11_13_14 hubbard

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					Hubbard is the perfect fit
in Grimaud’s portfolio
      ecent weeks have seen extensive
      changes in the ownership of major
      international poultry companies.
The first of these changes was the acqui-
sition of Hubbard by Groupe Grimaud
La Corbière of France.
  Recently International Hatchery
Practice visited France and Groupe
Grimaud La Corbière, who are often
known as just Grimaud, to find out more
about the acquisition and Grimaud's
plans and aspirations for Hubbard.
  So, who are Grimaud? Most people
know the company for their activities in
the duck breeding field, but there is
much more. Grimaud's activities fall into
other key areas. As well as duck breed-
ing, the company is a major player in the
breeding of pigeons, rabbits and colour-
ed chickens.
  In addition, the company operates in
upstream biotechnologies, such as the
development of avian stem cell lines for      An aerial view of the Chateaubourg breeding complex.
the production of vaccines and pharma-
ceutical recombinant proteins.                1,300 staff around the world, with the      nesses'. Why should this be so? The
  The company also has downstream             group’s headquarters in Roussay, France.    answer lies in the fact that family busi-
activities centred in France and on the         In addition to eight major operational    nesses do not have to return a profit year
production of commercial day olds.            centres in France, it also has operations   in, year out to shareholders as multina-
                                              in Italy, Holland, Malaysia, four opera-    tional corporations do.
                                              tional centres in the USA and two in          As a consequence, they are better able
Multispecies breeder                          China, plus partners or distributors in     to live with the commercial ups and
                                              numerous countries including Korea,         downs of the breeding world and can
Now, with the acquisition of Hubbard,         Thailand, Syria, Jordan, Russia, Zim-       reinvest all their profits to develop and
Grimaud will produce some 55 million          babwe, Egypt, India and Indonesia.          grow the business.
day old ducklings, including some 1.5           The group is 70% owned by Fred              The Hubbard business fits very well
million breeder day olds, 30 million          Grimaud and his family and the remain-      into Grimaud's genetics business where
chicken parent day olds (including over       ing 30% is owned by financial institutes    it tends to complement rather than dupli-
a million grandparents), 200,000 guinea       and so Grimaud is, in effect, a family      cate their previous breeding activities.
fowl parent day olds and 30,000 breed-        business.                                     The only overlapping that occurs is in
ing rabbits.                                    Similar changes in recent weeks have      the area of coloured chickens.
  The new group's turnover will be some       resulted in Aviagen and Hendrix               Corporately, Hubbard is divided into
  150 million and it will employ about        Breeders also becoming 'family busi-                             Continued on page 13
The breeder houses have controlled ventilation.                     Pedigree breeding pens.

