Poultry Contract Farming in Bangladesh with Special Reference to Aftab Bahumukhi Farm Limited (ABFL)

Samir Kumar Sheel, Biplab Kumar Sen


Present paper describes the different forms of contract farming in and
around the world and also the forms being practiced in poultry production in
Bangladesh. It also describes the factors leading to the sustainable development and
growth of contract farming. Attempt has been made to have a deep look into the
matter regarding poultry production by envisaging Aftab Bahumukhi Farm Ltd
(ABFL), the pioneer and leader in this sector. ABFL started contract farming as an
experimental basis with a group of 20 local farmers in 1991 and after that based on
the initial experience, they launched an elaborated vertically integrated poultry
contract farming as an income generating activity for the local people by providing
financial, technical and professional supports. Any farmer located in the ABFL’s
operating area is eligible to enter into contractual agreement. The company provides
DOC, feeds, veterinary services and technical supports on credit and ensures
purchase of the output. Contract farmers typically provide land, housing, equipment
and labor. All the credit liability of the contract farmers are adjusted against the
value of their delivered products. After 2003, the company had changed their
arrangement from input supply on credit to cash. The company consists of a modern
hatchery for broiler and layer parent stock supplying DOCs and has got its own
large feed mills distributing balanced feed to the contract growers as well as to other
growers throughout the country. The farm also has established its own managed
retail sales centers in Dhaka city to supply eggs and poultry meat to the consumers
and to large super stores and other corporate consumers. Despite some limitations,
contract farming model developed by ABFL, has made significant contribution to the
creation of employment to the rural poor.

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