Margin Stacking is a term that may or may not be familiar to you. It refers to the cost or profit margin that each member of the supply chain contributes to bring a product to the end user. Every manufacturer, distributor, and dealer adds their own margin and the final cost includes these “stacked margins.”
This type of distribution system has evolved over time and in many cases is the best method to deliver products efficiently to consumers. The margins charged by these “middle men” aren’t evil or bad as long as they add value to a product through manufacturing, warehousing, installation or technical support.
We would all agree that the structure of the poultry and hog industries has changed a great deal in the last 20 years, and some parts of the supply chain have changed along with it. At one time, local dealers sold, mixed and delivered complete feed to production sites. As producers became larger, they quickly moved to reduce the number of people involved in formulating and manufacturing feedstuffs and realized substantial cost savings.
The supply chain to deliver feed systems and ventilation systems has not changed for decades. Companies design and manufacture products, warehouse, finished goods and hire representatives to “set up” local dealer networks. The dealers provide a storefront, promote the brand locally, order and stock parts, hire salespeople and installation crews. The industry is still delivering production equipment to the end user the same way it did when the number of producers was much larger.
Hog Slat developed the GrowerSELECT® line to collapse the supply chain, reduce margins and lower the final cost. How?
Hog Slat established a network of company stores in the major livestock and poultry production areas of the U.S. This system was backed up with distribution centers totaling over 600,000 square feet. We control distribution costs and the margins charged against the final purchase price.
The resulting volume of goods sold through our store system and large turnkey construction business enabled Hog Slat to justify the investment needed to manufacture feed and ventilation systems for our customers. We design and control the manufacturing process and the costs involved.
Typically, manufacturing companies do not have retail systems in place to deliver, install and service systems on a local level. Local dealers do not have volumes large enough to hire engineers to design and manufacture products for their local markets. Hog Slat is the only equipment supplier in the poultry and swine industries to integrate the supply chain vertically.
If you have priced any GrowerSELECT equipment, you have probably been pleasantly surprised at the cost savings. You may have even hesitated to buy it because of the low price. After all, “you only get what you pay for” is true. Buying products through the traditional distribution means you are paying the built in margin stack. If you are ready to stop paying “margin stack” on feed and ventilation systems contact one of our local stores about GrowerSELECT, go online to www.hogslat.com or call 800-949-4647.
Hog Slat’s Romanian manufacturing operation, located in Arad, received ISO 9001, ISO 14001 and OHSAS 18001 certifications earlier this year. The audit and certification process was performed by SC MS-ISOROMCERTIFICATION SRL., a UKAS accredited auditing company.
Every process and business management procedure in the Romanian operation was compared to ISO 9001 requirements for quality management systems including; documentation control, record keeping, staff training, quality standards and operational conformance to the system. After implementation, continuous internal audits and an annual external audit will continue to monitor and improve operations.
Because of the ISO 9001 certification, Hog Slat’s European customers will see better quality products, improved scheduling and more reliable deliveries.
The ISO 14001 certification provides an Energy Management System to reduce waste and control energy costs.
In addition, the OHAS 18001 certification strives to create a safe work environment for employees and minimize production delays due to workplace injuries.
Congratulations to General Manager, Daniela Minda and the entire Romanian staff on achieving these certifications.
The FARMSTEAD broiler flock has a growing appetite! Feed is always available for them, but when they are really hungry they all want to be at the feeder together. The 30 pound hanging poultry feeder provides plenty of space and the needed capacity to keep multiple days worth of feed available to a smaller flock or meet the feeding needs of a larger flock without having to refill as often. The design of the hanging feeder allows 3 different adjustments to control the amount of feed that flows into the pan which helps reduce wasted feed that might be pushed out of the pan if the level was too high. We started the birds as chicks using the 15 pound hanging poultry feeder, which is the same design but does not feature an adjustable feed flow rate.
As you can see in the video above, the feeder is hanging from the chicken tractor’s roof frame which serves multiple beneficial purposes. First, when the feeder is hanging as opposed to sitting on the ground, it discourages the birds from trying to scratch the feed and also makes the red edge of the feed pan an unstable platform which discourages the birds from trying to perch or roost on the feeder. Next, when the feeder is hanging you can move the coop without having to pull the feeder out first. Lastly, when the feeder is off the ground it makes it more difficult for ants or other bugs to get into the feed.
Both models of the plastic hanging feeder are easy to clean when they become dirty or after you’ve finished raising your flock. Simply brush loose any solid debris from the feeder, soak in a tub of water and cleaning solution for 10 minutes, wipe down the interior and exterior of the feeder and then rinse clean. Hang the feeder out to dry or wipe down with paper towels and you’ll be ready to refill with feed or store until you need to feed your next flock.
Browse our full selection of FARMSTEAD Equipment to help you raise your poultry at www.hogslat.com/farmstead-equipment.
One of the benefits we list for the Grow-Disk system is a “superior chain.” The feed chain with molded plastic disks is the main component of the system, physically moving feed to a feeder or sow drop.
I dropped in on Hog Slat’s engineering group to see what I could find out. I found Tim Hawkins, the project engineer for the Grow-Disk product line. Tim led me to a complicated looking run of 12 corners occurring in less than eight feet with intersecting vertical and horizontal corners.
“The drive unit is off of it now,” Tim explained, “but we ran different brands of chain through this setup to show accelerated wear. Look at this…..see the metal filings in the bottom of the corner? Those showed up when we ran the last batch of electroplated chain through the unit. The process of electroplating weakens steel causing it to wear faster.”
“This confirmed the difference between using hardened steel compared to galvanized or electroplated chain. Hardened steel is high carbon steel given heat treatments of quenching followed by tempering. The result is tough steel chain that resists wear without being brittle. We can run a hardened chain for days and never see filings like that.”
