impact of contract poultry farming in enhancing...

International Journal of Engineering Technology, Management and Applied Sciences

www.ijetmas.com July 2015, Volume 3, Issue 7, ISSN 2349-4476

1 Dr. Daniel Penkar , Prof. Shailesh G. Bakal (Patil)

Impact of Contract Poultry Farming in Enhancing Economic

and Social Conditions of Farmers of Nashik District

Dr. Daniel Penkar Prof. Shailesh G. Bakal (Patil) Director Assistant Professor S.B.Patil Institute of Management, SRES College of Engg. & MBA, Koparagon Nigdi, Pune Approved By AICTE, Affiliated to SPPU.

Abstract:- Poultry farming in India has reached an industry status as well as an agri -business enterprise which was predominantly

a backyard activity three to four decades ago. Poultry continues to be one of the fastest growing segments of the

agricultural sector in India today due to impact of western culture as the changing customer preference from vegetarian

to Non vegetarian. However, scientific poultry production in India gained momentum during the last two decades due to

concerted efforts of the Government of India through policies, institution and focused research and the initiatives taken

by the private sector. India is ranked third in the world for the poultry production because of the initiatives tak en by

private players by signing contract with the farmers. The paper focuses on the impact of contract poultry farming in

enhancing the economical and social condition of farmers of Nashik district. For the same the author has selected 50

farmers who work under contract poultry farming and collected data regarding the upliftment of the farmers after

entering into contract in terms of social, Economical and expenditure pattern of the farmer. Keywords:-

Contract Poultry farming, Hatcheries, Day old Chicks, Vertical Integration.

Introduction: India is always been known in the world for its Rural Based Economy as nearly 67% of its population is dependent on Agriculture & other rural businesses. Although such a huge dependence is seen till only 13.7% of Indian GDP comes through it. The poultry sector has emerged from entirely unorganized farming practice to commercial production system with State-of the-art technological interventions. Poultry sector, besides providing direct or indirect employment to people, is also a potent tool for subsidiary income generation for many landless and marginal farmers. It also provides nutritional security especially to the rural poor. The growth rates during last two to three years for eggs and poultry meat are averaging at nearly 7-8% and 12-13% annually respectively.

1. Introduction to Contract Poultry Farming:- The literature contains numerous definitions of contract farming. Some of the better definitions include: Catelo and Costales, 2008 stated contract farming as “A binding arrangement between a firm (contractor) and an individual producer (contractee) in the form of a „forward agreement‟ with well-defined obligations and remuneration for tasks done, often with specifications on product properties such as volume, quality, and timing of delivery” Minot, 2007 states contract farming as “Agricultural production carried out according to a prior agreement in which the farmer commits to producing a given product in a given manner and the buyer commits to purchasing it”. In a poultry contract, hatcheries provide day-old chicks, feed and medicines to contract growers. The contract growers supply land, labour and other variable inputs (like electricity). At the end of the production cycle, the farmer receives a net price (by weight) that is pegged to an industry price set by a group of hatcheries (not the retail price). The broiler contract is an instance of a “production management” contract where the processor supplies inputs and extension, advances credit (in kind), provides price insurance and monitors grower effort through frequent inspections. The detailed monitoring is because of the considerable credit advanced by the processor that provides more than 90% of the cost of production in terms of the value of inputs. Because the frequent monitoring controls for moral hazard, it is also conducive to insurance. The frequency of contact also would mean that the processor incurs considerable transactions costs.




