Poultry value chain: The integration of operations

The poultry market is influenced by large whole sellers and traders, who own the integral vertical integration. They have large farms supported by parent unit, hatchery, feed units and other necessary input units. This heavily decreases the cost of production for the large traders with small farmers standing no chance for competition. The complex nature of these vertical integrations has kept the small farmers away from it.

JWSPFL, with growing number of members is not far behind in vertical integration. It already has two hatcheries functional at Lohardaga and Peterwar with capacity of six lakh chicks per month. It also has one central feed unit at Peterwar, Bokaro which supplies ready feed to all the co-operatives and feed concentrates to the co-operatives with feed mixing plant. The feed concentrates are then utilized by the co-operatives to prepare ready feed in feed mixing plants operating in two co-operatives. The availability of feed and chicks, two most important inputs within the federation has helped in bringing down the cost of production. JWSPFL, plans to notch up the vertical integration to parent unit, for supply of quality eggs to the hatcheries.