ES 6

EVALUATION STUDY SERIES : UTTAR PRADESH : N o - 9•».y EX-POST EVALUATION STUDY ON POULTRY (BROILERS) FARMING IN UTTAR PRADESH 3ctrc y ^ «Jt#^ gjFrfcfcr NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT U T T A R PRADESH REGIONAL OFFICE, L U C K N O W 2005 TMII U FOREWORD Poultry meat is the fastest growing component of global meat production, consumption and trade, with developing and transition economies playing a leading role in the expansion. India, the world's second largest developing economy, now has a large and rapidly expanding poultry sector. The share of poultry meat in total meat production has increased from 4.46 % in 1981 to 12.10 % in 2002 in India. In India, the poultry sector grovrth is being driven by rising incomes, together with the emergence of vertically integrated poultry producers that have reduced consumer prices by lowering production and marketing costs. However, the State of UP is a net importer of poultry meat as the per capita production and per capita consumption of poultry meat in the state are 100 gm and 300 gm respectively. The present Ex-post Evaluation Study on 'Poultry Farming (Broilers) in Uttar Pradesh' was undertaken to study the implementation of poultry schemes by the banks, besides assessing the economics of investment in selected districts of the State. The study observed that in Uttar Pradesh, the growth of the poultry sector in eastern part of the state is more pronounced than in western UP. The fluctuating price of broilers, high rate of mortality due to various diseases, faulty site selection, lack of proper heating and cooling systems, lack of proper awareness, under financing by banks, poor post loan disbursement follow-up by banks, etc., were the main reasons for closure of many units, particularly in the western part of the state. Keeping in view the vast consumer base as also the low level of availability of poultry meat in the state, banks have an alternative sector for challenging credit. SCARDB can professionalise its appraisal, sanction and monitoring systems to tap this sector for quality credit. I hope that the findings of the study will be useful to financing banks and the state government in formulating their future strategy for extending increased credit needs for supporting poultry activity, particularly the broiler activity. The findings of the present study would also be of interest to the academicians, researchers and to the corporate world having interest or engaged in the poultry sector. Y.L. Sapra Chief General Manager f^m^ G^ MK^IHH ^ fcR<TR # 3 n i # ^ J ^ I^Wim # . «IRcT, f ^ gST ^ ^ ^ ^ f^gjRRftcT # f a ^ T i t ? T g j r f ? ^ ^ ^ i98i ^ 4.46jffci?RT^w?a?fg^2002# 12.10jrfcRicrftTRIT. *tRcf# ^ o d ^ gf^ ^ fclcbW ^ ^^§7 g5R0T 3TRT ^ ^ f e , JcMIdH M fclHUH cimcT ^ gjlff ^ S^mtgrTT T^ t fjRRt g>r nSI% # -HgSlildl ftc% t . 3 a R J T ^ ^loCf ^ x t ^ i^RT g^T ft^cT 3TTOTcTa5ctf t g^rtfgs ^io?T ^ jiicT oqtg?T TRRT CPT 3?n5^ ug lam wm-100 JIFT w 300 jiw t . "3aK 5^91 # g^r cipj^gs^^yidwi ^lacr^^^iaicTtTtPi^sji^^mcjHisfi gsr 3<ict3dH gs^nr ^ f. 3\V0PJR % qiZfT 7F?T t fg) S o R J T ^ # ^ 5 ^ ^TcR ^ ^ ^ ^^TTcRT TlaCT ^ ^fepft V T F T c^ 1 ^ g^, i f ^ ^ g5r f^rakoT, ^wi^Rid ? M M jnmc% # w^. "^igflicT aiH*i<l gsr smig, fgj # I J ^ gsiT fdcdMlt^ui jTd[ ^PT Rld<U| qggT<T *liijcd< iH^dcff cbl4c||^ g5[ iH'iid'lt^oH* ? t ^ , g|cT $*l^ill, 4,'i94d:^?13er^Mf^d451 * n i T # , ^ ^ ^ ^ ^ ^ [ ^ 9 ! T g 5 R D T ^ . ^03^ # ^ x t ^ Tim gir srmgj cpcmtgm amtiR ijg f ^ f ^ jMd^jdi g^r SETR # -^^ fu, f^ ^ qm ^iOT jjgR g 5 ^ %g ug? srfcif^ jMddy"^ t . f^ ^ T^, 'ator ^ \A<^< ^uraarr t g ^oo^r wgsRt ^ M jnrfpJT fggjRT fgj ?TO 3 I ^ i^^c^idH, TTOFI^ W CH^CJC^H ( f ^ m ^ ) 5run# ^f ^tTR g 5 ^ ^ cMlcliJildxIl t . ^ 3nw gy^cTT ^fg5 ^ 3i?zRR ^ ^ ^ J T , ^ g ^ ^TcR, fdi^'lti*'^ "^ wd<" -^tg^ ^ fggjRT ^ fg^r Gg ^a3?T ^?Rg5R: g^r ^qfg^ ^ ^^^ntfcT t^TR g 5 ^ %g s^rarft ?ttr. gc?iTR ^5rfuig5 g 5 f ^ , 3i-;i<titincbdM w gsitft^ 3FicTioF# ^ g ^ ^ # ^OCTT SISCRR ^ yfcmxi ug ^ t , ^%i? ^ Tittan "PtadaA. Scut&eM. . CSaneiUif aid attncfinetteetM eavened i*t ^ (^o>ia&Afi*n "Di^tnicU) tn ea*tdueti*t^ tAc ^a&e^A t^ ffieaett ex-pMt waUuiiioH. A(pfl (W). A(pK (W). itudtf anea. itucUf U ^nate^cMif aeJitiawUd^ed . 1^ eA^tfitexA o*t ^itttfiietueutctiiott o^ fiauttruf fmovided ^ S&nl "K.^etuu^^tfi^d ut eOuilitm^ o^ icAetnM^ and ^nefrcuftnent fi&i^on*MiMCe o^ ficcdCnt^ I/UMMCM^ cMtti' cutd taiulatcott o^ ^ce£d <Caia. S. ^ffatHO/jfOn (SanecH^). A^ PtOMd. and zJfc 1R. ^MoUtccU...ACKNOWLEDGEMENT l&e Mfifiont and ox-oficuUioK extended ^ Aue/atouA: ^ett^tal Avicut "DineetoiuUc o^ /4HitMil "^(M^ottdntf. U ac&wMdedc^. 'TKaiAotna. Sanec^ and S ^ ^. (^wut&Afim dunut^ ^ceid viaiiA U otic ^nate^etii^ aditowieei^ed. "7^ Adfc exteHded 6(f 7)i.eMancA. P. LUCKNOW . P. Deputy General Manager Dr. P. Gyanendra Mani.CREDIT LIST O VERALL DIRECTION HEAD OFFICE Department of Economic Analysis and Research REGIONAL OFFICE Shri Y.H. P. Desai. Desai. P.) FINALISATION OF REPORT Dr.) Dr. General Manager Shri A. Assistant General Manager (Agril. Deputy General Manager (A. Economist) FIELD VISITS Dr. Manager \ | I U. K. Economist) Shri K. Assistant General Manager (Agril. Deputy General Manager (A. REGIONAL OFFICE. L. P.H. Desai.) Dr. Gyanendra Mani. Chief General Manager Shri Pankaj Pandit. Gyanendra Mani. Assistant General Manager (Agril. P. Sapra. Venugopal. Economist) ANALYSIS OF DATA AND DRAFTING OF REPORT Dr.H. Deputy General Manager (A. Panda. Introduction Objectives and Methodology Implementation of Poultry Financing Schemes Cost of Investment and Its Financing Economics. II. VII VIII IX X.TABLE OF CONTENTS PARTICULARS Abbreviations Basic Data Sheet Executive Summary & Action Point Chapters I. Technical Soundness of poultry Units Backward and Forward linkages Repayment Performance of Poultry Units Corporatisation of Poultry Sector Macro Impact of Poultry Investment Summary and Conclusion Annexures 29 36 39 44 47 51 53 60 13 17 21 26 PAGE NO. III. XI. IV V. Financial Viability and Bankability of Poultry Units VI. 01 02 03 . United States Development Agency .ABBREVIATIONS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 CAR! C:D Ratio CSO CTO DGFT DOC FCR FRR GDP GDI IPDP IVRI LBR-2 MBM NPV SCARDB Ltd TRQ VH UPSGVB Ltd USDA : Central Avian Research Institute Credit: Deposit Ratio Central Statistical Organisation Chief Technical Officer Director General Foreign Trade Day Old Chicks Feed Conversion Ratio Financial Rate of Return Gross Domestic Product Government of India Intensive Poultry Development Programme Indian Veterinary Research Institute Lead Bank Return -2 Bone Meal Net Present Value State Cooperative and Rural Development Bank Ltd Tariff-rate Quota Venkateshw^ara Hatcheries Uttar Pradesh Sahkari Gram Vikas Bank Ltd. 653. 7. 29. weight 1. 59.54/Smaller units Rs.966/Rs. price per kg Rs.666/Smaller units 14.65% Gorakhpur 27.86/Rs. 39. of units existing at the time of field visits Average number of birds per unit Smaller units (< 500 birds) Larger units (> 500 to 1200 birds) Average loan disbursed vis-a-vis Total investment Cost Rs. 15.77/Gl Per unit Rs.764 mandays (equivalent to 284 man-years) .994/Rs.57% (-)49C1/" Study Area Sample Size No.718/Larger units Rs. 6.26/Rs.381/121.) Benefit: Cost Ratio Recovery percentage on sample Macro Impact Contribution to GDP Employment generated (recurring) o: (ii (iii 12 (i (ii (iii 13 14 (i) (ii) Bareilly : 18.934/Larger units 23. Bareilly and Gorakhpur districts 60 (30 each in Bareilly and Gorakhpur districts) 03 and 25 out of 30 units covered each in Bareilly and Gorakhpur districts respectively Bareilly district 460 (3 units) 725 (10 units) Loan disbursed 32. 21.834/Avg.83 kgs Gl Per bird Rs.BASIC DATA SHEET Name of the Study Ex-post Evaluation Study on Poultry Farming (Broilers) in Uttar Pradesh 2 3 4 5 6 Period of Implementation Financing Bank 2001-02 to 2003-04 Uttar Pradesh Sahkari Gram Vikas Bank Ltd.84/Rs. 8. 1.696/75. 73.10% (-) 2614/Gorakhpur district 398 (08 units) 885 (17 units) Investment Cost 63.69/Rs.376/Rs.306/Rs.) Smaller units Larger units Average live weight average sale price at the time of sale Smaller units Larger units Gross income Smaller units < Larger units ( 10 (i: (ii (iii. 11. 3.76 lakh 79.32/Smaller units Rs.087/Avg. 35. 37.41/Larger units Rs.51/Rs.79 kgs 1. 4. 3.400/Rs. 72.30/Rs. 2.80% Rs. 11 Net income per bird over Variable cost Gross cost excluding family labour Gross cost including family labour Net income per unit over per annum Variable cost Gross cost excluding family labour Gross cost including family labour Financial Analysis Financial Rate of return (%) Net Present Value (Rs. 3. In addition to this. in Gorakhpur district. As per the 1998 Livestock Census. 786 gm) poultry meat. the total poultry broilers and poultry layers in Uttar Pradesh was estimated at 32. 9. 120. in reality. It was also observed that most of the borrowers were not having any experience in poultry rearing.94 thousand crore which accounts for 5. Interest rate charged by UP Sahakari Gram Vikas Bank varied from 11 per cent to 14.to Rs. The loan sanctioned to poultry units by the bank was found to be ranging from Rs.EXECUTIVE SUMMARY 1.5 per cent irrespective of the loan amount. However. lack of proper awareness etc.5% of country's total GDP. The share of India in world poultry meat consumption is quite low and has only increased from 0.09 lakh respectively. In Bareilly district. 4.79% in 1981 to 30. The Gross Domestic Product (GDP) from the Livestock Sector in India is estimated at Rs. Two branches in Bareilly and 04 branches of SCARDB in Gorakhpur district were selected for the study.20 lakh broilers are imported from the neighbouring states. etc.000/. were . lack of proper heating and cooling systems.8% of total refinance to the poultiy sector in the State and therefore. 10. 1.78% during TE 2002 in UP. The State LDB (SCARDB) accounts for 99.to Rs. The share of poultry meat in total meat production has increased globally from 19. The per capita per annum production of broiler meat in UP is estimated at 100 gm meat whereas per capita consumption is about 300 gm (All India avg. the amount of bank loan was decided mainly upon the availability of land with the borrower which was taken as collateral security and not based on actual requirement of the beneficiary or on the size of the unit. The process of identification of borrowers by the banks was found to be faulty due to lack of knowledge/expertise amongst the officials of the financing branches. 25.50 lakhs in Gorakhpur district and from Rs. To meet this gap.. In Uttar Pradesh. only State LDB (SCARDB) has been covered in the present study. Although loans were to be advanced against hypothecation of poultry sheds. high rate of mortality due to various diseases.85% during Trinnium Ending (TE) 1963 to 1. 7. The fluctuating price of broilers.00 lakh in Bareilly district. only 03 out of total 30 units were found to be existing at the time of field visits.14% 2. equipment.32 lakh and 41. 10 other entrepreneurs in Bareilly district who had not availed loan from any bank were also covered as most of the units financed by SCARDB in Bareilly district were found to be inoperative at the time of the field visits. A total of 60 sample units ( 30 each in Bareilly and Gorakhpur districts) financed during 2001-02 to 2003-04 were covered in the present study. 5. 25 out of total 30 units covered in the districts were found to be existing at the time of field visits. 8. the growth of the poultry sector in eastern part of the state is more pronounced than in western UP. 1. faulty site selection.000/.. 6. about 2. 12. 120.10% ^ Trar.5r.5%^ 9. 5. 5 ^ afdRd-d g M oFRcT i^ 10 3?m! f o r # ^ fm^ ^ f g ) ^ • S P T J T M ^ ' f e f T t . # f^fWT Gf^Sn 1963 ^ 0.r.46% ^ g^gy?: g ^ 2002 ^ 12. 3T€ZRH ^ fcJG ^ fga5RT f^ ^ 5t ?TRnG i M % c T S J T 4 9TRI1G i^«^^i.^ oRq^ #) ^ ^ ^ cfk tR c% Tra! f .5%t. 2. ilKciq4 # MSJjtW ^ % JIM "^^ff H ^ 3WT5 ai|*IHd: ^.1. ^TRcIcI^ # ^dfpC W^ ^ ^mcT f g ^ ^ ^[cRT # gjft^T 3)1? t .09cTRi59M7Frf. 3.5f. ^ ^ # ^ $FPT ^ ^ k R siferasRT $chi^-4i i ^ ^T?ff TF5!.25000% 1.jr. g^ 2002 ^ 5^357 30. 3TcT: f^ 3?ZWT ^ 3. 3 ^ ! g t J K t 351 T R T ^ fg5qT 7 T O T t . ^ ^cRT ^ srftigj 'i^W^|^ld t . off t?T^^?ra5cTII^3cqT5g>r5.JI. !OT% gitcte^rT f^chillRd) ^ ^w # 5r?7R Ig^m. 8.32 ciRicmi4i.78% t[ ^ .85% ^ gsg5T 2002 ^ f^fWT G f ^ ^ 1. ^ dpc!t<p6 mcR cPt ^ ^ f^sr^^K^ij^^lciG^^^q-lnHtjf^^ 3. 3. 3.^TR fgscRT^M^cnfFcr.51.14% ^ TRTT cWT MMdi if 1981 # ^ F P ^ W^ Sc^TS ^ ^ S T f g ^ Tim 4. 7. 3. 4. gifHH STtZRFT # 2001-02 ^ 2003-04 c^J fecRtftcT 60 f c R ^ (30 5 ^ # c T S T T 30 jfl^l^y^.94 W^ jrfcT "3^ JIM ^fcTT t . # g r o c R ^ c m r ^ i g f M sryTRcT: 32.50 cTT^ ^. f ^ # ^ 3 ^ #?T WJJjf'TRT ^ q i ^ M . 6. cfeui<ii4! fc[5 ^ srfsra^rfM # oTRgjRt g STR ^ smig ^ ^ROT 3?ifeif g^r wj^ ^ m ^ ^^. 2. FWcR % g j ^ ^ 3mT-^g^.00 cn^cra^gtcTsiTFfr^^lgg^RrtgjsRT^M^sngKqTii ^ 14. 5lt9T ^ ^ fei5RT fm ^ <^<pi qrcFT ^ T f^ STJT ^ W^ ^^•^'^^<rd m 99. ^ Vfwy] ^ cJkR g ^ oR^g # 30 ^g^i^iil ^ % 3 ^m^ 30 # % 25 $ctDl^ili *l4<d ^[^ Tiq!. fMiq^ g!TTrfM ^ gsROT ^ gjRiRcr 55! cmr TfR^i^ oR^g ^ g5r 3 ^ g^ ^T T ^ .79% 2IT. q ^ gRcifggjcTT ^ ?5! fgj " 5 i t D T g5[ f^gk^r 3tiRg5cTt ^ 'TRT 'smm OR!^ ^ sntjR IR.8% JIM f ^ %. off 1981 it 19. # Ml^rJ4Hl 3. 10. ^ jrfcT oUid-d 5rfcT ^ ^ SWcR ^Rm 951 Sc^TS 100 JfFT t o^fgi jrfcT o4i*d ^Q^cT cHWT 300 JfW t (w^#JffcTs:ifeT^^cT3^1't^d^ 786 3imt). f^ gjcT q^ eqR ^ f g ^ ^WT fg> 3£ii<cbd5 g^r ? ^ ^ sng^^ra^crr ^ 3R. ^ ^ Jdcbl-il t ^ i g^r ff SncQlfer fa5?IT TFIT t .1.12000^^.. ^ g ^ qjcR ^ ^?g!^7lM#^TfR^35ToRqg# ^. % rJilPid ^ TWt 25!.20 cTRI ^racR SrraTcT f M o T T c T f. 1998 ^ ^^tn ORTTUHT ^ ^^RTR 3. ^roft w ^ ^ ^ grt CWT s^g^Mt g^r t^fedtj* <^acb< ferr TT^ STT.5T. 13. The financing bank officials in Bareilly district were not aware whether unit financed by them were exinting or not. The average gain in body weight in Gorakhpur district was higher (1. The insurance of poultry sheds. 76.on total sample of 500 birds (11 units) and 1000 birds (27 units). 16. 18. No significant difference was observed in average sale price of broilers in Bareilly and Gorakhpur districts and was found to be ranging from Rs. 68. 69. the smaller units were able to recover only variable cost and were found to be making losses when the value of their own labour (family labour) was taken into account. There was a lack of awareness among the beneficiaries that even the shed can be insured. 32. In Bareilly district.1% on an average) of investment cost had to be met by the beneficiaries through their own contribution by way of margin money. 17.400/. 37. The average amount of loan disbursed in case of these units was found to be Rs. Rs.in Gorakhpur district respectively. 39.38).in Bareilly district and Rs.76 kg) although average number of days per cycle was higher in Bareilly district. 14. 20. 11. A considerable portion (43.the main reasons for closure of the units.381/-. The margin money was found to be more in case of smaller units as the entrepreneures did not have sufficient land to offer as security.and Rs. The net return over various cost items was found to be lower in Bareilly district as compared to that in Gorakhpur district. equipment and birds was not done. 73. .121.51 per kg. 19. The follow-up and understanding of the bankers with the borrowers was better in Gorakhpur district.9% of total investment cost).2% of total investment cost) over the entire sample size.27 to Rs. The total sample in each district was divided into two categories (i) smaller units -birds upto 500 and (ii) larger units -birds from 501 to 1200 in number. 63.04 per kg to Rs. The average number of birds per unit in these two categories was found to be 460 and 725 in Bareilly district and 375 and 885 birds in Gorakhpur district respectively. The major items of investment cost included Shed Cost (51. The average investment cost was Rs. 40.439/.85 kg) than that in Bareilly district (1.158/. All the sample farmers in the study area were found to be following 'all in all out' system of broiler rearing. The average gross income per bird in Gorakhpur district (Rs. particularly in Bareilly district.and Rs.000/. The post disbursement follow-up by the bank officials was found to be lacking. Many of the insurance agencies were reluctant to insure the birds in view of the technicalities involved in it. 15.40) was found to be slightly higher than that in Bareilly district ((Rs. 72. 65.087/.5% of total investment cost) and cost of day old chicks (9. Feed Cost (29. The effect of bird ilu during 2002 had an adverse impact on the poultry industry in the State.74 to Rs. 12. 76 fgOT.68. 1 ^ oFNcT # ? p : oMWciHl TlK^a^ WNZ ^ ^cRT # ^5?? sff.63.121. STSZRFT ^ ^ ^ ^rg^ ^ f M Titr 3irRt ^ 5 ' ^ 3racR qicFT # "lZa> ^?TI2T ^?Tnjpf 1%#" ^ 15. (2) g | t $<J>l$ili al?t qfgrat ^ it^s^T 501 % 1200 cRi sft. 500 qfsrat # (11 $*|$i|i ^) cWT 1000 qfSTcft ^ (27 ^cbi^iil) Tt t n ^ Trat.RTT3rftra5sng'c^ n.27 % 69. 16. ^ ^.76.>l aHMdl # ^|i|d< ^ fezT iJcCT ^ ^ ^. ^. 1 ^ JR^Z # I5tCt $d5|§cn ^ 'i^R+^fdd g5TicTOT oTH? eft i5t€t $cbi$iii ^ ^ tier ^ sJf. 3 ? J K C M M I R T ?g5lf cmicT ^ ^ ^TFT (43. 13.32.381. 18.1%) cRi ^nfoN TR^ ^ ^^5^ ^ 3TO% ^RT ^ cmraT w n . f^ ^cbl^^l # SfhlcT ^FT fel^UT ^ ^ oRq^ # ^. iMfg5i?^TrTnfM^Tr.2%) w^ "^^ ^ w^ wu. 20.439 ^??T. e [ ^ oiHMci # ^3M ic|d<ui ^ 3CRRT f^ IRT f ^ Titf qtftgM ^ gjjft m ^ ^ . f^^ MRCIC^H ^ SJT. ^jpra^ # (29. ct^I^ ^ ^ tg> ^ STcGT t ^ Srftrasifeff G^ 3tlKctxlM ^ T T K T ^OT fefM q^gicT $cbl^«y|' ^ dlclAd STT.158% 72. g^ 2002 # g f ^ gsr ^^t jit^r # ^ a ^ ^ncR ^ fggsRr q^ y l < i ^ 500 sft.%^%.?t^ m 1 ^ gjROT SIT.04 JffcT fcRH.087.74 % ^.38) ^ gcT^ ^ 3Tftra5 sfr.Tfk^a^^ oT^TOcT^ ^ # 3 f t ^ l c T ^ 3 R ^ ( 1 . SithlcT ^ o R g % T ^ ^cbl^ifi ^ ^cRT TT l i t f^^Ifzfr # 3rftra5 SIT. 8 5 f ^ ) 1 ^ j R ^ 5 ^ g?RT ^ (1.39400 % ^. i M ^ Jk>yq.40.73. 5rfcT ira' Sft^TcT fs^t ^ m§^ ^ ^ 3Rq5 # Srftrai STT. 3?klcTcTrncT?g5lf ^.51 srfcT fejTT. %5ZT ^gc^T ^m^ wA ^ i g ^ ^ ^cRT ^t 19.) Stflra^ 21T. ? ^ ^ 4 r f ^ ^ 3ft^!cT qfercff ^ W&J^ 460 % 725 g ^ JFNZ ^ <T?JT 375 % 885 ^k^a^^ 3Rq5 ^ s5t.40) i M JH^Z (^. 2JT. 14. TTTra^ WNZ ^ jrfcT q a t ^?ra5cT STW (^.37.65000 cR) ^ oT^fe i\\<ii^< oFW? # ^.5%) cmr • i ^ # (9. cTmcT gsr i i ^ WT ijiff wrt g^r ^qpt # (51. oTlfe ^ 3T^5T TTtcWTl gJT ^ sfr.9%). . 57 per cent in case of 500 bird model and 1000 bird model respectively. 24. (-)2614/-and Rs. some larger units.69 and Rs. A well knit trading activity for feeding ingredients is existing especially in Gorakhpur district.26 respectively. 6.21. Since. farmers were generating sufficient net income (over variable cost) to repay the annual instalment of the bank loan.Consumer' channel. In Bareilly district.Retailer . day old chicks (DOCs) are being supplied by hatchery units through network of dealers on demand from the farmers.Consumer. 15. 23.Retailer . The producer's share was found to be varying from 71% to 78% in case of 'Producer-Wholesaler-Retailer-Consumer' channel. The contribution of the broiler units to the Gross Domestic Product (GDP) was estimated at Rs. on an average. However. It was found that DOCs are supplied without vaccination and it is done by the entrepreneurs at their cost. 25. 35. All the units covered in the study were found to have been managed by family members only. were found to have engaged more than one person.1 per cent and 23. 22. lack of regular power supply is a major constraint to the development of poultry. 7.. Power supply in both the districts was irregular. Three marketing channels viz. The average net return per bird over variable cost in case of smaller units and larger units was Rs. The smaller units were found to be managed by owners single handedly with occasional support from other family members. In both the districts. Branch-wise recovery performance of selected borrowers indicates that the general recovery in the selected branches has been very poor (less than 15%). 30.Consumer were found to be working in Bareilly and Gorakhpur districts for the marketing of the broilers. 26.93 lakh in Gorakhpur district. the question of debt servicing from income generated from the units financed by banks to the borrowers establishing poultry imits does not arise as majority of units were either not established or had closed in the beginning itself In case of Gorakhpur district. (ii) Producer .174 mandays respectively. 28. from 77% to 81% in case of 'Producer Retailer .83 lakh in Bareilly and Rs 609. . Most of the beneficiaries were using gas cylinders for lighting and heating purposes in the sheds. Total employment generation in Bareilly and Gorakhpur districts due to financing of broiler units (adjusted to proportionate success rate) was estimated at 4590 and 75. The supply was not regular. with lack of power supply for long hours. The situation is being exploited by the feed manufacturers in terms of the quality and also the cost of the feed. (i) Producer. 29.and Rs. The Net Present Values were estimated negative at Rs. particularly in Bansgaon and Sahjanwa branches of Gorakhpur district and the Bareilly branch of Bareilly district. 