Current Scenario of the Small-scale Broiler Farming in Bangladesh: Potentials for the Future Projection

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1 Interntionl Journl of Poultry Science 9 (5): , 2010 ISSN Asin Network for Scientific Informtion, 2010 Current Scenrio of the Smll-scle Broiler Frming in Bngldesh: Potentils for the Future Projection Md. Siful Islm, Sski Tkshi nd Kniz Qumrun Nhr Chhi 1 Deprtment of Bioscience nd Food Production Science, Fculty of Agriculture, Interdisciplinry Grdute School of Science nd Technology, Shinshu University, Jpn 2 Deprtment of Science of Food Resource Production, Fculty of Agriculture, Shinshu University, Jpn Astrct: In Bngldesh, there re two types of roiler frming of which contrct roiler frming is still under tril while independent smll-scle roiler frming is dominnt nd performed for the development of roiler sector. The present study exmined the potentils of smll-scle independent roiler frms nd frmers economic ehvior in reltion to frm size. Frm size is found to e closely relted to frmers ehvior nd ttitude. Frmers ehvior nd ttitude ppered to e very crucil fctor for the development of roiler production. The primry dt were collected from the independent smll-scle frms in Mymensingh district of Bngldesh. The results showed tht independent smll-scle roiler frming is profitle venture for rurl frmers. Frmers re involving in this sector ecuse of lower investment, less spce requirement, utiliztion of fmily lor nd quick returns. To exmine the frmers ehvior, frmers were clssified into two income gol groups in terms of totl per cpit income: ) First Income Gol Group (FIGG) nd ) Second Income Gol Group (SIGG). The economic ehviors of the frmers were differed y income gol groups. Most of the frmers elonging to the FIGG were interested to enlrge their frm size, the opposed trend hs een oserved in frmers of SIGG. Economic ehvior nd ttitude should e considered in mking ny suggestion nd recommendtion for chnging the existing level of smll-scle roiler frming. Key words: Independent roiler frming, contrct frming, potentil, ehvior, rurl INTRODUCTION Bngldesh is country with very high popultion density. Agriculturl development involving lloction of dditionl lnd is not possile t ll. Therefore, emphsize should e given to other sectors in griculture like roiler rering. The potentil for the development of smll-scle poultry s well s roiler sector hs een successfully proved nd the contriutions of this sector hve significnt role in the economy of Bngldesh (Rhmn, 2003). In recent decdes, the demnd for roiler met is incresing in developing countries. In Bngldesh, the demnd for roiler met is incresed rpidly, propelled y incresed income nd popultion growth nd urniztion. The numer of roiler frms incresed y more thn 26 times in s compred to tht of nd roiler contriutes nerly 24 percent of totl met production in Bngldesh (Rh, 2005). Broiler met production ws incresed from tons in 2001 to tons in 2006 (BPIA, 2008). In 2006, the nnul per cpit met consumption ws 5.9 kg where 3.9 kg (66%) cme from the commercil roiler production sector (Dolerg, 2008). Therey, roiler frming seems to e considerle prt of met production nd consumption in the country. In Bngldesh, roiler frming cn e rodly divided into two ctegories: independent nd contrct frming. Contrct frming in developing countries hs experienced mixed yield, with some successes nd filures. In Indi, Thilnd, nd the Philippines, integrtors ccount for lrge proportion of the roiler industry, nd contrct roiler frming is populr with sizele numer of poultry firms (Firoze et l., 2006; Costles, 2004; USDA, 2006). In Bngldesh, however, the growth of contrct frming hs een very slow, nd performnce is not very stisfctory. The contrct system of roiler frming hs few unresolved issues nd is still under tril. The independent frming is therefore dominnt nd performed for the development of roiler sector s n importnt profitle venture. In urn res, most of the independent frms re lrge nd used hired lor. However, in rurl res, most of the frmers rering smll numer of roilers re using fmily lor rther thn hired lor. In this pper, frmers those who re using fmily lor nd utilizing own ckyrd or fellow lnd to mximize frm income considered s smll-scle frmers. Still mjority of the roiler production in Bngldesh comes from smllscle frms in rurl res nd plys vitl role in the rurl economy (Hssn nd Hssn, 2003). Therefore, Corresponding Author: Md. Siful Islm, Deprtment of Bioscience nd Food Production Science, Fculty of Agriculture, Interdisciplinry Grdute School of Science nd Technology, Shinshu University, Kmi In-gun, Minmiminow Mur 8304, Ngno Prefecture, Jpn 440

