The contract farming we find that the gains to the contract growers is in relative to the non
contract growers is much higher and greater in cost of funds and we can also observe that
contracting shifts a large portion of the risks from the growers to the processors. We find that the
contract production is more beneficial when compared to the independent poultry growers this is
because the poultry processor choose those whose skills, experience and access to credit market
make them relatively poor prospects as the independent growers. The next major advantage of
the contract farming is the improved technology and specialized management practices. This
results in low feed consumption.