1. Startups

Data Utilization Help Chickin Streamline Poultry Farmers

Founded in 2018, ambitions to become a B2B e-commerce player specializing in chicken meat in Indonesia

Despite the many challenges, the agricultural sector is the next potential area which has recently begun to be boosted with various new technology-based innovations. In general, embracing digital technology will have an impact on efforts to increase productivity, efficiency, profitability, and reduce the risk of disease.

The adoption of new technologies must be massive and become a new habit for farmers/breeders, for example, if they are to survive, remain relevant and competitive in a challenging industry, where input prices are soaring and disease continues to threaten their business. Chickin be one of the players agritech trying to solve the issue, starting from poultry farming industry.

Three friends, consisting of Ashab Al Kahfi, Tubagus Syailendra, and Ahmad Syaifulloh, established themselves as poultry farmers before finally starting Chickin in 2018 in Klaten, Central Java.

"We really understand the problems in this industry. From there we look for point bread from upstream to downstream. We really intend to help maintain food security in Indonesia, which still consumes meat with the lowest animal protein index in Southeast Asia and the problem demand that highly fragmented” explained Co-founder & CEO Chickin Tubagus Syailendra.

According to him, for all cultivators, data is the most important issue that helps overcome problems in the field. Utilizing accurate data can help with evaluations to prevent crop failure and can predict what harvest results can be produced. Moreover, the adoption of technology is very important for breeders because birds are very susceptible to disease risks. “Forecasting di supply chain leaders can help with the process matchmaking antara supply and demand. "

Another issue that is also of concern is the animal protein meat consumption index which is still less than other ASEAN countries. According to OECD-FAO, the consumption of chicken and beef by the people of Indonesia is still low compared to neighboring countries. Per capita consumption of chicken only touched 11,6 kilograms, while beef was lower at 2,7 kilograms.

“This is a big problem. In Indonesia the potential is huge but people cannot eat at good prices and quality. Then still center Also, outside Java, many people cannot eat meat because access is difficult. Seen from uniqueness, meat Certified the biggest is the chicken. "A lot of people sell chickens here and most importantly, there is a lot of holiday momentum which makes chickens a commodity at certain events suddenly at a high level."

Chickin' Solution

In response to these needs, Chickin offers IoT and SaaS devices to collect data and matchmaking what data is in the cage for B2B business needs. With its digital technology, Chickin offers solutions for poultry farmers in Indonesia on how to reduce human error, feed waste and electricity costs. The solution helps them change from traditional management to digital-based management.

They will matchmaking data on demand for chickens, size, price, grade, and matched with existing data in the breeder's cage. As for IoT devices, to increase farmer productivity by reducing FCR feed costs (feed coverage ratio). Because, harvest success is a matter of how much feed is converted into meat optimally, so that energy is not wasted.

Chickin provides an IoT-based integrated intelligent farm management system solution through the Chickin App – Micro Climate Controller (MCC) and Chickin Smart Farm which is expected to reduce FCR numbers thereby resulting in better feed efficiency. With IoT and AI based housing managementsupport, Chickin makes it easier for breeders to cultivate optimally, productively and efficiently.

They no longer need to worry about weather conditions in the cage because the temperature and humidity can be adjusted manually via the Chickin App connected to their smartphone. The existence of IoT and AI support allows long-distance cultivation because the control process is easier, while also maximizing production efficiency and quality with low mortality rates.

The Chickin application helps farmers have data real-time. It is claimed that the integration process of Chickin technology can increase the harvest success rate by 97% and profits by 300-400%.

“We can use AI data to adjust chicken temperature requirements, because cost feed is expensive. "IoT is for controlling the temperature needs of chickens, what temperature, humidity, so that partners can get optimal results in terms of income," explained Tubagus.

He continued, "So far it has been possible to reduce costs by up to 15% or around Rp. 2 thousand-Rp. 3 thousand per one chicken. This is maximum potential, depending on how good it is performance-his. Furthermore, electricity costs can be reduced by 50%, for one person IDR 500 economic units- we can charge IDR 250 per head. Final, antibiotic cost although it is still researching, it could decrease by around 50% around IDR 250 too. ImpactIt's as big as it gets.”

In creating this solution, he admitted that he had carried out scientific research for years, while carrying out experimental tests in several cages in Central Kalimantan and Central Java. "The tool is simple to make, add a sensor to know the temperature in the cage and AI Logic for the temperature needs of a chicken. But what takes a long time is the success of the process, how far the percentage reduces feed and electricity costs. Once we have solid data, we can produce even faster."

As for its business model, Chickin provides a supply of quality chicken meat to B2B (Chickin Fresh) consumers. It's like B2B e-commerce for chicken only, like Aruna which is B2B for fish. Then, monetization occurs in the downstream sector. Chickin's business partners come from a variety of verticals, there are e-grocery, retail, culinary, corporate, to franchise networks.

“If it's IoT device is actually our way acquire just supply, acquire lots of breeders to become supply partners. And we don't use these tools for free monetize at all."

It is claimed that the Chickin Fresh solution has sold more than 2,1 million kilograms of chicken to 10 industry partners. Meanwhile, Chickin Smart Farm has produced more than 1 million chickens, saved IDR 1,7 billion in feed, and IDR 397 million in electricity.

Source: Chickin Indonesia

Optimistic in poultry farming

Tubagus believes that in the future smart agriculture with the application of artificial intelligence (AI) will be massively accepted in this country. Therefore, socializing the benefits of technology is important. To be widely adopted, it is claimed that this technology is user friendly and creates significant efficiencies.

In fact, breeders in Indonesia generally understand the concept climate control. Therefore, the target users of Chickin's solutions are breeders Full house who already has a fan, blowersand cooling pad. Furthermore, Chickin only provided an update to the temptron device in the cage with the temperature sensor for the chickens in the cage real-time.

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Even so, the company still has a field team and consultants who can help farmers when operating the equipment. “And most importantly, if we can produce good results, it will be easier to convince breeders to invest.”

Chickin's solution can actually be implemented not only for poultry, but also for other livestock, such as cows and goats, because in essence the climate determines the success of the harvest. This innovation has been successfully carried out by a similar startup from Israel, AgroLogic. This startup develops temptron, like Chickin, which is applied to pigs, cattle and other animals lifestock other.

This inspired companies to take similar actions. Chickin's next step is to aim for growth in vertical businesses, through acquisitions from upstream to downstream. Then, go to downstream by mastering demand chicken aggregation. Next go to mid-stream (slaughterhouse), to upstream (chicken coop).

“The goal is for us to be able to supply farm inputs, such as feed and business, while entering horizontal sectors beyond chickens. Because we plan to leading meat e-commerce B2B in Indonesia," he concluded.

Currently Chickin has completed the initial stage of funding. However, further detailed information is still being kept under wraps.

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