27.994/respectively. both the districts face extremes of climatic conditions. 43.966/. Captive feed production was not practised due to the poor knowledge of the poultry rearers. The financial Rate of Return worked out to 14. The average net return per unit per annum over variable cost in case of smaller units and larger imits was Rs.Consumer and (iii) Producer .Wholesaler . ^. ^ g < f T ? R ^c«T ?T.jnwm ^^wxiw^n.6. icMicn . 35cTT g^ttfe aRltr35m 30. ^ J J S J T ^ sfT.93 cTFiefT. ifR^^ 31. TjcT^ qast ^ ^raf ^oqrf^ ^ ^ f^if^ff ^ jraFtH ^ qrat ^ra^. HdloU Sl% ^ pHMJdl ^ JTcfm ^ ^ . ^^rraRUT ^?rq5i^.83 CTRI CWT 7Tt^![^f5T oRq^T^ ^.43.10 jrfcRIcT 3 ^ 23. i t ^ oRqcT ^ p5I?ZTt ^ y M 3fIFT5^ % ^ o j SIctFTnt m Vi^ f\ ^ [dcdMlitid fg5iftrt ^ eft jjRwr f t ^ f o f ^ JJR^T f t ^ ^ ^ ? T m # i ^ Ft TRST.609. 22. ^xtijximdcbi # oTHgjRt ^5 3Wra ^ gjRoy 5 1 ^ ^ JPTOR ^ ^ ^ ^ 3 ^ W liuidcrll ^ r f ^ ^xt^Mldct>i g^T 5 ^ ^ ^.69 3 l k S f t ^ a t T ^ j r r f ^ JlfcT g ^ ?5i. 1 ^ W W f t ^ S l f l f t ^ 3 i h T c T t f ^ 2 r a H c n w q T ^ 3 T f ^ ^ q 9 T : ^. i M $ct>l$4l Uai oqfg?T ^ i M 35^ g j ^ 3 T r a ? ? r a 5 c T T q?% qr qfeR ^ ST^ ^ 1 5 ^ 24. ^tcfr o R q ^ ^ ^?!g5cr ^ ^ 3cqTS: # i r a c R ^cbl^iH g5r 4lJ|<iH . Vdr^U j n f ^ ^ 5 ^ 14. ^ ^ Jjuidcrii. 3TSERR # SlTcGlfeT ^ 500 g 1000 ^ ^ ^^TlScT # q i ^ ^ $ * | $ i | | qf^^R ^ ^ ? 5 ^ SRT tfcITtit o T T^ sft. 3 n ^ f^rafjicT ^ 3&3?n^fl^€\%^^oiT^sftorafa>€^g5rHm^p4^Mid*^1cR^ 25.2itg5llto ^cgy? f g ^ . ^fK^a^^ oRqS # ^ 26.2 1 .174 T T H ^ f e ^ ^3TT. # sSt.JHF^S (3) Jc<^l<i^ .) 4 9 0 1 W^: 23.35.^Sgy^fggScTT .3nfg5 ^ ^ c m T 7 7 ^ 81 yids^id jcMici*.590 W 75.311135 . ^ r ^ oHMcii # feenf ^ T H T T qr #cR ^ ^ afnijj^ ^ 5 7 ^ ^ . <hl4<d sft I 3cqT5g5 951 'mw 71 yfdi^id % 78 yfdi^id cTg5.^dti<[d^i . ^ STR^ra^oRgi ^TCT sfr fg? w ^ # ^wiiRid ^ 5 ^ qa\ 3T^^?RJH tm] sraR-sraR w yi^ijyui ^gfgtnsft h smig # oRq^ ^ ^a^cqicR ^ fggsRT qr gtrf 27.994 d t . ^ ^ OT TltT?!^^ cjHM<i1 ^ fl Wd< faRfzft ^ (c|cdMtt|>J| ^ <lal'lK ^^oFT g5iM: 4. cP% ^RtT cra5 i % ^ STFjl^ ^ SWTcT ^T y[d^di^g5rMcr^^?Timcmjfg^3Trjf^g5r ^Ft^d?cj^MidH^1w?TTrGg5^¥rm 28.15.^55:55^ (2) JcMlcich .966 cWT''P. ^frfr 3Rq?t # ^[T^cR ^ fd^UH ^ fcTO <?R IdMUH ^tfuraf (1) Jc^lcicb . ^ R t 3 H q ^ ^ f g ^ 3 n ^ f^raftcT ^ Sfr. 51^ ^ ^praaTT.57 JffcI9lcT W^- Sjr cfSTT 500 ^f§\ W 1000 ^ ^ ^ ' ^ ^ |. 29. . TfR^i^ o R X T c r ^ d'mJiid 3ik WoFrar ^rrar crar i t c ^ o^iqcr ^ g ^ w^iTsft ^ d^iPid ^OT y i k l c b d M ^ ?IRIT-gR g ^ ^IHW ^ ^ ^ ^cRT # 3511^ 355? sfr (15% ^ cOT).2 ^ f^^ 1^^-jn?g5 .(-)2614 3 ^ U ( . and in turn. There is also a need to review and revise the land valuation norms of SCARDB. the Government will need to simplify the land identificafion and acquisition process. The bank has to set in place an effective post-disbursement monitoring system. The bankers should try to finance the activity on a cluster basis as it helps attracting the traders to lift the produce from the farm itself on account of availability of broilers in sufficient quantity in order to minimise the cost of transportation. This will reduce the total project cost of poultry unit and will help small farmers who have less land to offer as security. Breeding farms. There is need to establish a 'Poultry Board' which will prepare a master plan to develop the UP poultry market in an integrated manner. There is need to 7. particularly to banks like SCARDB. to attract large investors in the state of UP. hatcheries. The backward and forward markets need to be integrated on the lines that has now started working in some of the south Indian State like Andhra Pradesh. The proposals should also be scrutinised for aspects like existence of backward and forward linkages. There is a need to evolve a system wherein all proposals for financing of poultry units received by SCARDBs should be scnitinised by the technical officer. This will also enable the farmers to escape exploitation in the hands of feed suppliers who charge high prices for feed and provide low prices for broilers sold through them. 9. require large tract of land. Any policy aimed at boosting the growth in broiler sector will not yield the desirable results unless policy to increase the production of maize and soybean is incorporated in the same. 8. Only technically feasible and . Therefore. There is need to develop low cost poultry sheds on scientific lines. 5. 3. The disbursement of entire sanctioned amount has to be divided into number of instalments depending upon the physical progress pertaining to establishment of units and the same has to be monitored strictly by the financing branches of SCARDB.. particularly in case of small farmers needs to be converted into 'contract farming' which will help the farmer to sell a contracted quantity of his produce to a particularly buyer. 6. help the buyer to buy from that particular farmer at the contracted price. 2.ACTION POINTS 1. The 'moneylender-producer relafionship' which is existing in poultry sector. Maize and soybean are the major ingredient of poultry feed.financially viable proposals having backward and forward linkages should be recommended for sanction. . The development of poultry chain will have to incorporate developing methods to improve the yields of major ingredients like soya and maize too. 4. The construction of 'poultry shed' was found to be the major cost item. The state of poultry financing by SCARDB in Bareilly has to be viewed seriously as only 3 out of total 30 units covered in the study were found to be existing. etc. T^FT3R-3cmgg5^er. 9. giff ^ cn% ^ i^ggsr 3 ? k # ^ 5ry!i ^firofr ^^?i^ # ^Hln^cid ^ 3 n ^ t . oft ^ mcR ^ srfeigj prarR ^ t . ^meR^lggjra^ g^f^ ^frfcT era c T g ) 5iwgt ^ ^ ^?igxft j f i e r a ? fg? SRT ^Fgsif ^ "^TTsr-^arsi ^rg^ g # m ^ ^iMr c j o f g ^ R T t R g c T ^ f e l T oTI^. 6. 30 ^cbl^ifi # ii|7Tr. JiTMicichi g ^ T ^^jfgeiT ftift 3 T r ^ fgg5RT tg5 % wn ct^ "31?^ f ^T^ 3R^ qm g^^igj grg traf^ ^ q ^ t . ? ^ • ? T ^ fg^if c T F i c T # g5#r 311-^JTI C T 5 J T 3^ i5t& H. 7. ^T7^ ^ . 3. foRT^ 3?iTg ^ QiMUH gt^ ^5cn3ft g^r g5q T T P i tS T O ^T ^^rf^ 3cqig G g 5^ F e F j T % 5rM ?t ^ 5. -ymdl^ % i ^ i*'^n1 ^ ^ ^?tfg^ f5i%# qf^gf^ gr^^ g#e fd^H^ scqigg^r g^r cgs Bt jnggi gtr ^^tlgfer 3cmg g^r t t i ^ ^ <m\ jn^gj g^r ^a^te^ # ^^hm i ^ . ? # ^ ^HTSI 3 ^ g ^ q^ ^ gsr gnr ^g^k^ cmi ^ gFir fg^^Tn?zrTT%g>frg>!:qT5TOcTTtcr^Tf ^ ? i f % ^ -dw^|gH|g)r^tg^^aIT•?T^cTTt. S^CT: ^r? ^ 37Tg?^ra51 fgj %Tfqg5 S T T E T R ^T g5fr ^ gict grt gj PIHWI ^ dcwlch g^r fcjcbf^d fg5crr 3n<^. i 2 g 5 ^ c ! t o c n T x a H ^ t f ^ ^ i ^ ^ 5 R T f g j i J ^ ^ ^ i c R ^ 3 i i ^ ^ o!m ci*^*l srfljgjRt SRT #?r ^nfF^.1.5r. g \ ^ tjH<if^i g 5 r fdd<ui g^ fgyRft # ?g5i^ ^IMHI ^ yiffiigifMcT ^ a^'HK g y ^ ^cfe c^T i^m ^ fggsRT fg^ ^ Igor ^mw g?^ gic^ sjii'diail SRT Pi^-d-t a^ci<^H ^^^T 3. #^mcT^t^^f^it^?Tg5ctf3trg5r3ng)f^g5^^%u^g5r^^ fH'UHi Tf >H<dlch><ui gy^^ t n f f g cwlfch ^ t l f r ^ #rf|7T qspf # 3Rftg> ^ ^ STig^^raScTT ?tc?r 10 IT . 2. 3. 3nti ^ ^?WT sqcrger ^ifcifgftr ^ eg tRtOcT 3i?t cT^=M g fgc#cr STTOR ^ ^ersr-^rw ?g5rf ^^SIFRT ^ 13^ g tr^tjicT sirarojcT ^fgtnsft ^ 4. 3Tc^ JcMIdH ^fcTU W ^ 31lcjii<yd> t fgi lTgg5r g 'H)i|I(^lH ^ 3WcT?itH f g j ^ g^r jrat^T fgsqr oTT^.F. 8. ^ Tifcrfgf^ g^r QjonHt^ui fg? g^ ^?p^ if WFU WI%?. ^ ^ ? w f ^ c r ^ ^ ^ q T c H g 5 r g i 3 n T ^ ^ ^ " t f f c 5 t g ^ ^ ^ Ricbm ^ msm ^ f f e ^ TiggjT g ^ftr^^r ^ q^:frcr 3CMI<H %g JRTRT g^HT tnfetu. ^fTPj^t cmicT g^r srfera^M % ? ^ ^ ^ grt # c r n c T T t . 1 ^ oHiJcl # %^ fclcbW f g j gRT ^ ^5gcf 3 $*i^iii ^ mcFT m fcloHMlqui it^fkcTT % ^ rOfFP. India eliminated its quantitative restrictions on poultry meat imports in April 2001. This will help to prepare the existing poultry units to face such challenges in future. the market opportunities may expand significantly which is limited to metro cities only at present. Extension machinery of the State Govt. The various schemes of the central Govt. 11. The programmes like Integrated Poultry Development Programme should be provided with sufficient fund to carry out the developmental work in true spirit. If the required support system for frozen poultry meat is developed and are supplied at a competitive prices. Initial working capital which is capitalised and given as part of the temi loan should be directly disbursed to small farmers to enable them to purchase and store feed ingredients when their prices are favourable in the market. needs to be geared up to educate the poultry rearer the importance of bio. 15.10.security measures and other related rearing practices. for establishment of cold storage can be made use of in the state to strengthen the cold chain infrastructure vital to the development of poultry industry through public and private sector participation. 12. However. 13. Consistent with the Uruguay Round market access commitment. Since the small fanners also experience shortage of working capital in the subsequent periods. suitable tie up arrangement should be made by SCARDBs as per the existing provisions to meet the working capital requirement in subsequent seasons. 14. 11 . it is necessary to strictly adhere to bio . In order to make their presence felt in the international market. In India. once the production prospects of poultry sector improve in the State. phytosanitary regulations and clearance procedures applicable to poultry meat need to be clearly defined and this could aim at keeping a check on imports.security measures and follow the recommended husbandry practices. meat consumers usually prefer fresh slaughtered birds over the frozen meat. 3#cT2001 # 3 ^ ^ ? I 3 ^ ' T l f e ^ ^ T m 9 M c T ^ ^ ^ ' n ^ ^ 3 ! T r a i c T q T J j f c I l ^ g ^ 12 . 'dHP<Jd ^ qicR fggSRT chl4{M g>r xHcU^ ^ % C Milfkl tFT 3Mc1dy a5^HT tJlfeiU. W ^ ^ # ^flfclcT TRT ^ gcRT # ^ ^ cTloIT WE ^WZ f^SCTT o T T c T T t.10.2fr| ^ n w 3q^RT i ^ (*'HiHi aiT cw45i^ci ^ 0 ^ # ^ 3rr 3n# t . SICT: 3 ^ gsifr g^r ^ g5^ ^ f l ^ ^ S I T c l ^ g 3fRT < T ^ ^ dH*!-^ ^ t n % . 14. i ^ ^sqgjT ^ si% ^ tnHiTl ^ ^ t r %g 31^ 5 R I didK # gw smt q r sqcraar ^ . ^ ?McRT TTRT ^ 15. g3i^J#cT ^ ^ 11. oLif^dJid ^ ^RgjT^ *fPTkRt ^ Trnzw ^ ^itcPjFt ^ 'tyimi # w ^ >H<chK ^ 3!RT *l4{bHl # ?ftcT >5raefT g^T f ^ * [ ^ d W^ %^ JWRT ^ ^ ^ ilTflu. iHti^iit^ii gisnr ^ iiRcT g^r 3TO^ ^TRI ^ R ^ ^ fen? o^fg^ ^ 5 I T ^\%^ crar ^ mci^ ^ cRtcf^r a^ 3PRRTT ^cnf?u. 13. The share of developing countries in world total poultry consumption has increased from 25% during TE 1963 to 54%) during TE 2002 and that of developed countries has come down from 75% to 46%o during the corresponding period. 2004) indicate that the poultry meat is the fastest growing component of global meat demand. However.75 5. The share of livestock sector in the country's GDP remained more or less constant at around 5.94 5. The broiler production in the country is estimated at 1000 million number.25 1961 -2002 5.4 The poultry meat has achieved significant positive growth rate in both developing and developed countries (see Tables 1. The growth rates in poultry meat production in India have been vQvy high as compared to that at the world level (see Table 1. In the state of Uttar Pradesh.1: Compounded Annual Growth Rate ("/o) in Poultry Meat Production Period 1961-1970 1971-1980 1981-1990 1991-2002 India 2.3.18 7.5%> since 1995-96. Integrated production by way of combining breeding. contract rearing.1). the developing countries as a group have shown a much higher growth rate in poultry meat consumption as compared to that in developed countries.13 World 5. a market transition from live birds to chilled and frozen products. The 13 .10 3.95%o. 1.4%)) in total value of livestock in India has been found to be much less as compared to that of milk and milk product (66.1 The Value of Output and Gross Domestic Product from Livestock Sector in India is estimated at Rs. The share of poultry meat in total meat production has increased from 19. 2004).5%) (Central Statistical Organisation. In India.9%)). feed milling. The share of meat (17. 120.org 1.3). 1. USDA.3 Studies (Economic Research Service. GOI). GOI. The level of consumption poultry meat in India as compared to that at the global level.46 %) in 1981 to 12.56 4. 156.2 In the recent years.94 thousand crore respectively (Basic Animal Husbandry Statistics. together with the emergence of vertically integrated poultry producers that have reduced consumer prices by lowering production and marketing costs. 2004.CHAPTER! INTRODUCTION 1.10 %) in 2002 in India.08 thousand crore and Rs. and policies that help ensure supplies of competitively priced domestic or imported com and soybeans are keys to future poultry industry growth in India and in other developing countries. The share of milk products in total value of livestock in Uttar Pradesh is as high as 89.16 10.FAOstat.42 11. the poultry sector growth is being driven by rising incomes. the poultry farming has made rapid strides from a family occupation to a progressive industry.79% in 1981 to 30.2 and 1.36 Source: Computed from data from web site WWW.2 and 1. Asia and Developed & Developing countries as a group and growth pattern in the same have been presented in Table 1. Table 1. the share of meat in total value of livestock has been found to be very low (less than national average) at 3.14% in 2002 at world level and from 4. 53 254. However. However.03 TE 1983 2.92 132.07 2. Poultry meat cost is less compared to mutton and fish. Table 1. Total poult ry meat consumption (lakh Mt) 68.27 1.58 Source: Computed from data from web site WWW.org Table 1.22 63.6 The demand of poultry and other meat show seasonal pattern across the states of India.12 1991-2002 5.5 Poultry meat is a rich source of high quality and balanced protein.78 0.89 8.42 5. Per capita poultry meat consumption 4.60 20.33 3.3: Compounded Annual Growth Rate ("/o) in Poultry Meat Consumption Period World Asia India Developing Countries Developed Countries 3..share of Asia in poultry meat consumption has increased from 17% to 36 period during the above said period. Ganesh Puja & other religious season in Maharashtra prohibit meat consumption in India.78% during TE 2002.08 1.06 B. in UP and other northern states. The poultry industry sources tend to minimise the significance of religious and cast practices as constraints on growth in poultry consumption.52 7.77 TE 1973 164.24 2. Shivaratri. Seasonal religious observances lead to significant fluctuations in demand.87 11. the poultry consumption is higher in urban areas..11 TE 2002 697.45 184.20 11.2002 5. In general.25 1961 .97 12. Navaratri.2: Consumption of Poultry Meat Period World Asia India Developing Countries Developed Countries A.10 15.31 7.FAOstat.27 Source: Computed from data downloaded from web site WWW.07 0.40 0.org 1.87 1991-2002 7.85% during TE 1963 to 1. the share of India in world total poultry meat consumption is quite low and has increasedfrom0.96 43.57 TE 1983 277.84 31.77 6. etc. the consumption of meat has been found to have increased by Hindus during Durga Puja in West Bengal and North Eastern states and by Muslims during Ramjan.92 TE 1963 15.20 1.51 3.52 93.57 4.40 0.64 B.06 121.83 1.07 TE 2002 7. religious practices e. 1.79 23.13 5.20 24.27 4.31 5. Per capita poultry mea t consumption (Supply/capita/Yr in kg) TE 1963 0.90 6.05 TE 1993 445.37 6.93 0.2002 3.76 255.93 0.60 4. vitamins and minerals. etc.01 91. although the consumption of poultry meat is not much associated with religious sentiments as is the case of consumption of bovine (cow meat in particular) and pig meat (pork) is concerned. which is showing a very high growth in consumption seems to have broad regional acceptance.49 11.5 6. Poultry meat.09 A.78 190.53 TE 1993 8.90 TE 1973 1.43 1961 .57 4.44 377.g. where both average income and the 14 . In some cases.07 320.99 2. Total poulltry meat consumption 7.FAOstat.20 2.54 7. the poulti-y units of less than 10. The state of UP ranks at 8 in total egg production in the countiy. This shows that there is a tremendous potential for growth.000 birds have been accorded the status of 'Industry'.11. the requirements will be 180 billion eggs and 9.000 birds have been accorded the status of'Agriculture' and the units of more than 10.9 The 1998 Animal Census had estimated the total poultry broilers and poultry layers in Uttar Pradesh at 32. To meet this target. The National Commission on Human Nutrition in India has recommended per capita consumption of 180 eggs (about half an egg every day) and 10. It is estimated that the poultry industry provides about 2 million tonne of poultry manure annually. are reported to have stimulated rapid growth in consumption. about 40 lakh eggs and 2. Low level of priority given by GOUP for development of poultry activity is another reason for poor growth of the sector. The per capita per annum production of eggs and meat in UP are estimated at 5 eggs and 100 gm meat respectively whereas per capital consumption of these two items in the state is estimated at 18 eggs and 300 gm meat respectively. 1. Literature and the experience of many engaged in poultry sector indicate that the agro-climatic and marketing conditions in western Uttar Pradesh have not been very conducive for the development of the poultry sector.2 billion eggs and 3. it has been gathered that easy availability of poultry meat at comparatively cheaper rate has on account of the closeness and better connectivity of western UP to major poultiy markets and producing centres like Delhi and Punjab respectively has adversely affected the growth of poultry sector in the western UP as the local producers are not to supply the eggs and poultry meat due to higher per unit cost of production. In order to give boost to the poultry sector.04 billion kg poultry meat. phosphorus and potassium content of poultry manure is almost twice that of cow manure. The nitrogen.20 lakh broilers are imported from the neighbouring states. However. 15 . The poultry development has been found to be concentrated in eastern UP and status of the poultry development in the western part of Uttar Pradesh has not been found to be very encouraging. and increasing demand from growing population in India. The large gap in per capita consumption and per capita production of eggs and poultry meat indicates that there exists a huge potential to grow in the State of Uttar Pradesh. There are 5 Government poultry farms where parent stocks of layers and broilers are maintained with the fund being made available from State Plan. 1.8 kg meat for balanced diet.09 lakh respectively. it is estimated that by the year 2010.8.32 lakh and 41. To meet this gap.number of high-income consumers are more. due largely to the prevalence of poultry integrators in the region. rapid urbanisation.1 billion kg poultry meat while the estimated production is only around 46.10. Low poultry prices in South India. 1. This also highlights the importance of conducting studies on poultry sector at frequent intervals in order to identify strengths and weaknesses of the sector and take suitable Status of Poultry in UP 1. About 80% eggs come from private commercial poultry farms and the rest comes from backyard poultry.7 Poultry is also a rich source of organic manure required to improve the texture and quality of soil. 1. 4 2002-03 2003-04 63.9 13.4 344479.2 197.000 2003-04 131.7 1.000 2002-03 5.0 2618. lakh) Total 15.1 SCBs SCARDBs 946.9 (Rs.7 22.0 11.0 55. 1.6 67088.5 that the share of refinance to poultry sector in total refinance in Uttar Pradesh has been less than one per cent.3 PUCBs Total 947.7 6356. lakli) 2001-02 2002-03 2003-04 Total Nil Total Refinance (Rs.9 64254..0 880.0 75.2 55.1 Share of poultry 0.1 2612.5: Agency-wise refinance to poultry sector and share in total refinance in UP Particulars CBs Poultry Sector fRs.0 RRBs 3. etc. The selection of broiler activity for the present study was also based on the facts that (i) growth of broiler activity in the state of UP is around 20% as compared to that in case of layers which is growing at the rate of 7-8% at present (ii) comparatively less investment and fast income generation.7 62872.000 Gorakhpur dist rict 2001-02 35.5 122178.6 86776.13 The status of ground level credit flow in the selected districts of BareiUy and Gorakhpur is presented in Table 1.8 194216.8 6.2 Total 41811.8 21650.12.8 Nil 554.7 29.12 The present study has been taken in respect of broiler activity in the districts of BareiUy and Gorakhpur in order to see the status and prospects of broiler activity in two different regions of the state.2 85.0 65.0 10. Table 1.3 152.0 19487.0 141.5.35% 0.6 104736.9 2002-03 6840.1 25.6 RRBs 1.01% 1.4.2 14739.4: Actual ground level credit flow to poultry sector in the selected districts Particulars CBs BareiUy district 2001-02 5.8 3. It may be observed from Table 1.5 786. lakh) 2001-02 17605.1.3 40113.8 787.7 Nil 25.2 40.1 27175.9 117564. The agency-wise refinance to poultry sector and total refinance during last three years in the state of UP is given in Table 1.8 Cooperatives 7.3 0.5 2003-04 17365.8 883.76% 16 . Table 1.0 2.0 20. To analyze price fluctuations. availability of feed and their relationship with weight gains by the broilers.2 The following specific objectives have been laid down for the present study: i. types of technology and regions. ii. To estimate the actual cost of investment by different components. iv. in case of the poultry (broilers) sector. economics and the financial viability of the investment. marketing network and linkages for both the input and the output.. analyse the sources of funds and the incidence of under-financing. To critically examine the management practices. scheme implementations by various banks. xi To examine the problems related to meeting the working capital requirement of poultry enterprise. realization and spread and compare the average realized price with cost per unit of production. investment sizes and types of technology adopted. To examine and analyse the bird flock chart under different situations and compare them with stipulated norms. 