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A pro-poor poultry contract farming by Pradan India
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Community Broiler Farming : Making Poor Participate in Poultry Growth
Presentation Outline
Context : Opportunity for Escaping Poverty Poultry Sector : Growth & Opportunities Business Concept
Small-holder Poultry Model : De-risking Family Poultry Primary Aggregation as Cooperative Co-creating Growth and Success – the institutional
model
PRADAN’s Experience and Plans
Business Concept
Business Opportunity Table bird market
Large domestic mkt - 2.1 m tonnes live weight consumed now, YoY growth of 12 %, fourth largest worldwide, competitive cf. USA, Brazil, high income elasticity – meat of first choice
Labour efficiency key to Productivity – space for poor
Key constraints to participation of Poor Entry barriers - technology, scale of operations, investments Priorities
misplaced in govt. sector - scavenging, niche-game birds peg onto urban consumption focus on urban/peri-urban natural –
large farm size
Poultry - the big OpportunityHow Poor can Cash-in ? By taking up small-holder poultry which is
technologically similar to industrial poultry not the traditional scavenging poultry
And by working to augment the advantages of smaller
decentralised units like better efficiency, faster and better disease control
by working to reduce the disadvantages of small units in procurement of inputs and sale of birds, bridging the technology and scale imperatives
Continue.....
Production Technology Advantages for Poor no big difference in big & small farmer adaptable to scaling down significant labour component
Intervention : the institutional model Right sizing the unit : risk, return, investment Technology : adapting the best for high performance Market : focus on under-served Faith in Abilities of Poor
Community Owned Rural Poultry Enterprise Model
Insulate the families from price fluctuations and supply uncertainties of the market,
Strengthening the production system through improved market access, better capital management, and high quality production services and technical handholding.
The community poultry model focuses on Tribal and Dalit women’s induction in the activity Organizing them into collectives Creating system and processes to attain industry-competitive
production and scale efficiencies.
Design Features
Rapid Assessment in a New Area
Socio-technical Feasibility
Livelihood Portfolio, Road+Water Access,
Prevailing wage rate & opportunity – RPD
Market-financial Feasibility
Market - Deficit & Latent, Competition, Input Supply, Margin per bird/kg – Unit size
……… Design Features
Selecting the ‘right’ Farmers proxy indicators designed on empirical evidence Self-selection during training
Training & Skilling-up No-stipend experiential training Focus on logic and nuances in husbandry
Infrastructure Accessible and individual ownership Decentralised all-in-all out sheds breaking horizontal
spread
…….. Design Features
Production & Technical Support Clusters of 25-30 producers Trained para-vet in each cluster chosen from producers Village store in cluster for door step delivery of inputs Para-vet (Supervisor) paid on output Centralized Production Scheduling, DOC Placement,
Variance Monitoring, Ready Bird Marketing System Staggered production schedule -optimizes w/k Multi-layer disinfection and bio-security measures 5-7 batches in a year,effective working : 3-4 hr/day
Design Features continue…..
Risk Mitigation Delinking Production & Enterprise Efficiency Mechanism to absorb effect of price fluctuations Discriminate between good & bad production performance
Ensuring Industry Competitive Production Costs : Grower Payment linked to Efficiency
Critical Production Parameters in Broiler Farming: Feed Conversion Ratio (FCR) Avg. Body Wt (kg) Livability (%) No of Days
Livability(%) X Avg Body Wt(Kg)
Efficiency Index=-------------------------------------------- X100
F.C.R X No of Days
Called as “EI system”
………… Design Features
Marketing Single window centralized marketing Producer owned delivery system Warehouses in big markets Establishing Retail network Target 40-50 % market share within 200 kms. radius
………..Design Features
Finance Capital Investments- Targeted at self-employmentWorking Capital- Seed fund to collective and further from bank
Governance Mutually Aided Cooperative Professional Management Governing Board with outside membership
Cooperative(300-400 producers)
Central accounts, input supply, marketing
Wholesalers Supervisors
(20-30 producers)Inputs distbn, production support
Small Producers (400-700 birds)
Family Level
Income Rs.75-100/day for 200 days p.a. Rs.15,000-20,000 p.a.
