Better profit and productivity: Poultry farmers flourish through contract farming support

Poultry farmers engaged in contract farming are experiencing significant improvements in their businesses, attributing their success to the financial and technical assistance provided by the parent company. As the contract farming model gains traction, these entrepreneurs are reaping the benefits of reduced risk and enhanced sustainability.

Under the contract farming arrangement, farmers enjoy the security of not incurring losses, as the associated company shoulders the entire risk burden. This strategic approach is not only empowering individual farmers but also contributing to the overall stability of the industry and the market, by allowing for more accurate assessment of poultry supply and demand dynamics.

Mohammad Momen, a veteran poultry farmer with over two decades of experience, highlighted his journey from periods of profit to loan-induced struggles. Recounting his challenges, he revealed having to sell a farming structure with land to clear debts owed to suppliers of chicks, feeds, and medicines. However, the tide turned as he embraced contract farming. In a recent batch of 2,500 broiler chickens, Momen reported a net profit exceeding Tk 90,000 after just 35 days. Across four completed batches, he achieved an average profit of Tk 70,000. Momen's success has allowed him to focus on increasing production and optimizing resource use to maximize profits.

"Contract growers have the scope to focus on how they can increase productivity since they need not worry about supply of day-old chicks, medicines and prices of both inputs and produces," noted Professor Mahmudul Hassan Sikdar of Bangladesh Agriculture University, Mymensingh, highlighting the unique advantages contract farmers enjoy.

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Jahangir Alam, once a struggling fisherman, has emerged as a success story in poultry farming. After transitioning to contract farming, he found a way to improve his family's financial situation. Running an 1,800-bird-capacity farm, Alam has not only provided for his parents but has also built a new living space and is in the process of constructing another structure. Overcoming a brain tumor surgery and clearing his debts, Alam's daughters are receiving education, and his daughter's marriage has been facilitated – a testament to the transformation that contract farming has brought to his life.

Sabbir Ahmed, a former construction worker, seized the opportunity presented by contract farming to shift careers. Leaving his job, he embarked on poultry farming near his village in Puraton Madhupur, Poba, Rajshahi. Across 16 batches, Ahmed achieved a remarkable profit of over Tk100,000 from a 3,000-capacity shade. Expressing his enthusiasm for the risk-free poultry farming model, Ahmed expressed plans for expanding his operations in the future.

Discussing the prospect of contract farming, Sumon Ali Shah, Deputy Manager of Kazi Farms, Rajshahi region, highlighted the comprehensive support provided by the company. Not only does the company bear the risks associated with farming, but it also ensures the provision of all necessary resources. As an increasing number of farmers gravitate towards contract farming, this trend not only stabilizes the market but also catalyzes rural development.

The contract farming approach has heralded a new era of growth and stability for poultry farmers, allowing them to focus on productivity enhancement without the burden of financial risks. As these success stories continue to unfold, it is evident that contract farming is reshaping the trajectory of poultry farming, fostering sustainability and prosperity for farmers across the sector.

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