Broiler Farming

Specially developed breeds of chicken meat (broiler) are now available with the ability of quick growth and high feed conversion efficiency. Increasing assistance from the Central/State governments and poultry corporations is being given to create infrastructure facilities. Broiler farming has been given considerable importance in the national policy and has a good scope for further development in the years to come.

Financial assistance available from Banks/NABARD for broiler farming

• NABARD is an apex institution for all matters relating to policy, planning and operations in the field of agricultural credit.
• Loan from banks with refinance facility from NABARD is available for starting broiler farming. For obtaining bank loan, the farmer should apply to the nearest branch of a commercial or cooperative or regional rural bank in their area in the prescribed application form, which is available in the branches of financing bank. The technical officers attached to or the manager of the bank can help or give guidance to the farmers in preparing the project report to obtain bank loan.
• For poultry farming schemes with very large outlays detailed reports are required to be prepared. The items of finance would include construction of broiler sheds and purchase of equipments. Cost of one day old chicks, feed, medicine and labour cost for the first 7 weeks period for the first flock, is also considered. Facilities such as land development cost, fencing, water and electricity, essential servants quarters, godowns, transport vehicles, broiler dressing, processing and cold storage facilities can also be considered for providing loan. Cost of land is not considered for loan. However, if land is purchased for starting a broiler farm, its cost can be treated as party’s margin money upto 10% of the total cost of project.

Scheme formulation for bank loan

• A scheme can be prepared by the beneficiary after consulting local technical persons of State veterinary department, poultry corporation or private commercial broiler hatcheries.
• The scheme should include information on land, water and electricity facility marketing aspects, training facilities and expertise of entrepreneurs and the type of assistance available from State government, poultry corporations, local hatcheries.

Scrutiny of scheme by the bank

The bank officers also can assist in preparation of the scheme or filling in the prescribed application form. The scheme so formulated should be submitted to the nearest branch of bank.

Sanction of Bank loan and its allocation

After ensuring technical feasibility and financial viability, the scheme is sanctioned by the bank. The loan is allocated in kind in 2 or 3 stages, such as against the creation of specific assets, construction of sheds, purchase of equipment and machinery, recurring cost on purchase of chicks, feeds, medicines, etc. The end use of the fund is verified and constant follow up is done by the bank.

Margin money

NABARD has defined farmers into three different categories and where subsidy is not available, the minimum down payment as shown below is collected from the beneficiaries.

Sr. No.	Category of Farmer	Farmer Level of pre- development return to resources	Beneficiary’s Contribution
a)	Small farmers	Upto Rs. 11,000	5%
b)	Medium farmers	Rs.11,001 to Rs.19,250	10%
c)	Large farmers	Above Rs.19,251	15%

Interest Rate (approx.)

As per the RBI guidelines the present rates of interest to the ultimate beneficiary financed by various agencies are as under

Sr. No.	Loan amount	CB’s & RRB’s	SLDB/SCB
a)	Uptoand inclusive of Rs. 25,000	12.0%	As determined by SCB/SLDB subject to Min. of 12% (for all loan slabs)
b)	Over Rs. 25,000 and upto Rs. 2 lakhs	13.5%	-do-
c)	Over Rs. 2.0 lakhs	As determined by CB/RRB	-do-

Security

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

Repayment of loan

The loan repayment is determined, on the basis of gross surplus generated in the scheme. Usually the repayment period of loan for broiler farming is 5-6 years.

Insurance

The birds and other assets (poultry sheds, equipment) may be insured.

ECONOMIC OF BROILER FARMING-TECHNO ECONOMIC NORMS (APPROX.)

Sr. No.	Particulars
1	No.of birds (per week)	500
2	Rearing period (weeks)	6-7
3	No.of batches per cycle	8
4	No.of batches introduced: I year (on considering 3 months construction period) II year onwards	40 52
5	No.of batches sold I year (on considering construction period+rearing period) II year onwards	33 52
6	Space requirement per bird (sft.)	1
7	Cost of construction of sheds (Rs./sft.)	70
8	Store room (sft.)	200
9	Cost of construction of store room (Rs./sft.)	90
10	Labour quarter (sft.)	150
11	Cost of construction of Labour quarter (Rs./sft.)	80
12	Slaughter room (sft.)	100
13	Cost of construction of slaughter room (Rs./sft.)	90
14	Barbed wire fencing (rft.)	750
15	Cost of fencing (Rs./rft.)	15
16	Cost of electrification (as % of civil costs)	4
17	Equipment cost (Rs./bird)	9
18	Mortality in 6-7 weeks (%)	4
19	Cost of DOCs (Rs./chick)	11.5
20	Supply of free chicks (%)	4
21	Feed requirement (Kg/.bird)	3.2
22	Feed cost (Rs./kg.)	7
23	Expenditure on labour (Rs./moth) (one labourer)	900
24	Over heads cost (cost of medicines, vaccine, insurance litter etc.) (Rs./bird)	5
25	Average body wt.of birds (Kg/bird)	1.5
26	Price of broilers (Rs./kg.body weight)	30
27	Sale price of bird (Rs./bird)	45
28	Income from manure (Rs./bird)	0.5
29	No. of gunny bags (per ton of feed)	13.3
30	Income from gunny bags (Rs./bag)	6
31	Depreciation on sheds (%)	5
32	Depreciation on equipment (%)	10
33	Margin money (%)	25
34	Interest rate (%)	15
35	Repayment period (years)	6
36	Grace period (years)	0.5
37	Construction period (months)	3
38	Rest period for broiler sheds (days)	7-10