Poultry Contract Farming in Bangladesh with Special Reference to Aftab Bahumukhi Farm Limited (ABFL)

Present paper describes the different forms of contract farming in and around the world and also the forms being practiced in poultry production in
Bangladesh. It also describes the factors leading to the sustainable development and growth of contract farming. Attempt has been made to have a deep look into the matter regarding poultry production by envisaging Aftab Bahumukhi Farm Ltd (ABFL), the pioneer and leader in this sector. ABFL started contract farming as an experimental basis with a group of 20 local farmers in 1991 and after that based on the initial experience, they launched an elaborated vertically integrated poultry contract farming as an income generating activity for the local people by providing financial, technical and professional supports. Any farmer located in the ABFL’s operating area is eligible to enter into contractual agreement. The company provides DOC, feeds, veterinary services and technical supports on credit and ensures purchase of the output. Contract farmers typically provide land, housing, equipment and labor. All the credit liability of the contract farmers are adjusted against the value of their delivered products. After 2003, the company had changed their arrangement from input supply on credit to cash. The company consists of a modern hatchery for broiler and layer parent stock supplying DOCs and has got its own large feed mills distributing balanced feed to the contract growers as well as to other growers throughout the country. The farm also has established its own managed retail sales centers in Dhaka city to supply eggs and poultry meat to the consumers and to large super stores and other corporate consumers. Despite some limitations, contract farming model developed by ABFL, has made significant contribution to the creation of employment to the rural poor.