“With most chain feeding systems you have to adjust for “chain stretch” after the systems have operated for awhile. We don’t think the individual chain links stretch but as they go around corners constantly rubbing together they elongate because of wear.”
“The only reason, to galvanize steel, is to prevent rust. With the fat and oils in the feed, the chain doesn’t rust in the tube. Most brands of feeding chain is galvanized for it’s appearance before installation. A new bag of Grow-Disk may have some surface rust on it, not a big deal.”
We next looked at how well the plastic disks are fastened to the chain.
“We placed each brand of chain link in a load cell and attached it to a winch, measuring the force needed to pull the disks off the link.”
“Most of the disks pulled off at 300 lbs., although one slipped at only 160 pounds! We applied over 600 lbs. of force to the Grow-Disk disk before it slipped.”
“First of all, the disks are manufactured from nylon, a stronger, denser plastic instead of polypropylene.
Second, if you look closely at all the chains the connector welds are smooth, except on the Grow-Disk chain….see the little knob? That knob prevents the nylon disk from slipping…the nylon has to break instead of just slipping.”
“Most feeding chain suppliers buy general purpose chain with the knob removed. By using a chain fabricated “in-house” and designed specifically for feed systems, we can produce a superior product.”
“A strong plastic disk is important because the drive sprocket powering the entire system makes contact with each, single disk for a brief moment. If an individual disk slips this causes the chain to be slightly out of alignment causing possible jams.”
You can be confident using Grow-Disk chain knowing you are buying the very best even though the cost is usually less.
Hog Slat streamlined distribution system reduces margin stacking. We manufacture and source products direct to you….eliminating extra dealer margins.
Good product engineering does not add cost to a product but instead takes manufacturing processes into account to reduce costs. It costs no more to spec a hardened chain with knobs intact to provide a better contact for injecting the nylon disk. The result is a superior product that lasts longer on your farm.
Grow-Disk systems, read more…
The FARMSTEAD broiler flock has moved outdoors! Their new home is a custom designed and built mobile “chicken-tractor” coop that is pulled forward one length each day onto fresh grass. This means there is no cleaning the coop floor and fresh grass and bugs to eat every morning. The birds took right to their new surroundings and were eating grass and foraging for bugs within minutes. The flock is now 4 weeks old and feathered enough to stay outdoors full time.
The coop is built from treated lumber, 29 gauge painted metal and 3′ wide plastic coated metal poultry wire. Although heavy enough to resist wind and predators, the coop can easily be pulled forward by a single person.
Equipped with one 3 nipple drinking bucket and a 30 pound hanging chicken feeder, the coop is plenty big enough for our 13 broiler chickens and has the capacity for around 30-35 grown birds. The feeder and water bucket are easily attached and removed for refilling or cleaning with 1/4″ Zinc Snap Hooks and a short length of stainless steel #1 bowtye chain.
For all your backyard poultry and hog equipment needs, be sure to check out the FARMSTEAD Equipment line at www.hogslat.com/farmstead-equipment.
Another successful show is in the books for Hog Slat at the 2015 World Pork Expo in Des Moines, Iowa. This year, Hog Slat displayed several new items, including our AirStorm fiberglass ventilation fans, Grow-Disk™ chain disk feed system and the GrowerSELECT® curtain machine. In addition to these new products, we also featured our concrete slats, TriDek flooring, group pen feed stanchions, GrowerSELECT sow drops and more.
Hog Slat hosted a group of Chinese pig farmers that were visiting the United States and attended the World Pork Expo. On Tuesday, as part of their trip, we visited a brand new 2 barn finishing site Hog Slat just completed, located in Lohrville, IA. The group was able to see a new group of pigs that had just been loaded into one of the barns earlier that afternoon, and also examine the inside of the other barn that had not been loaded with pigs yet.
Both of these deep pit barns were equipped with GrowerSELECT Grow-Flex™ feed systems, Hog Slat wet/dry hog feeders and AquaChief cup waterers as part of their equipment package. The group was very impressed with the fit and finish of Hog Slat’s feed system equipment and building construction. To learn more about new construction or remodeling hog barns in the Midwest or other areas of the United States, please visit the Hog Slat sales representative locator, found here.
Hog Slat will be exhibiting at this year’s World Pork Expo with many new and further developed swine equipment products, highlighting Hog Slat’s GrowerSELECT product line.
At the show, Hog Slat will have a large variety of equipment on display in both the exhibition hall (Booth V165 VIB) and at the Hog Slat hospitality tent (Tent G234). Equipment that will be on display includes Hog Slat’s Grow-Flex Feed System, Grow-Disk Feed System, Slats, and an introduction to Hog Slat’s AirStorm fans. We invite you to stop by the Hog Slat booth to see what’s new at the show.
Enjoy FREE ADMISSION to the 2015 World Pork Expo, courtesy of Hog Slat. You may redeem your admission voucher by registering online at www.worldpork.org by May 28th and use voucher code HogSlat2015. Or, present a hard copy of our voucher (available through the Hog Biz, local Hog Slat retail stores, or your local sales contact) during on-site registration the day of the expo. Expo registration is located in the Animal Learning Center inside Gate 15.
Craving some good BBQ? Stop by the Hog Slat hospitality tent anytime during expo to enjoy Vinny’s BBQ, located in Dakota City, IA. Vinny’s will be serving lunch and dinner both Wednesday and Thursday of the expo.
The World Pork Expo is held June 3rd-5th in Des Moines, IA at the Iowa State Fairgrounds. Visit us at the show in booth V165 in the Varied Industries Building and Hospitality Tent G234. We hope to see you at the show!