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A Comparative Study on Technical and Economic Performance of Contract and Non-Contract Broiler Farming Systems in Karnataka

Gopala G.T. Sasidhar P.V. K. Veeranna K. C. Harisha M Channappagouda. B
Vol 7(5), 121-128
DOI- http://dx.doi.org/10.5455/ijlr.20170415114732

The study was taken up to work out the production and marketing costs and marketing margins earned by contract and non-contract farmers. The study applied Bennett’s hierarchy of evaluation model by adapting sets of methods - individual surveys, SWOT analysis and focussed group discussion (FGD). The data collected from 90 contract and 90 non-contract broiler farmers and the FGD with key stakeholders from three districts, through personal interviews. The results revealed that, returns in contract broiler farmers were significantly low in spite of low production cost. On the other hand, though production cost was high, farmers in non-contract broiler farmers were gaining a margin of ` 5.25 per bird produced. This indicates that contract and non-contract farmers incur significantly different production and marketing costs and they earn different marketing margins. Through improved technology, low margins on inputs, the companies are reducing production cost, leading to lower retail chicken prices, resulting in successful value chain development.

Keywords : Technical Performance Economic Performance Contract Broiler Farming

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