Contract Poultry Farming in India Revolutionizes Broiler Meat Industry

What is Contract Poultry Farming?

• It involves a contractual agreement between farmers and a private company, where farmers commit to raising poultry birds according to the company’s specifications.
• The company provides essential support, including feeding, medicines, birds, and supervision, aimed at achieving higher productivity.

Comprehensive Support for Poultry Farmers

• Furthermore, companies go the extra mile by providing day-old broiler chicks, feed, medicines, technical support, and rearing charges to poultry farmers.
• In some cases, they may even offer additional incentives, such as extra payments, in response to sudden market price spikes.

Transforming the Agricultural Landscape

In India, poultry farmers typically manage sheds with an average bird holding capacity ranging from 5,000 to 10,000 birds. This efficient model has resulted in over 80% of India’s poultry meat being produced by organized commercial farms, with the remaining portion sourced from backyard poultry, primarily in rural areas. Among commercial broiler production, major poultry companies with vertically integrated operations capture a substantial share, estimated at around 60-70%.

A Boon for the Economy and Employment

The contract poultry farming approach is significantly revolutionizing India’s poultry landscape. It offers much-needed stability, enhanced income security, and promising opportunities for both poultry farmers and integrators. Notably, it plays a pivotal role in India’s economy, providing employment opportunities for millions of small and medium poultry farmers who own farms housing 5,000-10,000 broilers.

Benefits for Farmers:

• On the positive side, the company takes on most of the risks, including disease outbreaks in the birds.
• Additionally, farmers receive a guaranteed income, and they can rest assured about the birds since the company is obligated to purchase them as per the agreement.

Disadvantages for Farmers:

However, there are some downsides.

• Farmers often have limited control over the types of feed they provide to the birds, and they may need to resort to potentially harmful antibiotics to meet the company’s standards.
• Furthermore, if the company goes out of business, farmers may not receive the assured payments. Additionally, if the market value of the meat surpasses the assured price set by the company by the time the birds are ready for sale, farmers are bound to sell at the assured price, potentially missing out on higher profits.

To again some basic details about things involved in Contract farming , please watch this video

For more details please refer to the Detailed guidelines issued by Government of India

Below are some of top companies that are involved in this business for Broiler

• Suguna foods
• IB Group

Some companies like Daulat Farms offer contract poultry farming for

• Black meat chicken
• Country chicken
• Layer farming

Government Initiatives to boost Poultry in India:

Department of Animal Husbandry and Dairying to promote poultry and related activities:

1. Animal Husbandry Infrastructure Development Fund (AHIDF):

   • AHIDF, with a fund of Rs 15,000 crore, has been in operation since June 2020.
   • One of its key objectives is to address the need for protein-enriched quality food and combat malnutrition.
   • Poultry development activities covered under AHIDF include technologically assisted poultry farms, meat processing and value addition infrastructure, and establishment of animal feed plants (specifically for poultry feed).

2. Loan Benefits for Eligible Beneficiaries:

   • Eligible beneficiaries, including Farmer Producer Organizations (FPOs), Micro Small and Medium Enterprises (MSMEs), Section 8 Companies, private companies, and individual entrepreneurs, can avail of loans.
   • These beneficiaries can obtain 90% of the loan amount with a 3% interest subvention provided by the Central Government.
   • Additionally, the Central Government offers a credit guarantee of 25% for projects that meet the definition of MSME projects.

3. National Livestock Mission Subsidy:

   • Under the National Livestock Mission, the Central Government offers a 50% subsidy, up to Rs 25.00 lakh, to support the establishment of Parent Farms, Rural Hatcheries, brooder cum mother units for Hatching Egg Production.
   • Eligible entities for this subsidy include Self Help Groups (SHG), Farmers Producer Organizations (FPOs), Farmers Cooperatives Organizations (FCOs), Joint Liability Groups (JLGs), and Section 8 companies.

4. Digitized Process via Online Portal:

   • The Department of Animal Husbandry and Dairying has introduced a fully digitized process for availing these benefits.
   • An online portal (nlm.udyamimitra.in) has been developed to facilitate the application process, where all necessary documents can be uploaded.

5. Government’s Commitment:

   • These initiatives demonstrate the government’s commitment to promoting poultry and related activities to meet the growing demand for protein-rich food and to combat malnutrition.

Also read : Business plan in Poultry farming