17 . with high and low concentration of poultry farming. To examine the marketing network and linkages for both input and output and assess their adequacies/inadequacies. 2. ix.. zones of high and low concentration. vii. assess the adequacy or otherwise of approved unit cost.CHAPTER-II OBJECTIVES AND METHODOLOGY Scope of the Study 2. etc. V.1 The overall objective of the study is to gain insights into the nature of production conditions of the broiler units. x. vi To estimate the costs and returns of/from maintenance of birds and compare the economics of investment in poultry units across different investment sizes. To examine the production under different types of technology adopted in two different regions. viii. To examine the bankability of investment in poultry units under different conditions and their repayment behaviour. To examine the financial viability of investment in different types of investment environment viz. iii. To study the scheme implementation aspects including the technical soundness of investment in poultry units and deviations from stipulated scheme norms by the banking as well as government agencies. To examine the issue of corporatisation of poultry industry. retailers were taken in order to study the various dimensions related to poultry sector.xii To examine the problem of erratic power supply and other inputs and the other inputs affecting the poultry enterprise. the financing to poultry units was made only by three branches. xiii. AGM (DD). However. Gorakhpur. Bareiily. To estimate the macro benefits of investment in poultry units in terms of income and employment generation. In addition to this. Lead District Manager. the branches of Bareiily and Meerganj in Bareiily district and the branches of Bansgaon. xiv.. The SCARDB has 10 branches in Bareiily and 4 branches in Gorakhpur district. Khajni and Sahjanwa in Gorakhpur district were selected for the study. only two categories.4 The State LDB (SCARDB) accounts for 99. based on the refinance figure. As the number of units to 18 . Controlling offices of various banks located in the selected districts and the officials of Directorate of Animal Husbandry. Gorakhpur district from Eastern Uttar Pradesh and Bereilly district from Western Uttar Pradesh were selected for the study. Izatnagar. As the unit size was found to be varying between 200 to 1000 (1300-1400 birds in two cases). small (units of birds upto 500) and large (units of birds more than 500) were made in the present study.6 A total of 60 sample units ( 30 each from Bareiily and Gorakhpur districts) financed during 2001-02 to 2003-04 were covered in the present study. It was decided to cover equal number of sample units from the selected branches of SCARDB in both the districts. it was difficult to know the exact number of units financed in the selected districts. Lucknow. 10 other entrepreneurs in Bareiily district who have not availed loan from any bank were also covered in order to see the economics of poultry units in the district as most of the units financed by SCARDB in Bareiily district were found to have been closed at the time of field visits. However. 2. NABARD and the controlling offices of the SCARDB. Selection of Banlcs/ Banic Branches 2. NABARD. in Bareiily district. visits to Central Avian Research Institute.3 The submission of LBR-2 is yet to be stabilised (only 35% submission) in the State of UP. District Veterinary Officers of Bareiily and Gorakhpur were held in order to finalise the banks branches to be visited for the study. In addition to this. Based on the discussions with the LDM. Methodology Selection of Districts 2. the discussions with the Asst General Manager (District development). Sample Size and Stratification of Sample 2. Therefore. traders. only State LDB (SCARDB) has been covered in the present study. some hatcheries.5 Apart from the analysis of the ground level data for poultry sector in the selected districts.24% of total refinance (not of investment) to the poultry sector in the State since most of the other banks are not availing refinance from NABARD although they are financing poultry units in the State. viz. sale of manure and gunny bags were collected from all the beneficiaries. etc. water. Data/ Information pertaining to all other objectives was collected through a structured questionnaire from the selected borrowers. Break-even analysis was attempted to estimate the number of birds required to be reared so as to even out the capital investment under given cost-price relation. Fixed costs included depreciation on building and equipment and interest on capital. (ii) To analyse the costs and benefits of the scheme. feed. The branch-wise number of units covered in the present study is presented in Table 2. 19 . and receipts from sale of birds. medicine. disinfectant. Net income of the units were arrived at both with and without imputed value of family labour. disbursement and post sanction follow-up and supervision of loans. The analytical framework is given as under: (i) Information on implementation aspects of poultry financing was collected from record of the financing banks and the discussions with the officers of the bank branches were also held in order to get feedback on the investment environment. (iii) The gross receipt. detailed data on cost incurred into fixed and variable cost items. while variable costs included all operational expenses like cost of day old chicks. Bank branches Number of units financed during 2001-02 to 2003-04 67 68 85 62 22 55 Number of units covered 1 2 1 2 3 4 Bareilly District Bareilly branch Meeranganj branch Gorakhpur District Bansgaon branch Gorakhpur branch Khajani branch Sahjanwa branch 15 15 7 8 8 7 Analytical Framework 7. charges for electricity.1 below: SI No. systems and procedures adopted for sanction.. The financial viability of the investment was assessed by finding the B:C Ratio and the Financial Rate of Return. Depreciation of shed and equipment was calculated at the rate of five percent and ten percent per annum on their original costs respectively under straight line method.be selected per branch was quite less (7 to 8) in Gorakhpur district and therefore. The information collected from the financing branches include adherence to terms and conditions laid down by the financing bank. the number of poultry units financed during the study period (2001-02 to 2003-04) was not given any weight for sample selection. transportation. maintenance of sheds. litter. as well as cost of hired labour. gross cost and net income were estimated both on 'per bird' basis and 'per batch' basis. etc. P.1 4 April 2005 and 25 April . However. AGM/AE and Shri K.14" 20 . Dr. were used for working out the economics of the broiler units.20 April 2005 and 25 April . only the units completed in all respect and the income of which has already been stabilised. Deputy General Manager/ Technical Officer (Animal Husbandry) also associated with the study Team for the field visits during the period from 1 1 . Venugopal.30 May 2005 in Bareilly and Gorakhpur Districts respectively. Field visits to Collect Primary Data & Time Frame The field visits pertaining to the ex-post evaluation study on Poultry Farming' was taken up by a team of officers comprising Dr.P. Gyanendra Mani.(iv) The units financed by the bank during 2001-02 to 2003-04 were selected for the study. (iv) The Technical Officer (AH) posted in the RO was also involved fiw studying the technical soundness of the investment.03 May 2005 in Bareilly and Gorakhpur Districts respectively. Manager during the period 11 .Desai. Reference Year 2. %ofGCA Kg. rate of interest. which nearly engages 88.387 33. There are 19 blocks in the districts. security norms.7 1.4 61 689. Deoria in the East and Sant Kabir Nagar in the west respectively.1 173. are presented as under: Table 3.CHAPTER-m IMPLEMENTATION OF POULTRY FINANCING SCHEMES 3.020 36 48 873.42 7.186 2.9 91. time lag between sanction of loan and last date of disbursement.P.7 1.661. 1 2 3 4 5 6 7 8 9 10 11 12 13 Particulars Area 2001 Population 2001 Literacy 2001 Population density 2001 Avg size of holding 1991-92 Gross irrigated area 2001-02 Fertilizer consumption 2001-02 Village electrified 1997-98 Road density 1995-96 Bank deposit per capita 2003-04 Bank credit per capita 2003-04 C:D Ratio 2003-04 Primary health centres 1994-95 Unit sq km lakh no. per cent per lakh pop Bareilly 4.8 1. implementation aspects of the programme of financing broiler poultry units selected for the study with particular reference to appraisal of loan application loan amount sanctioned.8 2.3 9.6 150. Major income of the district is generated from agriculture. per cent per sq km ha. Budaun in South. It is surrounded by the district of Udham Singh Nagar and Pilibhit in north.2 NA Gorakhpur 21 . Rs.3 Gorakhpur district is situated in the north eastern part of the Uttar Pradesh.961 0.52 87.1 This chapter covers the profile of the selected districts. Azamgarh and Mau in the south. 3. no km per sq km Rs.1: Salient features of the selected districts vis-a-vis U.928 37.501 0.015 2.3 6.308 2.5 0.P SI. 3. etc. down payment.7 0.404 26. grace period.07 Uttar Pradesh 3. problems pertaining to marketing of broilers.2% of the total working force./ha.4 The salient features of the selected districts vis-a-vis U.512 39.9 1 58^ 71. It is surrounded by the district of Maharajganj in north.9 131.98 57. post loan supervision by bank officials.2 1.930 0. The six Tahsils are divided into 15 blocks. No.2 Bareilly district is situated between 280-20" to 280-54" north longitude and 780-58" to 790-49" east latitude. Shahjahanpur m the Iiast and Rampur in the west respectively.2 ^____Li3M_ 0.321 240. technical designs. District Profile 3. 500 20. etc. A Particulars Expenditure (a) Block Capital (for 500 birds) -equipment.000 7. A simple appraisal/ scrutiny note (presented below) was found to have been attached with every loan application sanctioned by the UP Sahak^ Gram Vikas Bank in Bareilly and Gorakhpur districts.25000/-.500 B C D E Security Norms 3. 60/.000 36.5 The process of identification of borrowers was found to be inappropriate due to lack of knowledge/expertise among the officials of the financing branches. equipment.1. shed etc.7 Although loans were to be advanced against hypothecation of poultry sheds.) 30. in reality. It was observed that the amount sanctioned/disbursed by the banks had nothing to do with the financial norms like unit cost.2: Sample appraisal note of UP SGV Bank SI. Total working Capital Total working Capital per annum (4 cycles) Income (4 cycles per annum) 500 birds x 4 cycles @ Rs. the main consideration at the time of advancement of loan was mortgage of land. The average loan amount applied by the borrowers. but it was purely based the amount of land available with the borrower to offer as security. The amount of bank loan was decided mainly based on the collateral security and not based on actual requirement of the beneficiary or on the size of the unit. vaccination. All these problems resulted the appraisal into mere a formality to complete the paper requirement.8 The maximum loan sanctioned by UP Sahakari Gram Vikas Bank in Gorakhpur district under the scheme was Rs. 3.350 11. etc.875 83. (b) Working Capital (per cycle) (i) Cost of day old chicks (ii) Expenses on feed (iii) Insurance. The appraisal note did not have information on pre and post development income.000 23. Loan Amount Sanctioned and Disbursed 3.Appraisal of Loan Application and Security norms 3.6 The sample appraisal note which was found attached with the loan application is given below: Table 3.500 120. No. 1.. etc.per bird Net income (income -working Capital) Annual debt servicing Income left for consumption per annum Amount (Rs. The bank accepted land as the collateral security. It was also observed that most of the borrowers were not having any experience/skill about the poultry rearing.00 lakh and the minimum Rs. whereas in Bareilly district the maximum was Rs. amount 22 .025 2.50 lakhs and the minimum Rs. 12000/-.500 13. the average time lag being 07 days.333 Time lag between Sanction of Loan and Date of Disbursement 3. irrespective of loan amount.lag between sanction and first disbursement of loan for the purpose varied from two days to one month in both the districts.. Due to involvement of longer period for construction of broiler sheds.286 70. the actual margin money. In Bareilly district it varied from 01 day to 37 days.e.000 35.12 The loan was sancfioned with a repayment period of 5 to 7 years including grace period of six months to one year.375 33. instead of five batches.000 35. i. the borrowers had to contribute 10% of the total loan disbursed as share capital which was treated as margin money. in the case of all categories of poultry units. Grace Period 3.667 53. This has affected the income generation as well as loan repayment performance. rearing of only three to four batches of birds was possible during the first year.5 percent irrespective of the loan amount.333 Average loan Disbursed 65.3: Loan Amount sanctioned and disbursed to the selected units (Rs.250 31. the amount contributed by the beneficiaries was much higher. Rate of Interest 3.667 Goralchpur District Gorakhpur Khajani Bansgaon Shahajanwa Bareilly District Meerganj Bareilly 8 8 7 7 15 15 74. The time.667 53.875 27.750 27.286 56.9 Time lag between date of sanction of loan and date of disbursement has a bearing on the time taken for construction of shed and finally on profitability of the investment.000 35. the average being 10 days.11 As the cost of construction of shed was much higher than what was esfimated at sanction. Margin money/ Down Payment 3. Grace period of six months was sufficient since the beneficiaries were mainly following "all in all out" system of rearing 23 .375 33. The time lag between date of application and date of sanction varied from one day to 15 days in Gorakhpur district.) Branch Sample size Average Loan Applied Average Loan Sanctioned 69.750 27. However.sanctioned and amount disbursed in respect of the sample beneficiaries of both the districts is indicated in Table -3.3 below: Table 3.10 Interest rate charged by UP Sahakari Gram Vikas Bank varied from 11 percent to 14. the average period being about 07 days.286 70.667 51. Further.000 3. However. only three units were found to be existing out of which two borrowers (brotiiiers) financed by Meerganj branch were having one common unit. The effect of bird flue had a very negative impact on the poultry industry. The average amount of loan sanctioned/ disbursed per category (500 birds and 1000 birds model) has been given in Table 3. Existing Units 3. lack of proper awareness etc. faulty site selection. in true sense only two units out of 30 units covered in Bareilly districts were found to be existing at the time of field visits. The amount of loan sanctioned and disbursed per unit by different financing branches of UPSGV Bank was also varying irrespective of the size of the unit and there was literally no relation between the two. 3.and after every 45 to 50 days one batch was ready for sale. working capital for the first cycle were not available in the appraisal/sanction note. high rate of mortality due to various diseases. with some beneficiaries repaying the loan even before the grace period was over. The branch-wise position of units existing is presented as under: Table 3. 25 out of total 30 units covered in the district were found to be existing at the time of field visits. cost of equipment.15 The number of birds sanctioned to different borrowers as an unit was found to be varying a lot and had no relation with the amount sanctioned against that many number of birds.4: Number of units existing Branch Sample size Units existing Unit size (no of birds) as sanctioned Upto 500 Goralihpur District Gorakhpur Khajani Bansgaon Shahajanwa Bareilly District Meerganj Bareilly 8 8 7 7 15 15 8 6 6 5 1 2 3 6 7 3 15 10 >500 5 2 0 4 0 5 (Rs. In Bareilly district. lack of proper heating and cooling systems.) Avg size of units sanctioned (no.g. the break-up of different items of loan. It was reported that fluctuating price of broilers.5 below: 24 . e. the beneficiaries of non-functional units were also interviewed.. in Gorakhpur district. were the main reasons for closure of the units. shed cost.13 The districts of Bareilly and Goraldipur showed entirely opposite trend in the estabUshmait of units after availing the bank loan. of birds) Upto 500 >500 500 350 315 425 500 500 920 600 - 933 - 1. and therefore.14 In order to gain insight into the causes of failure of broiler units. 500 30.667 Bareilly 15 45.400 65.5: Average amount of loan sanctioned/ disbursed per category (Rs.667 35. >500 Upto 500 >500 Gorakhpur District Gorakhpur 8 45. even though some of the bigger units were following the 'relay' system of rearing. The sample farmers in the study area were mainly following 'all in all out' system of rearing.667 35. Rearing System 3. There is need on the part of financing bank to ensure that birds along with the sheds are adequately insured and renewal of insurance is done at regular intervals. Gorakhpur 34.000 44. equipment and birds were to be insured by the beneficiaries. Post-loan Supervision 3.400 70. It was observed that none of the sample beneficiaries had made any insurance.000 Insurance 3. 25 .439 Bareilly District Meerganj 15 35.286 Shahajanwa 7 42. one batch of birds is stocked and reared for six to seven weeks.000 45.500 77.500 100.500 37.000 Avg..16 The poultry sheds.Table 3.000 70.) Branch Sample Avg amount sanctioned Avg amount disbursed size per unit of birds per unit of birds Upto 500 . The bank officials were found to be worried only for their recovery of the loan.158 72.500 83. Many of the insurance agencies were reluctant to insure the birds in view of the technicalities involved. Under 'all in all out' system.606 32. 'all in all ouf and 'relay' system.000 84.18 There are two systems of rearing broilers viz. Fresh chicks are introduced after disposing off the previous batch. particularly in Bareilly district.333 Avg. Bareilly 39.286 27.17 The post disbursement follow-up by the bank officials was found to be lacking.000 37.700 Khajani 8 32. The status of poultry financing by the branches need to be seriously discussed at the Head Office level. The follow-up and understanding of the bankers with the bon'owers was slightly better in Gorakhpur district and usually the bankers were found to be aware about the units financed by them.000 65. There was a lack of awareness among the beneficiaries that the shed can be insured. The bank officials in Bareilly were even not aware about the existence/non-existence of the units.132 81. There were no guidance from the financing branches to the borrowers regarding establishment of units including the construction of sheds. Under 'relay' system batches are introduced weekly/ fortnightly/ monthly depending upon the demand as well as marketing ability.500 Bansgaon 7 27.000 39. 