Monday, October 18, 2010

Contract Emu Farming is picking up in Tamil Nadu

Contract Emu Farming is one of the 3 method of emu farming, which we have discussed earlier in one of the blogpost.

Contract Emu Farming works in a different way than MLM. It's not MLM at all.  Let's look into how does it work.

In brief, Contract Emu Farming is of 10-pair size or in multiples of 10-pairs, i.e., 10 pairs, 20 pairs, 30 pairs, etc. In this method, farmer is depositing a refundable interest-free deposit for the cost of 10-pairs with the Emu Company.   In turn, the emu company sets up a mesh-wire fencing and a small shed, provides feeds and medicines at no cost to the farmer. Besides all, they are giving Rs.250-300/- per month per emu chick as incentive for safekeeping the emu birds. So, roughly for 10-pairs they are getting Rs.5,000 to Rs.6,000 per month as incentive, just to feed and water the emu chicks in the farmer's premises. The chicks are insured by the company and any mortality is company's responsibility and they will replace with a new chick to maintain the numbers. The ongoing market (or security deposit) is Rs.15,000/- per 3-month old emu chick pair. For a 1.5 lakh rupees interest-free refundable deposit, they are getting Rs.72,000/- per year. This is interesting, right. Where on the earth you will get this interest? But, You need to be in contract for a minimum period of 5-years, i.e., you will get the regular monthly income of Rs.5,000/- for next five years, and cannot break the bond. This is the view of this contract emu farming business from farmer's point of view.

When I realised that how does it work on emu company's side, it is awesome business proposal for both sides. Fantastic. Legally right, it is not affecting any party involved both financially and in performance. A real win-win situation (so far).

Currently, there are several companies started this contract emu farming. In Tamil Nadu, VC emufarms, Susi Emufarm, Jeevan Emu Care, are some of the companies doing this now. Next year, many will join the queue. This shows, there is a revival of emu business in Tamil Nadu.


andyi92002 said...

pls provide contact details for the farms

A. B. said...

Pls provide contact details of Farm.