Frequently Asked Questions
HOW LONG ARE UNIGOLD FOODS CONTRACTS WITH ANIMAL PROTEIN FARMERS?
Our contracts with our farmers are typically 24-36 months and subject to immediate renewal upon agreement between the company and our farmers.
HOW ARE THE FARMERS FOR ANIMAL PROTEIN PAID?
We provide our animal protein farmers with written contracts outlining how they will be paid. Our animal protein farmers are basically paid for how well they take care of the livestock and poultry and how much weight the livestock and poultry gain while they are on the farm. We use a performance based incentive system that rewards our farmers who effectively convert the feed we provide into weight gain in the livestock and birds they raise for Unigold Foods.
Unigold Foods Payment formula includes such factors as the number of animals, the amount of feed used, the performance of their flock compared to those raised by other contract farmers and the weight of the animals delivered to the processing and packaging plants.
IS UNIGOLD FOODS THE ONLY FOOD PROCESSING COMPANY USING THIS PAYMENT SYSTEM?
The performance based pay program offered by Unigold Foods to farmers is very popular in America and in Europe and is a new process in Nigeria. However it has been proven to be one of the most efficient and effective ways to raise animal protein and is gradually becoming popular here in Nigeria and Africa.
ARE THERE RULES/REGULATIONS PROTECTING ANIMAL PROTEIN FARMERS RIGHTS IN A CONTRACT RELATIONSHIP?
Unigold Foods Animal Protein contract farming scheme is a relationship between the company and the farmers which is extensively regulated by Nigerian Law. Under our contracts our farmers are entitled to:
(i) A written copy of their contract with the company.
(ii) Information detailing how much they are paid.
(iii) Information explaining how a contract can be cancelled.
(iv) Right to a 120 days written notice of Unigold Foods intention to terminate the contract.
(v) Right of the famer to terminate the contract with Unigold Foods by given a 120 days written notice.
(vi) Right to discuss their contract with outside parties.
(vii) Right to join an association of farmers.
DO THE CONTRACT FARMERS NEED TO TAKE ON DEBT TO START OR EXPAND THEIR BUSINESS?
Livestock and poultry farming like any other business require funds/money and at times people have to borrow some money to start, improve or expand their operations. Each of our contract farmers must decide on their own the size and scope of their operations and how much debt they are willing to take on.
However the company’s finance department has when a contract farmer has had a relationship exceeding 3 years with the company assist the contract farmers raise funds from micro finance banks and other types of commercial banks and act as a guarantor for such loans.
DO YOU REQUIRE FARMERS TO UPGRADE THEIR LIVESTOCK AND POULTRY HOUSES?
Other than improvements, maintenance or repairs to address animal well-being issues, Unigold Foods do not require equipment or housing specification upgrades in the middle of contracts. However we require farmers to meet a set of housing specifications that are outlined in the contracts. This is basically due to the fact that the benefits or more modern housing include a more comfortable living environment for the livestock or birds with improved ventilation and more uniform temperatures through the structure. It also saves energy to heat and cool the house which is savings for the farmers.
DOES UNIGOLD FOODS HELP OUR FARMERS WHO ARE EXPERIENCING PROBLEMS WITH THE PERFORMANCE OF THEIR FARMS?
Unigold Foods always works closely with our farmers, including regular visits by our extension workers and animal welfare specialists to provide technical advice answer questions and ensure best animal management practices. If a farmer under contract farm is not performing well or up to the estimated output/yield-we will all lose-hence to avoid loses for both the company and farmer we have a program in place designed to help them get back on track.
WHAT TYPE OF RIGHTS DO FARMERS HAVE AS PART OF THEIR CONTRACT?
All farmers who grow livestock and poultry products for Unigold Foods have rights which are part of their contract. These rights are outlined in the “Unigold Foods Contract Animal Protein farmers Bill of Rights”.
HOW TO BECOME A UNIGOLD FOOD CONTRACT FARMER/BECOMING A PROSPECTIVE FARMER?
Unigold Foods supplies the animals, the feed and provides technical advice while the animal protein farmer under contract provides the labor, housing and utilities. This cooperation between Unigold Foods and our farmers increases efficiency and product quality while at the same time maintaining affordable prices for customers.
To be considered and selected a Unigold Foods animal protein contract farmer the prospective farmer must have existing farm house for growing the animals with such property being within 60-90km radius of the company owned feed mills that service our poultry processing complex.
To learn more about contract farming opportunities with Unigold Foods, contact us by email, phone or the operation manager at the Unigold foods office nearest to you.