26 .3 The low cost housing has not gained much attention in India as well as abroad. earthen pot and aluminium discs for waterer for small scale commercial broiler units (v) use of a layer of ash of 5 cm on the earthen floor followed by mixture of mud. polythene sheet as roofing materials whereas empty oil container. bamboo mat. especially tropical environments. the use of asbestos is discouraged in many developed countries due to its pollution effects.2 Cost of shed accounts for most of the non-recurring expenditure and constitutes a major component of initial investment and therefore. then a layer of chip followed by thin covering of cement to prevent rat and erosion. The literature on same has also been found to be touching on preliminary aspects of low cost technology for poultry houses. electricity. The concept of low cost poultry sheds is yet to be understood by many including the financing banks. The present study could cover only small broiler units which were established with the help of bank loans from UPSGVB Ltd. etc. The maximum research has been conducted in India about rice husk ash cement and found to be suitable for low cost houses. Besides. rural poultry sector for improvement of the socio-economic condition of rural poor. Similarly. increase durability and convenience of cleaning and management. relatively large scale integrated producers account for growing share of output in some region. (i) poultry shed made of polythene sheets attached to frame. use of compressed layer of sand (40 cm thickness) under litter with natural ventilation through the opening of walls instead of concrete floor. steel and asbestos in India. poor feed efficiency.03 with thickness of 0.1 The structure and cost of production in the Indian poultry . cost of litter.meat industry vary from region to region. water. installation of Tube well/ hand pump.CHAPTER . While independent and relatively small scale producers still account for most production. it affects/influences the profitability of the unit to a large extent not only during initial years of the establishment of the unit but in future also. The purpose of the shed is to confine the birds and protect them from predators and environmental extremes which would cause mortality and reduce growth. cow dung and molasses. polythene sheets. The conventional poultry houses are made of cement. (iii). Asbestos has low insulation value (R=0. The low cost houses reduce the cost of farming and increase the profitability as well as promote vast potentiality of the small commercial scale. medicine. etc. (iv) use of local materials such as bamboo for construction of house and feeders. A design of different low cost houses include. aluminium. 4. The use of waste mineral oil and bituminous compounds to make mud more weather resistant can also be applied. asphalt sheets. purchase of equipment. and the variable cost comprises of costs of day old chicks. (ii) aluminium roofing instead of concrete. The loan amount was restricted to the value of land available with the borrowers for the mortgage. feed. electrification charges. disinfection and cost of hired labour. etc. entrepreneurs and by the extension department of the state governments.IV COST OF INVESTMENT AND ITS FINANCING 4.3 cm) and cause heat stress to birds during summer. may be used for construction of low cost poultry house construction. several roofing materials such as thatch.. 4. The investment cost in broiler farming consists of fixed cost incurred on construction of shed. A good shed is essential to provide an ideal environment where birds can express their genetic potential to the fiill capacity. tiles. 728 1.781 1.655 17.462 5. Rs.260 1. Table 4. etc Miscellaneous Capital cost Capitalisation of cost on Day old chicks Feed cost Other cost (medicine.The Present Study 4.364 510 70.152 1. The capitalised cost on day old chicks.648 3.) Total Sample 500 1000 birds birds 11 27 398 826 Sample size (units covered) Average number of birds existing per unit per batch Items of investment Construction of Poultry Shed Equipments (Feeders.6 It may be observed from Table 4. electricity.744 5. 10 other entrepreneurs in Bareilly district who have not availed loan from bank were also covered in order to see the economics of poultry units in the district as most of the units (27 units) financed by SCARDB in Bareilly district were found to have been closed at the time of field visits. During the field visits. The major items of investment cost included Shed Cost (approx 52% of total investment cost). 63.667 11.587 39.085 31.420 121.529 124.106 5.973 23.on total sample of 500 birds (11 units) and 1000 birds (27 units).524 5.5 The actual investment cost of sample units at historical prices has been analysed and presented in Table 4.938 21.4 In this section. electricity/gas and labour. pipeline/ buckets for water. etc.970 478 730 280 39. an attempt has been made to study the actual cost of investment vis-a-vis amount sanctioned/ disbursed by thefinancingbank.550 16. feed and other cost items like medicine.569 33.595 62.) Handpump. waterers.441 1.087/. A B C (i) (ii) (iii) (iv) (v) D (i) (ii) (iii) E F Particulars Bareill]J district 500 1000 birds birds 3 10 460 725 Gorakhpur district 500 1000 birds birds 8 17 375 885 (Rs. etc. viz (i) units of 500 birds (200 to 500 birds) per batch and (ii) units of 1000 birds (more than 500 birds) per batch.701 53.816 5.540 1.363 64.856 525 680 370 36.) Total capitalised cost Total Cost 31.1: Actual Average cost of investment at historical prices SI. Therefore.1.095 24.838 1.313 3.121.330 1.939 491 716 305 38.682 33. the entire sample has been categorised into two groups.743 5. In addition to this.453 65. by taking the average of number of birds reared by the borrowers in different batches (6 batches) during the year 2004-05.436 115.294 61. etc Electricity connection/ lamp. No. The average capital cost in either group of 500 birds and 1000 birds in Bareilly districts was found to be comparable in Gorakhpur district.087 4.276 479 71.1 that the average investment cost was Rs.381 49. Feed Cost (approx 29% of total investment cost) and 27 .630 1.640 28.126 425 73. A total of 60 imits (30 each in Bareilly and Gorakhpur districts) were covered in the present study.312 62. etc.381/-. 4.537 9.011 3. hired labour. The capital cost has been worked by taking average of actual expenditure incurred on the items of investment at the time of establishment of the units.952 1.566 12.290 36.751 1.197 42. the size of the units (in terms of number of birds) was found to be varying fi-om 200 to 1000 birds except in one case where the unit was of 1400 birds.919 63.490 1.. cost of day old chicks (9% of total investment cost) over the entire sample size. The investment in sheds was found to be directly related to that with the farm size as the most of the borrowers were found to be have some idea about the space to be required for the birds. As far as investment in equipment is concerned, most the borrowers were found to be following a thumb rule of keeping one feeder and one waterer per twenty birds. Most of the bigger units were found to have installed a hand pump for water purpose whereas the smaller units which were either quite close or within the house itself had not installed any new hand pump for these units. Adequacy of Bank loan 4.7 It may be observed from Table 4.2 that a considerable portion of investment cost had to be met by the beneficiary through their own contribution by way of margin money. The borrowers contribution in case of smaller units found to be more as most of these units were found to be owned by comparatively small fanners who had less land to offer as security and therefore, sanction of less loan as compared to that of large farmers. Table 4.2: Actual Average cost of Investment at historical prices vis-a-vis bank loan disbursed (Rs.) SI. No. A B C Particulars Total investment Cost Average Bank Loan Borrower's Contribution (% of total investment cost) Barellly district 500 1000 birds birds 65,197 115,973 65,000 39,400 25,797 50,973 39.6%) (43.9%) Gorakhpur district 1000 500 birds birds 62,701 124,095 32,158 72,439 30,543 51,656 (48.7%) (41.6%) Total Sample 500 1000 birds birds 63,381 121,087 69.684 34,133 29,248 51,403 (46.1%) (42.5%) Note: In case ofBareilly district, 10 units out of total 13 units considered for working out the economics of the poultry units had not availed loan from any bank. However, the total investment cost worked out in BareiUv district (13 units) has been compared with the actual amount disbursed by UPSGV Bank to the sample units (30 units) although most of them were not existing at the time of field visits. Cost on Investment at Reference Year's Price (2004-05) 4.8 The total investment cost was estimated (see Table 4.3) at reference year (2004-05) prices to bring the costs and benefits to a common time frame for financial analysis on investment. It may be observed from table 4.3 that the capital cost had recorded comparatively more value appreciation as compared to that in case of capitalised cost. Table 4.3: Cost of investment at 2004-05 prices (total sample) (Rs.) SI. No. A B C Particulars Total sample Capital Cost Capitalised Cost Total investment cost Cost at historical prices 1000 birds 500 birds 11 27 71,667 38,462 49,420 24,919 121,087 63,381 Cost at 2004-05 prices 500 birds 1000 birds 11 27 42,385 79,836 26,739 53,719 69,124 133,555 28 CHAPTER - V ECONOMICS OF THE INVESTMENT 5.1 An attempt has been made in this chapter to estimate the gross return, net return. The Financial Rate of Return has also been analysed and presented in this chapter. The analysis has been made for two set of sample of 500 birds (11 units) and 1000 birds (27 units). Gross Receipts from Broiler Units 5.2 (i) (ii) (iii) Income in case of broiler units was from following three sources: Sale of birds Sale of manure Sale of gunny bags As the production cycle in case of broiler units is very small (maximum 50 days), the income stabilises in a comparatively less time. Therefore, the units financed even in the year 2003-04 would have stabilised during the year 2004-05. In the present study, the units financed during the year 2001-02, 2002-03 and 2003-04 were covered. The year 2004-05 has been taken as the reference year for the study and the income and expenditure pertaining to the poultry units were collected at the 2004-05 prices. 5.3 As opined by the borrowers, the feed conversion ratio is usually highest in winter and the birds gain two Kgs of body weight in 32 - 35 days by feeding 4 Kgs of feed comprising starter, maize, concentrate and or finisher/developer. As per their version, in summer, it takes usually 40-45 days time to gain 2 Kgs of body weight and birds consume, on an average, 4 Kgs of feed. In rainy season, the birds, on an average, consume 5 Kgs of weight to gain 2 Kgs of body weight. However, the feed conversion ration as well as number of days taken to attain a certain body weight was found to be varying from farm to farm depending upon the quality of chicks, quality of feed, management practices being followed by the entrepreneurs including the hygienic conditions prevailing in the farm, etc. The average gain in body weight, average price realised (farm gate price), and number of days of rearing per cycle (life cycle) are presented in Table 5.1. Table 5.1: Average gain in body weight at the time of sale (Rs.) SI. No. A B C Particulars Bareill> district 500 birds 1000 birds 1.72 1.79 46 38.12 44 37.04 Gorakhp ur district 500 1000 birds birds 1.81 1.86 43 40.51 41 38.20 Total s a m p l e 500 1000 birds birds 1.76 1.83 45 38.38 42 37.50 Average live weight at the time of sale (kg) Average period of life cycle (days) Average price per kg of live weight (kg) 5.4 It may be observed from Table 5.1 that average days of rearing in Gorakhpur district is less than that in Bareiily district. Better feed conversion ration, better management practices and probably better suitability of agro-climatic conditions in Gorakhpur district could be the possible reasons for better performance of broiler units in Gorakhpur district. It 29 may be observed from the above table that weight gain per bird in case of smaller units is less than that in case of larger units although smaller units were found to have reared the birds for a comparatively longer period. However, the smaller units are able to bargain better price as for as price (farm gate price) realised per kg of broiler is concerned. This is basically the smaller units sell most of their produce to daily hawkers whereas the larger units sell most of their produce to wholesalers who used to lift the entire product at a single point of time. 5.5 The gross return per unit and per broiler is presented in Table 5.2. It may be observed from Table 5.2 that no definite trend is visible as far as gross income per unit or gross income per bird is concerned. The gross income per bird in Gorakhpur district as well as on total sample has been found to be slightly higher on smaller units as compared to that on lager units. The number of birds sold as sown in Table 5.2 excludes the birds died (mortality) during rearing. Table 5.2: Gross receipts from broiler units per batch SI. No. (i) (ii) (iii) (iv) A B Particulars BareilhV district 500 1000 birds birds 460 725 30,161 48,069 810 1,555 435 680 31,406 50,304 68.27 69.38 Gorakhipur district 500 1000 birds birds 375 885 27,496 62,881 632 1,410 520 965 28,648 65,256 76.40 73.74 (Rs.) Total sample 500 1000 birds birds 398 826 28,223 57,395 681 1,464 497 859 29,400 59,718 73.84 72.32 Actual no birds sold Sale of birds Sale of manure Sale of gunny bags Gross income Gross income per bird Table 5.3: Break-up of Gross cost per batch SI. No. Particulars Bareilly district 500 birds A (J) (ii) (iii) Sample size (units covered) Variable Cost Day old chicks Feed cost Other cost (medicine, electricity, interest on working capital, etc.,) Total Variable cost Variable cost per bird Fixed Cost Depreciation on shed Depreciation on equipment Interest on fixed Capital Total Fixed Cost Total Cost (Fixed + Variable) Total cost per bird Imputed value of family labour Gross cost per bird including value of family labour 3 6,371 22,696 1,463 30,530 66.37 522 91 712 1,325 31,855 68.25 736 69.85 1000 birds 10 9,875 34,546 1,706 46,127 63.62 1,080 145 1,076 2,302 48,429 66.80 1,480 68.84 Gorakhpur district 500 1000 birds birds 8 17 5,955 17,974 1,388 25,317 67.51 561 91 591 1,242 26,559 70.82 804 72.97 13,682 42,675 1,828 58,185 65.75 1,025 151 1,358 2,534 60,719 68.61 1,610 70.43 (Rs.) Total Sample 500 birds 11 6,068 19,262 1,408 26,739 67.15 550 91 624 1,265 28,004 70.33 785 72.30 1000 birds 27 12,272 39,664 1,783 53,719 65.06 1,046 149 1,253 2,448 56,167 68.02 1,562 69.91 B (i) (ii) (iii) E F 30 Rs.per DOC.to Rs. 965/-. particularly those who have smaller units. 865/. 615/. Total sample 500 birds 1000 birds 15. particularly when institutions like Central Avian Research Institute (CARI) is located at the district head quater itself which claims to be doing lot of work in the field of poultry sector. No.respecfively. 835/.00/. The results of the economic analysis of samples in Bareilly is quite discouraging. Rs. total cost excluding and including imputed value of family labour has been estimated and the same in presented in Table 5.whereas the prices of DOCs in market at the same time was found to be ranging between Rs. Therefore. No significant difference in the average prices of various feed items was observed as almost all the entrepreneurs were found to be using only branded feeds either manufactured locally (particularly in Gorakhpur district) or by a company having presence in more than one state in country.to Rs.7 The average price of Day Old Chicks (DOCs) in Bareilly district was found to be comparatively lower than that in Gorakhpur district which was primarily because of the fact Central Avian Research Institute (CARI). 14. average DOC prices was estimated to be lower in Bareilly district.22 47. However.88 48.46 15.to Rs. As observed in the field. was found to be quite comparable across the selected districts of Bareilly and Gorakhpur.02 Day Old Chicks Value of total feed consumed per bird 5. on an average.5.85 49. In Bareilly district. grower/developer feed. Similarly. Izzatnagar (Bareilly) also supplies DOCs to farmers at Rs.It may be seen from Table 5. The prices of these feed mixtures was also varying from season to season depending upon the harvesting period of different ingredients of these feed mixtures.4). the items of fixed cost (depreciation on shed and other capital items and interest on fixed capital has been estimated for single batch assuming six batches per annum..6 The gross cost per batch of the selected broiler units on total sample as well as separately for the selected districts has been presented in Table 5. 935/. Therefore. Table 5. 550/.and Rs.3 that the average variable cost per bird is more in case of smaller units as compared to that in case of larger units although no definite trend is visible in the prices of day old chicks and feed cost per bird per batch (Table 5.65 Goral(hpur district 1000 500 birds birds 15.5 that net return over various cost items is lower in Bareilly district as compared to their respective net returns in Gorakhpur district and also on the total sample size. the farmers. A discussion with officials of CARI reveals that the 31 *!• .8 The net return over variable cost.00/.93 (Rs.) . 815/.4 48. grower/developer per bag of 70 kg and maize per bag of 85 kg was found to be ranging between Rs. 885/-. value of total sum of all the feed.to Rs. starter feed.Gross Cost per Batch 5.50/.65 13. on an average.to Rs. are able to recover only variable cost and have been found to be making losses when the value of their own labour (family labour) was taken into account.4: Average price of Day Old Chicks and the feed SI. 16. the entrepreneurs were rearing six batches of broiler imits every year.25 14. The price of starter feed per bag of 70 kg.3. the combination of feeds viz. Net Return 5. 10. concentrate feed and maize was found to be varying to a large extent even from farmer to farmer. (i) (ii) Particulars Bareilly district 1000 500 birds birds 13.34 47. concentrate feed per bag of 70 kg.86 48. It may be observed from Table 5. A similar situation to this was also observed in Gorakhpur district where some other four traders were controlling the entire Gorakhpur market. The entire broiler market in Bareilly district was found to be in hands of only four traders who were procuring the majority of the broilers from Punjab & Haryana states through Delhi Mandi.02 Gross cost Including FL (-)1.51 1.54 2661 1396 611 15966 8376 3666 7. However.85 value of family labour (FL) Net return per bird over Variable cost 1. particularly in Bareilly district was also found to be artificially suppressed by the traders who did not want the local entrepreneurs to grow and expand their business.25 family labour Gross cost per bird including 69.38 63. had led to higher demand for poultry meat in the district and therefore.33 72.84 72.good being done by them is not being brought to the knowledge of the actual users due to poor extension support on account of lack of staff as well as sufficient budgetary provision for the same.5: Net Return from broiler units SI.76 2.10 To examine the financial viability of investment in broiler units .15 70. As opined by many retailers.74 67.58 0. the local broiler units in Gorakhpur district were able to market their produce through sub-wholesalers and the retailers. On the basis of cost and benefits calculated in the previous sections. these traders were paying less to the local broiler suppliers than the prevailing market prices.61 70.6 for total sample of 500 birds model (11 units) and in Table 5. Net Present Value (NPV) and the Benefit: Cost Ratio have been worked out.58 Net return per unit per batcti Variable cost 876 Gross cost excluding FL (-)449 Gross cost Including FL (-)1185 Net return per unit per annuiti Variable cost 5256 (-)2694 Gross cost excluding FL (-)7110 Gross cost Including FL 5.3 65.9 Gross cost excluding FL 0. A B (i) (ii) (iii) C (i) (ii) (iii) D (i) (ii) (iii) E (i) (ii) (iii) Particulars Bareilly district 1000 500 birds birds 68.84 Gorakhpur district 500 1000 birds birds 76. As observed and gathered through different sources. Financial viability of Investment 5.26 4.43 3331 2089 1286 19986 12534 7710 7.8 68..69 3.13 3.32 67.02 69. etc.58 3.27 69.06 68.4 73. No.91 Gross income per bird Gross cost Total variable cost per bird 66.75 68. entrepreneurs. (FRR).51 70.3 2.82 72.54 4177 1875 395 25062 11250 2370 8.99 5. Table 5.) Total sample 500 1000 birds birds 73.7 for total sample of 1000 birds 32 .89 5.9 The lower returns.97 65.62 66. the most of poultry units were running in viable proposition even though the number of such units were comparatively more in Gorakhpur district.41 5999 3551 1989 35994 21306 11934 5. This coupled with comparatively higher population.31 7071 4537 2927 42426 27222 17562 6.37 Gross cost per bird excluding 68.43 (Rs. cash flow analysis has been carried out for the life of the project and cash flow statements are presented in Table 5. the per capita poultry consumption in Gorakhpur district was higher . Financial Rate of Return. However. 