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A Critical Analysis On Contract System In Poultry Farming

KrishiKosh

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Title A Critical Analysis On Contract System In Poultry Farming
 
Creator Kathirchelvan, M.
 
Contributor Sudeepkumar, N.K.
Selvakumar, K.N.
Subramonian, B. Suresh
Apparao, V.
 
Description Poultry sector is one of the fastest growing segments of agriculture in
India today. The first organized effort to develop poultry industry was
started during the launch of the second Five-year plan (1956-61). The
Government farms and State Agricultural Universities took the lead through
their extension network in popularizing modern poultry production in rural
areas. As a result, India is now the third largest egg producer and the fifth
largest producer of broilers with the total annual egg production of 51 billion
in 2006-07 and 1.9 million tonnes of poultry meat in 2005 in the World. In
India, Tamil Nadu is one of the major egg and broiler producing states, which
accounts for production of 8043.52 billion eggs with a total poultry population
of 86,591,273 birds. At present, contract farming, which was virtually
unknown in the poultry sector half a century ago, has proliferated rapidly.
In India, many large poultry firms began integrating their activities
with that of broiler production through the institution of contract farming in
late 1980s in order to minimize the risks to the producers and sustain the
profitability of the industry. While contract farming promises significant
benefits for growers in many cases, recent studies have highlighted
circumstances in which members of the rural population have realized only
limited gains or have been directly or indirectly harmed by contract farming.
Moreover available evidence suggests, that contract farming may have a
negative effect on the welfare of smallholders. There are concerns that
contractors chiefly favour larger growers leaving behind small growers out of
the development process and so far only little efforts have been made to study
this system critically.
Hence, the present investigation is proposed to analyse the contract
poultry production system both in broiler and layer production in Tamil
Nadu by collecting information from three types of farmer categories viz.,
contract broiler farmers, contract layer farmers and independent farmers. The
data pertaining to system and type of contract farming, preference towards
contract farming, decision making behaviour, effect of contract farming on
environment and risk involved in contract farming were collected with the
help of a pre-tested interview schedule.
The results revealed that majority of the contract broiler farmers were
under middle to old age group with primary to higher secondary level of
education. Majority had broiler farming as a subsidiary occupation with small
and big land holding. More than one-half had medium level of experience in
contract farming and low-level of profit orientation.
Majority of the contract layer farmers were young and middle aged with
middle to higher secondary level of education. Nearly two-thirds had contract
layer farming as their main occupation and belonged to big farmer category.
More than one-half belonged to low-income category with high level of
attitude towards contract layer farming. An overwhelming majority of the
farmers had low level of contract farming experience.
Two-thirds of the independent broiler farmers were middle to old age,
with majority of them having higher secondary level of education. A large
majority of the respondents had broiler farming as their main occupation and
nearly two-thirds of them belonged to big farmers category. More than onehalf
of the independent broiler farmers had low level of experience in broiler
farming but majority of them had high-level profit orientation.
The study on the system and type of contract farming, revealed that
contract broiler farmers provided the land, shed, equipments, litter material,
brooding facility and disposal of manure and dead birds where as the
integrators supplied chicks, feed, medication, vaccination and veterinary
services. The broiler contract farmers were paid on kilogram of live weight of
birds after deducting the cost of inputs supplied by the integrator, taking
mainly into consideration, the FCR and percentage of mortality of birds. The
cost realized out of sale of manure and gunny bags belonged to the farmer. In
turn broiler birds belonged to the integrators. The contract layer farmers were
paid on number of eggs produced. The integrators in addition to the eggs
took the spent hens also.
The study on preference towards contract farming revealed that, an
overwhelming majority of broiler farmers preferred independent farming
over contract farming and an overwhelming majority layer farmers preferred
contract farming over independent farming. In the study on decision-making
the results indicated that the decision taken depended on the source of
investment on contract farming either by the farmer or integrator.
The study on effect of contract farming on environment revealed that
majority of the contract layer farms produced offensive odour but no complaints
had been received from the neighbourhood or passerby in this regard. According
to farmers, no regulation or authority had routinely checked the offensive odour
both in contract broiler and layer farms. All the broiler and majority of the layer
farmers sold the manure for land application except a few. None of the broiler and
layer farmers had known about restriction from government on disposal of
carcass. Almost one - fourth of the broiler farmers and more than one - half of the
contract layer farmers had followed burial method while the rest had thrown
away the dead birds in the open.
In the study on risks involved in contract poultry farming, majority of
the contract broiler farmers and an overwhelming majority of layer farmers
had price risk due to unanticipated charges in output / input prices. More
than one-half of the broiler farmers and layer farmers had the risk of delayed
payment by the integrators.
 
Date 2016-05-20T15:51:10Z
2016-05-20T15:51:10Z
2010
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/66179
 
Language en
 
Format application/pdf
 
Publisher Tamil Nadu Veterinary and Animal Sciences University