Case Study Of Polyface

994 Words4 Pages
Polyface is an economically and sustainable family-owned farm evolved during the transition from a stereotypical polyculture configuration to less labor-intensive single output farms. Started in the year 1961, it was formally taken over by Salatin in the year 1982. It has a 550-acre property (100 acres of pasture and 450 acres of woodland) in Virginia. There were 6 full-time employees with the farm: 1. Salatin 2. Teresa Salatin 3. Daniel Salatin 4. 3 workers Additionally, Polyface used to train 2 apprentices each year. Out of the total labor hours available, 20% is usually spent on administrative activities and 80% on farming activities. The major products, that Polyface caters to its customers are: 1. Beef 2. Chicken 3. Eggs 4. Pork 5. Rabbit…show more content…
What are the challenges of managing and growing economies of scale and economies of scope operations? Some of the challenges that Polyface would face in managing and growing economies of scale and economies of scope operations are; • To expand its operations, Polyface will have to acquire new land. This would also require someone to manage the farm activities in a similar fashion to the existing farm. This would need intensive training and experience in the existing processes. • If Polyface chooses to expand then it will have to ensure that the structure of the new farm is like the existing one so that it can continue to utilize natural methods of farming. • Polyface had only six full time employees. To expand, it would have to hire more employees. • Increasing economies of scale would lead to an increase in the production. Polyface would have to focus more on distributing to large retail outlets or supermarkets. It would have to warrant the regulation and certification required for this. • According to the Wholesome Poultry Products Act if Polyface expanded and produced more chickens (>20,000) it would have to outsource the processing of chickens to a certified slaughterhouse. This contract would be expensive for Polyface and would also limit the use of slaughter waste (internal organs) as fertilizer at the
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