As the successful implementation of financing project on three-parties contract farming on pig raising and the potential of scaling up the implementation financing on chicken raising, which can enhance the implementation of contract farming, ensuring the market and capital requirements for raising, Agricultural and Rural Development Bank has been scaling up: financing project on three-parties contract farming on chicken raising with aims to promote and increase the sustainability of domestic chicken production.
By implementing this scale-up project, the partner company has contributed support in reducing the risk of some chicken diseases that may occur during the raising period, by providing technicians to guide and monitor the treatment and market risk. On top of that, the project requires the contract farming between the parties to ensure the quantity and price are reasonable, and the partner company also participates in monitoring the breeding process, which ensures the standard quality.
Furthermore, the use of financing supported by ARDB, the breeder uses cheques which is required to use only with one partner company and when selling live chickens to partner company, company needs to pay the fee directly to the breeder’s account opening with ARDB.
This project encourages all stakeholders respect each other through three-parties contract farming to supply quantity and quality in accordance the market price and to serve the demand of local market and export.