33 . The residual value has been taken as 10% of the cost of the investment and has been taken into 10th year of the model. Employment Generation 5.model (27 units) of the present study. (iii) The costs and returns used were those actually paid out and received by the beneficiaries under both the categories.and Rs. The imputed value of family labour was calculated based on the prevailing wage rate in that village taking into account the total period of engagement in the poultry unit. A total of 1. it was not a full day engagement of even one person.6 persons (all family labour) per unit were found to have been engaged in the units larger than 500 birds. (-)2614/. In case of larger units too. 5.1 per cent and 23. most of the units covered (10 out of total 13 units) were those who had not availed any loan. The general feeling of poor prospect of broiler sector in the Bareilly district can be changed through effective extension network. The following assumptions have been made in the cash flow analysis: (i) The economic life of the shed and other capital items have been assumed as 10 years and but the cash flow statement has been prepared for 15 years only.12 It was observed during the field visits. (ii) The cost incurred on chicks.11 The financial Rate of Return worked out to 14. hired labour was not employed in any of the 27 units covered in the study.in case of 500 birds model and 1000 birds model. feed and miscellaneous items was excluded from the capital cost and was included in the recurring cost. In Bareilly district. (-)4901/. The Net Present Values were estimated negative at Rs. The interest on working capital and interest on fixed capital have also been included in variable cost and fixed cost respectively. in most of the cases. the units rearing birds less than 500 were being managed by the owners themselves single handedly with occasional help from the family members.57 per cent in case of 500 bird model and 1000 bird model. g^ .02 . No. Particulars 0 1 I a) b) c) Cash Outflow: Capital Cost Replacement cost of Shed & other capital items Recurring Cost Total outflow 42385 168024 168024 168024 168024 168024 168024 168024 168024 1 42385 168024 168024 168024 168024 168024 168024 168024 168024 1 II a) b) Cash Inflow : Gross income Residual value of Shed & other capital iteriQs_ Total inflow Net cashflow FRR 176400 176400 176400 176400 176400 176400 176400 176400 1 0 176400 176400 176400 17640^ 176400 176400^ 176400 176400 1 -42385 14.10% -2614 1. A Table 5.1 III 83g^^^376 2 I J 3 7 6 3 8 3 7 ^ 8376 8376 8376 8376 IV NPV BC RATIO B^ .6 : Cash flow and FRR of 500 Units Broiler Sample Broiler In Bareilly & Gorakhpur districts 11 units Years 4 SI. 7 : Cash flow and PRR of 1000 Units Broiler Sample Broiler In Bareilly & Gorakhpur districts 27 units Years 4 SI.B Table 5. No.57% -4901 1.03 :1 35 rawMffirisnp™~5(«i3t^ . Particulars 0 I a) b) c) Cash Outflow: Capital Cost Replacement cost of Shed & other capital items Recurring Cost Total outflow II a) b) Cash Inflow: Gross income Residual value of Shed & other capital items Total inflow Net cashflow FRR NPV 79836 1 2 337002 337002 337002 337002 337002 337002 337002 337002 3 79836 337002 337002 337002 337002 337002 337002 337002 337002 3 358308 358308 358308 358308 358308 358308 358308 358308 3 0 358308 358308 358308 358308 358308 358308 358308 358308 3 -79836 21306 21306 21306 21306 21306 21306 21306 21306 III IV EC RATIO 23. employment generation and diversification for the crop production. etc. During summer days. and wage opportunities. This has resulted in over crowding of the birds. Poultry Equipments 6. In Bareilly district. In both the districts.CHAPTER . waterers and feeders varied from unit to unit. water and higher feed conversion ratio.1 In the two districts under study i.depending on the supply and demand position. There is a gap in production depending on various factors like availability of chicks. Presently the activity is market driven.1 Except in 8 cases where design and size of the sheds were found to be satisfactory.2. and also to ascertain bankers' views on the development of the activity through credit and also to find out the technical soundness of the units already financed by the various banks in above districts. The technical soundness of the existing units financed by the banks are discussed under following major technical parameters : Construction of shed 6. Availability of day old chicks (DOCs) 6.to Rs. Haryana. 1/DOC.5. poultry development is being taken up as wage earning activity by the farmers besides other agriculture activities. high mortality. financing of more number of broiler units as compared to layer units. better cash returns. 6. low level of investments. In absence of regulated market.2.13. low productivity. In view of the importance of the activity in terms of availability of quality protein. availability of feed and the demand for the poultry produce which are being controlled by market forces. from different hatcheries with cost ranging from Rs. the activity is yet to make commercial impact.2 Number of brooders. poor light and ventilation.l6/. The supply is not regular and also erratic. The role of bankers in financing the poultry units is not significant and pronounced over last three years. DOCs are being supplied from Delhi. the small farmers are exploited to the maximum extent. day old chicks (DOCs) are being supplied by hatchery units through network of dealers on demand from the farmers. spillage of same soiling of litter and high mortality. The cost of equipments varied from Rs. It was 36 . high incidence of diseases.e. The equipments were available in the local market through dealers.VI TECHNICAL SOUNDNESS OF POULTRY UNITS 6.3 In both the districts. Bareilly and Gorakhpur. the following observations are made during the course of the study. This affected growth of birds and resulted in wastage of water and feed. wastage of feed.2 The study was confined to broiler activity due to its low gestation period. Punjab. in rest of the cases the sheds were not constructed as per the recommended design and were found to have been constructed with locally available building materials as per the understanding of poultry rearer. There was no standard followed. The scientific approach for construction of shed for better production of healthy birds was not followed due to poor knowledge of the construction of the shed and also lack of advice from technically qualified staff in both the districts.2. cost of transportation is charged @ Re.75 to 165 depending on the size. of Animal Husbandry that due to scare of Fowl fever during 2002. As there is lack of awareness about brooding.2.4 In Gorakhpur district. It is also reported that feed is also being supplied not only to the various districts of UP but also being exported largely to Bihar and Nepal. In 95% of the units observed. groundnut cake. almost all the poultry rearers stopped rearing of birds and large number of poultry units incurred heavy financial losses due to crash in demand for the broilers.000 tonnes of feed per month who are supplying feed to poultry units through a network of dealers. Almost all the hatcheries are confined to Cob breed. Captive feed production was not practised due to the poor knowledge of the poultry rearers. they are : Starter. Finisher. rice bran. feed was procured from feed manufacturers. It could be seen if Govt. sunflower cake. 6. This has also resulted in low repayment to the banks and closure of large number of units.2. Majority of them are situated in Gorakhpur. in 37 .2. But some of the good entrepreneurs who sailed through the crisis of 2002 were found keeping their flocks with better economic returns. bankers as well as officials of Deptt. No instance of major poultry diseases are being reported in the sample units. feed is being manufactured and controlled by private feed mills. The situation is being totally exploited by the feed manufacturers in terms of the quality and also the cost of the feed. Farmers complained that due to poor quality of the feed.10% and also higher FCR ratio. artificial Lysine is being used as a component.25. The common ingredients used are maize. there is no control of any agency in respect of quality of the chicks supplied. A well knit trading activity for feed ingredients is existing especially in Gorakhpur district. Due to the demand. In both the districts. Concentrate. mustard cake. the various ingredients are being procured from neighbouring districts depending upon availability of same in local areas. But it was reported by the farmers. they are unable to produce birds at lower FCR which puts them into low economic returns of the birds. the body growth has been stunted. soya bean. It is reported that there are number of hatcheries existing in Gorakhpur district within a radius of 10 kms who are supplying day old chicks not only to Gorakhpur district but also being transported to various districts of the UP. Bihar and also to some extent to Nepal which is bordering the Gorakhpur district. MBM and in absence of fish meal. In both the districts. It was reported that the colour breeders are being supplied by one of the hatcheries naming Croiler for the backyard poultry imits which ranges from 20 to 200 birds per unit. help would have been timely received by the poultry rearers in crisis time of 2002. Availability of feed 6. An impression has been created among bankers that the poultry activity is a loss making activity hence large units were not sanctioned during the last 2 to 3 years in both the districts. Usually three types of feed are being supplied.5 The feed is a major and important component for the economy of the units. DOCs are being supplied from hatcheries existing in Gorakhpur district. This has resulted into high rate of mortality ranging from 3 .found that DOCs are supplied without vaccination iuid the vaccination cost has to be borne by the poultry rearers adding to the expenditure.6 It was observed DOCs are not being vaccinated as per the norm resulting into high mortality. It is reported that there are 13 feed mills in Gorakhpur manufacturing 1. It is estimated that about 30 lakh chicks are being supplied from these units every month. Health coverage 6. It was complained that people who are actually doing the poultry production activities are never being considered for training facilities. losses should have been averted in both the districts. quality of feed and disposal of dead birds. of AH. quality of chicks. Training and skill of the borrowers 6. Cleanliness and Hygienic Conditions 6.8 It was found all the sample borrowers had no formal training and skill in rearing the birds. Bareilly has been found to be poor and is unable to make desirable impact on the poultry industry in the district. There is a felt need of intervention of both public and private sector for better management of health of the poultry units. Management of the Birds 6.terms of proper advice through various media. The sheds were cleaned and disinfected after disposal of one batch and before introduction of fresh batch. The probable reason attributed is poor extension and training facilities with the institute. It is reported that 9 out of total 60 borrowers covered in the present study had undergone training in poultry management during last 2 years in both the districts. it was indicated that due to poor budgetary support and lack of the facilities they are unable to impart training to a large number of borrowers as per the demand. The transfer of technologies has been also found very poor in both the districts.2.7 The management of the units was found very poor in terms of hygiene. 38 . package of practices.2. On discussion with the CARI and the Deptt.9 It was observed that general cleanliness was maintained in most cases. All needed vaccines and veterinary medicines are available to poultry units through network of dealers.2. The poor knowledge of production activity resulted into economic losses and low repayment to the banks. This present state of affairs is largely attributed to non availability of required training facilities in both the districts. It is surprising to note that the contribution of Central Avian Research Institute (CARI). They were found doing the activity as being told by their neighbour or being advised by the dealer of chicks or supplier. Lucknow is manufacturing quality poultry vaccines viz.1. 68 lakh as its share to farms in Ghaziabad (Babugarh farm) and Lucknow (Chak Ganjaria farm) districts and Rs.per beneficiary/unit were provided on 100% subsidy basis. With the objective of strengthening and making the Government farms self-sustainable. The facilities/support being extended by the Government for the development of poultry sector in the state of UP are summarised below: 7. the interaction with the Chief Technical Officer (Poultry). (v) Bharari in Jhansi district for broiler/layer and (vi) Chargawan farm in Gorakhpur district for broiler/layer. 36 lakh as its share to Chargawan farm in Gorakhpur district. the Ministry of Agriculture and Dairying. Centre has made available Rs.5 Seven Intensive Poultry Development Projects (IPDPs) each headed by one Chief Technical Officer (CTO-Poultry) assisted by poultry Inspectors are under progress in Lucknow and Kanpur districts in Central UP. Aligarh and Bareilly districts in Western UP and in Varanasi and Gorakhpur districts in Eastern UP. Spiroketosis. 1600/. The rest of the districts are proposed to be covered during 2005-06. In the scheme. In addition to this. 7.1. of India has provided financial assistance under 80:20 (Centre:State) scheme to State Government farms. in Agra.1 To develop the poultry sector.CHAPTER-VII BACKWARD AND FORWARD LINKAGES A: BACKWARD LINKAGES I. 7. for the use of poultry farms in Uttar Pradesh.000 broilers/layers being established in the state of U. However.1. two PoUurum disease diagnostic labs at Varanasi and Moradabad and three mobile poultry disease diagnostic labs attached to Gorakhpur. etc.2 A scheme of development of Backward poultry has been taken up in UP from the year 2003-04.P.1. The projects aim at helping farmers to get loan under AVRY & other schemes and a 10 days training programme for youth and women having availed loan from banks. Government of Uttar Pradesh's Support to Development of Poultry sector 7. 17 districts during 2003-04 and 23 districts during 2004-05 were covered where 160 units (50 birds each) @ Rs. (iv) Chak Ganjaria in Lucknow district for broiler/layer. the activity of poultry farming will be eligible for all facilities and concessions being extended to the Agriculture Sector.P.1 The Department of Animal Husbandry & Dairying. The Biological Product institute. (iii) Babugarh in Ghaziabad district for broiler. provide infrastructure and extend help to promote the sector through linking the product to national and international market. Recently. the government need to act on three fronts : formulate policies aimed at attracting large investment in the sector. 7. Thereby. Govt.. 1021/12-P-2-2000 dated 20 April 2000 has provided the Status of 'Agriculture' to the poultry units and or hatcheries upto 10. has established 10 regional disease diagnostic labs at various places in the state and one Central Lab at Lucknow. Ranikhet disease.3 The Govt of Uttar Pradesh vide its notification No.4 The Dept. has established 6 hatcheries cum poultry farms which provide quality chicks to poultry farmers. Moradabad and Lucknow regions have been established. 7. These farms are located at (i) Chanpur in Varanasi district for broiler (ii) Bhojipura in Bareilly district for broiler.1. Fowl pox. Bareilly & its staff gives an impression that not much 39 . Govt of U. progress could be made in these IPDPs due to non-availability of grant for developmental work even for stationery.3 Realising the importance of avian research. Sant Kabir Nagar. Etawah.000 birds capacity at Agra. Design and Construction of Shed 7. vaccine and to some extent marketing also.1. 7. However. Gonda. Further. development of economic feeding system for avian species. logistic and financial support. Malihabad and Chak Ganjaria (Lucknow) which are likely to be made operational soon. The CARI is doing lot of research on conservation and utilisation of indigenous fowl. feed. it was observed in the field that most of research output of CARI were not reaching to the farmers. the breed is not able to register a good share in the market. The discussions with officials of the CARI. These centres will provide integrated poultry facilities like chicks.4 As mentioned earlier. These houses constructed by the entrepreneurs were found to have been exposed to unhygienic conditions. has led to poor presence of CARI in the field. the Cobb 100 breed owned by Venkateswara Hatcheries is the most popular breed which account for 60-70 per cent of all the broilers produced in India. enhancement of shelf life of products and by-products. 7.5 As mentioned earlier..H & Dairy is giving greater emphasis on the development of dairy sector in the state and it is not able to provide much attention on the development of poultry sector due to non-availability of separate budget for poultry development. Chak Ganjaria. Ghaziabad.. genetic improvement of various avian species. ICAR established the Central Avian Research Institute (CARI) at Izzatnagar. and to provide all round support to the progress of poultry production in the country. medicine. Varanasi. etc. the Poultry Inspectors do not even get any TA/DA for making visits in their service area although a total of 478 visits by Poultry Inspectors & 78 visits by CTO were made for extension of poultry sector in the district. Therefore.2 It has been gathered that the Dept of A. 40 . 7. most of the sample beneficiaries had not constructed the sheds in accordance with the scientific parameters. the Dept also arranges to provide training to the needy entrepreneurs at Central Avian Research Institute. the 'Devendra' Breed of CARI has found some acceptance in the field but due to the short supply of DOCs to the farmers.7 The Dept provides training programmes for the entrepreneurs interested in establishing poultry units at its own centre at Poultry Training Centre. Lucknow. II Research & Development . Bareilly.6 The Department has constructed 11 poultry sheds of 20. Unnao. Dept is not able to do the justice with most of the activities listed above which require budgetary support from time to time. Izzatnagar. Aligarh. 1979 by combining Poultry Research Division of Indian Veterinary Research Institute and All India Co-ordinated Research Project on Poultry Breeding at IVRI campus. However. Bareilly on November 02. development of suitable management practices for shelter and reproduction. Extension Division including the Krishi Vigyan Kendra reveals that lack of poor extension network in terms of manpower.1.Central Avian Research Institute (CARI) 7. etc. In addition to this. 7. the dealers were supplying both the feed as well as DOCs to the farmers. most of the hatcheries listed in annexure do not maintain parent stock and get the hatchable eggs from the Hatcheries maintaining parent stock. It was also gathered that the mortality was comparatively high than the prescribed norm of 2%. feeding in terms of quality of feed. However. both the districts face extremes of climatic conditions. resource base and. Infact. viz. 41 . 7. and government extension network. The feed from two reputed brands 'Godrej' feed and 'Gold mohar' from Hindustan Liver were found to be most popular brands amongst the broiler producers as they were maintaining the quality/standard of their feed although these brands were priced slightly higher. lack of regular power supply is a major constraint to the development of poultry. quantity and time of feeding. the reliability of most of the other brands were yet to be established although they were in the market for quite some time. environment control measures.. There is need on the part of Department of Animal Husbandry and Veterinary Services. structure/ design of sheds.9 However.6 One of the major problems faced by the sample beneficiaries was lack of proper power supply. Availability of Quality Chicks and Feed 7.10 The management practices in the study area were found to be varying from unit to unit based on the knowledge/skill. However. it was gathered that most of these hatcheries were supplying poor quality of DOC that too without proper vaccination. vaccination and other veterinary cares.7 It was gathered that the broiler units in Bareilly district were getting DOCs mainly from Venkateswara Hatcheries. Since. etc. It was also reported that the brands were regularly changing the ingredient's combination depending upon the availability and price of these feed ingredients. It was reported that some of these producers were also changing the name of their brand once that particular brand failed in the market. The list of Feed Units and the list of Hatcheries in Gorakhpur division are given in Annexure I & Annexure -II. M/s Kegg Farm and Eastern Hatcheries in Gorakhpur district and Western Hatcheries in Allahabad district. It was observed that the entrepreneurs were hardly getting any technical assistance from the supplier of DOCs. Dehradun and some other hatcheries in Haldwani and Kashipur of Nainital district. The payment for DOCs was found to be mainly in cash whereas credit for some period was allowed in case of feed. Most of the beneficiaries were using gas cylinders for lighting and heating purposes in the sheds. 7. most of the small units were getting the DOC through the dealers only located at urban centres like Bareilly. etc. spacing.8 The broiler units in Gorakhpur district were getting DOCs as well as feeds from Gorakhpur itself as there were about 24 Hatcheries (19 in Gorakhpur only) and 17 Feed manufacturing units (13 in Gorakhpur) in and around Gorakhpur district. Therefore.Power Supply 7. Government of UP to initiate strict quality control measures for ensuring supply of good quality chicks to farmers. Management practices 7. Power supply in both the districts was irregular and lack of power supply for long hours was experienced. Consumer' channel. wholesalers and retailers. 