Economic performance of contract and non-contract broiler farming in Punjab

The broiler farming has been a profitable venture in the Ludhiana district of Punjab. This study has reported a comprehensive investigation was undertaken on twenty broiler farming units each from contract and non-contract farming systems by using structured questionnaires for the reference year 2021-22. The study aimed to assess the economic performance of broiler farming under contract and non-contract farming systems. The findings have confirmed that the non-contract farmers receive higher net returns per bird and per kilogram of live weight, as they received market prices for their output. In contrast, the contract farmers faced income limitations due to pre-determined payment structures based on live weight. The overall benefit-cost ratio for contract farms was 2.17, indicating economic viability, while non-contract farms had a lower ratio of 1.20. This suggests that while contract farming is quite feasible, while non-contract farming may offer better financial returns despite higher risks. The study has suggested that contract farming could be a suitable option for farmers lacking sufficient capital to manage high variable costs, while non-contract farming would be more advantageous for those who can navigate market risks effectively.