Commercial poultry farming in the Philippines is currently dominated by contract poultry farmers. This is one of the easiest business models for those planning to venture into large scale poultry production.
The grower goes into a contract with the contract poultry farming company and offers resources such as land, labour and management while the contract poultry farming company provides the chicks, farm inputs as well as training to help you succeed in the poultry farming venture. The contract poultry farming company even undertakes to carry out marketing for your poultry products. It is a win-win proposition for both the farmer and the contract poultry farming company if well managed.
There are various steps involved in the setup of the contract poultry farming relationship:-
- To initiate the relationship, the farmer fills in a contract growing application form with the relevant contract poultry farming company. The forms can be downloaded from the contract poultry farming company website or can be sent to you upon request.
- The next step will be a site and farm inspection by the contract poultry growing company.
- If the company is satisfied with your site preparations, they will approve the proposed farm or site for poultry growing.
- The company subsequently issues a letter of intent expressing their interest in entering into a contract poultry farming agreement with you.
- This is followed by the issuance of a Letter of Commitment
- The relevant permits are then issued that will allow you to proceed with your contract poultry growing enterprise. These are issued by the relevant local authorities and departments such as health and environmental management agencies.
- Once all the relevant have been secured, the next step is the construction of the poultry house according to desired specifications.
- The contract grower subsequently submits a collateral or bond to the contract poultry farming company.
- Finally, both parties sign contracts to enter into a contract poultry farming agreement for specified duration of time.
- After the contract signing, the farmer undergoes comprehensive training on poultry management that is offered by the contract poultry farming company. This can take the form of seminars and workshops over a specified duration of time.
- The contract poultry farming company then places chicks in the farmers premises or site.
We are currently working on a Philippine Contract Broiler Farming MasterClass that offers a comprehensive guideline on how to succeed with contract broiler farming ventures. We will soon publish this for our readers.