms, is the Harvard model. In this model, two types of factors (internal and external) that affect the farms would be considered. Internal factors include Strengths (S) and Weaknesses (W) which consist of practical processes and management decisions which seem to be directly under the control of the farm’s manager. Strength and weakness points are determined by comparing the performance over past and present or by comparing the present performance with average performance (Austin, 2006). External factors include opportunities (O) and Threats (T) that affect the farm from outside and the manager has not much control over them and cannot manipulate them. Up to now, there has not been enough reports on application of SWOT model in poultry farms but other countries have already made wide use of this model in poultry farms. E.g. some researchers (Bandara, 2002; Chase et al., 2006) have noted the strategies, problems, and objectives of small milk farms in south Asia. Staal et al (2008), studied the development policies of milk farms in south Asia and east Africa. Shahraki et al (2010) studied the formulation of management strategies for milk farms in Sistan and Baluchestan region of Iran considering the SWOT model. The results show that if both traditional and modern farms aim to become stable and play a positive role in people lives, they need to have clear strategies, increase local co-ownership, strict regulations, stable marketing, and reality based programing. The strategic plan in Pakistan is called The White Revolution which has been applied in small farms

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Intl. Res. J. Appl. Basic. Sci. Vol., 6 (6), 858-870, 2013

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(FAO, 2004). Also, the Strategic General Plan for Milk Production has been reported in Baluchestan province of Pakistan, a neighbor of Iran’s Sistan and Baluchestan province, by the local government (FAO, 2004; FAO, 2005). And there has been reports on strategic plans being applied in small farms in some countries e.g. North Korea (FAO, 2007), India (FAO, 2007), Mongolia (FAO, 2007), Bangladesh (12 FAO, 2007Myanmar (Government of Balochistan, 2005), Nepal (Government of Balochistan, 2005), Philippines (Hegde, 2006), Thailand (Kensinger and Muller, 2006), Asia and The Pacific (Mirzaei et al., 2008). Some researchers have studied the effects of milk farm performance analysis groups (Oleggini et al., 2001), the region and herd size (Shahraki, 2010), and milk production model and efficiency of workers and promotion trainings (Singh and Pundir, 2003; Staal et al., 2008) on milk herds. In the present state, other than administering strategic general plans, because of the lack enough research in the country, the present research is important concerning some other aspects too. Regarding the fact that there exists a combination of state rules and management protocols, privatization, and cooperatives in control of poultry farms and this indicates a very special system in most parts of the country, including Sistan and Baluchestan province, thus, lack of a strategic general plan would most certainly result in loss of national funds, and inconsistent decisions. Therefore, in order to improve the efficiency index of poultry farms, it is needed to think of strategies for production management in abovementioned farms and aim for fundamental changes. Hence the overall objectives of this study include: Identification of Strengths, Weaknesses, Opportunities, and threats that affect the management of broiler poultry farms of Sistan province. Formulation of suitable strategies to improve the management of broiler poultry farms.

MATERIALS AND METHODOLOGY Region under study Sistan is a vast region that expands over Iran, Afghanistan, and Pakistan with its majority in Iran and minority in Afghanistan. It reaches the Hindu Kush Mountains to the north and east and ends in low plains in the southwest and west with a height less than 500m (Zeya Tavana, 1992). The part that is located in Iran, according to the Zabol Region General Plan in 2002, has had a population of 410020 of which 250795 (61%) lived in 837 villages (Advisor engineers Sharmand, 2004). Sistan has a total number of 57 poultry farms of which 15 are closed and 42 open. Out of this active farms, 9 are located in Hamun county, 23 are in Zabol itself, 7 are in Nimrooz county, and the remaining 11 are located in Zahak county. The simultaneous active period of these farms include a total of 1/216/600 chickens, but in summer, because of the famous 120-windy days and the epidemic bronchitis diseases, most of these farms are closed down. Statistical Population This research is done aiming to identify strength points (S), weaknesses (W), opportunities (O), and threats (T) that face the broiler poultry farms of Sistan to be able to formulate suitable management strategies. According to the present state, using a questionnaire with three groups: authorities (100 subjects), farmers (100 subjects), and experts (100 subjects) a number of 8 strengths, 8 weaknesses, 9 opportunities, and 10 threats were randomly selected and studied. Field data was gathered using the questionnaire and check-lists and library sources were used to retrieve documented data. The questionnaire was written consulting the related officials, teachers, farmers, and herders beforehand and then it was given to them to be filled in. To maintain the validity and reliability of the questionnaire, the following techniques were used: observing the logical order of questions, standardizing the scores, determining the item discrimination index, determining item facility, item validity, method of using standard scale, determining the meaning difference index of questions, and measuring the criterion-related reliability. And SPSS software was used to calculate the total frequency, the relative frequency, the prevalence and the rate. Formulation of SWOT model The steps for formulation of the model include: identification of internal factors (strengths and weaknesses) and external factors (opportunities and threats), prioritization of internal and external factors, drawing the SWOT matrix, entering the selected factors considering their internal/external priority level altogether, and finally formulation of strategies (competitive/offensive strategies, review/adaptive strategies, variety/contingency strategies, and defensive strategies) according to the present state. Total frequency, relative frequency, prevalence, and rate were calculated for each of the strengths, weaknesses, opportunities, and threats based on viewpoints of all three groups (Farmers, Authorities, and Experts) in the following manner. To determine the degree of effectiveness and the importance frequency for each of the strength points, weaknesses, opportunities, and