2 focus on the smll-scle roiler frming in rurl res is needed for incresing the mount of roiler met. However, reserch on enefit-cost nlysis of fst growing smll-scle roiler frms under privte mngement in rurl res of Bngldesh is scnty. There re limited numer of studies (e.g., Ukil nd Poul, 1992; Ysmin et l., 1989; Ershd et l., 2004) on production nd economic spects of commercil independent poultry frms where they nlyzed only the verge profitility of smple frms. These studies did not nlyze the extent of the frmers intention to expnd their frms. In ddition, frmers ttitude nd ehvior on expnsion of frm size sed on the household income of smll-scle roiler frming is yet to e investigted, while frm size is very crucil fctor for the incresing roiler met production. The present study evluted the current economic condition of the independent smll-scle roiler frmers in rurl Bngldesh. Also, frmers economic ehvior in respect to profit in frms with vrious sizes ws nlyzed. This study lso ssessed the possiility of development nd expnsion of frms in Bngldesh. MATERIALS AND METHODS In order to fulfill the ojectives of the study, the Sdr Upzill of Mymensingh district ws selected considering the concentrtion of roiler frms in tht re. A totl of 50 frmers out of 126 frmers (40% smpling intensity) were interviewed using structured nd pre-tested interview schedules. Dt were collected on memory recll sis for one yer production cycle. The dt were collected during June to Septemer 2008, on regulr sis y the first uthor. Informtion on the contrct frming system were collected from the officils of Aft Bhumukhi Frms Limited (ABFL) t Kishoregonj district nd Bngldesh Rurl Advncement Committee (BRAC) hed office t Dhk, in 2008 nd 2009, through personl communiction. Smll-scle frmers in the study res re usully prcticing different numer of tches in yer hving vrious numers of irds rnging from individuls in ech tch. Chnging tch numer in yer nd ird numers in ech tch is the common feture for frmers in rering roilers. Frmers ttitude nd ehvior re closely relted with vrious frms sizes. To explore such n ttitudinl nd ehviorl reltionship with frm in vrious sizes, frms were clssified into three ctegories s , nd more thn 5000 roilers per yer. The ctegoriztion of vrious frm sizes would help to explore frmers income ehvior in connection with their fmily expenditure. Therefore, frmers economic ehvior ws nlyzed not only on the sis of their income from roiler frming ut lso considering other sources s totl household income nd per cpit income. Stte of the contrct frming nd independent frming: There were out 110,800 roiler frms of vrious sizes in Bngldesh (BRAC, 2006) nd yet t present the two enterprises ABFL nd BRAC together hndle only 600 (ABFL-250; BRAC-350) contrct frms. The contrct frming system is not ntionwide phenomenon, nd is prcticed only in few plces. ABFL t Kishoregonj district, pioneer in the contrct frming system, egn roiler production under contrct with 20 selected frmers in 1994 on credit. In 2002, the numer of roiler frms hd incresed to 650 nd this numer remined sttic until Following the ABFL venture, BRAC lso entered into contrct frming with 20 selected frmers in 2001 on credit in Sherpur district. The numer of frms hd incresed to 75 in 2002 nd therefter remined sttic until This my e due to the fct tht t the eginning, frmers hd growing interest in this innovtion nd mde genuine nd honest effort to increse productivity. The production of roilers under contrct entils greements etween frmers nd integrtors tht specify the conditions of producing nd mrketing the roilers. These two contrct systems re lmost identiclly similr, rring the following differences: the ABFL opertes n insurnce scheme to cover the production risk of the frmers ginst losses rising from the deth of irds owing to disese or other resons. On the other hnd, in the cse of BRAC, risks is orne entirely y the frmers, nd hve no internl insurnce schemes to cover the risk of losses to them. As mentioned ove, the contrct involved certin terms nd conditions: feed, Dy Old Chicks (DOC), medicines, vccines nd technicl support were provided y ABFL nd BRAC; while the sheds, lnd, equipments nd lor were provided y the frmers. Finlly, roiler sle ws mnged y oth integrtors. In the eginning, ABFL nd BRAC provided inputs (feed, DOC, medicine, vccine) on credit. However, this rrngement did not produce the desired results owing, primrily, to the lck of responsiility, honesty nd sincerity on