Bairaha Farms to opt for automation if COVID-19 crisis heightens

•  Land acquisition to increase farm capacity put on hold

In the wake of an increase in COVID-19 positive cases in the country that is likely to push production facilities to tighten health controls, pioneers in chicken processing, Bairaha Farms PLC announced it will look to automate sections of operation if required.

The company stated that the physical working arrangements would need to be re-looked at in the future, although social distancing has been adopted among staffers in factories as a 
safety measure. 

However, it stressed that some practical constraints prevail in the implementation of the work arrangements. “If the need for social distancing continues in the future, we may also have to seriously consider automating certain other operations. 

Since this will involve heavy capital investment, it needs to be carefully thought-out and planned for implementation,” said Bairaha Farms PLC Chairman Prof. 
M.T.A. Furkhan.

In the company’s annual report released yesterday, the Chairman said the priority for the immediate future will be to recover from the adverse impact of COVID-19 on the economy and the industry. 

The financial performance of the group took a hit due to a number of factors, and the imposition of curfews to contain the outbreak was a key contributor.

Over-production of chicken and broiler day-old chicks and increase in feed prices due to higher raw material prices, were the other two factors that disrupted sales and contributed to the group’s loss of Rs.196 million for the financial year ending March 31, 2020.

In the corresponding period Bairaha Farms PLC recorded a profit of Rs.413 million.

Given the current position of the company, Prof. Furkan said that expansion projects, such as acquisition of land for increasing farm capacity will be put on hold while the present activities are consolidated.

However, he shared that the company will continue to pursue avenues for improving efficiency and cost saving, when introducing new products.

“We will also continue to expand our supporting services to the industry, as far as circumstances permit,” he added.

From an industry viewpoint, Prof. Furkan said government support across diverse areas is required to overcome the obstacles faced by the sector.