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threats based on the present state, four options were used (very important, important, less important, not important).

Formulation of Strategy (SWOT Matrix)

Table 1 . SWOT Matrix and Formulation of Strategies SWOT Strengths (S) Weaknesses (W)

Opportunities (O) Competitive Strategies (SO) Overview Strategies (WO) Threats (T) Variety Strategies (ST) Defensive Strategies (WT)

Presentation of Strategies and Solutions for Farm Development SO Strategies The purpose of these strategies is to maximize the opportunities by making perfect use of strengths. For instance, making good use of system’s capabilities and increasing the market share. WO Strategies The purpose of these strategies is to remedy the internal weaknesses by making use of present opportunities. ST Strategies The purpose of these strategies is to reduce or remedy the side effects of threats by making good use of strength points. WT Strategies The purpose of these strategies is to take care and reduce internal weaknesses and stay away from external threats.

RESULTS Analysis of Strengths, Weaknesses, Opportunities, and Threats This research identifies and studies 8 internal strengths against 9 internal weaknesses and 8 external opportunities against 10 external threats (Table 2). Thus, a number of 16 strengths and opportunities as advantages, and a number of 19 weaknesses and threats as disadvantages face the broiler poultry farms of Sistan. Therefore, a simple analysis indicates that the farms are very vulnerable and require a review in terms of the related policies in order to alleviate the weaknesses and threats using the strengths and opportunities. The results of this research in agreement with Shahraki et al (2010).

Table 2 . SWOT Matrix of the studied areas Internal External

Strengths (S) Opportunities (O) S1- whole year production capability O1- demand for meat among households S2- availability of cheap land to be developed into farms O2- being close to the border S3- participation of family members in production O3- cheap labor S4- main and byroads in the area O4- state support for poultry farms S5- tendency for rearing poultry O5- whether people can afford poultry or not S6- out of the farm incomes O6- veterinarians in the area S7- mechanization of poultry farms O7- Zabol University and training specialists S8- cultural backgrounds for poultry farms in the area O8- insurance support for farmers Weaknesses (W) Threats (T) W1- lack of specialist managers T1- 120-windy days W2- lack of skillful workers T2- lack of adequate infrastructures W3- high death rate T3- viruses which come abroad and infect the farm W4- high production costs T4- fluctuations and increase of costs W5- high feed conversion ratio T5- fluctuations of poultry-meat price W6- high number of respiratory deceases T6- lack of skillful workers close at hand W7- not using skillful specialists T7- poultry-meat import from other provinces W8- not having optimized energy plans T8- unfamiliarity of farmers with modern management W9- farmers having multiple jobs T9- high death rate T10- no training for farmers


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Analysis of Strengths Based On Authorities’ Viewpoints SWOT analysis shows that based on authorities’ viewpoints, the factor “whole year production capability” is the most important internal strength point with a prevalence of 42.5% and the factor regarding “main and byroads in the area” with a prevalence of 7% is the next important internal strength point.Concerning the improvement and development of poultry farms in this region authorities believe that existence of cultural backgrounds is the least important strength point.

Table 3 . Strengths Based On Authorities’ Viewpoints SWOT Analysis Experts

Strengths (S) Frequency Relative frequency

The Prevalence Rate

S1- whole year production capability 17 0.425 42.5 1 S2- availability of cheap land to be developed into farms

6 0.15 15.0 3

S3- participation of family members in production 2 0.05 5.0 5 S4- main and byroads in the area 7 0.175 17.5 2 S5- tendency for rearing poultry 3 0.075 7.5 4 S6- out of the farm incomes 2 0.05 5 5 S7- mechanization of poultry farms 2 0.05 5 5 S8- cultural backgrounds for poultry farms in the area

1 0.025 2.5 6

Analysis of weaknesses based on Experts’ viewpoints SWOT analysis shows that based on authorities’ viewpoints, the factor of “lack of skillful workers” is the most important internal weakness point with a total frequency of 15 and a prevalence of 37.5% while the factor of “having multiple jobs” with a prevalence of 2.5% is the least important internal weakness point concerning the improvement and development of poultry farms in this region.

