2.

9 TYPES

OF PRODUCT

Dairy Farming
1. Introduction
Dairying is an important source of subsidiary income to small/marginal farmers and
agricultural labourers. In addition to milk, the manure from animals provides a good source
of organic matter for improving soil fertility and crop yields. The gobar gas from the dung is
used as fuel for domestic purposes as also for running engines for drawing water from well.
The surplus fodder and agricultural by-products are gainfully utilised for feeding the animals.
Almost all draught power for farm operations and transportation is supplied by bullocks.
Since agriculture is mostly seasonal, there is a possibility of finding employment throughout
the year for many persons through dairy farming. Thus, dairy also provides employment
throughout the year. The main beneficiaries of dairy programmes are small/marginal farmers
and landless labourers.

2. Scope for Dairy Farming and its National Importance

India is endowed with the largest livestock population in the world. It accounts for about
57.3 per cent of the worlds buffalo population and 14.7 per cent of the cattle population.
The value of output of milk is Rs. 3,05,484 crore in 2011-12. The total milk production in
the country is 127.9 million tonnes per annum at the end of the Eleventh Plan (2011-12) and
the demand is expected to be 180 million tonnes by 2020. To achieve this demand annual
growth rate in milk production has to be increased from the present 2.5 % to 5%. The
Annual growth rate for production of milk is about 5% in 2011-12. Thus, there is a
tremendous scope/potential for increasing the milk production through profitable dairy farming.

3. Financial Assistance Available from Banks for Dairy Farming

For dairy schemes with large outlays, detailed project reports will have to be prepared. The
items of finance would include capital asset items such as purchase of milch animals,
construction of sheds, purchase of equipment etc. The feeding cost during the initial period of
one/two months is capitalised and given as term loan. Cost towards land development,

fencing, digging of well, commissioning of diesel engine/pump set, electricity connections,

essential servants' quarters, godown, transport vehicle, milk processing facilities etc. can be
considered for loan. For high value projects, the borrowers can
utilise the services of NABARD Consultancy Services (NABCONS) who are having wide
experience in preparation of Detailed Project Reports.

Pig Farming
1. Introduction
The challenges faced by our country in securing the food as well as nutritional security to
fast growing population need an integrated approach in livestock farming. Among the various
livestock species, piggery is most potential source for meat production and pigs are more
efficient feed converters after the broiler. Apart from providing meat, it is also a source of
bristles and manure. Pig farming will provide employment opportunities to seasonally
employed rural farmers and supplementary income to improve their living standards. The
advantages of the pig farming are:
a. Pig has got highest feed conversion efficiency i.e. they produce more live weight gain
from a given weight of feed than any other class of meat producing animals except broilers.
b. Pig can utilise wide variety of feed stuffs viz. grains, forages, damaged feeds and garbage
and
convert them into valuable nutritious meat. However, feeding of damaged grains, garbage and
other unbalanced rations may result in lower feed efficiency.
c. They are prolific with shorter generation interval. A sow can be bred as early as 8-9
months of age and can farrow twice in a year. They produce 6-12 piglets in each farrowing.
d. Pig farming requires small investment on buildings and equipment.

e. Pigs are known for their meat yield, which in terms of dressing percentage ranges from
65 - 80 in comparison to other livestock species whose dressing yields may not exceed 65%.
f. Pork is most nutritious with high fat and low water content and has got better energy
value than that of other meats. It is rich in vitamins like thiamin, Niacin and riboflavin.
g. Pigs manure is widely used as fertilizer for agriculture farms and fish ponds.
h. Pigs store fat rapidly for which there is an increasing demand from poultry feed, soap,
paints and other chemical industries.
i. Pig farming provides quick returns since the marketable weight of fatteners can be
achieved with in a period of 6-8 months.
j. There is good demand from domestic as well as export market for pig products such as
pork, bacon, ham, sausages, lard etc.

2. Scope for pig farming and its contribution to nation

The pig population of the country is 11.1 million as per the 2012-13 annual report of Animal
Husbandry. Pork production in India is limited, representing only 7% of the countrys animal
protein sources. Production is concentrated mainly in the northeastern corner of the country
and consists primarily of backyard and informal sector producers. According to 18th Livestock
Census of India (2007), there was a marginal decline in total swine population. The Indian
market for processed pork products is small, and the majority of this market is supplied
through imports. Although there are some local companies which manufacture processed
products such as sausages and bacon, quantities are limited and the industry is small.
According to MoFPI, there are 3600 slaughter houses in India, although the majority of these
facilities do not export. There are a small number of abattoirs in India which meet
international standards. However, these facilities do not process pork.
The pig farming constitutes the livelihood of rural poor belonging to the lowest socioeconomic strata and they have no means to undertake scientific pig farming with improved
foundation stock, proper housing, feeding and management. Therefore, suitable schemes to
popularise the scientific pig breeding cum rearing of meat producing animals with adequate
financial provisions are necessary to modernise the Indian pig industry and to improve the
productivity of small sized rural pig farms.
In view of the importance of pig farming in terms of its contribution to rural poor and
possible potentials for pig rearing in our country, Government of India has initiated measures

to promote the pig farming on scientific lines under its five year plans. In order to make
available good foundation stock 115 pig breeding farms were established throughout the
country.