2. Review of Literature:- Sidhu, D.S., and P.S.Rangi (1980) in an article on “Some Socio-economic aspects of Poultry Farming in India” with the objective of finding the impact of poultry farming on socio economic conditions of farmers. The findings were stated with the help of linear programming and budgeting technique that poultry farming should become part and parcel of all the programmes for integrated rural development and enhancing economic conditions of farmers as poultry farming has an immense potential of employment generation as well as rural development. Glover, D. & Kusterer, K. (1990) in an article on “Small farmers, big business: Contract farming and rural development” agrees that there are more positive about the potential of contract farming for small farmers. The author mentioned that the contract farming is an institutional arrangement enables farmers to access markets. E. B. Sonaiya (1996) in his article on “Employment, Income Generation and Skill Development through Rural Poultry Development” made an attempt to find the impact of poultry farming on employment, income and rural development. The author concluded that rural poultry development can be a vehicle for rural development of the region. As women and youth are engaged in rural poultry farming which increases employment and rise in income, also due to their engagement in poultry farming the skills of women and youth were enhanced which allowed them to invest in inputs providing industries, distribution of poultry products and in financial service provider businesses. Sukhpal Singh (2002) in his research paper on “Contract Farming for Agricultural Development and Diversification in Punjab: Problems and Prospects” with an objective to find the ways of developing agricultural sector of Punjab. The author of the paper suggested that diversification in agricultural sector is the way for its development. Agricultural Diversification and development of Punjab can be achieved by contract farming. The author has suggested different models of contract farming such as Bi-partite contract farming model, tri-partite contract farming model, Quad partite contract farming model, state led contract farming model, six-partite (Networking/ Franchisee) contract farming model. Miss. R.Thangaman (2006) in her PHD titled “Socio-Economic development through poultry farming in Namakkal District” says that Economic condition of farmers of rural area can be substantially achieved with the introduction of scientific poultry farming. As more than 30 % people of India live below poverty line, poultry farming can be a effective tool of socio-economic transformation. Poultry farming has a potential to provide employment opportunity directly as well as indirectly. The distinctive features of the poultry business as compared to other business are High rate of reproduction. Quick return on capital invested, less area required.

3. Objectives of the Study:- To study the Effectiveness of Contract poultry farming in enhancing economic condition of farmers of Nashik District.

To study the Effectiveness of Contract poultry farming in enhancing Social condition of farmers of Nashik District.

4. Hypotheses of the Study:-

Contract Poultry Farming helps in economical development of Farmers.

Contract Poultry Farming helps in social development of Farmers.

5. Methodology:- Research: - Research is process involves defining and redefining problems. Formulating hypothesis or suggested solutions , collecting , organizing , evaluating , data making , deduction , and researching final destination or conclusion. Research Methodology is way to systematically solve the search problem. It understood as a science of studying how research is done scientifically For the following study a descriptive research method is designed to fulfill the objectives with data collection from farmers who are engaged in contract poultry farming, through a structured questionnaire. The questions are so designed to fulfill the objectives of the study.




Data Collection :

1. Primary Sources of Data Collection: Primary data being the latest source of information are collected through a) Structured Questionnaire for contract Poultry Farmers of Nashik District through survey method.

2. Secondary Sources of Data Collection: Secondary data required for analysis are collected from various sources like- Annual Reports of Animal Husbandry department, Journals related to the topic, Magazines, Periodicals, Various internet websites related to the topic.

Sample Selection: Out of 15 tehsils of Nashik district three tehsils are selected for the study they are Yeola, sinner and Chandwad tehsils by convenience sampling method. For the purpose of the study researcher selected in total 50 contract poultry farmers from this tehsils using simple random sampling method.

Scope of the Study:-

The study focuses on the impact of Contract poultry farming on farmers from 2004 to 2014.

The paper covers aspects related to economical and social condition of farmers of Nashik District.

The paper explains the impact of contract poultry farming on expenditure of farmers of Nashik District.

7. Data Analysis and Interpretation:- 1. Rate the level of Enhancing Economic Condition of Contract Poultry farmers after signing contract. Sr.No Parameters No Change

(1)

Just

(2)

Considerable

(3)

High

(4)

Very High

(5)

Total

1 Well constructed House 0

(0%)

5

(10%)

15

(30%)

30

(60%)

0

(0%)

50

(100%)

2 Two Wheeler 0

(0%)

3

(6%)

15

(30%)

22

(44%)

10

(20%)

50

(100%)

3 Four Wheeler 10

(20%)

5

(10%)

20

(40%)

15

(30%)

0

(0%)

50

(100%)

4 Fixed deposit in bank 7

(14%)

2

(4%)

15

(30%)

10

(20%)

16

(32%)

50

(100%)

5 LCD Television 5

(10%)

10

(20%)

12

(24%)

13

(26%)

10

(20%)

50

(100%)

6 Smart Phone 0

(0%)

0

(0%)

5

(10%)

10

(20%)

35

(70%)

50

(100%)

