aInstitute of Rural Management, Anand – 388 001, Gujarat.
bSardar Patel Institute of Economic and Social Research, Thaltej, Ahmedabad, Gujarat.
This paper is a case study of broiler chickens conducted in Tamil Nadu. In the early-1990s, layer farming in some places of the state like Palladam, Avinashi and Pollachi around Coimbatore faced a major outbreak of disease, farmers incurred heavy losses and gave up the activity. But, within a couple of years of introducing contract growing of broiler chickens, it became popular and many farmers took up the activity again. Other companies, who were in the hatchery or feed mill business, also began to have their own network of contract farmers. There are round 30 integrators operating around Coimbatore who are members of the broiler integrators (companies). There are several hundred farmers engaged in contract growing of broilers chickens around Coimbatore. The broiler industry in India is highly integrated for efficient allocation of resources, to reduce cost and increase value. However, one activity that is not fully integrated and is carried under contract arrangement is growing of birds which is done be the farmers. As the market risk is transferred to the integrators and almost the entire working capital needs are met by them, the activity is ideal for linking the small farmers to the market. However, available evidence has indicated that the returns from the activity are at best equivalent to the wages for the grower and his family.
