MODEL BANKEBLE PROJECT ON INDIGINIOUS POULTRY FARMING

Model of improved Indigenous Poultry (Broiler) birds farming – 100
birds

1. Introduction

Poultry development is one of the fastest growing subsectors of Animal Husbandry. From being a household activity, Poultry farming in India has transformed into a very scientific and commercial operation. The interventions of the corporate sector along with policy environment provided by the Government of India / State Governments from time to time has led to this transformation.

The scale, technology, management and capital requirement for commercial poultry is
beyond the reach of small and marginal/ BPL farmers. At the same time there is a
niche market for Desi or indigenous birds reared in natural environment. Desi or
indigenous birds reared in the backyard are generally poor performers in egg and meat
production. With improved strain, these poultry birds, can give excellent result when
raised in backyard. The activity can be taken up by beneficiaries from BPL families,
SHGs, landless, small and marginal farmers for supplementary income and nutritional
support. To obtain maximum profit from indigenous poultry birds, these strains have
been improved and are giving excellent result when raised with low inputs. Some of
the improved varieties developed are Vanaraja, Giriraja, Girirani, Krishna – J etc.

2. Scope for Improved Indigenous poultry broiler farming

The  activity  provides  supplementary  employment  opportunities  and  nutritional
security for the rural poor under Backyard poultry production system. In India,
backyard poultry, produces 30 to 35% of the eggs  and is important for livelihood and
nutritional securities of the rural poor. There is a scope to promote clusters or small
holder’s poultry estates by backyard poultry farmers in rural areas.  The lower costs of
input and the higher market prices offered for local poultry, backyard systems provides
better returns. Improvements in management practices by rural poor will reduce
disease and mortality incidences in rearing indigenous birds and would increase their
profitability and offer good scope for further development in the years to come.

3. Government initiatives

Government of India is encouraging conservation of indigenous poultry breeds for
producing poultry birds suitable for backyard poultry. More focus is being given to
provide appropriate support to indigenous poultry farming in the form of financial
assistance,   genetic   stocks   and   improved   technologies,   scientific   advice,
extension/awareness. Central Poultry Development Organisations (CPDOs) located at
four regions viz. Chandigarh, Bhubaneswar, Mumbai and Bengaluru are working on
improved breeds of birds for backyard poultry which can survive at the farmer’s
doorstep, provide training to backyard poultry farmers and conduct feed analysis.
Kalinga Brown, Kaveri, Chhabro and Chann are the varieties / strain of Low Input
Technology birds (Chicken) developed by these CPDOs. Based on demand they supply
hatching eggs, Day old chick of parent / commercials of these varieties to the States /
UT’s and individual farmers. Some state governments have also come forword to
promote improved desi poultry through backyard poultry low input technology birds.
Under National Livestock Mission  (NLM), the chicks/ birds suitable for rearing in the
backyard are reared in the mother units upto 4 weeks and are further distributed to
the  BPL  beneficiaries  in  atleast  two  batches  under,  Rural  Backyard  Poultry
Development (RBPD).

4. Advantage of backyard poultry farming

1. A unit can be started with very small size with low initial capital investment
2. Low feed cost due to use of Agricultural by-products, farm and kitchen waste

etc.

iii.      Quality of chicken and egg is better as the birds are raised in stress less

environment with natural input.

1. Egg and birds can be sold in local market with high price, because there is a

growing demand for local chicken.

1. Resistance to diseases, better adaptability to extreme climatic conditions, can

thrive on poor management and housing arrangements

1. Source of supplementary income and better utilization of family laboures who

are not able to perform other agricultural works

vii.      Due  to  low  maintenance,  acceptability  among  the  landless  labourers  or

marginal farmers and women members of Self Help Groups is higher

5. Project formulation for bank loan
6. Technical
7. Housing management for backyard poultry farming

A small unit for rearing of improved indigenous birds for meat purpose can be
established  as  backyard  unit  by  landless  families,  SHG  members.  Since
indigenous birds are more resistant to diseases and adverse climatic condition
as compared to hybrid birds, they can be reared in the shed made from low cost
housing material like wood, bamboo, grass, thatch etc. Area of 1sqft per bird is
sufficient. Overcrowding of birds should be avoided. The sheds should be
constructed on well raised land and non-water logging areas. The shed should
be well ventilated ands Floor should be in elevated land or above ground level
(minimum 2ft) and free from water crack, easily cleaned, rat proof.

1. Management of birds

  Birds  are  generally  reared  on  free
range system. The birds are let loose in
day time for foraging and sheltered in
shed at night.

  After          purchase,            brooding

arrangements are required to be provided to the day old chicks in first week.
Brooding can be done by using any heating source – electric bubs, bukhari. The
floor should be covered with 1-2 inches of paddy/ wheat straw to avoid injuries
to birds.

   Similarly, birds are to be protected from attack of predators.

   The shed should be cleaned regularly to prevent dampening and thereby fungal

and microbial infections.

