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I N C LU S I V E G R E E N G R O W T H: T H E PAT H WAY TO S U S TA I N A B L E D E V E LO PM E N T

BOX 5.5

Producing a better backyard chicken in India

Kegg Farms in India has bred a robust and improved dual-purpose backyard chicken. The “Kuroiler” lays 100 –150 eggs a year (many more than the 40 eggs a year the Desi chicken lays) and grows to 2.5 kilograms in about half the time a Desi chicken reaches 1 kilogram. The chickens typically command a premium of about Rs 60 per kilogram over other broiler chickens, because the meat is darker and more flavorsome. Kegg Farms produces about 16 million day-old chicks a year, which it sells to 1,500 small enterprises that raise the chicks for about two weeks before inoculating them and selling them to about 6,500 bicycle salespeople, who sell them to some 800,000 farmers, most of them women, many located in some of the remotest parts of the country. The turnover in sales of chicks is about $5 million a year, with another $5 million turnover by the thousands of small, rurally based businesses that grow and sell the chicks.

An independent assessment indicates that the average gross revenue generated per Kuroiler chick (as eggs and meat) is $3.10. With some 16 million chicks distributed annually, total output is about $50 million, with a net profit of about $10 million. Profits from the Kuroiler are significantly higher than profits from the Desi bird. The Kuroiler birds contribute significantly to household cash flow. Women have maintained control over their chickengrowing enterprises as the business has become more commercial. The success of Kegg Farms reflects several factors. Its chickens are more robust than other chickens, are better able to scavenge food, and have higher food conversion ratios. The company’s business model features a devolved, rural-based distribution system with in-built incentives. Source: Isenberg 2006.

range of methods, including SMS (cell phone messaging), radio, newspapers, and extension officers.8 Changing the structure of support policies. Changes in the structure of support policies can also help manage potential tradeoffs. In the European Union (EU)—and to a lesser extent the United States—the past 20 years have been characterized by a shift away from highly distortive price and quantity instruments (target prices, export subsidies, and quotas) toward lump-sum payments. The policy change has weakened the incentives for farmers to use polluting inputs, such as fertilizers and pesticides. Between 1991 and 2006 fertilizer use decreased in most EU member countries, though it increased in new member countries (Eurostat 2011). Moreover, as agricultural transfers became decoupled from production, they became increasingly subject to environmental provisions.9

Aquaculture In 2009, humans consumed 117 million tons of fish—almost half of which was produced

on farms (FAO 2010b). By 2030, this figure is expected to rise to 140 million tons. Capture fisheries are not expected to support the higher demand, leaving aquaculture to meet shortfalls in supply. As in the livestock industry, competition, economies of scale, and economies of agglomeration have increased productivity but have pushed some systems into potentially damaging environmental practices. Farms tend to concentrate where there is expertise, good land, water resources, and marketing infrastructure. This crowding has sometimes led to overuse of ecosystems services, pollution, and massive fish kills. Agglomeration in the Norwegian salmon farming industry, for example, has reportedly improved the transfer of knowledge and increased the supply of specialized production factors, but it has also helped spread fish disease (Tveteras and Battese 2006). There are two approaches to greening aquaculture. The first is zoning—that is, leaving adequate space between farms and interspersing a variety of aquaculture systems (including a mixture of species at the farm

Inclusive Green Growth  

As the global population heads toward 9 billion by 2050, decisions made today will lock countries into growth patterns that may or may not b...