Table 4 . Weaknesses based on authorities’ viewpoints SWOT Analysis Experts

Weaknesses (W) Frequency Relative frequency

The Prevalence Rate

W1- lack of specialist managers 3 0.075 7.5 4 W2- lack of skillful workers 15 0.375 37.5 1 W3- high death rate 2 0.05 5.0 5 W4- high production costs 2 0.05 5 5 W5- high feed conversion ratio 3 0.075 7.5 4 W6- high number of respiratory deceases 5 0.125 12.5 3 W7- not using skillful specialists 2 0.05 5.0 5 W8- not having optimized energy plans 7 0.175 17.5 2 W9- farmers having multiple jobs 1 0.025 2.5 6

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Figure1. Strengths Based on Authorities' Viewpoints

Authorities


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Analysis of Opportunities Based On Authorities’ Viewpoints SWOT analysis shows that based on authorities’ viewpoints, the factor of “cheap labor” is the most important external opportunity with a prevalence of 40% while the factor of “whether people can afford poultry or not” is the least important external opportunity with a prevalence of 0% concerning the improvement and development of poultry farms in this region.

Table 5 . Opportunities based on Authorities’ viewpoints

SWOT Analysis Experts

Opportunities (O) Frequency Relative frequency

The Prevalence Rate

O1- demand for meat among households 4 0.10 10.0 4 O2- being close to the border 3 0.075 7.5 5 O3- cheap labor 16 0.40 40.0 1 O4- state support for poultry farms 8 0.20 20.0 2 O5- whether people can afford poultry or not 0 0 0 7 O6- veterinarians in the area 5 0.125 12.5 3 O7- Zabol University and training specialists 2 0.05 5.0 6 O8- insurance support for farmers 2 0.05 5.0 6

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Figure2. Weaknesses Based on Authorities' Viewpoints

Authorities

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Figure3. Opportunities Based On Authorities' Viewpoints

Authority Opportunities


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Analysis of Threats Based on Authorities’ Viewpoints SWOT analysis shows that based on authorities’ viewpoints, the factor of “high death rate” is the most important external threat point for poultry farms in this region with a total frequency of 14 and a prevalence of 35%.

Table 6 . Threats based on Experts’ viewpoints SWOT Analysis Experts

Threats (T) Frequency Relative frequency

The Prevalence Rate

T1- 120-windy days 8 020 20.0 2 T2- lack of adequate infrastructure 3 0.075 7.5 4 T3- viruses which come abroad and infect the farm

1 0.025 2.5 6

T4- fluctuations and increase of costs 1 0.025 2.5 7 T5- fluctuations of poultry-meat price 1 0.025 2.5 8 T6- lack of skillful workers close at hand 1 0.025 2.5 9 T7- poultry-meat import from other provinces 3 0.075 7.5 4 T8- unfamiliarity of farmers with modern management

6 0.15 15 3

T9- high death rate 14 0.35 35.0 1 T10- no training for farmers 2 0.05 5.0 5

Analysis of Strengths Based On Farmers’ Viewpoints SWOT analysis shows that based on farmers’ viewpoints, the factor “tendency for rearing poultry” is the most important internal strength point with a frequency of 22 and a prevalence of 55% while the factor regarding out of farm income with frequency of 1 is the least important internal strength point concerning the improvement and development of poultry farms in this region.

Table 7 . Strengths Based On Farmers’ Viewpoints

SWOT Analysis Farmers


The Prevalence Rate


4 0.10 10.0 3

S3- participation of family members in production 2 0.05 5.0 5 S4- main and byroads in the area 5 0.125 12.5 2 S5- tendency for rearing poultry 22 0.55 55.0 1 S6- out of the farm incomes 1 0.025 2.5 6 S7- mechanization of poultry farms 3 0.075 7.5 4 S8- cultural backgrounds for poultry farms in the area

2 0.05 5.0 5

3 2 3

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Figure4. Threats Based on Authorities' Viewpoints

Authority Threats


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Analysis of weaknesses based on farmers’ viewpoints SWOT analysis shows that based on poultry farmers’ viewpoints, the factor of high respiration deceases in poultry farms is the most important internal weakness point with a frequency of 19 and a prevalence of 47.5 while the factor of having multiple jobs with a prevalence of 2.5 is the least important internal weakness point concerning the improvement and development of poultry farms in this region.

