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Lecture 9

AN341 Lecture Notes - Lecture 9: Broiler, Northern Foods, Silage

Course Code
Natasha Koziol

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Staken Farms Limited
It was a beautiful winter morning in December 1989 and Robert and David Kennedy were having a meeting to
discuss future plans for the egg production operation of their company, Staken Farms Limited (Staken), which
they operated on the west coast of Newfoundland. David began, "Robert, I think it's time we did something
about that grading equipment. Either we use it or get rid of it and use the space for something else."
"I agree, David," said Robert. "We've had a couple of producers interested in buying it, but because we felt we
might grade our own eggs some day we turned the offers down. I suppose it's time we made a decision one way
or the other."
Background Information
Stanley Kennedy became involved in farming quite by accident. By having a few chickens and cows at his
summer cottage he got to know the farmers in the area and after a short while realized an opportunity existed to
operate a financially viable farming operation. He formed the company Staken Farms Limited (STAnley
KENnedy), with himself as the majority shareholder, and began growing broiler chicken. Since the mid 1970's,
the broiler chicken operation expanded and other types of farming were added. In 1989, Staken was very
profitable and had grown to the point where it was involved in the production of eggs, pullets, broiler chicken,
milk and forage.
The production of eggs required layer hens which were approximately 20 weeks old; prior to this age, their egg
production was nonexistent. Every six months, one half the flock was replaced by new layers and they would
lay for one year before being replaced. The process of egg collection was almost completely automated
requiring one individual to oversee collections twice a day.
The pullet operation involved the raising of hens for future egg production. One-day old chicks were brought to
the farm every six months and raised for twenty weeks until they were ready to be transported to the layer barn
to begin egg production.
The broiler chicken operation was different again. One-day old chicks were brought to the farm and raised for
four to six weeks after which time they were sent to the local abattoir to be processed for human consumption.
Milk production involved several operations including a complicated breeding process to ensure a top quality
herd and a sophisticated and automated milk collection facility.
This case was prepared by Bonnie L. Simmons for the Atlantic Entrepreneurial Institute as a basis for classroom discussion, and is not meant to
illustrate either effective or ineffective management. The material in this case has been disguised.
Copyright © 1993, the Atlantic Entrepreneurial Institute. Reproduction of this teaching note is allowed without permission for educational purposes,
but all such reproduction must acknowledge the copyright. This permission does not include publication.
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