Vertical Integration at Suguna Poultry Farms - A Critical look at Pro Poor Livelihood Issues

This study attempts to empirically analyze and document the concept of vertical integration with contract farming as practiced by Suguna Poultry Farms Ltd in Odisha. The case study details the terms of the contract and other features with a view to identifying practices that are unique and implemented by the company to promote poultry rearing among smallholder farmers.

The study observes that while this model provides better inputs, access to finance and assured markets, contributing to a feeling of security among farmers, certain prerequisites by the company prior to finalizing contracts, such as ownership of land, availability of infrastructure for housing and managing birds, prohibits the participation of resource poor farmers. In addition contract terms discourage the formation of cooperatives and other forms of collective association undermining efforts by the community, particularly by way of pooling resources for collective borrowings to meet the investment needs of the poor.

Contributed by - SA PPLPP Coordination Team

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