THE last six month’s experience of ‘Kerala Chicken Project’(KCP) launched by the Left and Democratic Front(LDF) government of Kerala illustrates the significance of alternative model of agrarian development that could support the peasantry in their struggle to overcome the intense, countrywide agrarian crisis.  This particular project enables peasants as well as consumers in modernising agriculture; establish the collective ownership of the peasantry over agro-based industries and marketing.

The LDF government in Kerala - through the KCP,  helps the peasantry to develop collective/ cooperative ownership of peasants and workers over agro-processing industries and market to modernise agriculture and thus advancing towards creating an eco friendly and modern industrial society in Kerala.

As per estimations and surveys, the Kerala market sells 10 lakh birds per day on an average with annual market share to the tune of Rs 10,000 crore.   This enormous market is controlled by private sector-large scale companies and their intermediaries who have the control of breeder farms and feed factories. The growers in Kerala are mere contract farmers who are at the mercy of these big private sector players and are badly affected with price fluctuation.

As per the model designed, the KCP is being implemented under the collective ownership of poultry growers. Brahmagiri Development Society (BDS) has designed the plan of establishing breeder farms and feed factory in order to avoid intermediaries and control the price of both these major ingredients.  Growers become members in the project by remitting seed money of Rs 130 per bird as the expense for day old chick, feed and medicine. Different banks have come forward to provide loan for the growers who require money. The project has included insurance coverage as mandatory provision to ensure compensation on unusual mortality due to disease outbreak or natural calamities. 

The KCP aims to capture 25 per cent of the market share within five years by placing 2.5 lakh birds per day through establishing 6,000 broiler farms and 2,000 ‘Kerala chicken’ outlets and required number of dry rendering plants in the state thus ensuring direct employment and dignified income above the minimum wage of Rs 21,000 per month to 10,000 households.

Growers themselves manage farms up to 2,500 to 3,000 birds without farm worker.  The average weight of grown up birds is 2.3 kg. Birds will attain the growth within 35 days to 42 days. Growers can harvest six batches of birds in a year. Normally 2-3 per cent mortality may be expected and for that additional chicks will be provided to farmers. If we calculate 2 kg per bird as average weight, 2,500 to 3,000 birds may have live weight of 5,000 kg to 6,000 kg. As per the expected rearing charge of Rs 11 per kg, growers will get Rs 55,000 to Rs 66,000 as income. The earning from sales of manure may be Rs 8,000. That means income of Rs 63,000 to Rs 74,000 per batch or Rs 31,500 to Rs 37,000 per month. After deducting expenses on electricity, loan repayment etc., growers may expect minimum monthly income of Rs 20,000 to Rs 25,000 from the project.

A price stabilisation fund has been developed to protect the project by reducing the price of meat during the period of price crash. The price stabilisation fund is added up during the period of price hike.  The market study reveals that in poultry market there will be average price for four months, price hike for four months and price crash in four months in general at different period of time. The price stabilisation fund has been designed considering the above stated market trend. In addition to that, when the price is low, the BDS could use the birds for frozen meat production in its Malabar meat plant and market the products through its 100 plus outlets and thus save the growers from the price fluctuation.

  The KCP was inaugurated on December 30, 2018 at Malappuram by Pinarayi Vijayan, Chief Minister of Kerala.  BDS, one of the nodal agencies has established breeder farm with 24,000 parent birds at Pollachy in Tamil Nadu in the year 2018-19. BDS has assisted 88 poultry farmers to establish grower farms in six districts from Kasargod to Palakkad and helped small traders to open seven other outlets in two districts of Malppauram and Palakkad.  The KCP has achieved a turnover of Rs 25.68 crore till September 30, 2019.  The other agency of Kudumabshree with the support of Meat Products of India (MPI) and Kerala State Poultry Development Corporation (KSPDC) has established 540 poultry farms across the state.

Though the budget of 2018-19 has announced Rs 20 crore for the implementation of the KCP, due to the financial constraints especially in the context of the recurring devastating floods and natural calamities that gripped the state, the government was unable to release fund adequately.  An extra ordinary price crash, lingering for the last four and half months starting from June 2019 has affected the project incurring heavy loss. In this context, through the Peasant Worker Social Development Fund (PWSDF), an internal capital mobilisation scheme of BDS, around Rs 6 crore has been extended to support the KCP. This was possible only due to the deep trust among the people of Wayanad on BDS. Dr Thomas Issac,  Finance Minister of Kerala who had visualised the scope of the Kerala Chicken project and  Raju, Minister of Animal Husbandry who is keen to support this unique project are taking extra ordinary initiatives to ensure required funds to the project and the BDS has submitted DPR with estimate of Rs 43 crore to the concerned departments.

When the wrong policies of the Modi government further intensifies the acute agrarian crisis,  the alternative model of modern co-operative farming being successfully advanced by the LDF government in Kerala  shows how alternative models can help sections of the peasantry to meet out the crisis.