'Producer-Wholesaler-Retailer-Consumer' channel.13 The share of these channels in the total marketed produce is given in Table 7. in case of small units. i. 7. 0.15 It was observed that the broiler market of Bareilly district was being controlled by a group of 3-5 traders and that of Gorakhpur broiler market by another group of 3-4 traders.1 : Share of marketing channels in total sale Channel Bareilly 500 birds 1000 birds (per cent) Gorakhpur 1000 birds 500 birds Producer-Wholesaler-Retailer-Consume r Producer .Retailer .to Rs.12 The following three marketing channels were found to be working in the selected districts for the marketing of the broilers.Consumer Producer .Retailer .1. However. (i) Producer.Consumer (ii) Producer .Retailer . etc.Consumer Producer .per kg) rate to the producer but purchase less quantity depending upon his average sale per day.1 that comparatively larger units sell major portion of their produce to wholesaler who used to lift the entire lot at a time but pay comparatively less to the producers. producers prefer selling the major chunk to retailers/ local vendors who pay slightly higher (Rs..Retailer . It 42 w .e.50/.Wholesaler .Retailer .11 The forward linkages in case of broiler units consist of processing and marketing of broilers being reared at the farms managed by the individual entrepreneurs. It may be observed from Table 7. Table 7.5% to 13% in the only channel seen in the study area. Marketing 7. It was reported that the margin of various players in the market was varying from season to season.2 : Producer's share in Consumer's rupee Channel Producers share Wholesaler's margin (per cent) Retailer's margin Producer-Wholesaler-Retailer-Consum er Producer . The retailer's share was found to be ranging between 14-23% upon different channels available in the study area. lean period to festive seasons. 1. the producer's share was found to be varying from 71% to 78% in case of 'Producer-Wholesaler-Retailer-Consumer' channel and from 77% to 81% in case of 'Producer .5-13.0% - 14-19% 19-23% - 7. The wholesaler's margin was found to be ranging between 7.14 As gathered from different sources as well as ascertained from producers.Consumer (iii) Producer .Consumer 35 56 9 69 28 3 41 53 6 61 34 5 Table 7.Consumer 71 -78% 77-81% 100% 7.Consumer 7.50/.B: FORWARD LINKAGES 7. Processing of Broiler Meat 7. However. Similarly. the imported frozen/chilled products are yet to find sufficient market share in Indian poultry market. the Indian broiler market is dominated by a huge number of small private growers. at present. Further. in many parts of the world. demand for processed poultry meat is itself a great obstacle in the development of processed poultry meat market.16 Given that India is an attractive poultry destination due to its fast growing consumption. since Indians prefer fresh poultry meat from the wet market. many global poultry companies have been trying to import their products into our country. some 3-4 other traders were quite active who were reportedly selling a minimum of 10 quintals of broilers per day. Processing and marketing of poultry ranges from live bird markets or a very primitive on-site slaughter and sale in India to a highly sophisticated. in case of India. In Gorakhpur too. if it is serious to capture the huge poultry market at international level.was gathered that the per day consumption of Broiler in Bareilly city itself was ranging between 7000-7500 birds including the supply to army cantt. integration of produce or the producers appears to be a distant reality in India. However. Establishment of a separate Poultry Board could be the right move on the part of Government. This can be addressed through suitable marketing strategy on the part of private/corporate sector. 43 . fully automated and international Standard Organisation (ISO) certified facilities and ready-to-eat convenience products. In Gorakhpur district.0% 40.VIII REPAYMENT PERFORMANCE OF BROILER UNITS 8.7% 45. In Bareilly district. a better recovery percentage.2 The agency-wise overall recovery percentage in Bareilly and Gorakhpur districts is furnished in Table 8.3% 37.5% 45.2% 33. higher flow of credit is not matched with better recovery percentage but the bankers are forced to disburse more loan under a particular sector either under compulsion from their corporate decision or to comply to some specified government policy forced on them on political considerations. although district of Bareilly is comparatively more advance/progressive.3 Branch-wise recovery performance of selected borrowers is analysed and presented in Table 8.2% 44. may encourage the bankers to advance more loan under poultry sector. It may be observed from the above table that the general recoveiy in the selected branches has been very poor (less than 15%).1). since 27 out of total 30 units covered were not existing at the time of field visits.2. The agenecy-wise recovery environment in Gorakhpur district is better than that in Bareilly district (Table 3. Whereas poor recovery in case of Sahjanwa branch was mainly because of poor follow-up by the bank officials for monitoring of units as well as recovery of loans.8% 48.1 : District-wise recovery position District Bareillv June 2003 June 2004 June 2005 Gorakhpur June 2003 June 2004 June 2005 CCB 32. if achieved.0% RRB 69% 71% 71% 63.1 An attempt has been made in this chapter to examine the repayment performance of the sample beneficiaries.3% LDB 34.per unit) leading to establishment of smaller units.4% CBs NA NA NA NA NA NA Branch-wise Recovery performance and Reasons for default 8.5% 62% 63.CHAPTER. particularly in Bansgaon and Sahjanwa branches of Gorakhpur district and the Bareilly branch of Bareilly district. Table 8. Although the share of poultry sector in total ground level credit flow in Bareilly and Gorakhpur districts has been negligible. 27.286/. In case of Bansgaon branch.7% 15.4% 62. the recovery realised in the accounts of the sample borrowers was from other sources. poor recovery was mainly due to poor income generation on account of under financing (Rs. the average recovery performance was better in Gorakhpur and Khajani Branches due to better follow-up by the bank officials. Sometimes.1% 44. 44 . The farmers in Bareilly district are able to divert more area to cash crops as the average size of agricultural land holding is higher in Bareilly district. General Recovery Environment in the districts 8. The reasons for poor recovery performance in case of Bansgaon and Sahjanwa branches were found to be different.1. 688.5 Data on recovery performance of beneficiaries financed by UP Sahakari Gram Vikas Bank in Bareilly district is presented in Table 8.1 58.1 10.852 Recovery % 6 15.407 54. The recovery percent of units financed during 2002-03 was better at 27.of sample beneficiaries 2 9 9 12 30 Demand 3 512.4 Data on recovery performance of beneficiaries financed by UP Sahakari Gram Vikas Bank in Gorakhpur district is presented in Table 8.4 : Recovery Performance of Sample Beneficiaries.65% in case of units during 2003 . out of total 30 sample units selected.466 10.193 502.00 27.665 1.000 25.371 172.02 was mainly due to under financing.894 Balance 5 89. the recovery percent has shown a declining trend.533 12. In case of Bareilly district.04.2: Branch-wise Recovery Performance of Sample Beneficiaries as on 31.85 34.65 26.788 446.of sample beneficiaries 2 7 14 9 30 Demand 3 105.746 Collection 4 15. The recovery performance of units financed during 2001-02 was 15 percent.977 10.870 56.693 207.59 45.472 Balance 5 298.3: Recovery Performance of Sample Beneficiaries.59 and was highest at 45.385 29.250 31.466 18.887 2.5 21. Table-8.Table-8.773 19. In Gorakhpur district.693 84.022 25. The better recovery performance of units financed during 2003-04 is mainly due to higher income generation from these units and also repayment from sources other than that from the units financed. which led to non starting or closure of units.30 33.067 546 9.421 Recovery % 6 41.236 7.014^ 119.278 Collection 4 3.257 930.562 3. Loan disbursed Demand 3 53.3.408 470.252 Balance 5 22.667 27.026 1 0 2 3 3 1 NoofA/c regular Recovery % 6 14.286 65. 2002-03 and 2003-04 respectively.333 35. 7.342 301.858 79.551 286.4 29.4 53. the recovery 45 . In case of units financed during 2001-02. The poor recovery of units financed in 2001 . 14 and 9 units were found to have been financed during 2001-02.035 386.655 3.893 Collection 4 213.1 4.58 8.Goralchpur Year 1 2001-02 2002-03 2003-04 Sample No.017 6.6 Recovery Performance of Sample Borrowers 8.4.73 21.774 326.741 3.3.2005 Name of branch.822 330.400.318 8.84 Table-8.Bareilly Year 1 2001-02 2002-03 2003-04 Sample No. 1 Bareilly District Bareilly Branch Meerganj Branch Gorakhpur district Bansgaon Branch Gorakhpur Branch Khajni Branch Sahjanwa Branch Sample size 2 15 15 7 8 8 7 Avg. The fear of attack of bird flu was found to be the common excuse for closing down the poultry units by different borrowers in the district. The discussions with these beneficiaries gave an impression that these beneficiaries had deliberately diverted the funds for other purposes.6 Data on recovery performance of sample beneficiaries (8 units) who were financed below Rs. 46 .10% of the demand) against a demand of Rs. 8.3 percent in case of units financed during 2003-04 due to realisation of better returns. which declined to 21. on an average. This suggests the need for strengthening of extension services for ensuring adoption of better poultry management practices to economise on cost of rearing and also market intervention to enable the poultry farmers to receive remunerative prices for broilers.percent was 41. In these 8 accounts. One of the major reasons can be attributed to under financing. With the present level of income there is also urgent need on the part of the financing banks to streamline the Debt Servicing Liability 8.(2. 42. the question of debt serving from income generated from the units financed by banks to the borrowers establishing poultry units does not arise as majority of units were either not established or had closed in the beginning itself. 8. 19. This was mainly due to closure of many units threatened by the fear of bird flu. resulting in increased margin money contributed by the borrower or abandoning the project midway by the boiTower due to lack of funds.875/-. The banks will have to finance the units based on its size and the unit cost and not based on collateral security. 30000/.by UP Sahakari Gram Vikas Bank indicates that 7 accounts out of total 8 such accounts were showing overdue of the entire demand amount. The recovery percent improved to 34.7 The overall repayment performance of the sample beneficiaries in the two districts is found to be poor. the beneficiaries were facing lot of difficulty in repaying the loan instalment. 47. 3000/. mainly for consumption. the actual recovery was found to be only Rs.9 In Bareilly district. These beneficiaries have not been able to meet the recovery demand mainly because they have either had closed down their units or had never set up the unit.033/-. Since the income level varied based on the market.85 percent in case of units financed during 2003-04. In case of Gorakhpur district. 17. The average loan disbursed in these accounts was found to be only Rs. farmers of 500 bird model and 1000 bird model were generafing a net income (over variable cost) of Rs.73 percent.986/and Rs.426/.per annum per unit which were found to be sufficient enough to repay the annual instalment of the bank loan. However. India eliminated its quantitative restrictions on poultry meat imports in April 2001. the market opportunities may expand significantly.00 Free 16. Producers prices of whole birds in India. However. the meat consumers usually prefer freshly slaughtered birds over the frozen meat. At present. However. Table 9.40 408 Poultry grandparent stock Free 40. particularly.02 Prepared/ preserved poultry meat Free 141. provide significant protection to the poultry industry. the market for frozen poultry meat is limited to a relatively small number of urban based customers.511 HTS = Harmonised tariff schedule 'Inclusive of special and additional tariff. Imports of poultry meat and products. phytosanitary regulations and clearance procedures applicable to poultry meat have not been clearly defined and this could aim at keeping a check on imports.1).1: Import policy for poultry and feed ingredients In India HTS Commodity Trade policy Tariff Poultry meat 207 108. Foreign Agricultural Services. the availability of com and soybean could affect the profitability of the units in area where production of these two crops are on a limited area and account for additional cost on transportation of these feed ingredients.4 In case of poultry production system. the availability of feed. to 141 percent for processed products (Table 9. Gain Report No. particularly.01 Sausages (including poultry) Free 141. though fairly high.2 Consistent with its Umguay Round market access commitment. 9. Lack of cold chain facilities and specialised transport vehicles currently limit the feasibility of handling large volumes of chilled or frozen product. Reducing feed costs include steps to improve quality of food. 9. The poultry production is not much constrained by the seasonality and the agro-climatic conditions although south Indian climate is most suitable where average temperatures.CHAPTER-IX CORPORATISATION OF POULTRY SECTOR 9. along with the poorly defined regulatory barriers. if the required support system for frozen poultry meat is developed and are supplied at a competitive prices. IN 104 5. captive feed preparation. are now subject to tariffs ranging from 40 percent for grandparent stock. tend to avoid the extremes of heat and cold. from local surpluses of com and soybean meal at internationally competitive prices. as well as poultry grandparent breeding stock. 47 .28 Eggs (table/hatching) Free 40. while higher than that in Brazil. Source: India Poultry and Products Annual 2001. USDA 9. the feed cost is considered as a critical component of production cost as it accounts for about 60 to 70% of total cost of production.3 In India. to 108 percent for poultry meat. compare favourably with those in the United States and in other Asian countries.28 16.40 407 Egg yolks Free 40. as applicable. This indicates that Indian producers have generally benefited from improved poultry management practices and.40 10. Tariff levels.1 Various literature suggests that India is an internationally competitive producer of poultry meat. Fish meal. However. either through local production or imports. WRS 04-03. but feed composition varies somewhat by region and season.6 Oil meal and feed concentrates can be imported without quantitative restrictions. January 2004. The current feeding practices suggest that the role of com and soybean meal in broiler feed will increase with future spread of integrated poultry operations. Imports of com for feed use are now administered by a tariff-rate quota (TRQ) regime that was introduced in June 2000. p 14. The major poultry feed ingredients in India is given in Table 9.improve feed conversion ratio including innovations such as pelletization and automated feeding. Com and soybean meal are the major feeds used in the broiler industry. The com as a source of energy and soybean meal as a source of protein are considered as technically superior ingredients for raising broilers. seems to hold the key to growth and competitiveness. WRS 04-03. In: India's Poultry Sector : Development and Prospects. as well as improvements in feed availability and logistics. Inilndia's Poultry Sector : Development and Prospects. 9. Importers of com under the TRQ are to be given quota allotments by the Exim Facilitation Committee within the Office of the Director General Foreign Trade (DGFT) in the Ministry of Commerce. Table 9. p 14. However. com was imported at a zero tariff but was subject to adhoc govemment decisions on whether com could be imported for feed or industrial use. USDA. USDA. and peanut meal are the most common protein substitutes for soybean meal. The most common com substitutes for energy are broken rice. imports on most feeds and ingredients are unrestricted and subject only to import duties (Table 8. and wheat. Imports of Sorghum can be done by an agency appointed by the govemment.35% 5% Source: Economic Research Service Survey. as on date. Earlier. Imports of oil meals and concentrates remain negligible because India has a large exportable surplus of oil meals. January 2004. millet.2: Major poultry feed ingredients in India Protein Other Soybean meal Soy oil Fish meal Sunflower oil Sunflower meal Minerals (Decorticated) Peanut meal Rice bran Meat meal 60 . intemal prices are generally near or below world prices. sunflower meal (decoticated).5 With the removal of quantitative restrictions on most imports as a result of the Uruguay Round Agreement on Agriculture. 9. subject to a duty of 50 percent. prior to TRQ regime. subject to tariff of 35-40 percent.2 below.3).65% Shares: 30 . these ingredients are sometimes changed by some available substitutes of energy and protein depending on the relative market prices. Ingredient Source: Energy Com Broken rice Pearl millet Wheat Sorghum Rice bran 48 . the availability of com and soybean meal at competitive prices. However. It is expected that the live-bird market will likely continue to dominate in India for the next few years due to slow pace of demand for chilled/frozen meat from household sector. therefore. the strong positioning of Cobb 100 in Indian market is due to government restrictions on imports of grandparent lines (till 1995) and better entrepreneurial skill of founder of VH. if a suitable strategy is drawn to increase the institutional demand for the. ^Inclusive of special and additional tariff. However.120 230990-02 Commodity Com. The preference for fresh food also extends to the belief that it is superior in taste in texture. Further.S. Avian (U.28 141.K.chilled/frQzen meat. IN 104 5.8 The Indian broiler sector operates completely as a live-bird market. either as grandparents. as applicable. Infact.40 HTS = Harmonised tariff schedule 'Canalized and TRQ items require import licences.3 Import policy for feed ingredients in India HTS 100. Hubbard (U. 9. fixed cost. lack of cold chain facilities and consumer preference. and also provides comprehensive veterinary services to its growers.OOO tonnes within quota tariff rate of 15% and above quota tariff of 50 %. This practice is in accordance of low level of faith of customers in the retailer for quality of the broiler. the demonstration effect of the same may increase the 9. it is primarily a layer breed and.590 100. retail prices are generally low in the southern and western states of the country as compared to those in northern and the eastern states on account of better integration of poultry production and marketing system in 49 .7 Although a number of poultry breeds are available in India.40 40.). Hybro (Netherlands).) and Anak (Israel) are also being produced and marketed in India.00 141. 9.Table 9. TRQ^ Free Free Free Tariff 108. Foreign Agricultural Services. parents or Day Old Chicks (DOCs). producer prices. for feed Sorghum Oil meals Fish meal Concentrate for compound feeds Trade policy' Free.9 A regional comparison of the economics of broiler meat production in India reveals that the average variable cost. Venkateshwara Hatcheries has a nation-wide infrastructure that supplies its breed to broiler units. WRS 04-03. there is currently no Foreign Direct Investment in broiler breeding in India.306 230. The Cobb 100 is now well established in Indian climate and it has proved to be a good 'breeder's bird'. with poultry sold as live-bird and slaughtered on retail shops.S. although Indian firms are importing breeding stocks and other breeding technology from foreign. Other breeds like Ross (U. p 30.700 2.). ^TRQ is 400. Januaiy 2004. In:India's Poultry Sector : Development and Prospects. Cobb 100 is a relatively older breed based on breeding stock imported form USA and benefitting from a long period of adaptation to Indian climatic conditions. the Cobb 100 breed owned by Venkateshwara Hatcheries (VH) currently accounts for 60-70 percent of all broilers in India. USDA.28 40. USDA. Source: India Poultry and Products Annual 200 f Gain Report No. provides a relatively less meat yield (75%) as compared to newly developed broiler breeds which yield upto 77-78% meat. particularly after removal of trade restriction in 1995. A Cobb 500 line and Cobb 400 (cross of Cobb 500 & Cobb 100) are also under development. The farmer provides the house and equipment to the integrator's specification. the standard grower's contract pays the grower a flat rate per live-weight kg of harvested bird plus a potential performance bonus (or penalty).10 In the southern states. labour and day-to-day management. the contract growing is well established and there is high degree of loyalty. In the southern and western regions. The contract farming in western states is a recent development and switching over to other partners even after contract with some one else is common. power. 