Case Study Proposal Case writing applicants name Institutional affiliation (if any) Country Email Other contact

details Institutional affiliation (if any) Title of the proposed case SharadAgarwal, Prof.N Sivasankaran Indian Institute of Management, Ranchi India [email protected], [email protected] Mob:+91-7739980722 Broiler Farming: A sustainable proposition for employment generation in rural India Poultry (Broiler Farming)

Product (or service) described in the case The value chain

Present the value chain in a simple diagram: show the complete flow of the product from inception to consumption, and the main players involved in this flow. Include a summary of the main operations at the different levels in the value chain. If possible, show the approximate price paid at each level in the chain. Please include the diagram as attachment to this document. Are very small-scale farmers or other small producers involved in the value chain? If yes approximately how many small-scale farmers or other producers are involved? Very roughly, what do you estimate is the annual income of a typical producer household? Approximately what proportion of this annual income is earned through participation in the value chain? In addition to buying from these small producers, does the company provide other services to them? If yes what kind of services are provided: Marketing support Technical assistance Inputs Credit Community development Do these small-scale producers also sell to other companies? If so, roughly what proportion of their produce do they sell to this value chain? Yes 50 36,000/ household (For a family with two earning members) 33 % The organization (JMSS) does not buy the product from these Producers or SHGs No Yes No No Yes Yes All the produce is sold in the open market.

The Company Name of the company which leads the value chain Address of the company Website (if available) Companys estimated turnover Approximately what share of the Companys business which goes through the above described value chain How does the company (JMSS) finance its operations: From commercial banks From private investor From own resources (owner, previous profits) From donors From government Does the company receive or has it received any funding (grants, loans, equity) from donors? Does the company receive or has it received any technical support from donors? Which donor organizations have supported the company? What activities has the above donor or government support, if any, assisted ? Case writer Are you confident that the institutions which are involved will allow you to obtain the necessary information, and will allow the case study to be published If your proposal is accepted, can you complete a 10-12 page case study by 31.3.2013, giving details of the origins and development of the value chain, and its present operations including a map with full details of the value added and earnings at each stage, brief micro cases of typical producers, including data on the impact of earnings from the value chain on the producers, and the other parties which are involved? If your completed case study is accepted, where would you want the draft for $1000 to be sent? (The honorarium cannot be paid until the case is completed and accepted, but if it is not acceptable the case will be returned and will not be used)
Jharcraft Mahila Samakhaya Society (JMSS) and the SHGs

69, Old A. G. Cooperative Colony Kadru, Ranchi, Jharkhand 834002 http://www.msjharkhand.org/

Yes No No No Yes No The SHGs receive technical support during the initial stages from JMSS Nil

Yes

We would be able to send the case study during the first week of April

SharadAgarwal Indian Institute of Management, Ranchi, 5th Floor, Suchana Bhawan, Audrey House Campus. Ranchi, Jharkhand 834008 India

Chicken Farming Value Chain

Jharkhand Mahila Samakhya Society (JMSS) Mahila Samakhya (MS) is a program of the Government of Indias Ministry of Human Resource Development (MHRD), Department of School Education and Literacy for the empowerment of women The Mahila Samakhya program was initiated in Jharkhand way back in 1992 under Bihar Education Project. In 2000, when Jharkhand became a new separate State, The activities of MS continued as usual. In September 2006 a society got registered called Jharkhand Mahila Samakhya Society (JMSS) to implement the Mahila Samakhya Program in Jharkhand under Society Registration Act 1860.The society started working independently since June 2007.At present the Mahila Samakhya program is being implemented in 11 districts of Jharkhand covering 71 block, 4107 villages by mobilizing 142147 women, 15081 Kishori and 3426 Kishore directly One of the major areas of impact of JMSS is women empowerment, through employment generation, economic upliftment, and spreading social awareness among the women folk in the rural area of Jharkhand. The state of Jharkhand has a high incidence of rural poverty, of 46.2% against the national average of 28.3% (planning commission, 2011). As per 2001 census, 26.3 % of the states population belongs to the tribal community, which has, in the past, been neglected and need extensive scalable developmental and livelihood generation programs. The rural population of the state primarily depends on agriculture or allied activities such as dairy etc. According to our survey, the agricultural labor is paid around Rs. 40- 50 / day (depending on individual village) to work on agriculture farms, that too in the monsoon season as there is no alternative mechanism of cultivation and the crops and farming completely depend upon monsoons and rains. There is an urgent need to generate employment opportunities for villagers in the rural areas of Jharkhand to pull them above the poverty line and help them in living a respected life in the society. JMSS played a major role in bringing awareness regarding the benefits of cultivating the habits of micro savings, especially in the groups among the rural women folks. These savings were done in the groups (of 10-15 women) and after a reasonable period of time, generally a period of 2-3 years, the group themselves feel the need to indulge themselves in revenue generation activities and decides on the activities, most suitable, according to the advantage of the resources available to them such as availability of water or ponds (for pisciculture) etc. JMSS, however does not provide any monetary funds or grants to the SHGs, it facilitates the SHGs by imparting them the knowledge of practices relating to better governance of SHGs, technical skills to initiate the occupation of their choice such as boiler farming, preparation of documents for availing bank loans etc. After the SHGs become financially sustainable on their own, through their respective business processes (generally after 2 years, of their initiation of the economic activities), JMSS starts the process of making these federation as an independent unit so that they can continue on their own.

