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What is Contract Poultry farming ? How Much Money a Farmer Make in Contract Farming?

What is contract poultry farming?

 Poultry Farmers are raising chickens under contract for Big Groups of Poultry processing companies/Feed millers/Integrator. It is Such type of relationship works well for both the Poultry farmers and the company. In this System Poultry processing companies/Feed millers/Integrator provide the Chicks, Feed, and technical advice along with some other facility.

On the other hand poultry farmer provides the Labor,Poultry Shed and management service. This is a better opportunity for both and other benefit is it helps to maintain affordable prices for consumers.Because in Contract farming , big groups has big capacity and deeper technical knowledge , which results in higher production in less  input as compare to small poultry farmers.If some one do the poultry farming business in small scale, he will have dependency on others for each and every thing. For chicks poultry farmer depend on Hatcheries’s owner. For Feed requirement Poultry farmer depend on Feed millers. This leads the higher cost.

But in contract farming Chicks, Feed, and technical advice given by big groups resulting better management and less costing of Poultry birds.

The other benefit is the big group can maintain the required parameter required by any government like no effect of Antibiotic or Anticoccidials in chicken.Resulting better quality of chicken.

Contract farming provides better linkage among production, processing, and marketing, Banks provide credit to support and facilitate  to Poultry Farmers for construction of the shed .

All the parameters and contract is based upon management and other aspects.Each and every company has different parameter . Its better to clearly understand every aspect.

What are the benefits of contract farming for farmers?

Contract farming save the farmer from the risk of changing market prices for chicken.And the main aspect is no investment for chicks,Feed and also give a guarantee of earning..

Now the question arises here How long Contracts are Done with poultry farmers?

Contracts with farmers are generally one year or longer.

How are the Poultry Farmers paid for contract farming ?

Poultry farmers with written contracts, detailing how payments will be calculated and when be paid.

Poultry farmers are mainly paid for how well they serve their responsibility of management to poultry ‘s birds.

The good management by poultry farmer has direct impact on weight gain and less disease and mortality.

This is incentive based system which effectively reward to poultry farmers and motivate the farmers for better management.

How much money does a farmer make in Contract Farming?

It depends of company to company and region wise.

Some areas where temperature is very less. Cost of Brooding is higher than other areas.

I give idea of India . It is not exact but you can get idea by this.

Profit-In Contract farming – Rough Idea

You will be paid 6-7 rupees per kg. Example if you do contract farming of 10,000 bird and bird weight average 2.5 kg than total weight around or less than 25000 Kg multiply by 6.

Mean Around or less than input will be Around Rs 150,000 and 5 cycles in a year, you can expect from contract farming. Yearly Output around 7,50,000.

But it requires your own farm and your own electricity( You will have to pay electricity bill and brooding cost will also suffered by you, after bird’s lifting litter(Finally the converted manure) is yours and you can sell it it can easily cover your brooding cost in summer. In winter brooding cost is extra.Contract Farming is Always in profit either less or more because some parameters are there depending on your management and others.( It is mandatory farm must be your or belong to you.

Every company has its different rules and policies. So never be in hurry to sign the agreement. More Knowledge –


  1. Like!! I blog frequently and I really thank you for your content. The article has truly peaked my interest.

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