Marketing of Broiler Birds under Contract and Non-Contract Broiler Farming in Bengaluru South Transect – A Comparative Analysis

Author: A. Sree Lakshmi, M.R. Girish and Mamatha Girish

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Abstract

The present study attempted to analyse the marketing of broiler birds by both contract and non-contract broiler famers in Bengaluru South. For the study, 30 contract and 30 non-contract broiler famers were randomly selected. Shepherd’s and Acharya’s methods were used to calculate the marketing efficiency of broiler farming. The marketing channels for broilers in the study area involved four major intermediaries, viz., integrators, wholesalers, processors, and retailers. In the case of contract farming, two channels were prevalent, viz., Channel I: Producers / Growers (Contract Farmers) – Integrators – Wholesalers – Retailers / Butchers – Consumers; and Channel II: Producers / Growers (Contract Farmers) – Integrators – Processors – Consumers. The contract farmers were paid Rs. 6.20/- per kg of the bird’s weight as rearing charges by the integrators. In the case of non-contract farming, the price paid by the ultimate consumer in Channel I (Producer – Wholesalers – Retailers – Consumers) and Channel II (Producers – Wholesalers – Processors – Consumers) was Rs. 182/- per kg and Rs. 356/- per kg, respectively. Accordingly, the marketing efficiency was 16.38 per cent and 17.94 per cent in Channel I and Channel II, respectively, thereby, indicating that Channel II was relatively more efficient than Channel I in marketing of broiler birds by non-contract farmers. The major production constraints faced by contract broiler farmers were disease outbreak, inadequate availability of labour, and high wages; whereas, sourcing of quality inputs, disease outbreak, and high feed cost were the major production constraints faced by non-contract broiler farmers. Among the marketing constraints, price fluctuation and inadequate access to market information were the major constraints faced by both contract and non-contract broiler farmers. The major challenge of the research work was getting reliable information from integrators pertaining to all aspects of contract farming.

Keywords

Marketing, Contract broiler farming, Non-contract broiler farming, Price spread, efficiency, constraints

Conclusion

In the study area, broiler marketing involved four intermediaries, viz., integrators, traders, processors, and retailers. In the case of contract farming, two channels were prevalent, viz., Channel I: Producers / Growers (Contract Farmers) – Integrators – Wholesalers – Retailers / Butchers – Consumers; and Channel II: Producers / Growers (Contract Farmers) – Integrators – Processors – Consumers. The contract farmers did not sell their broilers directly to consumers, but rather through these intermediaries. The contract farmers were paid Rs. 6.20/- per kg of the bird’s weight as rearing charges by the integrators. The marketing cost was higher in Channel II (Rs. 27,426/- per ton) when compared to that of Channel I (Rs. 5965/- per ton) as the cost of processing of birds alone accounted for Rs. 21,496/- per ton. In the case of non-contract farming, the price paid by the ultimate consumer in Channel I (Producer – Wholesalers – Retailers – Consumers) and Channel II (Producers – Wholesalers – Processors – Consumers) was Rs. 182/- per kg and Rs. 356/- per kg, respectively. Accordingly, the marketing efficiency was 16.38 per cent and 17.94 per cent in Channel I and Channel II, respectively, thereby, indicating that Channel II was relatively more efficient than Channel I in marketing of broiler birds by non-contract farmers. The major production constraints faced by contract broiler farmers were disease outbreak, inadequate availability of labour and high wages; whereas, sourcing of quality inputs, disease outbreak and high feed cost were the major production constraints faced by non-contract broiler farmer. Among the marketing constraints, price fluctuations and inadequate access to market information were the major constraints faced by both contract and non-contract broiler farmers. The study suggests that increasing the rearing charges offered by the integrators can potentially lead to higher profits for contract farmers. Additionally, providing training to non-contract farmers regarding inputs, rearing, and marketing can help mitigate some of the risks associated with non-contract broiler farming.

References

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How to cite this article

A. Sree Lakshmi, M.R. Girish and Mamatha Girish (2023). Marketing of Broiler Birds under Contract and Non-Contract Broiler Farming in Bengaluru South Transect – A Comparative Analysis. Biological Forum – An International Journal, 15(5): 114-120.