In our case study, we intend to present the findings of our study of 4 Self Help Groups (SHGs), namely Sitara Mahila samooh (Sitara Womens Group), Bulbul Mahila Samooh (Bulbul Womens Group), Milan Mahila Samooh (Milan Womens Group), Kamal Mahila Samooh (Kamal Womens Group), which were formed by the groups of rural women, for the purpose of generating monetary savings and are now using those savings to generation revenues and profits through Broiler farming. All of these four SHGs are located in the village of Navada at a distance of around 90 km. from the city of Ranchi. Each of the SHGs has the capacity of rearing 700 chickens/ batch, each batch usually takes 26 days to convert into final product, i.e Chicken, after which a new batch arrives leading to around 13 turnover cycles in a particular year. Each SHG earns around Rs. 1,00,000 to 1,30,000/ year through the broiler farms. Figure1 depicts the complete value chain of the Chicken farming of which Broiler farming is a major activity.

Distributors and Retailers

Broiler Farm

Parent Bird

Hutchery

Hatching Egg

Figure 1: Chicken farming value chain

The demand for chicken is constantly rising in the Indian markets across the country, whatever is produces is sold. According to NABARD (NABARD,2007), the annual per capita consumption in India is only 1600 grams of poultry meat as against the world average of 5.9 kg of meat. This indicated that the demand for poultry meat will be on rise in the near future which will ensure the sales of the product of the poultries i.e the Chicken. 4

In our case study, we intend to present the complete Economic analysis of the projects (Broiler farming), being pursued by these four SHGs, which will include their ROIs , economic value added (EVA), IRRs etc. and would hence depict the financial feasibility of these projects. We would also study the shortcomings or gaps in the processes, currently practices by these SHGs, which would in turn lead to higher efficiency of these projects and hence the income levels of the members of SHGs making it more lucrative and feasible for other SHGs, across the state and the country to follow this model. As depicted in Figure 2, we intend to present in our case study, the value addition process in there phases in the Broiler farms, the input phase, the processes during the period of rearing and the output phase

Sourcing of Chicks Sourcing of raw materials for consumption

Processing Stage
Practices related to vaccination etc. Protecting chicks during winters from dying etc.

Better Marketing practices Revenue generation from allied outputs such as manure

Input stage

Output Stage

Figure 2: Stages of Value addition during the Broiler farming stage Our case study would help the SHGs, not only across the state of Jharkhand but also across the country to implement this model of revenue generation for enhanced earnings. As the model has been implemented with reasonable success by the poorest section of the society without any financial grant or donations, it would be a great source of inspiration for others, to implement SHG model and would also provide best practices in the all three phases of the Broiler farming.

Poverty Index (PPI): Scorecard of a typical household

No. Indicator Value A. Four or more B. Three C. Two D. One E. Zero A. No male head/spouse B. Not literate, no formal school, or primary or below C. Middle D. Secondary or higher secondary E. Diploma/certificate course, graduate, or postgraduate and above A. Labour (agricultural, casual, or other) B. Self-employed (agriculture or nonagriculture), regularwage/salary-earning, or others A. Firewood and chips, dung cake, kerosene, charcoal, coke or coal, gobar gas, or others B. LPG or electricity C. No cooking arrangement A. No Point 0 7 11 17 26 0 0 3 5 7 0 0 Score 7

How many household members are 17-years-old or younger?

2 What is the general education level of the male head/spouse? 3 What is the household type?

5 0 3 9 0 0

What is the primary source of energy for cooking?

Does the household possess any casseroles, thermos, or thermoware?

Does the household possess a television and a VCR/VCD/DVD player? Does the household possess a mobile handset and a telephone instrument (landline)?

B. Yes A. No, neither one B. Yes, only one C. Yes, both A. No, neither one B. Yes, only a mobile
A. Yes, a landline, regardless of mobile A. No B. Yes A. No B. Yes A. No, none B. Yes, bicycle only, no motorcycle/scooter, or car C. Motorcycle/scooter, but no car (regardless of bicycle) D. Motor car/jeep (regardless of others)

5 0 4 9 0 9
15 0 1 0 5 0 1 13 18

8 9

Does the household possess a sewing machine? Does the household possess an almirah/dressing table?

10

Does the household possess a bicycle, motorcycle/scooter, or motor car/jeep?

Total
6

22

References: Planning Commission, 2011, report available at http://planningcommission.nic.in/plans/stateplan/present/Jharkhand.pdf accessed on 18th Februrary 2013 Jharkhand: An Overview available at http://jharkhand.gov.in/new_depts/pland/Jharkhand%20Overview.pdf accessed on 18th Februrary 2013 Jharkhand: Economic and human development indicators, (online) available at http://www.undp.org/content/dam/india/docs/jharkhand_factsheet.pdf accessed on 18th Februrary 2013 NABARD (2007), Pultry Broiler Farming, available at http://www.nabard.org/modelbankprojects/animal_broiler.asp accessed on 26th March 2013