Broiler Integration in Assam -The Future of Broiler Industry
Dr. Nitul Saikia and Dr. Rupjyoti Hazarika
Deuty Manager-Technical services-Amrit Hatcheries Pvt Ltd. PhD Scholar-IVRI
Broiler farming has been undoubtedly a rural source of income large number of families in every corners of Assam due to advantages like low initial investment, quick return, less space requirement, high return and the most important is the self-employment at his door-step. When broiler was first introduced into the state, acceptance by the farmers as well as the consumers was not encouraging. Latter in 80’s small broiler farms with capacity of 50 to 100 birds were developed. Change in the food habit of the people, consumers preference towards broiler meat and ever increasing unemployment has attracted the educated unemployed youths as an avenue for self–employment, leading to development in number of farms and farm holding capacity.
The poultry (broiler) business was fully dealer based i.e. the business was controlled by the middle man. The middle man remained always gainer irrespective of the market condition whereas the producer (especially the hatchery owner and the farmer) had to compromise. This was due to the fact that the farmers did not have market information related to the input sources, current rates and selling points of their finished products. With the passage of time and the development in the communication system, the informations are being shared among the farmers. This has reduced the margin of middle man, and in some instances the involvement of middle man in input delivery system has been wiped out.
The concept of broiler contract farming (integration) in Assam, which was first started in Tamil Nadu by Suguna in early 90s and spread over Karnataka, West Bengal, Orissa and Gujarat, was started by Venky’s India Ltd. But due to several factors they could not proved success in the region. However, in the recent years the integration gained popularity among the farmers. In integration or Contract farming, the integrator supplies inputs like day old chicks, feeds, medicines and technical services at the door-step of the farmer; whereas, the shed, litter materials, electricity, labour, equipments and other related services are borne by the farmer under contract/agreement. Since the integrator bears the major portion of the working capital, he is the absolute owner of the birds in the farm, and the farmer will receive the growing charge pre-fixed at the time of agreement; however, the payment to the farmer is linked to the various parameters like feed conversion ratio, mortality, market rate etc. as determined by the integrator at the time of agreement. Depending on the production performance the farmer may be rewarded with incentives or penalized.
In dealer based business all the expenses in farm inputs and services has to be borne by the farmer. Risk (if any) encountered in production or due to market volatility causing loss to the farm has to be borne by the farmer himself. Selling of ready birds often becomes very difficult in few months of the year forcing the farmer to sell their farm products at low price, sometimes even below the production cost. The greatest advantage to be under the umbrella of integration is the insulation against the risk of loss, which may be in production or due to market volatility. The farmers need not to worry to find trader or market to sell his products as the integrator will lift the birds from the farms sell in the market. Exploitation of farmers by the middleman is also reduced.
Expansion (vertical and horizontal) of farming may be possible only by joining hands with the integrator. The integrator has the capital to invest and have the ability to absorb shock of the financial loss, if any, but they have the limitations of land and manpower. The small farmers have the land to rear birds, but finance and risk taking ability is their limitation. By joining hands both the farmer and integrator will be mutually benefited, which is the concept of integration.
So, one my conclude that working under the umbrella of integration will definitely be a win to win situation and may be consider as the future of broiler industry in Assam.