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Efficiency and distribution in contract farming: the case of Indian poultry growers

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Author Info
Ramaswami, Bharat
Birthal, Pratap Singh
Joshi, P.K.

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Abstract

"This paper is an empirical analysis of the gains from contract farming in the case of poultry production in the state of Andhra Pradesh in India. The paper finds that contract production is more efficient than noncontract production. The efficiency surplus is largely appropriated by the processor. Despite this, contract growers still gain appreciably from contracting in terms of lower risk and higher expected returns. Improved technology and production practices as well as the way in which the processor selects growers are what make these outcomes possible. In terms of observed and unobserved characteristics, contract growers have relatively poor prospects as independent growers. With contract production, these growers achieve incomes comparable to that of independent growers." Authors' Abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series MTID discussion papers with number 91.

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Date of creation: 2006
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Handle: RePEc:fpr:mtiddp:91

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Keywords: Contract farming; Poultry; Vertical integration;

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Birthal, Pratap S. & Jha, Awadhesh K. & Tiongco, Marites & Narrod, Clare, 2008. "Improving farm-to-market linkages through contract farming: A case study of smallholder dairying in India," IFPRI discussion papers 814, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Birthal, Pratap S. & Jha, Awadhesh K. & Singh, Harvinder, 2007. "Linking Farmers to Markets for High-Value Agricultural Commodities," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(2007). [Downloadable!]
  3. Chowdhury, Nuimuddin & Farid, Nasir & Roy, Devesh, 2006. "Food policy liberalization in Bangladesh: how the government and the markets delivered," MTID discussion papers 92, International Food Policy Research Institute (IFPRI). [Downloadable!]
  4. Rakotoarisoa, Manitra A., 2006. "Policy distortions in the segmented rice market:," MTID discussion papers 94, International Food Policy Research Institute (IFPRI). [Downloadable!]
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