7 Washing Machine 5

(10%)

5

(10%)

7

(14%)

23

(46%)

10

(20%)

50

(100%)

8 Refrigerator 5

(10%)

5

(10%)

13

(26%)

17

(34%)

10

(20%)

50

(100%)

9 Water Purifier 5

(10%)

12

(24%)

15

(30%)

18

(36%)

0

(0%)

50

(100%)

10 Computer/ Laptop 16

(32%)

14

(28%)

7

(14%)

13

(26%)

0

(0%)

50

(100%)

11 Kids studying in Convent

School

0

(0%)

0

(0%)

12

(24%)

13

(26%)

25

(50%)

50

(100%)

12 Savings and Investments 0

(0%)

0

(0%)

0

(0%)

15

(30%)

35

(70%)

50

(100%)

13 Life Insurance 20

(40%)

15

(30%)

7

(14%)

8

(16%)

0

(0%)

50

(100%)

14 Health Insurance 35

(70%)

10

(20%)

2

(4%)

3

(6%)

0

(0%)

50

(100%)

15 Air Conditioner 25

(50%)

13

(26%)

0

(0%)

12

(24%)

0

(0%)

50

(100%)




Interpretation:- From the above table, almost 60 percent of the contract poultry farmers have well constructed house, 64 percent have purchased two wheelers, 52 percent have deposited money in fixed deposit, 90 percent of the farmers have smart phones, very few farmers are having LCD television, 46 percent have their own washing machine, 34 percent of them have refrigerator, 36 percent have water purifier, 32 percent farmers don‟t have computers/laptops, 76 percent of the farmers kids goes to convent school, 100 percent of the farmers have good savings and investments, there is no change in terms of life insurance and health insurance and 50 percent of farmers don‟t have Air conditioner. When I asked them related to why farmers are not opting for health insurance and air conditioner. From the above data one can interpret that there is a high or very high economic development of farmers after entering into contract poultry farming.

2. Expenditure on certain items after entering into contract poultry farming:-

Sr. No Particulars Increased Same Decreased Total 1 Food 40

(80%)

7

(14%)

3

(6%)

50

(100%)

2 Clothing 47

(94%)

3

(6%)

0

(0%)

50

(100%)

3 Education 43

(86%)

3

(6%)

4

(8%)

50

(100%)

4 Health 32

(64%)

12

(24%)

6

(12%)

50

(100%)

5 Transport/ Holiday 47

(94%)

3

(6%)

0

(0%)

50

(100%)

6 Recreation 43

(86%)

4

(8%)

3

(6%)

50

(100%)

7 Socio-cultural Expenses 47 (94%)

2 (4%)

1 (2%)

50 (100%)

8 Marriages and Ceremonies 48

(96%)

0

(0%)

2

(4%)

50

(100%)

9 Ornaments 45

(90%)

3

(6%)

2

(4%)

50

(100%)

10 Decorations 35 (70%)

5 (10%)

10 (20%)

50 (100%)

Interpretation:- From the above table, It is observed that the expenses of the contract poultry farmers have increased for almost all the things mentioned above such as food, clothing, education, health, transport, recreation, socio-cultural expenses, marriages and ceremony, ornaments and decorations. The reasons for increase in expenses are because the earnings of those farmers have also increased a lot so the expenditure is on the higher side. Some farmers are there whose expenses in decorations have gone down and some farmers whose health related expenses have also gone down.

3. Rate the level of Enhancing social condition of Contract Poultry farmers after signing contract.

Sr.No Particulars Very Good Good Normal Poor Poor Very Total

1 Relationship with friends and relatives 19

(38%)

21

(42%)

5

(10%)

5

(10%)

0

(0%)

50

(100%)

2 Participation in local functions of temples/

School/ Panchayat

21

(42%)

22

(44%)

7

(14%)

0

(0%)

0

(0%)

50

(100%)

3 Travel to places outside the District/State 5 (10%)

37 (74%)

4 (8%)

2 (4%)

2 (4%)

50 (100%)

4 Contribution to social functions/religious 17

(34%)

23

(46%)

8

(16%)

1

(2%)

1

(2%)

50

(100%)

5 Social Status of female member of family 12

(24%)

15

(30%)

19

(38%)

2

(4%)

