Sultanul Islam
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 or lacked capital to start a business have also become contract farmers.
The farmers say contract broiler farming arrangements have offered them scope to make a profit by raising chickens without any risk, as the companies bear the losses caused by disease outbreaks and when the chicken price are low. 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 say 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.
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.
As he incurred a loss of Tk 400,000, he repaid the dealer by taking a loan from a samity (association) and then became a contract farmer.
Forkan raised 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 a profit of Tk 400,000 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 December 20.
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 while doing business with dealers.
Currently, Shaon is making a profit between Tk 50,000 and Tk 60,000 in each batch. He has partnered with a friend and is now planning to expand the farm to raise 3,000 chickens. "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 raising 2,700 chickens in three sheds after his retirement from a telecom company.
"I knew no one will offer me a job at this age. So I joined contract farming and I am now earning much more than I did 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 joining CBF [contract broiler farming]," he observed.
Abdul Kader Shamim (38), a dealer of Torki port in Gournodi, Barishal, said that the farmers outside of contract farming arrangements cannot make much profit because "we (dealers) have to make profit when selling them inputs."
He also 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."
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 previously, traders could not purchase enough 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 farming) produce is better. After meeting the demand in Barishal, we now can also send them to markets such as Dhaka," he added.
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