Contract growing might be the way for your agribusiness to find success. But what is contract growing anyway?
Contract growing is a system in which a poultry company engages in a partnership with independent entrepreneurs to raise chickens or other poultry according to specific guidelines and standards. These companies are called poultry integrators because they collect birds from many individual farms into their plant.
Under this system, the poultry integrator provides its partners with day-old chicks, feeds, veterinary support, and technical assistance. The partners are responsible for providing housing, labor, and utilities to raise the birds until they reach market weight.
Once the birds are ready for processing, the poultry company collects them from the farms and pays its contract grower for their services based on a predetermined price per pound or per bird.
This contract growing system allows poultry companies to expand their production capacity without having to own and operate their own farms. It also provides independent contract growers with a reliable source of income and an opportunity to diversify their operations.
At Bounty, we create a partnership between an individual who owns an existing poultry farm or wishes to invest in one and us, a chicken production and processing company. The contract grower rears the chickens while Bounty provides various benefits to the grower. Let us break it down as to why an entrepreneur should try contract growing.
A WAY INTO THE BUSINESS
Poultry farming has been a lucrative business venture for many agribusiness people worldwide, with chickens being the most commonly raised poultry for commercial purposes. The demand for poultry products, such as eggs and meat, is consistently high, making poultry farming an attractive business venture. However, the high cost of establishing a poultry farm, coupled with the risks associated with raising poultry, can make it challenging for entrepreneurs to venture into poultry farming.
Contract growing is a way for entrepreneurs to enter into the poultry business with minimized risk. One of the biggest risks in poultry farming is the potential for disease outbreaks, which can devastate an entire flock. With contract growing, the poultry company takes on much of this risk by providing the necessary medication and technical support to help prevent and manage any outbreaks. This can help to minimize the financial risk for the investor.
A STEADY INCOME STREAM
The great thing about contract growing is that it provides a steady income stream for entrepreneurs. These contracts assure the grower of a fixed income for raising the birds, which helps them plan their finances and investments. This income stream is especially beneficial for entrepreneurs who may have limited access to other income-generating activities in their area.
Since they have a ready buyer for their products, they do not have to go out and market the birds. This way the poultry gets shipped out as soon as they are ready for market.
Contract growing with a poultry integrator typically involves a pre-agreed price for the birds that will be raised, which can help to reduce the financial risk for the entrepreneur. This arrangement allows the businessman to focus on optimizing production without worrying about the uncertainty of fluctuating market prices.
Poultry integrators also have an extensive network of processors and distributors that help the growers to sell off their stock as easily as possible.
Another benefit of contract growing is that to enter into the business, you need to know the rules and regulations of the local government unit and the country to comply with business rules. The poultry integrator would be a ready source of knowledge to get the growers to comply with the rules and regulations of the country.
A READY SOURCE OF INPUTS
Sourcing is another problem that contract growing solves. Usually, agribusiness people have to find suppliers for their day-old chicks that will grow into market-ready chickens. But with this contract, a poultry integrator provides the agribusiness with day-old chicks, feeds, and other necessary inputs, such as vaccines and medication.
This helps because poultry raising is cyclical. One cycle is from hatchlings to market-ready poultry. For each cycle, you need a ready supply of hatchlings to maximize the number of cycles you have in a year. More cycles equal more revenue for the poultry business.
Poultry integrators also have the benefit of negotiating better prices for the cost of the inputs. Reduced costs could also mean more profits for the agribusiness to maximize their profit potential.
ACCESS TO TECHNICAL EXPERTISE
Contract growers also benefit from the expertise and support of the poultry company. The company provides its partners with technical support, such as training on poultry management practices and biosecurity measures. This support helps the growers to improve their practices and increase their production efficiency.
Poultry integrators also have a leg up on the technology used for growing chickens. Bounty has the know-how to operate the latest technical innovations for contract growers to maximize their incomes and provide a safer environment for the birds.
HIGH QUALITY OF CHICKENS
Bounty Philippines, a poultry integrator, prides itself on providing only the best chickens to the public. We supply chickens to different brands nationwide. Each chicken we provide meets only the highest quality standards.
That’s why the chicks we will provide the entrepreneur must be high quality. It all starts at the beginning with raising the chicks. As they say, you reap what you sow, and what we want is to have the possible chickens delivered to market. So we take extra measures to provide only the best chicks to our contract growing partners. When the chickens are of high quality, more of them reach a market-ready age. With more chickens, this equals more revenue for the entrepreneur.
A BENEFICIAL PARTNERSHIP
In conclusion, contract growing is an excellent opportunity for entrepreneurs to venture into the poultry business with minimized risk and a ready market for their products. It provides a steady income stream, technical support, and a ready supply of high-quality inputs at a reduced cost. By partnering with one of the leading poultry integrators such as Bounty, entrepreneurs can benefit from expertise and support and the opportunity to supply their products to reputable brands. Overall, contract growing can be a way for agribusinesses to find success in the poultry industry.
Send us a message here to know more about how we can help you start a contract growing arrangement with us.