   For better health care in backyard poultry farming the birds should be
vaccinated against diseases at proper time. Deworming for internal and
external parasites also should be done to maintain a healthy flock.

iii.      Feeding management

The birds are to be fed with good quality concentrate feed to attain the desired
marketable weight. The feed can be prepared by the farmers by mixing the
available feed ingredients. The feed should be stored in clean, dry, well
ventilated room and care should be taken that fungal infection is not occurred.
The birds are to be fed a per schedule avoiding over and under feeding.
Generally these birds are having habits of scavenging for feeding. However, to
avoid feed losses it is desirable to provide feed in locally available feeder. Birds
are to be always provided with fresh and clean drinking water. Water should be
always available at birds and it should be ensure that birds do not enter  the
waterers.

1. Financial
2. Financial assistance available from Banks for Indigenous Poultry

broiler farming

As indicated earlier, improved indigenous poultry farming activity is accepted by small
and marginal farmers, landless poor and women members of Self Help Groups as their
livelihood activity.It is being financed by banks under various schemes/ programmes.
Since the activity is generally taken up on small scale, investment/ capital cost
required is very less. A model economics for improved indigenous broiler farming with
a unit size of 100 birds in ‘All In All Out’ batches is given below. This is indicative and
the applicable input and output costs along with other parameters observed at the field
level may be incorporated.

1. Lending terms – General
3. Outlay of the project depends on the local conditions, unit size and the investment

   components included in the project. Prevailing market prices / cost may be considered to arrive at the outlay.

    

   1. Margin Money:

   Margin depends on the category of the borrowers and may range from 10% to 25%.

    

   1. Interest Rate:

   Banks are free to decide the interest rates within overall RBI guidelines. However, for working out financial viability and bankability of model project, the rate of interest is assumed at 12.00% p.a.

   1. Security:

   Security will be as per RBI / NABARD guidelines issued from time to time.

    

   1. Repayment of loan:

   The loan repayment is determined, on the basis of gross surplus generated in the

   project. Usually the repayment period of loan for broiler farming is 5 years without moratorium.

    

   1. Insurance:

   The birds and other assets (poultry shed, equipment etc) may be insured. Wherever necessary Risk/Mortality fund may be considered in lieu of poultry insurance.

   A model project of 100 Improved Indigenous broiler birds on ‘All in All Out’ batches is given in Annexure I. This is indicative and the applicable input and output costs as also the parameters observed at the field level may be incorporated

   Economics of Improved Indigenous Poultry Broiler Farming

   Model of improved Indigenous Poultry (Broiler) birds farming – 100
   birds

   1. Project Cost

   Amt Rs

   Construction of shed – 100 sqft                                                                5000

   Mud wall, Bamboo & Thatched roof

   Cost of Equipments                                                                                     1500

   Capital Cost                                                                                               6500

   Cost of 1s^t batch of 100 Day Old Chicks                                                   2500

   Cost of feed                                                                                                   5000

   Recurring cost                                                                                          7500

   Total Cost                                                                                                    14000

   Margin (10%)                                                                                           1400

   Bank loan                                                                                                   12600

   1. Techno economic parameters

    

   Type of Birds – Improved Indigenous
   No of birds per batch	100
   The birds will be maintained on All in All Out batches under deep litter system.
   Mud House with tatched roof will be constructed using locally available material to provide shed for the birds
   Day old chicks will be reared for 55-60 days under deep litter system.
   The birds will attain body weight of 1 kg on 60 days of their age. The birds will then be marketed.
   Mortality in birds (%)	8-10
   Feed consumption (Kg per bird)	2.50
   Cost of Day Old Chick (Rs.)	25
   Cost of  feed (Rs. per kg.)	25
   Expenditure on Vaccine/ Medicine (Rs per bird)	15
   Average live weight of birds (kg. per bird)	1
   Sale price of birds ( Rs. per kg.)	150
   Rate of interest on bank loan (%)	12

    

   Years	1	2	3	4	5
   No of batches purchased- 100 each	6	6	6	6	5
   No of batches sold – 90 each	5	6	6	6	6

   Economics

   Amt

   Rs

    

   Particulars	1	2	3	4	5
   Sale of Broilers	67500	81000	81000	81000	81000
   Total Income	67500	81000	81000	81000	81000
   Cost of chicks	15000	15000	15000	15000	12500
   Cost of feeding	37500	37500	37500	37500	37500
   Expenses on med./vaccine	9000	9000	9000	9000	7500
   Total Expenses	61500	61500	61500	61500	57500
   Gross Surplus	6000	19500	19500	19500	23500

   1. Calculation of BCR and IRR

    

   	1	2	3	4	5
   Capital Costs	6500	0	0	0	0
   Recurring Cost	61500	61500	61500	61500	57500
   Total Costs	68000	61500	61500	61500	57500
   Benefit	67500	81000	81000	81000	81000
   Net Benefit	-500	19500	19500	19500	23500
   PW Costs @ 15% DF	209821
   PW Benefits @ 15% DF	259785
   NPW @15%DF	49964
   B.C. Ratio	1.24:1
   I.R.R. (%)	>50%

    

   1. Repayment Schedule

    

   Yea r	Loan Outstandin g	Gross Surplu s	Interes t	Principa l	Total Repaymen t	Surplu s
   1	12600	6000	1512	2000	3512	2488
   2	10600	19500	1272	3000	4272	15228
   3	7600	19500	912	3000	3912	15588
   4	4600	19500	552	3000	3552	15948
   5	1600	23500	192	1600	1792	21708

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