the prt of the contrcted frmers. Both ABFL nd BRAC incurred considerle losses of out Tk (Tk.) 55 million nd Tk. 3 million, respectively. Both integrtors, therefore, hd to chnge their ttitude: now, they provide inputs only in lieu of csh pyments. In credit systems operted y ABFL, the integrtor ws providing inputs in credit nd uying the mture roilers from the frmers t predetermined price. In the csh system, however, the following cluses re spelt out: () the frmers re oligted to uy inputs from the integrtors nd sell their irds to them; () the prices of, oth, the inputs nd the mture roilers re estlished y ABFL, sed on the previling mrket prices in Dhk; nd for BRAC the price sed on the previling locl mrket price. Still ABFL continue the insurnce scheme to cover the frmers ginst losses rising from the deth of chicks owing to disese or other resons. 441

3 On the other hnd, the phenomenon of the independent smple frmers could possily hve the sme sociosmll-scle roiler frming is rpidly gining economic ckground. momentum (Rhmn et l., 2006) s demonstrted The fmily size for ll groups of frmers is higher thn throughout the country. The upet impct of this the ntionl verge (4.89) of Bngldesh (BBS, 2006). frming system in Bngldesh hs lso een explored In Bngldesh, frmers re clssified into different y Islm nd Sski (2009). They found tht in rurl ctegories sed on lnd holding, i.e. lndless, Bngldesh, smll-scle independent roiler frming mrginl, smll nd lrge- hving 0-5, 6-49, nd improved the economic sitution of rurl frmers nd deciml of lnd respectively (Agriculturl incresed the empowerment, decision mking ility Census, 2001 (BBS, 2006)). Thus, s per ctegoriztion nd socil sttus of the women in fmilies. These ll of our smple frmers were under smll ctegories. positive fctors encourge frmers to strt frming Before roiler fming, the per cpit income of smple independently. Smll-scle independent roiler frmers frmers ws lower (verge: Tk. 13,522.86) thn tht of in the rurl res of Mymensingh district re le to ntionl per cpit income of rurl people. The source of economize on the cost of inputs nd sell fter income ws minly crop followed y fisheries, usiness negotiting prices with the uyers. This is possile nd service. ecuse these frmers hve regulr ccess to mrket informtion nd reltively esy ccess to trnsporttion, which llows them to communicte with the urn mrkets of their region. Frmers in the study re re known to hve sold their irds t the frm gte to trders who hd come to uy, lrgely minimizing their trnsporttion costs nd reducing the ssocited risks of roiler mortlity during trnsporttion. Moreover, in the study re, frmers re le to esily vil trining nd technicl support fcilities offered y the government, Bngldesh Agriculturl University, NGOs nd other privte institutions. Mymensingh, s of tody, does not hve multipurpose poultry industry ig enough to mintin contrctul system, when ig poultry industry is one of the prerequisites for operting contrct system. Frmers prefer the independent roiler frming system; this system, therefore, is dominnt in Mymensingh district s well s in lmost every other peri-urn res of Bngldesh. Socio-economic profile of the smple roiler frmers: This section presents the chrcteristics of the independent smll-scle roiler frms surveyed. Tle 1 presents the men vlues for smll-scle frmers socio-economic chrcteristics ccording to vrious ctegories of frm size. There re no significnt difference in vriles of ge, eduction, experience, fmily memer, lndholdings nd verge tches per yer mong the frmers in three groups. Therefore, ll RESULTS AND DISCUSSION Impct of frm size on profitility of smple roiler frmers: Independent smll-scle roiler frming is profitle venture in rurl frmers ecuse of lower investment, less spce requirement, utiliztion of fmily lor nd quick returns. Lrge frms (>5000 irds) were found to e more profit efficient thn smll counterprts. This result prtilly grees with Rhmn et l. (2001). They showed tht in Bngldesh, rich nd educted frmers rised more poultry, got incresed productivity from their fmily poultry nd consequently, were cple to mximize profitility in rering poultry. The dt otined were compred mong the 3 rering groups hving vrile frm size. Tle 2 shows tht lmost ll components of different vrile cost items hd declining tendency with the increse of frm size. However, shrp decrese of vrile costs (except veterinry costs) ws otined only when frmers rered more thn 5,000 roilers per yer. Prticulrly, feed cost eing the dominnt shre of vrile cost, ws reduced significntly (p<0.05) y out six percent, mostly