Table 8 . Weaknesses based on Farmers’ viewpoints



The Prevalence Rate

W1- lack of specialist managers 3 0.075 7.5 4 W2- lack of skillful workers 4 0.10 10.0 3 W3- high death rate 2 0.05 5.0 5 W4- high production costs 2 0.05 5.0 5 W5- high feed conversion ratio 2 0.05 5.0 5 W6- high number of respiratory deceases 19 0.475 47.5 1 W7- not using skillful specialists 2 0.05 5.0 5 W8- not having optimized energy plans 5 0125 12.5 2 W9- farmers having multiple jobs 1 0.025 2.5 6

Analysis of Opportunities Based On Farmers’ Viewpoints SWOT analysis shows that based on farmers’ viewpoints, the factor of being close to the border is the most important external opportunity point with a frequency of 16 and a prevalence of 40 while the factor of Zabol

22

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Figure 5. Strengths Based on Farmers' Viewpoints

Farmer Strengths

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Figure6. Weaknesses Based on Farmers' Viewpoints

Farmer Weaknesses


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University and training specialists is the least important external point concerning the improvement and development of poultry farms in this region.

Table 9 . Opportunities based on Farmers’ viewpoints



The Prevalence Rate

O1- demand for meat among households 2 0.05 5 5 O2- being close to the border 16 0.40 40.0 1 O3- cheap labor 1 0.025 2.5 6 O4- state support for poultry farms 2 0.05 5.0 5 O5- whether people can afford poultry or not 3 0.075 7.5 4 O6- veterinarians in the area 7 0.175 17.5 3 O7- Zabol University and training specialists 1 0.025 2.5 6 O8- insurance support for farmers 8 0.020 2.0 2

Analysis of Threats Based on Farmers’ Viewpoints SWOT analysis shows that based on farmers’ viewpoints, the factor of “unfamiliarity of farmers with modern management” is the most important external threat point for poultry farms with a prevalence of 37.7% while the factor of “high death rate” with a frequency percentage of 0% is the least important external threat concerning the improvement and development of poultry farms in this region.

Table 10 . Threats based on Farmers’ viewpoints SWOT Analysis Farmers


The Prevalence Rate

T1- 120-windy days 9 0.225 22.5 2 T2- lack of adequate infrastructure 3 0.075 7.5 4 T3- viruses that infect the farm 1 0.025 2.5 6 T4- fluctuations and increase of costs 1 0.025 2.5 6 T5- fluctuations of poultry-meat price 2 0.05 5 5 T6- lack of skillful workers 6 0.15 15.0 3 T7- poultry-meat import from other provinces 1 0.025 2.5 6 T8- unfamiliarity of farmers with modern management

15 0.375 37.5 1

T9- high death rate 0 0 0 7 T10- no training for farmers 2 0.05 5.0 5

16

2

8

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7

2 1 1

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Figure7. Opportunities Based on Farmers' Viewpoints

Farmer Opportunities


866

Analysis of Strengths Based On Specialists’ Viewpoints SWOT analysis shows that based on farmers’ viewpoints, the factor “whole year production capability” is the most important internal strength point with a prevalence of 55% while the factor regarding “main and byroads in the area” with a prevalence of 2.5% is the least important internal strength point concerning the improvement and development of poultry farms in this region.

Table 11 . Strengths Based On Specialists’ Viewpoints

SWOT Analysis Specialists


The Prevalence Rate


6 0.15 15.0 2

S3- participation of family members in production 2 0.05 5.0 4 S4- main and byroads in the area 1 0.025 2.5 5 S5- tendency for rearing poultry 3 0.075 7.5 3 S6- out of the farm incomes 1 0.025 2.5 5 S7- mechanization of poultry farms 6 0.15 15.0 2 S8- cultural backgrounds for poultry farms in the area

1 0.025 2.5 5

1

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Figure8. Threats Based on Farmers' Viewpoints

Farmer Threats

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Figure9. Strengths Based on Specialists' Viewpoints

Specialist Strengths


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Analysis of weaknesses based on Specialists’ viewpoints SWOT analysis shows that based on specialists’ viewpoints, the factor of “lack of specialist managers” is the most important internal weakness point with a prevalence of 45% while the factor of “having multiple jobs” with a prevalence of 2.5% is the least important internal weakness point concerning the improvement and development of poultry farms in this region.