3. Financial assistance available from banks / Nabard for pig farming

For piggery development schemes with large outlays, detailed project reports will have to be
prepared. The items such as land development, construction of sheds and other civil
structures, purchase of the breeding stock, equipment, feed cost up to the point of income
generation are normally considered under bank loan. Other items of investment will be
considered on need basis after providing the satisfactory information justifying the need for
such items.

Poultry Broiler Farming

1.

Introduction

Poultry meat is an important source of high quality proteins, minerals and vitamins to
balance the human diet. Specially developed varieties of chicken (broilers) are now available
with the traits of quick growth and high feed conversion efficiency. Depending on the farm
size, broiler farming can be a main source of family income or can provide subsidiary
income and gainful employment to farmers throughout the year. Poultry manure is of high
fertilizer value which can be used for increasing yield of all crops.
The advantages of broiler farming are
a) Initial investment is lower than layer farming
b) Rearing period is 5-6 weeks only
c) More number of flocks can be taken in the same shed
d) Broilers have high feed conversion efficiency i.e. the amount of feed required for unit
body weight gain is lower in comparison to other livestock

e) Faster return from the investment

f) Demand for poultry meat is more compared to sheep/goat meat

2. Scope for broiler farming and its national importance

India has made tremendous progress in broiler production during the last three decades and
the broiler population in the country during 2011-12 stood at 2300 million. Today India is
the fifth largest producer of broiler meat in the world with an annual production of 2.47
million MT. Despite this achievement, the per capita availability of poultry meat in India is
only 2.96 kg which is way below the ICMR recommendation of 11 kg meat per capita per
annum.
The growth of the poultry sector is mainly attributed to the interventions of the corporate
sector with an enabling policy environment provided by the Government of India / State
Governments from time to time. The activity provides huge employment opportunities for the
rural poor either under Backyard poultry production system or under small scale commercial
broiler farming units. Over 5 million people are engaged in the poultry sector either directly
or indirectly.

Owing to the considerable growth in broiler industry, high quality chicks, equipment, vaccines
and medicines, technically and professionally competent guidance are available to the farmers.
The management practices have improved and disease and mortality incidences are reduced to
a great extent. Many institutions are providing training to entrepreneurs. Increasing assistance
from the

Central/ State governments and poultry corporations is being given to create

infrastructure facilities so that new entrepreneurs are attracted to take up this business. Broiler
farming has been given considerable importance in the national policy and has a good scope
for further development in the years to come.

3. Integration in Broiler Farming

There is a growing trend of integration in broiler farming. In the early nineties, contract
farming for broilers was introduced and in 1995 it spread all over Tamil Nadu. Between
1995 and 2000, it spread to Karnataka. It gathered momentum and spread its wings to
Maharashtra, Andhra Pradesh in the years 2001 & 2002 and after that, it gained inroads into
West Bengal and Gujarat. The spread is due
to in built strengths in integration system. Integrators takes care of all aspects of production,
right from raising of grandparent and parent flocks, production of day old chicks for rearing,
manufacturing and supply of concentrate feed, providing veterinary services and wholesale
marketing of birds. Under integration all the previous profit centres of the broiler industry
viz. chick selling, feed selling, hatching, medicine supply, transportation have become cost
centres for the integrators who work as a single entity and distribute the benefits among the
farmer, consumer and the integration company themselves. Under contract farming, poultry
farmers invest only for poultry sheds / equipment on their existing land. The Integrator
supplies chicks, feed, and medicines, provides technical guidance and also buy back /
purchase the entire production after 5-6 weeks. The contract farmers are paid rearing charges
usually on per kg Live Weight basis and also as per the set of criteria prescribed by the
integrators viz., FCR, Mortality etc. Farmer is benefiting from the lesser investment and
production cost and also higher productivity which are achieved as a result of integration.
Moreover
he/she is insulated from the market price fluctuations. However, the farmer may be at a
disadvantage if the number of batches supplied in the year by the integrator is less.

4. Financial assistance available from Banks for broiler farming

For poultry farming schemes with large outlays Detailed Project Reports (DPR) are required
to be prepared. The items of investment / finance would include construction of broiler sheds
and purchase of equipment, cost of day old chicks, feed, medicine and labour cost for the
first cycle. Cost towards land development, fencing, water and electricity, essential servants
quarters, godowns, transport vehicles, broiler dressing, processing and cold storage facilities
can also be considered for providing credit. For high value projects, the borrowers can utilise
the services of NABARD Consultancy Services (NABCONS) who are having wide experience
in preparation of Detailed Project Reports.