Small Holder Broiler Farming Model
Retail outlets
Producer Collective
Turnover : 4-5 crore
Producer Margin : 45-50 Lakh
Unit Cost : Rs.52500 per family Rs.30000 for capital asset +
Rs.15000 for w/k Rs.2000 for capacity building Rs.5500 for institution building (incldg.
Infra + external support)
Kesla Poultry Cooperative1st small-holder broiler producers cooperative
Background PRADAN started broiler farming in 1993 Activity organized on cooperative lines in 1997 and registered in 2001Achievements 618 tribal/dalit women broiler farmers – 50 % promoted under mainstream
poverty alleviation programs Cooperative is the commercial largest farm-production house in Madhya
Pradesh FY 2008-09 - Turnover 104 million
Producer payments Rs.14.0 million FY 2009-10 – Turnover 137.63 million turnover
Producer payments Rs.15.5 million Growth Nucleus : Kesla tribal belt monthly DOC placement increased from
8,000 in 1993 to 4.0 lakh in 2010 is now counted as one of important broiler centres of Central India
Operations Overview
Largest Broiler Production Houses in Jharkhand, Madhya Pradesh Spawned sectoral growth in its
operational area Demonstrated relevance as
income generation programme for resource poor (landless) families in the Central Indian Poverty Region
Demonstrated that small-holder broiler can succeed & thrive one of larger integrations in India entirely owned by tribal & dalit women
Recognised for better-than-industry productivity
Mkt Leaders
Small
• Experience : demonstrated scalability & sustainability in varied setting
• setting new coops, tapping markets, productivity, success in presence of integrated farms
• Key Drivers : (i) better productivity & cost of production; (ii) effective tapping of local small dispersed markets
• Potential Size & Growth of Market
• Key constraints : supplies - vertical integration investments
Scalability & Sustainability
Year 1997 2001 2003 2007 2010
Producers 150 220 400 3200 7000
Cooperative 0 1 2 12 19
Federation 0 0 0 1 2
Industry Features
slump slump, integrators
bird flu, disappearing small farm
vertical coordinated
Social Impact
Target Clients : Women from tribal & dalit families, average household income of Rs. 20,000 p.a., deficit at household Rs. 3,000-5,000 p.a.
Business Intervention : 75 % increase in annual income, family becomes
net surplus and starts investing in land, education, health etc.
Helps women stay back – restoring family/social life – particularly children and their education
Improved farm production – enhancing food sufficiency
Growth Projections
Next 3-5 years : Break into top 10 broilers
producers in India – 5 fold growth in 5 years
Generate income in hands of poor families to the tune of Rs. 20 crore Consolidate and strengthen
presence in the existing areas Establish an institutional
architecture (national trust, private businesses), systems & processes which will lead growth
Expand to new areas – Bihar, Assam, West Bengal
amount in m INR
2008-09
2009-10
2010-11
2011-2012
Producers 5300 7000 9000 12000
Turnover(mRs.) 650 1000 1350 1800
Margin (mRs.) 78 120 162 216
Community Poultry : Institutional Model
Co-operative Society
Individual Members of the Co-operative Society
Co-operative Society
Co-operative Society
State Level Federation of Member Co-operatives
State Level Federation of Member Co-operatives
- Governance Support- Statutory compliances
- Governance Support- Statutory compliances
- Quality Feed- Technical Support - Management Support
- Quality Feed- Technical Support - Management Support
BG
M H
atc
heri
es P
vt.
Ltd
.
National Small-holder Poultry Development Trust
National Small-holder Poultry Development Trust
BG
M B
iolo
gic
als
Pvt.
Ltd
.
P R
A D
A N
- Organization Development- Business Support- Organization Development- Business Support
- Origination &handholding- Mobilise investments - Origination &handholding- Mobilise investments
In next 10 years “50,000 farmers of an average unit size of 800 sq ft produce annually 200 million live birds valued at Rs. 15 billion (Rs.1500 crore) generating Rs.1 billion (Rs.100 Crore) in the hands of the farmers and Rs.200 million (Rs.20 crore) additional income in the hand of community workers, support and professional staff. These 50,000 farmers are organized in 100 primary producer organizations making it the largest family poultry initiative in the world and in top five broiler producers in India with a gross turnover including of its associates being Rs. 2000 crore”
Community Poultry: Mission & Scope
THANKS