John Bowler on Multi-Tier Systems

I write following our recent Bowler Roadshows during which we told people all about our new site at Willington, Derbyshire, near to our offices. I have subsequently changed my mind and instead of building a 12,000 bird steel multi-tier unit alongside a second traditional unit, I have opted for two Bowler traditional standard timber units instead. My reasons for this change of mind are:

1. Our standard system is proven and tested to obtain good results. The units at Willington would be highly geared (borrowed) so why take the unnecessary risk of a relatively new and unproven system such as multi-tier? I always remember when I decided to swap the company’s HGV vehicles for a fleet of Mercedes Actroses, which were supposed to be at the forefront of modern HGV technology. Unfortunately Mercedes had not ironed out all of the teething problems, most of which I encountered, and the decision to switch to these vehicles nearly bankrupted me because of the havoc they caused to the collection rounds, not to mentioned the huge amount of stress in dealing with the problems. Another example of this is the 15,200 bird free range unit in Doncaster which we have rented for the past two years. This unit is not a Bowler build, it was not built to our design and it does not have our equipment. We are now coming to the end of our second flock, We encountered poor performance associated with the poor design of the building and even us with all our experience found it very difficult to sort. It will be our last. Despite having two of my most experienced staff managing the unit, we have worked for the past two years for virtually no money. I have put this down to a learning experience and it has made me more determined than ever not to underrate the tried and tested Bowler way.

2. Steel and multi-tier systems cost more, and there always seem to be unforeseen extras on top of the original quote. It is astounding how much the initial borrowing can add up to when interest is compounded on top of interest. To illustrate, a £75k loan with compounded interest at a rate of 5% per year, would, over twenty years, cost £120,364. This includes £45,364 interest and the original £75k cost. This works out at £0.59 per bird per flock. This extra investment, if invested in property or land, could possible double or treble or increase even more.

3. Our units have to be financially viable operations that stand up to the same prices that we charge and give our producers, so the less we borrow the more financially viable it becomes. Yes - we could possibly borrow the extra money for steel and multi-tier but by not borrowing it we have more chance of “getting out of jail” should egg prices drop or we experience an egg production problem.

4. I do not like the idea of having to remove manure from the unit twice weekly. With the new NVZ regulations coming out, I do not want manure piled on site, but neither do I want to rely on someone else to remove it due to the potential for being let down at busy times of the year and during bad weather. I realise that belting muck out of units is nothing new (particularly for caged units) but if the belts break down, it is a very messy job getting into position to find out what is wrong and fix the problem.

5. There is a lot more working equipment inside a multi-tier unit. Which means there is a lot more to go wrong. Although you would imagine a problem would be more likely on an older unit than a new one, these problems invariably always seem to occur at the weekend or over bank holidays.

6. A lot of this moving equipment is left in place during cleanout so you cannot give a multi-tier unit the same deep-clean that is possible with a standard shed. I have always believed that a good cleanout is one of the most important things to get right and if this is not possible then it may give red mite and disease greater opportunity to flourish and could allow a potentially devastating situation to develop if Salmonella were to be found. Trials conducted in Europe support this theory as it was found that more cage sites (which are more difficult to clean thoroughly) harboured Salmonella than free range sites (which are easier to clean), and I believe that due to the high amount of fixtures and fittings in both cage and multi-tier set-ups, the study’s findings may be relevant to multi-tier.

7. If free-range ever did run into problems, my initial reaction would be to convert my units to broiler production. A multi-tier unit is smaller than a standard shed so would fit less broiler chickens in. And, as with eggs, it’s always that little extra that makes the profit. The expensive equipment installed in a multi-tier system becomes virtually worthless the day it is installed as it has very little second-hand value.

8. We are completely independent so we are able to have an unbiased view. We are not tied to any manufacturers or suppliers so we can choose the type of unit that best fits the circumstances, however there are many sales reps who are pushing their particular multi-tier unit simply to get the sale. Some multi-tier sales people claim you are better off tax-wise in buying more equipment proportionally to the completed project, whereas our financial advisors claim this is not true.

9. Another aspect that has influenced my decision in the general public’s perception of multi-tier. Perception has nothing to do with reality but most people cannot separate the two. If the press or a celebrity decided to do a feature on multi-tier egg production, it would make a terrific story – 32,000 birds in a large steel building with hens stacked layer on top of layer.

10. This leads to my final point. Multi-tier eggs may one day be seen as a separate production method and become the shopper’s second choice after free range. Whilst supply of egg is short, supermarkets will take anything to keep their shelves stocked. But in times of surplus they may decide to be more choosy and make greater demands on the world of free range.

There are probably more disadvantages that I could list, but also I am led to believe that there are advantages too. However, Anslow Eggs, which is Jonathan Thompstone’s family’s farm, and is run by a partnership including Dave Galley (who trouble-shoots for Bowler producers) and Ian Browne (a very competent farm consultant) have also opted for a traditional timber design for their next unit. I am amazed at this as Jonathan has visited different countries to see various multi-tier units, so I am very pleased to have my own opinion endorsed by such very capable people who are not just talking but actually spending their own money.

Some people in the industry say we are anti multi-tier and anti steel buidings. This is not true and is simply a case of gossip being misinterpreted and misunderstood, and invariably the “facts” are incorrect. We are quite happy to supply steel and multi-tier units under the right circumstances, and I am led to believe that there has been a massive improvement in multi-tier design and some suppliers are, I understand, better than others. However when we sell a particular type of unit, we like to be in a position to explain the advantages and the disadvantages. When we sell a franchise, one of the biggest benefits are that we are tied in for a long period of time but a major drawback of this can be when something is not quite right or doesn’t work. A great reputation can be ruined in a very short period of time and therefore the number one choice for me under these circumstances is the safe and prudent route, a decision which appears right today based on the information we have available today - however with more time and evidence we may eventually only do multi tier steel buildings.

Hindsight is a wonderful thing and it will be interesting to review these comments in a few years time.

Yours faithfully

John