IMPACT OF CONTRACT FARMING IN POULTRY ENTERPRISES IN RANGA REDDY AND MAHABUBNAGAR DISTRICTS OF A.P.
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Date
2007
Authors
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Journal ISSN
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Publisher
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD.
Abstract
Ranga Reddy and Mahabubnagar districts were purposively selected for the study.
An ultimate sample of 30 contract broiler farms, 30 non-contract broiler farms and 30
non-contract layer farms were selected randomly.
Indian poultry has shown an annual growth rate of 8 -10% in eggs and 12-15% in
broilers for last several years. However poultry rearing was on a small scale for long and
commercial poultry production gained significance only over the last three decades.
Within this short span the industry has attained technological improvements contributing
significantly to the nation’s economy in terms of GDP, hence special emphasis has been
laid on contract poultry farming.
Objectives of the study:
1. To analyse the efficiency of contract farming in poultry.
2. To study profitability of contract farming in poultry.
3. To study the input-output supply chain system.
4. To analyse the economics of small, medium and large scale broiler and egg
producers.
In respect of contract broiler farms the total costs per 1000 birds was Rs.4,030.
While in the non-contract farms the total costs per 1000 birds was Rs.46,750. In respect
of non-contract layer farms, the total costs per 1000 birds was Rs.2,84, 624.
In respect of contract farms, sale of birds was the main source of income
accounting for about 75 per cent of the gross income. Gross income per 1000 birds
valued at Rs. 5,890. On the whole, over the production cycle, the farmers were found to
receive a net income of Rs.1,920 per 1000 birds. Coming to the non-contract farms, the
sale of birds was found to contribute about 98 per cent to the gross income. Gross returns
per 1000 birds were found to be Rs.51,600. The income per 1000 birds was Rs.4,210.
Returns per rupee investment were more on contract farms i.e., 1: 0.48 as against
non-contract farms 1: 0.009. The gross income per 1000 birds was found to be less on
contract farms, as these farms were paid a given a sum of Rs.2.70 on an average per kg of
bird as major items of expenditure like chicks, feed and medicines were borne by
hatcheries.
The input-output ratio indicates that the returns are more in contract farms against
non-contract farms. The feed conversion ratio indicates that feed efficiency increased in
contract farms than non-contract farms. The contract farms have lower FCR indicating
higher profitability in broiler farming. The PEF and EEF also indicate that the contract
farms have better performance than non-contract farms. The break-even output on
contract broiler farms was found to be 1073.3 kg and the average break-even output stood
at 1910 kg. In respect of non-contract broiler farms, the break-even output was 706.05 kg
and the average break- even output was 1840 kg.
The total costs for 1000 birds were phenomenally higher on non-contract farms
over contract farms. The feed efficiency and performance of the flock was appreciable in
broiler contract farms compared to non-contract farms. Gross income per 1000 birds was
distinctly higher on non-contract farms over contract farms. But the returns per rupee of
investment on contract broiler farms were substantially more over non-contract farms.
The average break-even output was more on contract broiler farms over non-contract
broiler farms. The reason being the contract broiler farmers get only growing charges
which are fairly low.
There is a need that the small and medium farmers should be encouraged to
produce more cycles per year, so that they can make efficient utilization of available
resources to earn a reasonably good income. Integration of broiler industry with greater
government intervention by providing legal status to the farmer will help farmers to adopt
contracts and produce quality output. Further, in case of sudden out break of diseases in
large scale farmer as well as integrators are probe to risk, therefore insurance can be
introduced for poultry farmers.
Description
Keywords
IMPACT, CONTRACT, FARMING, POULTRY, ENTERPRISES, ANGA REDDY, MAHABUBNAGAR DISTRICTS, ANDHRA PRADESH