The National Livestock Mission is one of several government programmes aimed at raising livestock productivity. In line with government objectives, contract farming allows farmers to secure guaranteed prices and markets. The Model Contract Farming Act is one example of a reform that seeks to establish fair and open standards for contract farming.

In India contract livestock farming is a boon for both farmers and agribusinesses, signalling a sea change in the agricultural industry. This approach is poised to become a fundamental component of India’s agricultural economy in 2025 and beyond by guaranteeing financial security for farmers and catering to the increasing demand for animal products. 

To get a more detailed view of the contract livestock farming sector in India, AgroSpectrum had an exclusive conversation with Shan Kadavil, Co-Founder of Fresh to Home. The company posted a yearly revenue run rate of around Rs 850 crore in FY 2024. Compared to their FY23 revenue of about Rs 110.3 crore, which resulted in a loss of Rs 409.5 crore, this was a huge increase. These figures indicate that the contract livestock farming sector is transforming the business operations. Edited excerpts:

How do you envisage the future of contract farming in the livestock sector?

The establishment of a significant presence of private companies and the implementation of government policies that empower farmers have contributed to the development of contract livestock farming in India over the years. Small farmers now have access to larger and new markets, a more comprehensive understanding of production management techniques and the role that technology plays in achieving operational efficiency, and, most importantly, a path to sustainable expansion. The future appears to be bright. As the fulcrum of contract livestock farming, the focus should be placed on key integrations that will nurture the community. These include the provision of AI-powered solutions to determine the quality of pre-harvest (fish and poultry) and, as a result, reduce losses; low-cost technical solutions; beneficial schemes that will ensure a regular source of income; and the construction of robust infrastructure solutions for post-harvest that will reduce high-impact risks.

Do you feel that contract farming will change the entire ecosystem of livestock farming in India by infusing more tech-driven solutions into this sector?

In order to solve the issues that the agriculture industry is facing, there has been a paradigm shift, and solutions that are tech-focused are producing long-term impacts through their implementation. Every industry that lives on methods that are fueled by technology has demonstrated an upward trajectory. It is possible that technologically advanced solutions will not be able to completely transform the ecosystem on their own; however, they will play a key part in mitigating the risks associated with production uncertainty and market unpredictability. If these solutions are implemented, there is no doubt that the fundamental attitude will shift towards more conservative approaches, which will ultimately result in improved outcomes and more returns.

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