Read the Reddy Farms Case Study
About the company
Reddy Farms is a 100% locally owned Fijian company, breeding and supplying ducks for sale to restaurants, supermarkets and hotels. On a trial basis, Reddy Farms imported Pekin ducks from New Zealand to test the market demand. The results were promising but the high airfreight costs involved in importing ducklings meant that it was difficult to compete against imported processed duck meat. Reddy Farms sourced a Pekin duck hatching machine from Australia in 2008 but did not have the funds required to expand to the level required to satisfy local demand. See the Reddy Farms brochure.
Total grant funding approved: ECF A$149,900
About the project
With the support of ECF funding, Reddy Farms will increase hatching of Pekin day old ducklings to optimise its hatching efficiency. Reddy Farms will supply ducklings to farmers along with feed and technical support. Once the birds reach the optimum weight they will be purchased from the farmers at an agreed net price per kilo. ECF funding will also support Reddy Farms to build a new slaughter house with a cold storage facility and a refrigerated truck for transport to buyers.
Progress December 2012
- Reddy Farms completed the duck hatchery and processing operation and secured all the required health, safety and environmental approvals by late 2010.
- Male and female contractors were recruited to raise week old ducklings. Reddy Farms provides feed and technical support and there are no operational expenses for the contractors.
- Six new full time and four part time workers were recruited, four of whom are women.
- The original intention was to appoint a large number of contractors, mainly women, but poor performance by a number of contractors has resulted in a smaller number of contractors handling increased quantities of ducks.
- Sales to local customers have also not been as substantial as expected. Price resistance from consumers and lower than expected sales to hotels and restaurants have presented challenges to the business. As a result Reddy Farms has therefore diversified into the supply of fresh ducks at the farm gate and the processing of larger chickens to fill a gap in the market.
- The business is commercially viable but the benefits are less than expected -
- The 10-15 contractors expected to continue to provide the ‘grow-out’ service. These contractors are likely to increasingly handle larger batches and earn more money but most are relatively entrepreneurial and are not necessarily disadvantaged.
- The additional 6 new full time and 4 part time workers who have learnt a range of new and valuable skills.
- The project has been a useful case study for similar livelihood development strategies being considered for the cane belt regions of Fiji by both the government and donors. Lessons from the project are also expected to be useful for similar projects in other countries.