Paper 1 · Stock Control
A challenge of operating a poultry business on a large scale is that
Aunit costs rise as output volume increases
Ba disease outbreak can affect a very large flock
Cbargaining power with feed suppliers is much weaker
Dinvestment in technology becomes unaffordable
Explanation: Concentrating hundreds of thousands of birds on a few sites means one infection can destroy an enormous part of the business at once, as two culls of 140 000 birds show. Large scale also brings heavy overheads and slower, more complex management.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q10