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Case Studies

Philippines agribusiness boosts poultry yield by 1.5% with efficient management control systems

April 22, 2025 | Operational Excellence

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At a Glance

  • An animal feed and poultry integrator in the Philippines, sought to improve operational efficiencies across its procurement, poultry, and feed sales operations.
  • Challenges included suboptimal farm yield, high return rates, and low sales coordination.
  • This case study examines how the client partnered with Renoir Consulting to enhance production and sales efficiency for future growth that led to significant improvements, including a 1.5% improvement in farm chicken growth yield and a 70% reduction in animal feed expiry.

Key results

10%

reduction in chicken returns.

38%

Steady improvement in National Forecast Accuracy

70%

reduction in animal feed expiry.

Background

Poultry farming is a key contributor to the Philippine economy, with the country recognised as one of the top poultry producers globally. The sector benefits from abundant land and water resources, low initial investment, and affordable labour, making it accessible for both small-scale and commercial operations.

In 2024, the production value of poultry in the Philippines reached a record high of PHP 103.1 billion, reflecting consistent growth over the past two decades

The client is a prominent integrated agribusiness in the Philippines, specialising in producing quality animal feeds, poultry, and livestock. The client holds a significant position in the Philippine market, operating numerous production facilities across the country, including feed mills, hatcheries, growing farms, and dressing plants. Following successful growth, the client recognised the need to invest in refining its processes and management operating systems to secure long-term sustainability and expansion.

Analysis

Following a period of significant business growth, the client aimed to sustain performance by enhancing internal processes and implementing effective management control systems. A comprehensive business-wide analysis conducted by Renoir identified three key areas for improvement:

  1. Cost-to-produce reduction
  2. Incremental profit generation
  3. Cost savings and avoidance

The analysis clearly defined the scope, objectives, and expected outcomes of a time-bound project focused on developing and implementing a Management Control System (MCS) to streamline processes and achieve measurable savings.

Project Approach

Renoir Consulting initiated a targeted improvement program encompassing four primary workstreams: Procurement, Poultry (Contract Growing and Dressing Plants), Feed Sales, and Sales & Operations Planning (S&OP).

The project commenced with Renoir’s Focus Process® methodology, which involved a detailed examination of the current (“As-Is”) and desired (“To-Be”) Management Control Systems (MCS). Cross-functional Management Action Teams (MATs) were created to drive change through data-driven business cases, leveraging observations, statistical analysis, and MCS/process mapping.

Then, a strategic integration meeting brought together all MAT Leaders to present their recommendations and business cases to senior management.

Throughout the project, the MATs, supported by specially trained employees and Renoir consultants, provided continuous coaching and support to embed the new ways of working and ensure they became standard practice.

“With Renoir’s support, I now have better visibility of performance and the root causes of missed plans.”

– President and CEO  

Implementation

Procurement
Renoir introduced a Best Practice MCS incorporating the Total Cost of Ownership principle. Forecasting techniques and structured review mechanisms were embedded into the procurement cycle, helping shift focus from cost alone to broader efficiency and quality metrics.

Poultry – Contract Growing
A nationwide MCS was implemented across contract farms, introducing daily data capture and centralized performance monitoring. This allowed for faster detection of anomalies, reducing mortality rates and improving harvest yields through timely intervention.

Poultry – Dressing Plants
Dressing plants were equipped with planning and variance management tools that enabled short-interval monitoring. Standardization and faster feedback loops led to a measurable increase in Class A chicken yield and a significant drop in customer returns.

Feed Sales
Daily control structures and refined market coverage plans improved sales team productivity. The introduction of a structured reporting cadence enhanced targeting and customer acquisition.

Sales & Operations Planning
An integrated S&OP MCS was rolled out to synchronise forecasting, production, procurement, and logistics. Tools were put in place to monitor Key Performance Drivers, leading to substantial improvements in planning accuracy and waste reduction.

“The Red Flag notifications are really helping with the day-to-day visibility of farm operations.”

-Assistant Vice President.

Results

+1.5% farm yield nationally and -9.8% product returns

Gained real-time visibility into farm and plant performance

38% improvement in forecast accuracy

70% reduction in expired feed = major cost savings

Procurement operations became more structured and strategic
The new management systems are now embedded across the organisation, ensuring greater performance transparency, enabling faster interventions, and driving a culture of continuous improvement.

*We have intentionally omitted client-specific details to uphold strict confidentiality.  

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