Table 12 . Weaknesses based on Specialists’ viewpoints SWOT Analysis Specialists


The Prevalence Rate

W1- lack of specialist managers 18 0.45 45.0 1 W2- lack of skillful workers 2 0.05 5.0 5 W3- high death rate 5 0.125 12.5 2 W4- high production costs 4 0.10 10.0 3 W5- high feed conversion ratio 2 0.05 5.0 5 W6- high number of respiratory deceases 1 0.025 2.5 6 W7- not using skillful specialists 4 0.10 10.0 3 W8- not having optimized energy plans 3 0.075 7.5 4 W9- farmers having multiple jobs 1 0.025 2.5 6

Analysis of Opportunities Based On Specialists’ Viewpoints SWOT analysis shows that based on Specialists’ viewpoints, the factor of “demand for meat among households” is the most important external opportunity with a prevalence of 55% while the factor of “being close to the border” is the least important external opportunity with a prevalence of 2.5% concerning the improvement and development of poultry farms in this region.

Table 13 . Opportunities based on Specialists’ viewpoints SWOT Analysis Specialists


The Prevalence Rate

O1- demand for meat among households 22 0.55 55.0 1 O2- being close to the border 1 0.025 2.5 5 O3- cheap labor 1 0.025 2.5 5 O4- state support for poultry farms 1 0.025 2.5 5 O5- whether people can afford poultry or not 9 0.225 22.5 2 O6- veterinarians in the area 2 0.05 5.0 4 O7- Zabol University and training specialists 1 0.025 2.5 5 O8- insurance support for farmers 3 0.075 7.5 3

4 4 1

18

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Figure10. Weaknesses Based on Specialists' Viewpoints

Specialist Weaknesses


868

Analysis of Threats Based on Specialists’ Viewpoints SWOT analysis shows that based on specialists’ viewpoints, the factor of “unfamiliarity of farmers with modern management” is the most important external threat point for poultry farms in this region with a prevalence of 37.7%.

Table 14 . Threats based on Specialists’ viewpoints SWOT Analysis Specialists


The Prevalence Rate

T1- 120-windy days 9 0.225 22.5 2 T2- lack of adequate infrastructure 1 0.025 2.5 5 T3- viruses which come abroad and infect the farm

1 0.025 2.5 5

T4- fluctuations and increase of costs 1 0.025 2.5 5 T5- fluctuations of poultry-meat price 3 0.075 7.5 4 T6- lack of skillful workers close at hand 1 0.025 2.5 5 T7- poultry-meat import from other provinces 5 0.125 12.5 3 T8- unfamiliarity of farmers with modern management

15 0.375 37.5 1

T9- high death rate 1 0.025 2.5 5 T10- no training for farmers 3 0.075 7.5 4

1 1 1

22

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Fgure11. Opportunities Based on Specialists' Viewpoints

Specialist Opportunities


869

DISCUSSION AND CONCLUSION

Field research has been done based on theoretical frameworks in order to suggest strategies for improvement and development of broiler poultry farm. Using the SWOT technique, potentials and limitations of the region have been identified and practical strategies have been proposed for the development of broiler poultry industry in the region. Regarding this, the results could be presented in two aspects concerning quality or quantity: Results achieved from the quality aspect of both internal and external factors indicate that: Concerning the development of broiler poultry farms, the farms are very vulnerable and exposed to risk. Distribution and reallocation of resources in the studied area, regarding the opportunities and high amount of weaknesses, is essential. Studying the quantity aspect, regarding the strengths, weaknesses, opportunities, and threats, indicates that: Environmental factors, e.g. production in all seasons…, are the most important strength point and advantage of these regions regarding the development of the farms which must be emphasized if any improvement is to take place. Also, based on the results, lack of specialist manager is found to be the most important weakness which can be alleviated by participation of the people and state and private institutions. Furthermore, the factor “demand for meat among the households” is considered to be the most important external opportunity. According to the suggested strategies, these opportunities could be used to develop the farms. Unfamiliarity of the managers with modern management is found to be the most important external threat to the farms and some strategies have been proposed to remedy this too. According to what has been presented, on the whole it can be said that if broiler poultry farms are to become reliable and play a positive role in the people’s lives, they need to determine and develop certain strategies, increase local participation, strict rules and regulations, consistent marketing, and reality based programs. In the meantime, factors like passivity of managers, lack of a united management, lack of an assessment and supervision system, being influenced by other factors are some vulnerabilities that threaten the development of broiler poultry farms and need to be remedied.

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Figure12. Threats Based on Specialists' Viewpoints

Specialist Threats


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