Muhammad Saleem

Small-scale poultry farmers are facing numerous irritants in growing their business, with their exposure to middle man exploitation as a major challenge. Dr. Rashid of the University of Agriculture, Faisalabad, told WealthPK that small-scale poultry farming was crucial for the country, as this sector was playing a significant role in the national economy. For decades, this sector has been serving as a vital source of income for numerous rural families, he said. He said, “Small-scale poultry farmers can’t easily access larger markets due to the high cost of transportation and lack of knowledge. They don't know the potential of urban markets and are unable to meet the demand of large buyers. This is happening because they lack training, sufficient volume to meet the market demand, and ability to adhere to the quality standards. They are often exploited by middlemen due to their limited market knowledge.

“We can easily convert this sector into a cash cow by imparting modern training to the farmers, saving them from the vulnerability of market fluctuations, and ensuring financial resources.” He said that with the passage of time, people had developed a taste for the domestically raised chicken; however, the farmers were unaware of how to expand their business, which could bring them handsome profits. He urged the government to launch incentives for the small-scale rural farmers. He said improvement in the rural infrastructure was crucial to alleviate burden on the large cities. He noted that these cities were straining under a growing population, as the rural areas lack sufficient income resources.

Dr Rashid said that formation of farmer cooperatives will help small farmers solidify their financial position, improve their bargaining power, and compete effectively in the market, dominated by the large-scale farmers or investors. Khalid Mahmood, a small-scale poultry farmer from Samundri, told WealthPK that the biggest challenge was limited financing restricting their ability to invest in better equipment or expand their operations. The banks are also reluctant to finance the small farmers, fearing they might default on their loans.

“High cost of feed erodes our profit. It is also hard for us to compete with large producers with efficient distribution networks. Easy access to larger markets is another major hurdle for the small-scale farmers, as a distant market could devour their assets. They need the policymakers’ assistance to effectively compete with large producers,” he added. Asked how these market access issues affect his business, he responded that the financial constraints blocked their easy access to the big markets due to which they often had to sell their products to local middlemen at lower prices.

Credit: INP-WealthPk