When you think of farming and food production on this island, grass-based beef and dairy systems spring to mind. It is well documented that grass is our natural competitive advantage – we can grow one third more dry matter per hectare than most of mainland Europe. So how does a company like Moy Park, which processes almost five million birds per week, exist and even thrive when the majority of inputs must be imported?

This was the first question the Irish Farmers Journal put to Moy Park CEO Janet McCollum, who is settling into her new role at the head of Northern Ireland’s largest private sector company.

She says it’s down to three things: people, efficiency and a fully integrated supply chain. The people, she stresses, are the mainstay of the business, from the 800 farmer growers across NI and Britain to the 12,000 employees working at its sites in Ireland, Britain and mainland Europe.

Supplying around 25% of the total western European chicken parent market, McCollum is charged with continuing the growth story. She definitely has the experience.

McCollum, who has worked with Moy Park for 21 years, started her career with Coca Cola, is an associated member of the Chartered Institute of Management Accountants and last year was named NI businesswoman of the year.

“I’m very excited and confident about future opportunities for Moy Park,” she says.

She has been a big part of expansion, explaining that when she started in the company, turnover was just £150m (€200m). Last year it recorded turnover of £1.4bn (€1.8bn), to become one of the top 15 food companies in the UK.

But it has not been always so good. In 2008, Moy Park was making losses of £40m (€53m) and under the previous CEO, Nigel Dunlop, the company restructured, bouncing back to profitability a year later with profits of £20m (€26m). It made profits of £34m (€45m) in 2013.

Game changers

Asking McCollum what the big game changers were for Moy Park, she first cites becoming part of the global OSI Group in 1996, which led to the company acquiring GW Padley Poultry and Dove Valley in England. These two deals effectively doubled the size of Moy Park.

Another large leap was when Moy Park became part of the Brazilian food giant Marfrig in 2008. This meant it was now part of the world’s ninth largest poultry company and the fourth largest red meat company, giving Moy Park a more international perspective along with complementary products, according to McCollum.

In a growing sign of confidence in Moy Park, last year Marfrig transferred responsibility for its entire European operations to Moy Park Europe.

Finally, on acquiring O’Kane Poultry in 2010, Moy Park entered the turkey meat sector and brought revenue over the £1bn mark for the first time.

As part of that acquisition, Moy Park also took on McLarnon Feeds in Co Antrim.

Integrated supply chain

Producing everything from cooked whole birds to chicken Kievs, Moy Park has a totally integrated system, encompassing three generations of birds: grandparents and parents (used for breeding) and broilers (used for meat production).

On top of all this, it now produces processed beef and vegetarian products such as spring rolls and onion rings, coming from the Marfrig European business.

Moy Park makes up about 25% of Marfrig revenues and is by far the jewel in the crown, with revenues growing 10% last year and margins of 6.5%.

Last year, Moy Park successfully raised £200m on the bond market and according to McCollum, this was a great vote of confidence in the business. Asking her about speculation that Moy Park will float through an IPO in 2015, her only comment is that it is at “exploratory stages and it would be dependent on market conditions”.

Adding value

From Jamie Oliver to the World Cup, Moy Park works hard on branding and adding value to chicken.

Walk into any major supermarket and Moy Park is one of the only branded proteins in the meat aisles. It has become the No 1 poultry brand in the Republic of Ireland with almost 50% of households purchasing Moy Park branded chickens.

McCollum says this is down to customers wanting quality, convenience and provenance.

She adds that consumers now want meal solutions rather than the ready-cooked meal.

Despite retail trends where supermarkets are pushing more own-label brands, McCollum believes there is plenty of room for the Moy Park brand to grow.

“Retailers want to offer choice, have a point of differentiation and this is how we fit in,” says McCollum.

Seventy-five per cent of sales are in the UK.

“Moy Park will continue to grow retail and invest in new technology while focusing on fresh local produce, as this is what consumers want,” she says.

Even though there is strong competition, there is room to grow the company’s share, says McCollum.

She adds: “While it is still competitive, it is no longer about selling on price – it’s about listening to the customer and understanding their needs.”

To meet the growing demand for fresh, locally farmed chicken and in a strong signal of a positive commitment to customers and the local agriculture base, Moy Park launched a major grower expansion programme in 2013. The aim is to increase breeder and broiler growing capacity by up to 400 poultry houses in Northern Ireland by the end of 2015.

This is a significant investment for an individual farm business, with each new house estimated to cost at least £300,000 (€397,000).

However, for the 800 farmers who currently supply Moy Park, a poultry enterprise on the farm normally represents a significant addition to farm income.

It has also made what would otherwise have been part-time farms into sustainable full-time farming businesses.

Almost £500m has been invested in capital expenditure over the last decade. This has provided the company with world-class facilities to ensure it remains cost-competitive and can drive product innovation.