2

(4%)

50

(100%)

6 Respect in Society 34

(68%)

15

(30%)

1

(2%)

0

(0%)

0

(0%)

50

(100%)

7 Member of social g roup 15 (30%)

17 (34%)

10 (20%)

5 (10%)

3 (6%)

50 (100%)




Interpretation:- From the above table, it is observed that the social condition of farmers after signing contract is very good with their friends and relatives, the farmers participate in local functions , many of them are on the local body or trust, 74 percent of the farmers travels to places outside the district or state, 80 percent of the farmers contribute to social functions or religious functions in terms of money or physical presence and guidance, 38 percent farmers are of the opinion that there is no change in the social status of the female member of the family, 98 percent of the farmers are respected in the society and almost 64 percent of the farmers are the members of the social group like lions club, trust of the temple, grievance committee of the village etc.

8. Findings:-

The study shows that there is a high upliftment of farmers economical conditions related to well constructed house, two wheelers, Fixed deposits, Smart Phones, Washing Machine, refrigerator, Kids studying in convent school and savings and investments.

The study reveals that there is a considerable upliftment of farmer‟s economical condition in terms of purchasing four wheelers, life insurance, health insurance, air conditioners, water purifiers and computers/laptops. The impact of Contract poultry farming in enhancing economic condition of farmers can be seen through the increase in the expenditure of farmers in terms of food, clothing, education, health, decoration, holidays, recreation, ornaments, decorations etc.

The study also reveals that there is high impact of contract poultry farming on the social status of the farmers with respect to relationship with friends and relatives, participation in local functions, member of social group, respect in the society etc.

9. Conclusion:- The Phenomenal growth in the economical and social condition of farmers due to signing a contract with hatching companies shows that there is huge scope for other farmers to start poultry farming. The demand for poultry product is increasing tremendously due to impact of western culture on Indian people. Also due to ban on killing cows there is a big opportunity for poultry farmers to grab this market and hence the demand will increase accordingly. Attention should be given regarding availability of chicks, proper construction of shed and continuous checking the health of the birds. Finally it can be concluded that there is a very good positive impact of contract poultry farming in enhancing economical and social condition of farmers of Nashik district.

10. References:- [1.] MISS. R.THANGAMAN, 2006, „Socio-Economic development through poultry farming in Namakkal District, „PhD thesis

submitted to Periyar University.

[2.] MINOT, N.1986. „Contract Farming and its effect on Small farmers in less developed countries.MSU International

Development Papers, Working paper No. 31. Department of Agricultural Economics. East Lancing, MI : Michigan State

University. [3.] GLOVER, D. & KUSTERER, K. (1990). Small farmers, big business: Contract farming and rural development. New York: St.

Martin‟s Press.

[4.] GLOVER, D. AND GHEE, L.T. 1992.Contract farming in Southeast Asia: Three country case studies, Kuala Lumpur:

University Malaysia.

[5.] SIDHU, D.S. AND RANGI, P.S., Some Socio-Economic aspects of Poultry Farming in India, Poultry Guide, Vol. XVII, No.2, 1980.

[6.] SATHE.B.S. „Planning and Implementation of Poultry Projects in Developing Countries, XX World's Poultry Congress New

Delhi, sep 1996.

[7.] SONAIYA.E.B.1996, „Employment, Income Generation and Skill Development through Rural Poultry Development, XX

World's Poultry Congress New Delhi, sep 1996. [8.] MARTINEZ.S.W (1999) Food and Rural Economics Division, Economic Research Service, U.S. Department of Agriculture.

Agricultural Economic, Report No. 777, Washington, DC 20036-5831.

[9.] SINGH, S., 2002 „Contract Farming for Agricultural Development and Diversification in Punjab: Problems and Prospects,

Indian Institute of Management Ahmadabad 251-270.

[10.] BAUMANN, P. (2000), “Equity and Efficiency in Contract Farming Schemes: The Experience of Agricultural Tree Crops”, ODI Working Paper No 139, Overseas Development Institute, London.

[11.] EATON, C. AND A.W. SHEPHERD (2001), “Contract farming: partnerships for growth”, FAO Agricultural Services Bulletin,

No 145.

impact of contract poultry farming in enhancing...

Documents