Young and old in Barishal join contract broiler farming

Many broiler chicken farmers sustained losses while buying feed on credit from dealers, and have now become contract farmers of poultry companies. Many young and elderly people who could not manage jobs, and who lacked capital to start a business, have also become contract farmers.

Farmers said contract broiler farming arrangements have offered them scope to make profit by growing chickens without any risk, as the company bears the losses caused by disease outbreaks or chicken price fall. Contract farming removes the middleman between the farmer and the company which produces day-old chicks and feeds, leading to reduced production cost, which also benefits consumers.

The growth of contract farming in the southern region has prompted protests from dealers, who buy chicks and feed from poultry companies and resell them to farmers at a profit.

Many farmers said they have long desired to stop doing business with dealers, as they were trapped in debt.  So it is not surprising that many farmers are now becoming contract farmers of poultry companies, bypassing dealers, according to them.

Forkan Hossain (26), a resident of Koladoma in Airport road, Barishal, left his job at a packaging company in Dhaka and ran a poultry farm for two years, buying inputs on credit from a dealer.

He sustained a loss of Tk 400,000 and was compelled to repay the debt with the dealer by taking a loan from a samity (association) and then became a contract farmer.

Forkan grew 2,000 broilers in each batch during the past 14 months and earned a minimum of Tk 45,000 and a maximum of Tk 86,000 as profit in each batch. In total, he made Tk 400,000 profit during this period. “Some dealers act as bloodsuckers and exploit farmers at every step. Their profiteering is making farmers bankrupt,” Forkan told this author on 20 December.

Shaon Hossain (23), a diploma engineer from Manik Kathi in Babuganj, Barishal, could not find a suitable job, and became a contract farmer of Kazi Farms. Starting with 800 chickens, he is now running two sheds accommodating 2,200 chickens. He has leased a chicken shed belonging to a relative who lost money when doing business with dealers.

Currently, Shaon is making between Tk 50,000 and Tk 60,000 profit in each batch. He has partnered with a friend and is now planning to expand the farm to grow 3,000 chickens in every batch. “I wanted to do business, but I had no capital. Contract farming has made my dream come true. It is an opportunity for helpless people like us,” he said.

In Shibaikathi of Jhalakati district, Mahbubul Haque (61) set up a farm for growing 2,700 chickens in three sheds after retiring from a telecom company. “I knew no one would offer me a job at this age. So I joined contract farming and I am earning much more than I could as a jobholder. After meeting family expenses, I can save some money. I feel good to see that some people are following me. Educated youths are entering CBF [contract broiler farming],” he observed.

Abdul Kader Shamim (38), a dealer of Torki Port in Gournodi, Barishal, said farmers outside contract farming arrangements cannot make much profit because “we (dealers) have to make profit when selling each input.”

He, however, said, “Companies can offer more favourable terms and conditions and inputs at cheaper rates and can sell the produce without disruptions. They have a business advantage. There is no other issue,” he said.

Mohammad Hamim (28), a dealer in Aramnahor, Pashchim Jhalakati, pointed out that the poultry business in the southern region has been transformed by contract farming.

“Other than a shed, a farmer does not need any capital for doing business under a contract farming arrangement. Companies provide all inputs and take responsibility for selling the produce. So new small entrepreneurs who are educated are joining CBF,” he said.

Shiplu Baroi (30), a wholesaler of chicken in Ujirpur, Barishal, said that before, traders could not purchase an adequate number of chickens to meet the demand, but now, there is no shortage in the market.

“Chickens are available and we see that the quality of CBF (contract broiler farm) produce is better. After meeting the demand in Barishal, we can now send them to markets such as Dhaka,” he added.

- The writer could be reached by email: sm67bd@yahoo.com