Case Study Proposal

Case writing applicant’s name SharadAgarwal, Prof.N Sivasankaran

Institutional affiliation (if any) Indian Institute of Management,

Ranchi

Country India

Email sharad.agarwal12fpm@iimranchi.ac.in,

ns@iimranchi.ac.in

Other contact details Mob:+91-7739980722

Institutional affiliation (if any)

Title of the proposed case Broiler Farming: A sustainable

proposition for employment

generation in rural India

Product (or service) described in the case Poultry (Broiler Farming)

The value chain

Present the value chain in a simple diagram: show the complete flow of the product from

inception to consumption, and the main players involved in this flow. Include a summary of the

main operations at the different levels in the value chain. If possible, show the approximate price

paid at each level in the chain. Please include the diagram as attachment to this document.

Are very small-scale farmers or other small producers

involved in the value chain?

Yes

If yes – approximately how many small-scale farmers or

other producers are involved?

50

Very roughly, what do you estimate is the annual

income of a typical producer household?

36,000/ household (For a family with

two earning members)

Approximately what proportion of this annual income is

earned through participation in the value chain?

33 %

In addition to buying from these small producers, does

the company provide other services to them?

The organization (JMSS) does not

buy the product from these

Producers or SHGs

If yes – what kind of services are provided:

Marketing support

Technical assistance

Inputs

Credit

Community development

No

Yes

No

No

Yes

Do these small-scale producers also sell to other

companies?

Yes

If so, roughly what proportion of their produce do they

sell to this value chain?

All the produce is sold in the open

market.

2

The Company

Name of the company which ‘leads’ the value chain Jharcraft Mahila Samakhaya Society

(JMSS) and the SHGs

Address of the company 69, Old A. G. Cooperative Colony

Kadru, Ranchi, Jharkhand 834002

Website (if available) http://www.msjharkhand.org/

Company’s estimated turnover

Approximately what share of the Company’s business

which goes through the above described value chain

How does the company (JMSS) finance its operations:

From commercial banks

From private investor

From own resources (owner, previous profits)

From donors

From government

Yes

No

No

No

Yes

Does the company receive – or has it received – any

funding (grants, loans, equity) from donors?

No

Does the company receive – or has it received – any

technical support from donors?

The SHGs receive technical support

during the initial stages from JMSS

Which donor organizations have supported the

company?

Nil

What activities has the above donor or government

support, if any, assisted ?

Case writer

Are you confident that the institutions which are

involved will allow you to obtain the necessary

information, and will allow the case study to be

published

Yes

If your proposal is accepted, can you complete a 10-12

page case study by 31.3.2013, giving details of the

origins and development of the value chain, and its

present operations including a ‘map’ with full details of

the value added and earnings at each stage, brief ‘micro-

cases’ of typical producers, including data on the impact

of earnings from the value chain on the producers, and

the other parties which are involved?

We would be able to send the case

study during the first week of

April

If your completed case study is accepted, where would

you want the draft for $1000 to be sent? (The

honorarium cannot be paid until the case is completed

and accepted, but if it is not acceptable the case will be

returned and will not be used)

SharadAgarwal

Indian Institute of Management,

Ranchi, 5th

Floor, Suchana

Bhawan, Audrey House Campus.

Ranchi, Jharkhand 834008 India

3

Chicken Farming Value Chain

Jharkhand Mahila Samakhya Society (JMSS)

Mahila Samakhya (MS) is a program of the Government of India’s Ministry of Human Resource

Development (MHRD), Department of School Education and Literacy for the empowerment of

women The Mahila Samakhya program was initiated in Jharkhand way back in 1992 under Bihar

Education Project. In 2000, when Jharkhand became a new separate State, The activities of MS

continued as usual. In September 2006 a society got registered called Jharkhand Mahila

Samakhya Society (JMSS) to implement the Mahila Samakhya Program in Jharkhand under

Society Registration Act 1860.The society started working independently since June 2007.At

present the Mahila Samakhya program is being implemented in 11 districts of Jharkhand

covering 71 block, 4107 villages by mobilizing 142147 women, 15081 Kishori and 3426 Kishore

directly

One of the major areas of impact of JMSS is women empowerment, through employment

generation, economic upliftment, and spreading social awareness among the women folk in the

rural area of Jharkhand.

The state of Jharkhand has a high incidence of rural poverty, of 46.2% against the national

average of 28.3% (planning commission, 2011). As per 2001 census, 26.3 % of the states’

population belongs to the tribal community, which has, in the past, been neglected and need

extensive scalable developmental and livelihood generation programs. The rural population of

the state primarily depends on agriculture or allied activities such as dairy etc. According to our

survey, the agricultural labor is paid around Rs. 40- 50 / day (depending on individual village) to

work on agriculture farms, that too in the monsoon season as there is no alternative mechanism

of cultivation and the crops and farming completely depend upon monsoons and rains.

There is an urgent need to generate employment opportunities for villagers in the rural areas of

Jharkhand to pull them above the poverty line and help them in living a respected life in the

society. JMSS played a major role in bringing awareness regarding the benefits of cultivating the

habits of micro savings, especially in the groups among the rural women folks. These savings

were done in the groups (of 10-15 women) and after a reasonable period of time, generally a

period of 2-3 years, the group themselves feel the need to indulge themselves in revenue

generation activities and decides on the activities, most suitable, according to the advantage of

the resources available to them such as availability of water or ponds (for pisciculture) etc.