9. The integrator provides the DOCs. A simple model of contract broiler farming is given as under: Fig : Contract Broiler Farming SMALL BROILER FARMS LARGE BROILER FARMS RETAIL SALES TRADERS/ BULK PURCHASER RETAIL SALES BULK SALES HOTELS RETAILS 50 .the southern and western states. fiiel. feed. Under integration. Bonuses are most commonly awarded for exceeding contractual performance bench-marks for mortality and feed conversion ratio. veterinary services and management guidance and is also responsible for removing and marketing of mature birds. The concept of contract farming in northern and eastern states need to be formalised in order to develop the poultry sector to a large scale activity. medicine. The contract farming is yet to be thought of in northern and eastern states. farmers are generally unaffected from the volatility in producers in the regional live-bird market. lakh) 2003-04 No of Loan disbursed units Bareilly Gorakhpur Total 10 128 138 7.15 257. Addition to Gross domestic Product 10. In this chapter. lakh) Contribution to GDP Bareilly Gorakhpur Total 171 224 395 85.17 19.03 79. 85.76 Employment Generation 10. 35.52 43.83 609.level has been discussed in chapter .5 66.1. an attempt has been made to estimate the impact of the investment at the macro level.97 lakh was disbursed.73 128 44 172 55. For this purpose.1 The estimate of benefits from poultry investment at micro. aggregate net income and employment generation in the study area.in Bareilly and Gorakhpur districts respectively.62 80.3 The estimate of Gross Domestic Product (GDP) due to investment in poultry (broiler) sector is presented in Table 10.4 The additional recurring employment opportunities created due to investment in broiler poultry in the study area has been estimated and presented in Table 10. a total of 395 poultry units were financed in Bareilly and Gorakhpur districts to which a loan amount of Rs.34 74.03 lakh was financed in Bareilly district and the rest 224 units with a bank loan disbursement of Rs.2: Total Broiler units financed in the selected districts District Units financed No of units Loan disbursed Proportionate number of successful units Loan No of disbursed units Gross income per annum (Rs.1 that during the study period (the years 2001-02 to 2003-04).and Rs. Table 10.2. The impact has been assessed in terms of broiler meat production.93 653.2.725. The total number of days of enagement has been arrived at by adding 4 days per batch (on account of cleaning of poultry shed and making arrangements for arrival of fresh batch of broilers) to average number of days of rearing of birds in the selected districts of Bareilly and Gorakhpur. Out of this.808 326.688/. 171 units with a bank loan of Rs. 164. 79.X MACRO IMPACT OF POULTRY INVESTMENT 10.2 It may be seen from Table 10.94 lakh was disbursed in Gorakhpur district. Total employment generation in Bareilly and Gorakhpur districts due to 51 .94 164. Table 10.51 10.5.1: Total Broiler units financed in the selected districts District 2001-02 No of Loan units disbursed 2002-03 Loan No of units disbursed (Rs.65 39. The average loan disbursement per account was found to be Rs.CHAPTER .08 46.97 17 187 219 8. the estimate of benefits from the investment at unit level has been blown up to measure the macro level impact.21 21.73 33 52 85 22. The total number of poultry units financed in the selected districts during the study period (2001-02 to 2003-04) is presented in Table 10.165 43. 49. of successful units Avg. Table 10. 52 .5 A perusal of the above table reveals that the impact of the investment was much higher in Gorakhpur district than in Bareilly district due to higher percentage of successful units financed in the former between 2001-02 to 2003-04. in lakh) Engagement In equivalent manyears Bareilly Gorakhpur Total 17 187 204 45 42 45 67 270 402 4.174 16 268 284 10.590 75.2: Impact on Employment Generation District No. However.financing of broiler units (adjusted to proportionate success rate) was estimated at 4590 and 75.174 mandays respectively which was equivalent to 16 and 268 manyears respectively assuming 280 days employment a year as full employment. No. of days of engagement per unit Per annum Per batch Total employment in mandays (Rs. of days of rearing No. the overall impact of poultry financing in both districts does not seem to be considerable as the financing of broiler was low and most of these units were comparatively small which did not have scope of employing labour on hiring basis. 5% since 1995-96. (Para 2. Based on the number of units financed by various branches. The share of livestock sector in the country's GDP remained more or less constant at around 5.78% during TE 2002.1) 2. 156.6 & 2. The share of poultry meat in total meat production has increased globally from 19. The State LDB (SCARDB) accounts for 99. A simple appraisal/ scrutiny note circulated by the controlling office of the bank was found to have been attached with each loan applicafion sanctioned by the UP Sahakari Gram Vikas Bank in the selected districts. Poultry is also a rich source of organic manure required to improve the texture and quality of soil. Gorakhpur. the branches of Bareilly and Meerganj in Bareilly district and the branches of Bansgaon. The process of identification of borrowers by the banks was found to be faulty due to lack of knowledge/expertise among the officials of the financing branches. (Para 2.XI SUMMARY AND CONCLUSIONS 1. A total of 60 sample units ( 30 each from Bareilly and Gorakhpur districts) financed during 2001-02 to 2003-04 representing various sizes of investment in terms of number of birds per cycle per unit were covered in the study. The nitrogen. the share of India in world total poultry meat consumption is quite low and has increased from 0.85% during TE 1963 to 1. Khajni and Sahjanwa in Gorakhpur district were selected for the study.46 % in 1981 to 12. In addition to this. (Para 1. The poultry meat has achieved significant positive growth rate in both developing and developed countries. (Para 1.14) 7. phosphorus and potassium content of poultry manure is almost twice that of cow manure. Therefore. (Para 3.7) 4. 120.10 % in 2002 in India.4) 3. The Value of Output from Livestock Sector in India is estimated at Rs.08 thousand crore and Rs.CHAPTER.5) 53 . (Para 1. 10 other entrepreneurs in Bareilly district who have not availed loan from any bank were also covered in order to see the economics of poultry units in the district as most of the units financed by SCARDB in Bareilly district were found to be inoperative at the time of the field visits. (Para 1. only State LDB (SCARDB) has been covered in the present study.4) 6.10) 5. In Uttar Pradesh. The reference period of the study was Financial Year 2004-05. It was also observed that most of the borrowers were not having any experience in poultry rearing.79% in 1981 to 30. the growth of the poultry sector in eastern part of the state is more pronounced than in the western Uttar Pradesh. It is estimated that the poultry industry provides about 2 million tonnes of poultry manure annually.24% of total NABARD refinance to the poultry sector in the State since most of the other banks are not availing refinance from NABARD although they are financing poultry units in the State of UP.14% in 2002 and from 4. However.94 thousand crore respectively. 65. 12000/-.10) 12. The effect of bird flu had an adverse impact on the poultry industry in the state. The maximum loan sanctioned by UP Sahakari Gram Vikas Bank in Gorakhpur district under the scheme was Rs. were the main reasons for closure of the units. The time lag between date of application and date of sanction varied from one day to 15 days in Gorakhpur district. (Para 3.lag between sanction and first disbursement of loan for the purpose varied between two days to one month in both the districts. high rate of mortality due to various diseases. (Para 3.and Rs. The average amt of loan disbursed in case of units having birds upto 500 and 1000 (more than 500 to around 1000 birds) was found to be Rs. lack of proper heating and cooling systems. There is need on the part of financing bank to ensure that birds along with the sheds are adequately insured and renewal of insurance is done at regular intervals. However.and Rs. the average period being about 07 days.14) 14. 72. 25 out of total 30 units covered were found to be existing at the time of field visits. particularly in Bareilly district. 1.8) 10.400/. The bank officials in Bareilly were not even aware of the current status 54 . 32. The districts of Bareilly and Gorakhpur showed entirely opposite trend in the establishment of units after availing the bank loan. In Bareilly district. in reality. (Para 3. faulty site selection.000/.7) 9. etc. (Para 3. It was observed that the amount sanctioned/disbursed by the banks had nothing to do with the financial norms like unit cost. whereas in Bareilly district the maximum and the minimum were Rs.in Gorakhpur district and Rs.9) 11. lack of proper awareness etc. equipment. The number of birds per unit sanctioned to different borrowers was found to be varying a lot and had no relation with the amount sanctioned against that many number of birds. the main consideration at the time of advancement of loan was mortgage of land. In Bareilly district it varied from 01 day to 37 days.in Bareilly district. (Para 3. The poultry sheds. only three units were found to be existing out of 30 units at the time of field visits.13) 13. 1. Although loans were to be advanced against hypothecation of poultry sheds. The bank officials were found to be worried only for their recovery of the loan. The bank accepted land as the collateral security. There was a lack of awareness among the beneficiaries that even the shed can be insured. The amount of bank loan was decided mainly based on the collateral security and not based on actual requirement of the beneficiary or on the size of the unit...5 percent irrespective of the loan amount.50 lakh and the minimum Rs. in Gorakhpur district. the average time lag being 07 days.15) 15. It was observed that none of the sample beneficiaries had insured the same. Interest rate charged by UP Sahakari Gram Vikas Bank varied from 11 percent to 14.8. (Para 3.00 lakh Rs. the beneficiaries of non-fiinctional units were also interviewed. The time.respectively. It was reported that fluctuating price of broilers.158/. (Para 3. 39. but it was purely based on the amount of land available with the borrower to offer as security. etc. In order to gain insight into the causes of failure of broiler units. (Para 3.16) 16. Many of the insurance agencies were reluctant to insure the birds in view of the technicalities involved.25000/. the average being 10 days. equipment and birds were to be insured by the beneficiaries.439/. The post disbursement follow-up by the bank officials was found to be lacking. and Rs.of the units. The follow-up and understanding of the bankers with the borrowers was slightly better in Gorakhpur district and usually the bankers were found to be aware about the units financed by them.1% on an average) of investment cost had to be met by the beneficiaries through their own contribution by way of margin money. (Para 5. 40. The weight gain per bird in case of smaller units was less than that in case of larger units although smaller units were found to have reared the birds for a comparatively longer period. 15. The major items of investment cost included Shed Cost (51. The average investment cost was Rs.7) 21. particularly those who have smaller units. 63. Not much difference was observed in average sale price of broilers in Bareilly and Gorakhpur districts and was found to be ranging from Rs. 76. However.9% of total investment cost). 69. The net return over various cost items was found to be lower in Bareilly district as compared to their respective net returns in Gorakhpur district.3) 22.76 kg) although average number of days per cycle was higher in Bareilly district (44 to 46 days).85 kg) than that in Bareilly district (1. A considerable portion (43. The average gross income per bird in Gorakhpur district (Rs. (Para 3.121.17) 17. 73.4) 19.40 in case of smaller unit and Rs.on total sample of 500 birds (11 units) and 1000 birds (27 units). During the field visits.381/. The borrowers contribution in case of smaller units was found to be more as most of these units were found to be owned by small farmers who had less land to offer as security and therefore. The average gain in body weight per bird in Gorakhpur district (41 days to 43 days) was higher (1. 35. (Para 5. viz (i) units of 500 birds (200 to 500 birds) per batch and (ii) units of 1000 birds (more than 500 birds to 1000 birds) per batch.27 in case smaller unit and Rs.26 respectively. 37. In Bareilly district.966/. sanction of less loan as compared to that of large farmers. 68. the smaller units are able to bargain better as far as price (farm gate price) realised per kg of broiler is concerned. the entire sample has been categorised into two groups. 7.18) 18.3) 23.74 in case of larger units) was found to be slightly higher than that in Bareilly district ((Rs. (Para 3.5% of total investment cost) and cost of day old chicks ( (Para 4. In the study area some of the other bigger units (non-sample units) were following the'relay'system of rearing. The average net return per bird over variable cost in case of smaller units and larger units was Rs. 6.04 per kg to Rs.087/.and Rs. Feed Cost (29. (Para 4. the average size of the units (in terms of number of birds) was found to be varying from 200 to 1000 birds except in one case (unit size=1400 birds). (Para 5.6) 20. All the sample farmers in the study area were found to be following 'all in all out' system of broiler rearing. the farmers.8) 25. (Para 4.51 per kg.69 and Rs. The average net return per unit per annum over variable cost in case of smaller units and larger units was Rs.994/55 .38 in case of larger units). (Para 5. were able to recover only variable cost and have been found to be making losses when the value of their own labour (family labour) was taken into account.5) 24. Therefore. The situation is being totally exploited by the feed manufacturers in terms of the quality and also the cost of the feed. Captive feed production was not practised due to the poor knowledge of the poultry rearers. The scientific approach for construction of shed for better production of healthy birds was not followed due to poor knowledge of the construction of the shed and also lack of advice from technically qualified staff in both the districts. Number of brooders.7) 56 . (Para 5. The transfer of technologies has been also found very poor in both the districts. Due to the demand. All the units covered in the study was found to have been managed by family members only. (Para 6. it was observed that sheds are constructed with locally available building materials as per the understanding of poultry rearer. quality of feed and disposal of dead birds. The supply was not regular. (Para 6.11) 27. The smaller units were found to be managed by owners single handedly with occasional support from other family member.2.1 per cent and 23. (Para 6. 3.12) 28. This present state of affairs is largely attributed to non availability of required training facilities in both the districts.respectively and the average net return per unit per annum over gross cost including family labour in case of smaller units and larger units was Rs. The financial Rate of Return worked out to 14.1) 29.and Rs.666/. 11.934/. high mortality. A well knit trading activity for feed ingredients is existing in Gorakhpur district.3) 31. The Net Present Values were estimated negative at Rs. wastage of water and feed. This has resulted in over crowding of the birds. In both the districts. The probable reason attributed is poor extension and training facilities with the institute. It is surprising to note that the contribution of Central Avian Research Institute (CARI). waterers and feeders varied from unit to unit. (Para 5.5) 26. This affected growth of birds.2. more than one person was engaged to manage the unit.2. the various ingredients are being procured from neighbouring districts depending upon availability of same in local areas. (-)2614/. package of practices.2. It was found that DOCs are supplied without vaccination and the vaccination cost has to be borne by the poultry rearers adding to their expenditure. quality of chicks. most of the units covered (10 out of total 13 units) were those who had not availed any loan.and Rs.57 per cent in case of 500 bird model and 1000 bird model. In the majority of the sample units visited by the team. In case of some of the larger units. spillage of same soiling of litter and high mortality.5) 32. There was no standard followed. Bareilly has been found to be poor and the institute is unable to make desirable impact on the poultry industry in the district. (Para 6. The feed is a major and important component for the economy of the units.in case of 500 birds model and 1000 birds model.2. poor light and ventilation. day old chicks (DOCs) are being supplied by hatchery units through network of dealers on demand from the farmers. The management of the units was found very poor in terms of hygiene. In Bareilly district. (-)4901/. (Para 6.2) 30. (Table 5.respectively. both the districts face extremes of climatic conditions. (Para7. The feed from two reputed brands 'Godrej' feed and 'Gold mohar' from Hindustan Liver were found to be most popular brands amongst the broiler producers as they were maintaining the quality/standard of their feed although these brands were priced slightly higher. Power supply in both the districts was irregular. The retailer's share was found to be ranging from 14-23% depending upon different channels available in the study area. Three marketing channel viz. It was gathered that the broiler units in Bareilly district were getting DOCs mainly from Venkateswara Hatcheries.7 & 7. 3000/.Retailer . 30000/.Consumer.5% to 13% in the only channel seen in the study area.(2.. In these 8 accounts.Consumer' channel.Consumer' channel. Therefore.H & Dairy was giving greater emphasis on the development of dairy sector in the state and it was not able to provide much attention on the development of poultry sector due to non-availability of separate budget for poultry development. (Para7. Most of the beneficiaries were using gas cylinders for lighting and heating purposes in the sheds.6) 36. (ii) Producer . (Para7.10% of the demand) against a demand of 57 . (Para8. As gathered from different sources as well as ascertained from producers.8) 37. i.Consumer and (iii) Producer . lack of regular power supply is a major constraint to the development of poultry. It was gathered that the Dept of A.e.. the actual recovery was found to be only Rs. (Para7. with lack of power supply for long hours. Data of recovery performance of sample beneficiaries (8 units) who were financed below Rs. wholesalers and retailers.8) 38. (i) Producer.12) 39.2. Dehradun and some other hatcheries in Haldwani and Kashipur in Nainital district.9) 34. It was observed that general cleanliness was maintained in most cases in Gorakhpur district. Branch-wise recovery performance of selected borrowers indicates that the general recovery in the selected branches has been very poor (less than 15%). It was also reported that the manufacturers were regularly changing the composition of the feed depending upon the price of different ingredients of the feed.Consumer were found to be working in Bareilly and Gorakhpur districts for the marketing of the broilers.by UP Sahakari Gram Vikas Bank indicates that 7 accounts out of total 8 such accounts were showing overdue of the entire demand amount. The broiler units in Gorakhpur district were getting DOCs as well as feeds from Gorakhpur itself as there were about 24 Hatcheries (19 in Gorakhpur only) and 17 Feed manufacturing units (13 in Gorakhpur) in and around Gorakhpur district. particularly in Bansgaon and Sahjanwa branches of Gorakhpur district and the Bareilly branch of Bareilly district.WholesalerRetailer.Wholesaler .14) 40.Retailer . The sheds were cleaned and disinfected after disposal of one batch and before introduction of fresh batch. (Para7. (Para7.Retailer . Dept has not been able to do the justice with most of the activities listed above which require budgetary support from time to time.2) 35. Since. (Para 6.3) 41.33. The wholesaler's margin was found to be ranging between 7. the producer's share was found to be varying from 71% to 78% in case of 'Producer-Wholesaler-Retailer-Consumer' channel and from 77% to 81% in case of Producer . 