LPM 222: Diversified poultry production and current concepts in poultry management and marketing [Livestock Production Management (Regional Interest)] (1+1)

FORWARD AND BACKWARD INTEGRATION

Forward integration 

• Here, in order to fetch a better price for his output / product, the integrator will start his own processing plant or marketing centre.

Backward integration 

• In this case, the farmer or integrator, in order to obtain his inputs at a cheaper rate, say chicks, he will start his own hatchery and / or breeding farm.

Advantages of integration

• Mushroom growth of independent small farms and other production units can be avoided.
• The cost of production of the final product will come down, for the ultimate benefit of the consumer. 
• It will be possible to go for diversified products and newer fast foods. 
• Due to large volume of operation, the integrator can go for advertisement for promoting his products. 
• All main and by products will be utilized and recycled without any wastage.  This will not only prevent environmental pollution; but also reduces the cost of production of the main product. 
• It will stabilize the prices, by balancing the supply and demand.