s function of reduced mortlity. The fct ws hppened when we considered the verge feed cost of other two groups who rered less thn 5,000 roilers per yer. Similrly, profit mking efficiency hd lso n incresing trend with the incresing numer of roilers rered (Tle 3). It is evident from Tle 3 tht vrile cost nd totl cost in rering roilers mintined close Tle 1: Socio-economic chrcteristics of the respondents Numer of roilers ccording to different frm sizes Prticulrs (n = 13) (n = 30) >5000 (n = 7) Age (yers) Eduction (yers of schooling) Experience in roiler frming (yers) Fmily memers Totl lnd holdings (deciml) Numer of tches per yer Numer of irds rered per yer Source: Field Survey, 2008; n = Numer of respondents 442

4 Tle 2: Reltion etween numer of roilers nd vlues of different items of vrile cost (Per ird sis) Items nd vlues (Tk) of vrile cost Numer of roilers DOC Feed Litter Vccine Electricity Trnsport Fmily lor (n = 13) 29.59± ± ± ± ± ± ± (n = 30) 30.17± ± ± ± ± ± ±0.88 >5000 (n = 7) 29.43± ± ± ± ± ± ±0.37 Vlues hving uncommon superscripts in the sme column differ significntly (p<0.05); ± = Stndrd Devition; n = Numer of respondents Tle 3: Reltionship etween numer of roilers with the vlues of totl cost items nd returns (per ird sis) Cost items Totl Totl deprecition vrile cost (Tk) of house Totl Totl Net Numer of roilers cost (Tk) nd equipment cost (Tk) return (Tk) return (Tk) (n = 13) ± ± ± ± ± (n = 30) ± ± ± ± ±3.69 >5000 (n = 7) ± ± ± ± ±5.02 Vlues hving uncommon superscripts in the sme column differ significntly (p<0.05); ± = Stndrd Devition; n = Numer of respondents. (1) Expenses on Dy-Old-Chicks (DOCs), feed, litter, tretment, electricity, trnsporttion, lor, housing, tools nd equipment were clled cost items. (2) Net return ws clculted y deducting totl cost from totl return reltionship with net return up to 5,000 irds rered per nd incresing income sitution, the frmers were yer. Incresing totl numer of irds rered per yer clssified into two income gol groups in terms of totl reduced vrile nd totl cost with consequent per cpit income (Tle 4): ) the frmers rered mrked improvement of net return. So, reduction of roilers rnging from nd erned lmost vrile cost might improve the profitility of smll- similr income which my e termed s First Income scle roiler frming in rurl Bngldesh. The net return Gol Group (FIGG) nd ) frmers rered more thn of the frmers who rered more thn 5000 irds ws 5000 roilers chieved highest income tht my e incresed significntly (p<0.05) compred to the group termed s Second Income Gol Group (SIGG). rered roilers. But net return otined in Tle 4 shows the contriution of roiler frming to the group rered did not significntly vry with respondents totl household income per yer nd totl other 2 groups (p>0.05). Thus, lrge frms (>5000 irds) per cpit income. Before roiler frming, in ll groups, were more profit efficient thn tht of their other two the verge per cpit income from other sources ws smll size counterprts. Such reltion of frm size with much lower (verge: Tk. 13, (US$ 196) thn tht net return my hve een risen for the incresed ility of present income. It ws even, lower in comprison with of the lrger flock size to decrese per unit vrile cost the ntionl per cpit income of rurl people (US$ 212) (Tle 2). The results lso show tht there ws scle in 2000 (HIES, 2005), when most of them strted roiler effect on economic efficiency of the roiler frms s frming. In this context, the frmers showed much economic efficiency ws found to increse with the interest in roiler frming to mximize their income, increse of scle frming (numer of irds in the flock). which ws exclusively necessry to support their sic Thus, lrge frms chieved higher economic efficiency needs. It should e mentioned here tht, since inception due to etter cost economy nd etter technicl of roiler frming, frmers per cpit income hve een performnce of the flock. incresed remrkly in ll groups nd exceeded verge ntionl per cpit income for rurl res (US$ Income trend of frmers with vrious frm sizes: The 232) nd it ws even higher thn tht of ntionl per issue of incresing frm size hs een risen in the cpit income (US$ 277) in 2005 (HIES, 2005). context of chnged ttitude nd ehvior of the frmers. Furthermore, the FIGG with flock size of , Frmers decision for incresing frm size depends on whose verge per cpit income ws Tk. 26, household income per yer. In uplifting their living (US$386) which ws percent higher thn tht of stndrds, frmers re much concerned with household ntionl verge income for rurl people in income s it covers the fmily expenses. Those fcts However, since this is semi-urn region, frmers coincide with Islm nd Sski (2009). So, how income should e compred with verge income in the household income per yer is influencing the expnsion urn re. At tht point, their nnul income ecme of frm size nd lso how it is relted to household comprle to tht of verge income in the urn re. income per yer from roiler frming? With the chnged The income level of Tk. 26, is seen to e very 443

