Institutional Innovations for Contract Poultry Farming in Andhra Pradesh –A Case Study of Suguna Foods

The increasing number of companies in contract farming, especially in the poultry sector and the awareness among the farming community about the contract production and marketing is helping in improving the living standards of the farmers and their overall development by not remaining mainly dependent on agriculture. The study has explored the new institutional and innovation methods adopted by the producers involved in contract and non-contract farming and how these methods help in reducing the overall transaction and marketing costs for the producers and in turn, help in getting more profits by increasing the total body mass by increasing the FCR (feed conversion ratio). This case has tried to highlight the advantages (marketing of the produce, price incentives in case of fluctuations) a producer can get by entering into the contract with a major company. The case study has also highlighted the drawbacks and disadvantages it has in both contract and non-contract farming.