JMSS, however does not provide any monetary funds or grants to the SHGs, it facilitates the

SHGs by imparting them the knowledge of practices relating to better governance of SHGs,

technical skills to initiate the occupation of their choice such as boiler farming, preparation of

documents for availing bank loans etc. After the SHGs become financially sustainable on their

own, through their respective business processes (generally after 2 years, of their initiation of the

economic activities), JMSS starts the process of making these federation as an independent unit

so that they can continue on their own.

4

In our case study, we intend to present the findings of our study of 4 Self Help Groups (SHGs),

namely Sitara Mahila samooh (Sitara Women’s Group), Bulbul Mahila Samooh (Bulbul

Women’s Group), Milan Mahila Samooh (Milan Women’s Group), Kamal Mahila Samooh

(Kamal Women’s Group), which were formed by the groups of rural women, for the purpose of

generating monetary savings and are now using those savings to generation revenues and profits

through Broiler farming. All of these four SHGs are located in the village of Navada at a distance

of around 90 km. from the city of Ranchi.

Each of the SHGs has the capacity of rearing 700 chickens/ batch, each batch usually takes 26

days to convert into final product, i.e Chicken, after which a new batch arrives leading to around

13 turnover cycles in a particular year. Each SHG earns around Rs. 1,00,000 to 1,30,000/ year

through the broiler farms. Figure1 depicts the complete value chain of the Chicken farming of

which Broiler farming is a major activity.

Figure 1: Chicken farming value chain

The demand for chicken is constantly rising in the Indian markets across the country, whatever is

produces is sold. According to NABARD (NABARD,2007), the annual per capita consumption

in India is only 1600 grams of poultry meat as against the world average of 5.9 kg of meat. This

indicated that the demand for poultry meat will be on rise in the near future which will ensure the

sales of the product of the poultries i.e the Chicken.

Distributors and

Retailers

Parent Bird

Hatching Egg

Hutchery

Broiler Farm

5

In our case study, we intend to present the complete Economic analysis of the projects (Broiler

farming), being pursued by these four SHGs, which will include their ROIs , economic value

added (EVA), IRRs etc. and would hence depict the financial feasibility of these projects.

We would also study the shortcomings or gaps in the processes, currently practices by these

SHGs, which would in turn lead to higher efficiency of these projects and hence the income

levels of the members of SHGs making it more lucrative and feasible for other SHGs, across the

state and the country to follow this model.

As depicted in Figure 2, we intend to present in our case study, the value addition process in

there phases in the Broiler farms, the input phase, the processes during the period of rearing and

the output phase

Figure 2: Stages of Value addition during the Broiler farming stage

Our case study would help the SHGs, not only across the state of Jharkhand but also across the

country to implement this model of revenue generation for enhanced earnings. As the model has

been implemented with reasonable success by the poorest section of the society without any

financial grant or donations, it would be a great source of inspiration for others, to implement

SHG model and would also provide best practices in the all three phases of the Broiler farming.

• Sourcing of Chicks

• Sourcing of raw materials for consumption

Input stage

• Practices related to vaccination etc.

• Protecting chicks during winters from dying etc.

Processing Stage • Better Marketing

practices

• Revenue generation from allied outputs such as manure

Output Stage

6

Poverty Index (PPI): Scorecard of a typical household

No. Indicator Value Point Score

1 How many household

members are 17-years-old or

younger?

A. Four or more 0

B. Three 7 7

C. Two 11

D. One 17

E. Zero 26

2

What is the general education level of the male

head/spouse?

A. No male head/spouse 0

B. Not literate, no formal school, or primary or below 0 0

C. Middle 3

D. Secondary or higher secondary 5

E. Diploma/certificate course, graduate, or postgraduate and above 7

3 What is the household type?

A. Labour (agricultural, casual, or other) 0 0

B. Self-employed (agriculture or non-agriculture), regularwage/salary-earning, or others 5

4 What is the primary source of

energy for cooking?

A. Firewood and chips, dung cake, kerosene, charcoal, coke or coal, gobar gas, or others 0 0

B. LPG or electricity 3

C. No cooking arrangement 9

5 Does the household possess

any casseroles, thermos, or

thermoware?

A. No 0 0

B. Yes 5

6 Does the household possess a

television and a VCR/VCD/DVD player?

A. No, neither one 0 0

B. Yes, only one 4

C. Yes, both 9

7

Does the household possess a mobile handset and a telephone instrument

(landline)?

A. No, neither one 0

B. Yes, only a mobile 9 9

A. Yes, a landline, regardless of mobile 15

8 Does the household possess

a sewing machine?

A. No 0 0

B. Yes 1

9 Does the household possess

an almirah/dressing table?

A. No 0

B. Yes 5 5

10 Does the household possess a bicycle, motorcycle/scooter,

or motor car/jeep?

A. No, none 0

B. Yes, bicycle only, no motorcycle/scooter, or car

1 1

C. Motorcycle/scooter, but no car (regardless of bicycle)

13

D. Motor car/jeep (regardless of others) 18

Total 22

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References:

Planning Commission, 2011, report available at

http://planningcommission.nic.in/plans/stateplan/present/Jharkhand.pdf accessed on 18th

Februrary 2013

Jharkhand: An Overview available at

http://jharkhand.gov.in/new_depts/pland/Jharkhand%20Overview.pdf accessed on 18th

Februrary

2013

Jharkhand: Economic and human development indicators, (online) available at

http://www.undp.org/content/dam/india/docs/jharkhand_factsheet.pdf accessed on 18th

Februrary

2013

NABARD (2007), Pultry Broiler Farming, available at

http://www.nabard.org/modelbankprojects/animal_broiler.asp accessed on 26th March 2013