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Livestock industrialization, trade and social-health-environment impacts in developing countries: a case of Indian poultry sector


  • Mehta, Rajesh
  • Narrod, Clare
  • Tiongco, Marites


This paper presents the results of an empirical study of the Indian Poultry Industry which is specially focused on the social and environmental outcomes generated by the rapidly increasing scale of egg and broiler production in India. Among the effects of these rapid changes that occurred in the poultry industry include increased risk for animal health, changes in demand patters in terms of amount, quality, and food safety, higher prices for high value items; but there is also a threat to smallholders that they will be excluded from more demanding markets. There are important questions, which have arisen with the industrialization of poultry activity in India. Is the scaling up of production driving small producers to disadvantage on account of high transaction costs, policy distortions and environment externalities? Why do some poultry farms have higher incomes than others? Do large farms earn more profit per unit of output than small farms? What explains the differentials in efficiency? An attempt is made here to take stock of these changes and to assess their social and environmental outcomes particularly those that affect the welfare of poor. The paper starts by examining the state of the Indian Poultry Industry, and then it goes in dealing with selected socio-economic, health, and environment changes that affect the competitiveness of livestock production including domestic institutional arrangement of food safety standards.

Suggested Citation

  • Mehta, Rajesh & Narrod, Clare & Tiongco, Marites, 2008. "Livestock industrialization, trade and social-health-environment impacts in developing countries: a case of Indian poultry sector," MPRA Paper 32678, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32678

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    References listed on IDEAS

    1. Delgado, Christopher L. & Narrod, Clare A. & Tiongco, Marites M. & Barros, Geraldo Sant'Ana de Camargo & Catelo, Maria Angeles & Costales, Achilles & Mehta, Rajesh & Naranong, Viroj & Poapongsakorn, N, 2008. "Determinants and implications of the growing scale of livestock farms in four fast-growing developing countries:," Research reports 157, International Food Policy Research Institute (IFPRI).
    2. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    3. Bharat Ramaswami & Pratap Singh Birthal & P.K. Joshi, 2005. "Efficiency and distribution in contract farming:The case of Indian poultry growers," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 05-01, Indian Statistical Institute, New Delhi, India.
    4. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics, Blackwell, vol. 7(3-4), pages 185-208, October.
    5. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    6. Battese, George E., 1992. "Frontier production functions and technical efficiency: a survey of empirical applications in agricultural economics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 7(3-4), October.
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    More about this item


    Indian poultry sector; livestock industrialization; competitiveness; transaction costs; environmental externalities; contract farming;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East


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