What is broiler contract farming?

What is broiler contract farming?

Broilers contract farming is a cooperative model in which the two parties agree that one party provides farming services, while the other party is responsible for purchasing broilers and entrusting them to carry out farming. This model usually involves specific contract terms, including farming scale, duration, requirements, supply and purchase, price and settlement, etc. The purpose of the contract is to regulate the rights and obligations of both parties in the process of broiler farming, ensure the quality and efficiency of broiler farming, and protect the economic benefits of both parties. Contract farming is popular in the Philippines and Indonesia, where local contractors purchase broilers on a cyclical basis.

Under the contract farming model, Party A (the farmer) is responsible for providing a breeding site that meets hygiene standards, ensuring the cleanliness and suitability of the breeding environment, and feeding and managing the broilers according to the farming technical guidance provided by Party B (the supplier) to ensure the healthy growth of the broilers. Party B provides healthy and high-quality chicks, and ensures that the source of the chicks is legal, and supplies the required feed, medicines and other materials on time, and ensures their quality. When the broilers are released, Party B also has the right to inspect the broilers to ensure that they meet the agreed standards.

The contract also stipulates the price and settlement method. The purchase price of broilers is determined by negotiation based on market conditions and is clearly stated in the contract. The settlement method is agreed upon by both parties and can be cash payment, bank transfer, etc. If one party violates the contract, it shall bear the corresponding liability for breach of contract, including payment of liquidated damages, compensation for losses, etc. If a dispute arises during the execution of the contract, the two parties shall first resolve it through friendly negotiation; if the negotiation fails, it may be submitted to an arbitration institution or filed a lawsuit in accordance with the law in the People’s Court.

How to choose broiler breeding equipment?

If you plan to start a broiler breeding business, it is beneficial to understand the type of broiler breeding system first, which will be beneficial for long-term management in the future.
Option 1: Ground chicken house with tunnel ventilation system
Ground breeding is a mode of raising broilers using rice husks or plastic floor mats. This method also realizes automatic feeding and drinking water, and plans the feed line and water line according to the scale of breeding to ensure that the chickens can eat water and feed. At present, ground breeding chicken houses are still popular in Indonesia. The initial investment of ground breeding is low, and it is easier to start a breeding business.

Option 2: Cage equipment for breeding more chickens
The cage system is a three-dimensional cage feeding system developed and designed in recent years to achieve large-scale breeding and ensure the survival rate of chickens. In some areas of the Philippines, due to the government’s control over the breeding environment, it is required to upgrade the flat chicken houses to cage equipment, and the automated cage method has become popular in the Philippines.