Vol. 8, Issue 11, Part B (2024)

There are two types of broiler farms in Punjab viz. independent private broiler farms and broiler farms under contract of various integrating companies. For determining the profitability of broiler farming, the market price of day old chicks and live saleable birds play important role as these prices fluctuate frequently according to seasonal demand and supply. The independent private farms are exposed to the market fluctuations and sometimes earn good profit and sometimes bear heavy losses. Whereas, on the other hand, integrating companies is promising fixed remuneration to the contract farmers on live weight basis, hence providing a cushion to the farmers against market price fluctuations. The present study has been undertaken in Punjab state during January, 2021 with sample size of 60 broiler farmers (30 contract and 30 non-contract). It has been observed from the study that both type of production systems of poultry are in distress in the state. The main reason for crisis of non-contract farming is the huge fluctuations in the market prices of live broilers which led to negative net returns in all the three categories. For the contract broiler farming, it was observed that the net returns were negative in small and medium categories, whereas these were positive for large category, but overall net returns were negative. The insufficient growing charges given by the contracting companies are responsible for the crisis. Hence, there is urgent need of policy interventions for safeguarding the interests of contract as well as non-contract broiler farmers in the state.