tailieunhanh - EFFICIENCY AND DISTRIBUTION IN CONTRACT FARMING: THE CASE OF INDIAN POULTRY GROWERS

A competitive partial-equilibrium spatial model with heterogeneous goods is constructed to evaluate effects of the removal of tariffs, tariff-rate quotas, and sanitary regulations on world poultry trade. The model distinguishes between ìhigh-valueî (mostly white meat) and ìlow-valueî (mostly dark meat) poultry products and simulates the trade flows between eight exporting and importing countries and regions. Removing all barriers simultaneously has larger impact on trade than only removing tariffs and tariff-rate quotas. Imposition of sanitary barriers against US products by Russia shifts trade flows, but does not have large net impacts on US producers. . | I INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE IurtiiMitir jokitwnf for Ikmfer índ fimtf MARKETS TRADE AND INSTITUTIONS DIVISION January 2006 MTID Discussion Paper No. 91 Efficiency and Distribution in Contract Farming The Case of Indian Poultry Growers Bharat Ramaswami Pratap Singh Birthal and Joshi 2033 K street. NW Washingtqn DC 20W6-1002 USA 1-202-852-5630 Fax 1-202-457-4439 irPri@cgier urg NOTICE IFPRI Division Discussion Papers wnlain preliminary material and research results and are circuited prior ta a full peer review in order to stimulate discussion and critical commani. It la expected that rriLisi DriixiSiion Papers will eventually be published in some other form and dial lheir content may also be revised. Copyright Ĩ00S Irlernelkinal Food Policy eseard trsrule Al ọy-its reserved. Secuar s o ins ma-jcna may be reproduoed for personal and noG-for-piySLii n iijự thứ spre wrttlw porriBwion nr bụ I wilt Ii4 lqigwic 0gnini- Io IFPRI Tri ngprodveo Jic irwujrlsl irrlainod rcráii for HTini or Iinriri J ụsc nộqụirụ 0qjrr5S writer I II HI Iiss iri. To QtrlM pcimisjiM cẠiidui Ilin Comniwricalró Cwijion ML ifpri-cO TÌgfltiS Ị Hr nrg . ABSTRACT This paper is an empirical analysis of the gains from contract farming in the case of poultry production in the state of Andhra Pradesh in India. The paper finds that contract production is more efficient than noncontract production. The efficiency surplus is largely appropriated by the processor. Despite this contract growers still gain appreciably from contracting in terms of lower risk and higher expected returns. Improved technology and production practices as well as the way in which the processor selects growers are what make these outcomes possible. In terms of observed and unobserved characteristics contract growers have relatively poor prospects as independent growers. With contract production these growers achieve incomes comparable to that of independent growers. Keywords Contract Farming

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