'Producer. the market for frozen poultry meat is limited to a relatively small number of urban based customers. The average loan disbursed in these accounts was found to be only Rs. The discussions with these beneficiaries gave an impression that these beneficiaries had deliberately diverted the funds for other purposes. the question of debt serving from income generated from the units financed by banks to the borrowers establishing poultry units does not arise as majority of units were either not established or had closed in the beginning itself. farmers were generating sufficient net income (over variable cost) to repay the annual instalment of the bank loan. In case of poultry production system. the market opportunities may expand significantly. to 108 percent for poultry meat. tend to avoid the extremes of heat and cold. if the required support system for frozen poultry meat is developed and/ the meat is sold at competitive prices. particularly. Consistent with its Uruguay Round market access commitment. With the removal of quantitative restrictions on most imports as a result of the Uruguay Round Agreement on Agriculture. (Para 9. as well as improvements in feed purchasing and logistics. (Para8. India eliminated its quantitative restrictions on poultry meat imports in April 2001. In Bareilly district.2) 45. The current feeding practices suggest that the role of corn and soybean meal in broiler feed will increase with future spread of integrated poultry operations.6) 42.4) 47. (Para 9. Producers prices of whole birds in India. though fairly high. while higher than that in Brazil.5) 58 . Imports of Sorghum can be done by an agency appointed by the govemment. the meat consumers usually prefer freshly slaughtered birds over the frozen meat. In India. compare favourably with those in the United States and in other Asian countries. At present. from local surpluses of com and soybean meal at internationally competitive prices. mainly for consumption. However. Various literature suggests that India is an internationally competitive producer of poultry meat. subject to a duty of 50 percent. This indicates that Indian producers have generally benefitted from improved poultry management practices and. (Para8. are now subject to tariffs ranging from 40 percent for grandparent stock. phytosanitary regulations and clearance procedures applicable to poultry meat have not been clearly defined and this could aim at keeping a check on imports. The poultry production is not much constrained by the seasonality and the agro-climatic conditions although south Indian climate is most suitable where average temperatures. In case of Gorakhpur district. to 141 percent for processed products. (Para 9. (Para 9.033/-. Imports of poultry meat and products. However.9) 43. (Para9. 47. as well as poultry grandparent breeding stock.1) 44. These beneficiaries have not been able to meet the recovery demand mainly because they have either had closed down their units Or had never set up the unit. Importers of com under the TRQ are to be given quota allotments by the Exim Facilitation Committee within the Office of the Director General Foreign Trade (DGFT) in the Ministry of Commerce.Rs. Reducing feed cost includes steps to improve feed conversion ratio including innovations such as pelletization and automated feeding. 17. on an average.3) 46. the feed cost is considered as a critical component of production cost as it accounts for about 55 to 65% of total cost of production. imports on most feeds and ingredients are unrestricted and subject only to import duties.875/-. S.) and Anak (Israel) are also being produced and marketed in India.93 lakh in Gorakhpur district.48. Imports of oil meals and concentrates remain negligible because India has a large exportable surplus of oil meals and internal prices are generally near or below world prices. Hybro (Netherlands). Avian (U.S. (Para 9. Cobb 100 is a relatively older breed based on breeding stock imported from USA.4) 59 Tl .). 164.6) 49. During the study period (the years 2001-02 to 2003-04).174 mandays respectively which was equivalent to 16 and 268 manyears respectively.). (Para 9. 85. Other breeds like Ross (U. (Para 10.94 lakh was disbursed in Gorakhpur district.03 lakh was financed in Bareilly district and the rest 224 units with a bank loan disbursement of Rs. 79. The contribution of the broiler units to the Gross Domestic Product (GDP) was estimated at Rs.83 lakh in Bareilly and Rs 609. a total of 395 units of poultry units were financed in Bareilly and Gorakhpur districts to which a loan amount of Rs.590 and 75. the Cobb 100 breed developed by Venkateshwara Hatcheries (VH) currently accounts for 60-70 percent of all broilers in India.2) 51. Although a number of poultry breeds are available in India. 43. Out of this. 171 units with a bank loan of Rs.7) 50. (Para 10. Hubbard (U.K.97 lakh was disbursed. subject to tariff of 35-40 percent. Total employment generation in Bareilly and Gorakhpur districts due to financing of broiler units (adjusted to proportionate success rate) was estimated at 4. Oil meal and feed concentrates can be imported without quantitative restrictions. 2.168 2.446 2.Mishra.009 2.266.RAssociate (Gorakhpur) M/s Asian Agro Products (Gorakhpur) M/s Star Feed (Gorakhpur) M/s Om Fees Industries (Gorakhpur) M/s Soni Feed (Padrauna) M/s Novratan Agro (Gorakhpur) M/s Usana Feed Mills (Gorakhpur) M/s Hi-Tech Agro Product (Gorakhpur) M/s Akash Feed (Gorakhpur) M/s Shree Ram Feed Industries (GIDA.250.Mall Shri S.P.455 2.204.209.ANNEXUREI LIST OF FEED MANUFACTURING UNITS IN AND AROUND GORAKHPUR SI no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Name of Factory M/s Agvet Foods & Feeds (Gorakhpur) M/s Naveen Feed Industries (Gorakhpur) M/s Pooja Agro Feed Mills (Gorakhpur) M/s S. (Gorakhpur) M/s Gold Star Feed Mills (Gonda) M/s Deepak Feed (Deoria) M/s M/s Aman Feed Industries (Padrauna) Name of contact person Shri P.926 223.008 246.350 .260. Shri Rajnesh Dewadi Shri Mohan Jaiswal Shri Ravindra Jaiswal Shri Jitendra Yadav.755 Shri Raj Kumar Gupta Shri Vinod Pandey Shri S.176 2.260.P.915 229.K.280. Gorakhpur) M/s Durga Agro Farms Ltd.500.200.121 2.B. K.260.185 2.801 2. Shri Anuj Poddar Shri Jalaludden Shri Dr.682.Gupta Shri Mumtaj Ahajjiad 60 .151 2. Shri Shamsejoha Shri Ashutosh Mishra Shri Pradeep Jaiswal Shri Kapil Dodhi.810 2.791 2.100 244.345.Singh Yadav Office phone no.506. 2. 260.851 2.K.560 223.926 2.C.350 244.Singh Shri Uma Shankar Gupta Shri S.Mishra Shri P.743 2.Singh Shri N.H.260. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Name of Factory M/s Kegg Farms (P) Ltd.681 223.Mishra Shri Sanjay Gupta Shri Om Prakash Jaiswal Shri Raj Kumar Gupta Shri Satish Singh Shri Rajendra K.Mall Shri Anuj Poddar Shri P.256.260. Hatcheries (Gorakhpur) M/s United Poultry (Gonda) M/s Avadh Hatcheries (Gonda) M/s Akash Hatcheries ( Gorakhpur) M/s Soni Hatcheries (Padrauna) M/s Aman Hatcheries (Padrauna) M/s Saba Hatcheries (Gorakhpur) Name of Contact Person.345.338.486 241.726. Shri Mohan Jaiswal Shri Mohd.ANNEXURE II LIST OF HATCHERIES IN AND AROUND GORAKHPUR SI no.Khan Office Phone no.203.204.009 2. (Gorakhpur) M/s Hena Hatcheries (Gorakhpur) M/s Shivam Hatcheries (Deoria) M/s Shree Hatcheries (Gorakhpur) M/s Hi .Singh Shri Mohmood Shri Jalajudden Shri Ravindra Jaiswal Shri Pradeep Jaiswal Shri Mumtaj Ahmed Shri A.339.682.260.168 2. 2.077 2.201.P.455 246.251.260.282.B.Singh Yadav.954 2.500.745 2.261.233 2.810 226.151 2.P.K. Shri A.850 2. Shri Balraj Shri Krishna Rathi Shri Tej Singh Shri S.Tech Hatcheries (Gorakhpur) M/s Harayana Hatcheries (Gorakhpur) M/s Laxmi Hatcheries (Gorakhpur) M/s Rathi Hatcheries (Gorakhpur) M/s Kissan Hatcheries (Gorakhpur) M/s Eastern Hatcheries (Gorakhpur) M/s Golden Hatcheries (Gorakhpur) M/s Agro Poultry Product (Gorakhpur) M/s Pooja Hatcheries (Gorakhpur) M/s Siddharth Hatcheries (Gorakhpur) M/s Raj Shree Hatcheries (Gorakhpur) M/s Agvet Breeding Forms & Hatcheries (Gorakhpur) M/s Durga Forms Products Limited (Gorakhpur) M/s S.755 2. Azim.791 2.809 2.B.K.133 2.351 2.073 61 illl .915 2. REPORTS PUBLISHED UNDER EVALUATION STUDY SERIES OF NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT A: Reports Published by the Head Office of NABARD Series Title of Evaluation Study Reports Year of No. 1979 Andhra Pradesh 8 Mechanised Fishing Boats in South Canara District. Maharastra 2 Minor Irrigation Scheme . Publication 1 Minor Irrigation scheme . Kamataka 1982 13 River Lift Irrigation Scheme in Pune District. West Bengal 1986 24 Tractors in Varanasi. Kerala 1986 22 Tractors in North Bihar 1986 23 Dairy Development in Darjeeling District. Miryalaguda Taluka. Andhra Pradesh 1981 10 Groundwater Irrigation in Kota District. Haryana 3 Bhadra Land Development Project . Ghazipur and Jaunpur Districts. Uttar Pradesh 1987 25 Tractors and Power Tillers in Tamil Nadu '^^'^ ^%. Kamataka 1979 9 Development of Acid Gardens in Nef lore District. Rajasthan 1982 11 Minor Irrigation in Bhojpur District. Andhra Pradesh 1982 17 Development of Coffee Plantation in Lower Palnis Area. West Bengal 1985 20 Commercial Poultry in Krishna District. Madurai 1983 District. Andhra Pradesh 1986 21 Dugwelllrrigation in Palghat District. 1978 Haryana 6 Dairy Development Scheme in Moga Area of Faridcot District. IF .and 1977 Development of Land. Maharastra 1982 14 Dairy Development Scheme in Westem Uttar Pradesh 1982 15 River Lift Irrigation Scheme in Kolhapur District.Construction of New Wells and installation of 1977 Pumpsets thereon in Sholapur District. Tamil Nadu 18 Public Tubewells and River Lifts in Orissa 1984 19 Power Tillers in Hooghly District. 1977 Andhra Pradesh 5 Dairy Development Scheme in Jagadhri Block of Ambala District. Karimnagar District.Scheme for Reclamation. Punjab 1978 7 Poultry Development Scheme in Mulkanoor. Maharashtra 1982 16 Sheep Rearing in Nalgonda District. Bihar 1982 12 Development of Grape Cultivation in Bijapur District. Kamataka 4 Land Development under Nagarjuna Sagar Project.Installation of shallow Tubewells in Kamal 197^District. West Bengal 35 Sprinkler Irrigation in Semi-Arid Areas.26 Minor Irrigation in Muzaffar Nagar District. Tamil Nadu 32 Minor Irrigation in Allahabad District. Uttar Pradesh 43 Impact of NFS investments 44 Lift Irrigation Schemes in Maharashtra 45 Mendhwan Watershed Project under IGWDP . Andhra Pradesh 42 Bio-Gas Plants in Nainital and Rampur Districts. Bandra East.B.-8121. Uttar Pradesh 33 Coconut Development in Quiion District 34 Minor Irrigation in Purulia District. Uttar Pradesh 41 Inland Fishery in Krishna District. National Bank for Agriculture and Rural Development. No. 1987 1987 1988 1988 1988 1988 1988 1988 1988 1989 1989 1989 1989 1991 1991 1991 1991 1994 1995 1999 63 . 4"" Floor. Maharashtra 31 Calf Rearing in North Arcot. Dugwell Irrigation in Dhenkanal District. Department of Economic Analysis and Research (DEAR). Uttar Pradesh 40 Work animals and Animal driven Carts in Meerut District. Bandra-Kuria Complex. Mumbai 400 051. G-Block. 39 Financing of Apple Orchards in Hill Districts. Orissa 29 Bamboo and Shallow Tubewells in Pumea District. Rajasthan 36 Dugwell Irrigation in Amravati District. P. Bihar 30 Dugwell Irrigtion in Nasik District. Maharashtra 37 Marine Fisheries in Coastal Gujarat and Maharashtra 38 Financing of Shallow Tubewells under Massive National Programme in Haryana. Kerala 28 . Salem and Coimbatore Districts. C Wing. The Chief General Manager. Uttar Pradesh 27 Dairy Development in Quilon District.Maharastra State Copies of the Evaluation Study reports can be obtained from . Kamataka Dairy Development in Kolar and Shimoga Districts of Kamataka Sericulture in Kolar and Tumkur Districts of Kamataka Fuelwood Development Projects in Kamataka 2000 2001 2002 2003 2003 2003 1988 1989 1992 1994 2005 BHOPAL . Kamataka Lift Irrigation Schemes in Belgaum District. M. . Madhya Pradesh 6^ . Gujrat Marine Fisheries in Junagarh District BANGALORE 1 Development of Grape Gardens in Bangalore and Kolar Districts. Rajkot District. AHMEDABAD 1 2 3 4 5 6 7 Title of Evaluation Study Report Year of Publication 1989 1989 1991 1992 1994 2003 2003 Poultry Development Scheme in Gujarat Dairy Development Scheme in Mehsana Distnct.B. Madhya Pradesh Rural Non-Farm Sector in Ujjain District.P. Reports Pii!>Hshcd by Regional Offices of NABARD R. Kamataka Drip Iirigation Programme in Chitradurga District. 1 Dugwell and Shallow Tubewell Irrigation in Narsinghpur District. Kamataka 2 3 4 5 6 7 8 9 10 Borewell Financing in Chitradurga and Kora District. Madhya Pradesh Commercial layer poultry development in Indore District. Gujarat Inveivtments financed under IRDP in Valsad District. . Kamataka Poultry (Broiler) Development in Banglore (Rural) and Banglore (urban) Districts. Kamataka Development of Coffee Garden in Kamataka 1992 1990 1992 1993 Sericulture Development in Mysore and Hassan Districts. Gujarat Market yard in Jetpur. Gujarat Lift Irrigation Scheme of Ukai Left Bank Mair Canal . IRDP in Sagar District. Madhya Pradesh 2 3 4 5 Tractor Financing in Raisen and Vidisha Districts.O. Series No. . Gujarat Financing of Tractors in Mehsana and Rajkot Districts. Haryana Tractors in Haryana Grape Gardens in Hisar District of Haryana Inland Fisheries in Patiala and Bathinda Districts of Punjab Financial Viability of Tractors in Punjab Rural Non Farm Sector in Ludhiana and Sangmr D istricts of Punj ab Water Conveyance System in Rewari and Mehendragarh Districts of Haryana Cold Storage in Punjab Dairy Financing in Kumkshetra and Kaithal Districts of Haryana Self Help Groups in Kamal. Gurgaon & Bhiwani Districts of Haryana Poultry (Layers) in Sangmr and Gurdaspur Districts in Punjab Financing of Tubewells in Bathinda. Hosiarpur and Rorar Districts Agro and Food Processing Units in Haryana Evaluation of Rural Roads under RIDF in Punj ab '^°^ '^°^ 1994 2000 2002 2003 2004 2005 CHANDIGARH 1987 1987 1994 1998 2000 2001 2001 2001 2001 2002 2002 2003 2003 2003 2003 2004 2005 16 Dairy Development in Punjab 17 . Orissa Tractors in Sambalpur District. Orissa Dairy Development in Cuttack and Ganjam District. Orissa Brackish Water Prawn Culture in Puri District. Orissa Shallow Tubewells in Undivided Cuttack and Undivided Puri Districts District Rural Industries Project (DRIP) and Priman. Orissa Minor Irrigation in Sambalpur District.BHUBANESWAR 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Betelvine Gardens in Puri District.' Lending Institutions (PLI) Training Programme in Undivided Ganjam District Group Financing under Farm Mechanisation Investment under RIDF in Rural Bridges SHG Bank Linkage Programme in KBK Region in Orissa Poultry Farming in Punjab Dairy Development Schemes in Kamal and Rohtak Districts.Tractor Financing in Kaithal and Faridabad Districts in Haryana ^5" . Andhra Pradesh 4 Mango Orchards in Krishna and Khammam Districts. Tamil Nadu 2 Dugwell Irrigation in Pudukkottai and North Arcot Districts. Tamil Nadu 6 Mini Dairy in Coimbatore & Periyar Districts. Andhra Pradesh 3 Dugwell Irrigation in Chitoor District.t CHENNAI 1 Poultry Development in Salem District. 7 Dairy Development in Krishna District. Tamil Nadu 7 Marine Fisheries in Tamil Nadu 8 Sericulture in Tamil Nadu 9 IRDP in Tamil Nadu 10 Modem Rice Mills in Tamil Nadu 11 Coconut Development in Tamil Nadu 12 Minor Irrigation Credit Programme Under KfVV . Tamil Nadu 4 Minor Irrigation Investments under Massive Assistance Programme in South 5 Jasmine Investments in Salem and Madurai Districts. Andhra Pradesh 10 Sheep Rearing in Mahabubnagar & West Godavari Districts 11 Sericulture Investments in Andhra Pradesh 1988 1989 1990 1991 1992 1994 1998 1999 2000 2001 2002 2002 2003 2003 1989 1992 2000 2000 1988 1989 1989 1991 1995 1996 1999 2000 2001 2002 2003 4>C I m J . A. Tripura 3 IRDP in Nagaon District. Assam HYDERABAD 1 Public Tubewelis in Khammam District.P. Tamil Nadu 3 Tea Gardens in the Nilgiris District.NB VII in Ramnad and Trichy Districts in Tamil Nadu 13 District Rural Industries Project in Tirunelveli District 14 Cold Storage in Tamil Nadu GUWAHATI 1 Private Shallow Tubewelis and Lift Points in Assam 2 Inland Fishery in West Tripura District. Andhra Pradesh 5 On Farm Development in Khammam and Krishna Districts 6 Inland Fishery in West Godavari District. Andhra Pradesh 2 Development of Grape Gardens in Ranga Reddy District. Andhra Pradesh 8 Poultry Layer Investment in Andhra Pradesh 9 Food (Mango) Processing in Visakhapatnam and Chittoor Districts. Assam 4 Farm Mechanisation (Power Tillers) in Sibsagar District. West Bengal Bullock and Bullock Carts in Malda District. Minor Irrigation in Rae Bareli District.Ajmer District. West Bengal Betelvine Gardens in Midnapore District. Uttar Pradesh Tractors in Western Uttar Pradesh Inland Fishery in Azamgarh aud Deoria Districts.P. West Bengal Minor Irrigation Schemes in Birbhum District. Allahabad. Jammu and Kashmir KOLKATA 1 2 3 4 5 6 7 8 9 10 Inland Fisheries Scheme in Nadia District. U. Jammu and Kashmir 2 Tractors in Jammu District. U. U. Rajasthan 5 IRDP in Alwar District.. U. U.P. West Bengal Floriculture in Midnapore District of West Bengal Agro based Industries in Burdwan.S. Udaipur District. Rajasthan 8 Dairy Schemes in Bharatpur District of Rajasthan 9 Water Management Schemes in Jaipur District of Rajasthan 10 Minor Irrigation Schemes in Bikaner District of Rajsthan 11 Orange Cultivation Schemes in Jhalwar District of Rajasthan JAMMU 1 IRDP in BaramuUah District.P..JAIPUR 1 Minor Irrigation Structures in Kherwara P. Rajasthan 6 Poultry in Anjmer District. UP Saghan Mini Dairy Project in Dist. Mushroom Cultivation in Dehradun District. NFS in Moradabad District. Bankura and Nadia Districts SCT/TSP Programmes in West Bengal Rural Roads under RIDF in West Bengal Land Development Sector in West Bengal 1988 1991 1991 1993 1995 1995 1997 1999 2001 2001 2002 1992 1995 1987 1989 1991 1999 2000 2002 2004 2004 2005 2005 LUCKNOW 1 2 3 4 5 6 7 8 Evaluation of Minor Irrigation Scheme in Jhansi District. Rajasthan 3 Market Yard in Kekri . Rajasthan 4 Borewell in Jodhpur District. West Bengal Poultry Farming in Medinipur District. Rajasthan 2 Tractors in Alwar District. 1988 1992 1994 1995 1996 1997 1998 1998 67 . Grape in Muzaffemagar District.P. Rajasthan 7 Sprinkler Irrigation Schemes in Banner Dist.P. Bihar Minor Irrigation Schemes in Samastipur District. Himachal Pradesh 1997 2 Apple Cultivation in Himachal Pradesh 2004 TRIVANDRUM 1 Betelvine gardens in Trivandrum District. No. Kerala 1992 5 Farm Mechanisation in Palkhad and Emakulam Districts.8121. Kerala 1995 6 Rural Non-Farm Sector in Malappuram and Kozhikode Districts of 1998 Kerala State 7 Sprinkler Irrigation in Arecanut Gardens in Kasargod District of Kerala 2002 8 Dairy Development in Kollam District of Kerala 2002 9 Minor Irrigation in Kasargod and Kannur Districts of Kerala 2003 10 Rural Non-Farm sector activities in Kasargod and Karmur Districts of 2003 Kerala 11 Self-Help Groups in Waynad District of Kerala 2004 Copies of the Evaluation Study reports can be obtained from: The Chief General Manager. P. Mumbai 400 05 1. 68 . Bihar Deep Tubewells in Bihar Dairy Development in Begusarai and Singhbhum Districts. Maharashtra Land Development in command area of Kukkadi Project. Maharashtra Poultry Development in Pune District. C Wing. Madhubani and Samastipur Districts. Bandra East. 4"' Floor. Maharashtra Grape Gardens in Nasik District. .B. G-Block. Plot No. Bihar Lift Irrigation Schemes in Ahmednagar District. C-24. Maharashtra Farm Mechanisation in Ahmednagar District. Maharashtra Well Irrigation in Aurangabad Distric. Kerala 1988 2 Broiler Pouhry Development in Emakulam District. National Bank for Agriculture and Rural Development.PATNA 1 2 3 '^ PUNE 1 2 3 4 5 6 7 8 9 SHIMLA Shallow Tubewells in Darbhanga. Bandra Kurla Complex. Kerala 1990 3 Development of Rubber Plantation in Kottayama District. Bandra-Kurla Complex. Maharashtra Evaluation Study of Rajani Watershed Project in Yavatmal District Evaluation Study of Shedashi-Wavoshi Watershed Project in Yavatmal District Rice Mills in Maharashtra 1988 1989 1989 1996 1988 1991 1991 1993 1995 1999 1999 1999 2002 1 Dairy Development in Mandi District. Kerala 1991 4 Fisheries Development in Kollam District. Department of Economic Analysis and Research (DEAR). Documents Similar To ES 6Skip carouselcarousel previouscarousel nextJm Poultry and Livestockexplanatory noteA Survey on the Management Practices of Backyard RuminantProduction in the fIrst District of Cagyan Provincefish and mikrowave18e Key Question Answers Ch 23How to Carve Chicken and TurkeyBalance ScorecardKeeping ChickensNutrition Week9Prod 0000000000250851kmia drh 6Small Scale Poultry FinalThe Importance of Reducing Animal ProductUntitledPoultry Industry Lec3Morocco, Selected Issues FMITurkey Meat StandardFundemental AnalysisMSME Finance in India2. 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