Broiler Contract Growing in the Philippines: An Overview of the Requirements

Broiler contract growing is one of the most popular poultry production models used by many of the large poultry producers. In contract poultry farming, an independent producer enters into a contract with a large chicken producing and processing company, usually a poultry integrator that will supply the farm inputs, chicks, technical expertise and market while farmer provides land, labor, management and machinery in raising the chickens.

In the US alone, more than 90% of chickens that are raised for meat are grown by contract poultry farmers. It is a fairly safe investment option for many farmers due to the market guarantee and the level of technical expertise and support that they receive from the contracting company.

In the Philippines, contract broiler growing requirements vary depending on the poultry processing company that the farmer chooses. Some of the leading contract poultry farming companies include Magnolia Chicken and Vitarich Corporation. Here is an overview of the requirements when it comes to contract poultry farming in the Philippines:-

Site Requirements for a Contract Poultry Farm

When entering into a contract farming venture, one of the key factors that you should keep in mind are the minimum site requirements. Some contract farming companies will need at least one hectare of land. Other location factors that contract farming companies might consider include the following:-

• The area should be within an agricultural reason.
• The area should lie outside the residential areas. Usually, at least a kilometer from the nearest residential area is desired.
• Some contract farming companies desire that the poultry farm be at least a kilometer from the nearest poultry farms, hog farms and other related agri-operations.
• If you are entering into a contract poultry farming agreement with a company like SMFI(San Miguel), the requirement will be that the poultry farm be at least within a 100k m radius of the nearest SMFI poultry processing plant.
• The poultry farm or site must have a reliable source of electricity
• It should have an adequate source of portable water
• The poultry site must have all-weather roads leading to it and the roads should be passable by light vehicles as well as the 6 and 10 wheeler trucks.

The Poultry House Requirements

Every contract farming company will have strict poultry house requirements with a minimum volume requirement as well as design specifications for the poultry house. One of the key design specifications is that the house should be in an East-West orientation. The broiler house should also be tunnel-ventilated.

Application Requirements

The following are the application requirements in a contract poultry farming operation :-

• The prospective farmer must start by filling in a contract growing application form.
• The company will subsequently carry out a farm or site inspection.
• The contract poultry farming company will then approve or reject the proposed poultry farm or site.
• The prospective farm submits a letter of intent
• Permit submissions for approvals
• The poultry house is constructed
• Signing of the poultry farming contract
• Company offers a seminar on the basics of poultry husbandry
• Chick placement

The Contract Poultry Farming Company Generally Provides the Following:-

• The contract poultry farming company will provide the poultry house building plans, designs as well as the specifications for the poultry house.
• They will provide you with high quality day old chicks
• They supply the poultry farmer with a nutrition program and broiler feeds
• Vaccines and medicines
• Technical assistance for the poultry farming operation
• Lab diagnostic services for the poultry farming operation
• Information recording materials for record keeping purposes
• A ready market for your poultry products
• A very competitive payment agreement

 

As a Contract Poultry Grower, You are Obligated to Provide the Following:-

• The land for carrying out the poultry farming operation. This is between 1 hectare and 2 hectares.
• The poultry houses along with the facilities for the poultry farming operation.
• A warehouse for storing the poultry feeds
• A water system as well as electricity supply
• Labour along with security
• Poultry equipment
• Maintenance services for the farm facilities, equipment and roads.
• Proper management of the poultry farm