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Integration in broiler farming

Suguna Poultry Farm Limited , Coimbatore
Email: sugies@md3.vsnl.net.in


Poultry –past

Till Late 80’s Poultry activities were Dormant. Only Backyard farming was prevalent. In the early 90’s Poultry Industry came into the focus. Then Broiler industry was a Rupees 300 Crore Size and there is no looking back. Now in the current year it is going to be 7500 crores.

What made this dormant industry to be active and achieve a phenomenal growth. The growth is attributed to the concept of Integration. Integration is nothing but contract farming. This concept was first introduced in the country by Suguna In Tamilnadu. Those of the few farmers who were willing to join hands have come under integration fold. They joined Suguna totally on Good will.

Prior to this the farmer was totally responsible for the profits or losses. He was unable to raise the volume of production . Hence he could not make reasonable profit. Earlier there were too many profit centers such as Chick seller, Feed seller, Hatcher, Medicine, Transport etc. But in Integration all these profit centers were changed as cost centers in a single organization passing the benefits among the Farmer, consumer, and the company. Even in marketing there were middlemen which is eliminated in Integration.

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Also in Production side also farmers are able to get higher productivity under integration. Earlier Feed Conversion Ratio was somewhere around 2.4 . But now it is reduced to around 1.75. similarly farmer was spending around Rs 2/- per kg of live bird previously. There was no uniformity in getting his flocks. Most of the times due to multiple flock livestock he could not control the spread of any disease. More than any thing he could not make his regular income. Hence Integration came as a boon for him.

In the early 90s, contract farming was introduced and in 1995 it spread all over Tamilnadu. Between 1995 and 2000 it spread to Karnataka. It gathered momentum and spread its wings to Maharashtra, Andhrapradesh,in the years, 2001 & 2002 and now it is in West Bengal Orissa and Gujarat. The spread is mainly due to the in built strengths in Integration System.

One of the main points of strength is that the farmer is free from all worries as he is getting everything, Chick, Feed, medicine, Technical support from the integrating company and daily care at his farm gate. At the end of every batch he gets his due income.

Integration had provided for a situation in which the production cost has come down even though the prices of basic raw materials have been on the increase. Maize and Soya were selling at Rs 2500 and 6000 per ton earlier But the Production cost of the Live broiler bird was more than Rs 30 per Kg. But while the current prices of Maize & Soya are Rs 5,500 and 12,000 respectively , the production cost of Broiler bird had slided down to Rs 26 per kg . See how the dramatic change has happened due to Integration system.

Lesser production cost, higher productivity were the fruits of dual efforts of the Integrating company and the farmers. Integrator provides everything and also provides the income to the farmer by way of Growing charges. The farmer from his part manages the farm and tries to perform well and get higher income. The farmer also gets an additional income by way of selling the manure at the end of every batch .The end result is that the consumer gets the poultry meat at affordable prices, the farmer gets his regular income and the company is happy about the higher volume and productivity. The company also is proud that it provides a good number of employment for rural and urban youth.

The integration system has made possible one more thing . Due to the affordability in prices the consumption of Poultry meat has increased considerably over the years. Earlier in the year 1990 it was a mere 400 grams per person per year in India. During the current year it has increased to 1.6 kg per person per year. This will still reach to the level of 3600 grams in year 2010 at the present growth rate. This will be made possible when the targeted production of the value of Rs.15,000 Crores is achieved.

As said earlier Integration has paved way for employment generation. It prevented migration of rural youth to cities and towns. More than this an additional contribution is made to the nation’s GDP. Also earns foreign exchange through exports.

After exploring the export potential India has started making exports for the past two years. The gulf countries are the second largest poultry meat consumers and are importing large quantities of poultry meat from far-off Brazil. As of now Brazil is the largest exporter for Gulf countries. But India is nearer to these gulf nations. Hence we can fulfill a part of their requirement . For fulfilling this export requirement the only solution is higher production through Integration




Source : IPSACON-2005