5 Tle 4: Income trend of different ctegories of roiler frmers (in Tk.) Per yer household income Per cpit income Per yer totl Per cpit income Numer of roilers from roiler frming from roiler frming household income Totl per cpit income from other sources (n = 13) 49, ± ± ± ± ± (159) (393) (234) (n = 30) 70, ± ± ± ± ± (200) (382) (182) c >5000 (n = 7) 137, ± ± ± ± ± (408) (592) (183) Figures in prenthesis indicte US$; US$1 = 69 Tk. (Septemer, 2008). n = Numer of respondents; sme column differ significntly (p<0.05); ± = Stndrd Devition Tle 5: Frmers intention to expnd roiler frming 444 cvlues hving uncommon superscripts in the Frmers intention Numer of roilers Yes No Numer of respondents FIGG 11 (84.62) 2 (15.38) (80.00) 6 (20.00) 30 >5000 SIGG 1(14.29) 6 (85.71) 7 Figures in prenthesis indicte percentge similr to verge income for the urn popultion (Tk. in rurl res re not interested to run with lrge scle 26,604) (HIES, 2005). In fct, in the FIGG, the extent of frms using employed lor nd seprte lnd. expnsion of the frm size ws closely relted to the mount of income excluding roiler frming; per cpit Conclusion: In Bngldesh, the fte of smll-scle income from other sources ws lower; the expnsion of contrct frming is not cler yet. It my tke some time to the frm size ws greter. On the other hnd, SIGG formulte suitle nd vile contrct pckge for the consisting of frmers who rered more thn 5,000 opertion nd expnsion of contrct roiler frming. On roilers per yer hd totl per cpit income of Tk. the other hnd, smll-scle roiler frming in rurl res 40, (US$592), which ws lso much higher of Bngldesh is n importnt issue, nd there re (53.37 percent) thn those frmers rering fewer thn serious concerns regrding its development. The 5,000 roilers per yer. present study revels tht, smll-scle independent In ddition, to nlysis the ttitude of the frmers, it is roiler frming is potentil to increse profit, lso worthwhile to exmine the possiility to expnd employment opportunity nd per cpit income with frm size y using hired lor, orrowed money nd incresed met production efficiency. Economic seprte lnd. efficiency of roiler production is incresed with the Tle 5 depicts tht more thn 81% frmers in FIGG increse of frm size. The economic ehvior nd showed their interest to expnd their frm ecuse they ttitude is different mong the frmers who rered more re not stisfied with their present income level. thn 5000 irds nd rered less thn There is still Therefore, they wnt to increse frm size to mximize possiility of incresing the frm size. Most of the income nd enter into SIGG. The chievement of totl frmers with less thn 5000 irds re interested to per cpit income for the frmers who rered enlrge their frm, however, if the frm size hs more nd roilers (Tle 4) were much lower thn thn 5000 irds it hs een seen tht the frmers re tht of SIGG, the trgeted gol might hve een chieved showing fewer tendencies for expnding their frms. y incresing frm size. On the other hnd, frmers with Therefore, oth the increse of frm size nd wider more thn 5000 roilers re reluctnt to expnd their expnsion of frm numer throughout the country might present level of opertion. This is my e they re e necessry for incresing the production of roiler stisfied with their present level of income. Therefore, met. The frmers hve the intension to use their own out the question To wht extent frmers wnt to ckyrd lnd nd fmily lor to mximize their frm expnd the frm size for fulfilling their stisfction? It income. Frmers ehviorl pttern should e could e concluded tht SIGG is the most desirle nd considered in mking ny suggestion nd trgetle income gol nd most of the frmers my fix recommendtion for chnging the existing level of smlltheir trget to enter into SIGG. scle roiler frming. It cn e inferred tht lthough the lrge frm size is profitle, mjority (85.71%) of the frmers of SIGG re not interested to expnd frm size eyond 5000 roilers. So, it might e ssumed tht smll-scle roiler frms ACKNOWLEDGEMENTS The uthors re grteful to Dr. M.A. Sleque, Progrmme Hed, Agro nd Slt Industry, BRAC nd Mr. Azizur

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