Poultry Layer Farming

1. Introduction
Poultry egg and meat are important sources of high quality proteins, minerals and vitamins to
balance the human diet. Commercial layer strains are now available with traits of high egg
production and high feed conversion efficiency. Superior germplasm of chicken have been
developed by both public and private sectors which met the requirement of Indian Poultry
Industry. Depending on the farm-size, layer (for eggs) farming can be main source of family
income or can provide income and gainful employment to farmers throughout the year.
Poultry manure has high manure value and can be used for increasing yield of all crops.

2. Scope for Layer farming and its National Importance

Poultry is one of the fastest growing segments of the agricultural sector in India today. India
has emerged on the world map as the 3rd largest egg producer (56 billion eggs) and annual
growth rate in egg production approximated 6% per year (Source; Report of the Working
Group on AH & dairying, 12th Five Year Plan). The current strength of layers in India is
estimated to be 230 million and the annual per-capita availability of eggs has increased from
7 eggs in 1961 to 52 eggs in 2010. However, the present availability is far below the ICMR
recommendation of 180 eggs per capita per annum.
In the poultry industry, value added products utilizing poultry eggs, culled birds for human
consumption have been developed. However only 6% of the eggs produced in the country are
converted into processed egg products mainly for export.

The poultry sector in India has undergone a paradigm shift in structure and operation. This
transformation has involved sizable investments in breeding, hatching, rearing and processing.
Farmers in India have moved from rearing non-descript birds to rearing hybrids which
ensures faster growth, good liveability, excellent feed conversion, high egg production and
profits to the rearers. High quality chicks, equipment, vaccines and medicines are now
available through both public and private players. Technically and professionally competent
guidance is available to the farmers. The managerial practices have improved and disease and
mortality incidences are reduced to a great extent. The industry has grown largely due to the
initiative of private enterprises, government intervention, and considerable indigenous poultry
genetic capabilities and adequate support from the complementary veterinary health, poultry
feed, poultry equipment and poultry processing sectors.

3. Financial assistance available from Banks

Loan from banks with refinance facility from NABARD is available for starting poultry
farming. For poultry farming schemes with very large outlays, detailed project reports will
have to be prepared. Banks provide financial assistance for the following purposes:
a. For construction of brooder/grower and layer sheds, feed store, quarters etc.
b. For purchase of poultry equipment such as feeders, waterers, brooders etc.
c. For creating infrastructure items for supply of electricity, feed, water etc.
d. For purchase of day old chicks or ready to lay pullets.
e. For meeting working capital requirement in respect of feed, medicines and veterinary aid
etc. for the first 5 to 6 months (i.e. till the stage of income generation).
For high value projects, the borrowers can utilise the services of NABARD Consultancy
Services (NABCONS) who are having wide experience in preparation of Detailed Project
Reports.

Sheep Farming
1. Introduction

Sheep with its multi-facet utility for wool, meat, milk, skins and manure, form an important
component of rural economy particularly in the arid, semi-arid and mountainous areas of the
country. It provides a dependable source of income to the shepherds through sale of wool
and animals. The advantages of sheep farming are:
a. Sheep do not need expensive buildings to house them and on the other hand require less
labour than other kinds of livestock.
b. The foundation stock are relatively cheap and the flock can be multiplied rapidly.
c. Sheep are economical converter of grass into meat and wool.
d. Sheep will eat varied kinds of plants compared to other kind of livestock. This makes
them excellent weed destroyer.
e. Unlike goats, sheep hardly damage any tree
f. The production of wool, meat and manure provides three different sources of income to
the shepherd.
g. The structure of their lips helps them to clean grains lost at harvest time and thus convert
waste feed into profitable products.
h. Mutton is one kind of meat towards which there is no prejudice by any community in
India and further development of superior breeds for mutton production will have a great
scope in the developing economy of India.

2.

Scope for Sheep Farming and its National Importance

The country has 71.6 million sheep as per 2012-13 annual report of Animal Husbandry
Department and ranks sixth in the world. The contribution of sheep through export of meat is
8 per cent of the total export value of agricultural and processed food products. Sheep skin
in the form of leather and leather products is also exported. Sheep make a valuable
contribution to the livelihood of the economically weaker sections of the society. Amongst the
livestock owners the shepherds are the poorest of the lot.

3.

Financial assistance for sheep farming

Loan from banks with refinance facility from NABARD is available for starting sheep
farming. For obtaining bank loan, the farmers should apply to the nearest branch of a
Commercial, Co-operative or Regional Rural Bank in their area in the prescribed application
form which is available in the branches of financing bank. The Technical officer attached to

or the Manager of the bank can help / give guidance to the farmers in preparing the project
report to obtain bank loan. For sheep development schemes with very large outlays, detailed
reports will have to be prepared. For high value projects, the borrowers can utilise the
services of NABARD Consultancy Services (NABCONS) who are having wide experience in
preparation of Detailed Project Reports.