How do I check who buys a poultry farm’s birds or eggs and under what terms?

Start by finding out who actually takes the product. Ask for a list of buyers, how much each receives and how long the relationship has lasted. If one buyer takes most of the output, note that, since losing them would change the farm overnight. Ask how the farm gets paid, how quickly and whether any payments have been late or disputed.

Then ask for the written terms. Are there contracts, quality standards, pick-up schedules or penalties for missing a delivery? Find out how the farm is expected to care for the birds and meet the buyer’s standards, and ask for inspection or audit results. Ask whether any quota or allocation held by the farm is tied to these sales, and have your lawyer confirm what passes to a buyer.

Ask the seller for permission to talk to the main buyers. Their answer to whether they will continue under a new owner is some of the best evidence you can get. Last, compare buyer records with the farm’s income in the financial statements. Your accountant can spot gaps. Ask also about the pick-up routine and whether a late or missed collection has ever cost the farm money or birds.

Key takeaways

• Get a list of buyers, volumes and how long each has stayed.
• Read the written terms, including standards and penalties.
• Talk to major buyers about continuing with a new owner.