International Hatchery Practice — Volume 19 Number 8                                                                             11
Continued from page 11
Hubbard LLC in the USA, Hubbard SAS
in France and Hubbard Polska in Poland.
  Logistically, Hubbard falls into two
halves – 'America' which services North,
Central and Latin America and 'Europe'
which covers Europe, The Middle East
and Africa, Brazil and Asia.
  Within the Grimaud organisation,
Hubbard is to retain its own identity and
will be run as an autonomous unit. It will
follow the group's philosophy of focus-
ing customers, people, investment, R&D,
the international market place and qual-
ity and will be typified by pragmatism
and reactivity.
  All of this is encapsulated in the
group's philosophy of converting
thoughts and ideas into words and then
converting these into action!
                                               On site at Chateaubourg.
Two main areas of production                   focuses on its Classic, Flex, Yield and         for birds to kill at 81 or 56 days. In
                                               alternative products.                           addition, Hubbard has both 'white' and
Hubbard will continue to operate from            The Classic has the highest output of         'yellow' males. The white male is for
two main areas of production – Europe          chicks coupled to fast early broiler            markets, such as Europe, where there is
(Brittany, France and Poland) and the          growth and is the ideal bird for the tradi-     strong consumer pressure for uniform
USA (Tenessee and North Carolina).             tional whole bird markets of Central            carcase colour in the face of production
  In addition, there will be three R&D         America and Asia.                               practices, which have a flexibility in
centres – Walpole in New Hampshire,              Their Flex has the lowest live chick          ingredient use and will change these if
USA, Chateaubourg in Brittany, France          cost and the best FCR at broiler level and      commercial pressures so dictate.
and Saint Loup d’Ordon in France,              is ideal for portion production.                  Hubbard's strengths lie in its origins.
which will be the centre for the coloured                                                      Hubbard arose from the mergers of the
breeding activities. All of these facilities                                                   Hubbard, Shaver and ISA broiler gene
are company owned.                             Specialist bird for meat yield                  pools and so it now has a large and
  Grandparent operations, which tend to                                                        diverse genetic pool. It has internal
be customer owned, are around the              Their Yield bird has the highest output of      biosecurity in that there are two breeding
world including in Mexico, Columbia,           deboned meat and is the specialist bird         operations – one in France and the other
Venezuela, three in Brazil, Spain, Libya,      for that sector – it is especially popular in   in the USA.
Egypt (three), Jordan, Syria, Iraq, Iran,      the USA. Most of Hubbard's business               In addition, the company has, and will
Mauritius, Zimbabwe, Russia, Pakistan          centres on providing a whole breeding           continue to operate, a balanced breeding
(two), India (two), Bangladesh (two),          package, but they can, and do, provide          strategy that couples breeder perfor-
South Korea, China (four), the Philipp-        split packages in the USA where such            mance in terms of hatchability, number
ines, Vietnam, Thailand (two) and              packages are still popular.                     of eggs, egg weight and fertility to com-
Indonesia.                                       The alternative products are tailor-          mercial traits such as FCR, weight, live-
  North West Africa tends to be supplied       made for the 'Label', 'certified' and           ability, leg strength and meat yield.
with day old parents, which are trucked        'intermediate' markets that are looking           The overall goals of this strategy are to
there from France.                                                                             reduce production costs for their cus-
  Hubbard has a stronger market position       The Chateaubourg genetic centre.                tomers and to give them increased added
than many think. They hold some 50%                                                            value in their businesses.
of each of the Russian and Syrian mar-                                                           Typically breeders at Hubbard are broi-
kets, 45% of the Egyptian and 70% of                                                           lerised until seven weeks of age and are
the Pakistani markets.                                                                         then selected on a basis of FCR, liveabil-
  Hubbard claim to be second in the                                                            ity, oxygenation capacity of their blood,
large Europe, Middle East and Africa                                                           legs, body weight and conformation.
market with 25% of that area's parent                                                          These are coupled to a feathering assess-
stock market. When it comes to coloured                                                        ment that is undertaken at about four
bird production Hubbard's share is some                                                        weeks of age. At the top of the breeding
two third's of the breeder market.                                                             pyramid the top 10% of females and the
  In practice, Hubbard is the only                                                             top 1% of males are retained for the next
breeder serving both the conventional                                                          generation.
marketplace, which is looking for cost                                                           So, what does this mean in real terms?
effective broilers that can perform in a                                                       Through the 1980s and 90s FCR for a
high tech/high investment environment,                                                         1.9kg broiler reduced from 1.85 to 1.57.
and the alternative marketplace, which is                                                        In recent years the bodyweight of pure
looking for quality, robustness, tradition                                                     line males has risen 3% per year,
and a consumer friendly image in terms                                                         whereas in the female line FCR has
of production style, taste and welfare.                                                        reduced by 2.5 points per year and body
  When it comes to products Hubbard                                                                                  Continued on page 14

International Hatchery Practice — Volume 19 Number 8                                                                                   13
The grandparent hatchery.                                           A breeder farm.

Continued from page 13                          There must be benefits all round.         genetics and should benefit from techni-
weight has increased by 57g per year.         Hubbard will benefit from the fact that     cal and commercial synergism between
  At the same time the reproductive traits    its future has been defined and the         its different breeding activities.
have been maintained. This is important       uncertainties of recent years can now be      In the breeding world Grimaud have
because in today's high performing broil-     left behind.                                been very successful with their duck
ers one can not be solely reliant on the        It also has the benefit of a parent who   breeding activities.
male to provide all of the final genera-      is in breeding, understands breeding and      If they can bring to Hubbard their
tion's commercial performance.                who understands the vagaries of the         experience and that little bit of extra
  Its third strength lies in its people who   breeding world and can service the          magic that worked with their commer-
have the variety of skills and strengths      financial and managerial support that       cial day old ducklings, Hubbard will be
that are needed to service the needs of       this sometimes requires. It has a parent    the real winners!
R&D, breeding, technical services, sales      who is there for the long term.               Those who ignore Groupe Grimaud La
and marketing and customer support.             Conversely, Grimaud has become a          Corbière and Hubbard will do so at their
  So, what about the future?                  major player in the world of poultry        own peril.                              I

14                                                                   International Hatchery Practice — Volume 19 Number 8

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