ENTERPRISE LEARNING

REPORT
Week 2

JULY 10, 2023

SUMITTED BY
SUMAN SAGAR
In the second week Enterprise Learning (EL) we categorized our study on two broad segments i.e.
0procurement and field operations and governance and decision making.

We also interacted with key contact person like community service provider (supervisor ) ,Central
supervisor , field officer , production manager , project head officer , project associate, Line supervisor.
the contact persons provided us preliminary details and would further facilitate our interaction with
manager.

On July 3 2023 we attended the weekly production

meeting of Kesla Poultry Society . we learn about the
structure, formation and working of small holder
poultry producer’s as the foundation unit Kesla
Poultry Society.

This meeting can involve key members of the KPS,

including Producer’s , processors, distributors, and
retailers.

During the meeting, participants can discuss current

market conditions, including boiler meat prices,
consumer demand, and competition. They can also
share information on new technologies, and
marketing strategies that may be relevant to the
industry.

In addition, the meeting can provide an opportunity to review production processes and identify areas
for improvement. This can include evaluating supply chain efficiency, reducing waste and environmental
impact, and improving product quality and safety.

Overall, a weekly production meeting can help the boiler meat industry stay competitive and adapt to
changes in the market. By sharing information and collaborating on solutions, industry stakeholders can
work together to ensure a sustainable and profitable future for the boiler meat industry.

The project run.

DEVELOPMENT MANAGEMENT INSTITUTE 1

Small-holder poultry model
In this model, each poultry unit rears between 300 to 500
birds in a shed specially designed and constructed for the
purpose of bird rearing. The individual producer rears the
birds and the Cooperative, namely KPS, does the marketing.
It also performs several other tasks such as provision of feed,
supply of medicines, veterinary services, training and
technical support. The initial investment required for the
construction of poultry shed and start-up equipment is
generally financed by a combination producer funds, loans
and grants obtained through various government schemes
such as ITDP and SGSY. Grant funds forms a major part of the
initial funding. Once a producer constructs the shed and
becomes a member of KPS, she becomes a part of a system
that provides her with all the inputs and services without
upfront cash payment. That means, inputs and services are
not free, it is just that she does not have to bear the burden of financing the working capital. In effect,
KPS takes on the responsibility. Once the birds are sold and money realized, she gets remunerated
according to a system that is explained later in the case. Net of expenses, most poultry rearing
households of KPS presently earn annual profits in the region Rs.15000 to Rs.30000 depending on bird
prices and other operating conditions. A tribal woman working for a couple of hours every day for about
200 days in a year manages to earn this level of income. So far KPS, has managed to lift all its members
out of the clutches of poverty solely on the basis of making this small holder model work in favour of the
poor household.

Operations
The rearing process starts with the placement of day-old-chicks (DOC) in the sheds of the producers. The
woman producer regularly feeds the birds, gives medicines and vaccines and generally ensures that the
birds receive all the care and nourishment in the prescribed manner. All the producers undergo a
standard training programme and only then they are admitted to the organization and allowed to rear
birds.

Just as a new-born baby gains weight when she receives nourishment, a day-
old-chick gains weight after it receives regular feed. In very simple terms the job
of rearing a poultry bird consists of taking a day-old-chick weighing 40 grams,
feeding it with about 2 kg of feed over the next 40-45 days and getting a market-
ready bird of about 1.2 kg.

If the sale price of the bird is more than the total costs of day-old-chicks (DOC), feed and other inputs
the operation earns a profit. However there is no guarantee that it will be so all the time. The birds may
die before they attain the proper weight. In a batch of 100 day-old-chicks ( DOC) if 10% birds die then
sale of only 90 birds must bear the cost of rearing 100 day-old-chicks (DOC). Secondly, the bird may
consume so much feed that the cost of feed may exceed the price of the bird. A poultry bird is not a
machine that is bound to follow strict input-output prices of day-old-chicks (DOC) and feed may
DEVELOPMENT MANAGEMENT INSTITUTE 2
significantly increase and the prices of birds may remain stable or may not rise in same proportion. Thus
it is quite likely that the cost of rearing a batch may exceed the revenue earned by selling the birds.

Separation of producer risk and enterprise risk

KPS has devised a mechanism for mitigating the negative consequences of all such risks. This does not
mean that the risks have been eliminated. It is just that the negative effects of the risks have been
transferred from the producers to the cooperative organization.

The system has three components

1. If the producer operates with an acceptable efficiency norm, she receives some payment in each cycle,
regardless of the market conditions.

2. KPS provides all the inputs, materials and services at her doorstep

3. The producer receives a share of KPS profit, if there is one.

Grower payments
The payment system currently in operation is related to the
efficiency of production in a

given batch. For each batch, efficiency index (always in terms of

percentage) is calculated according to the following formula

EI = [(Liveability) x (Average sale weight)] / [FCR x batch time].

GOVERANCE AND DECISION MAKING

The major cause of establishing a social welfare institution is to serve those section of people who had
socially deprived of society, through their intervention and but it requires someone to project the path, it
is where the governing body of cooperative come into the picture, who like their private counterpart
provides strategic guidance to Kesla, who works for the tribal women of MP. Guiding cooperative
stakeholders, also serves as a platform of representation, for the lower level of the management, who
had limited access to decision making of the cooperative, thus keeping all engaged on equal footing

Composition

As per the Register of Company Act, Kesla had a 15-member governing body, where often people are
elected by each village, where cooperative serves, were in the case due to some population, any village
is getting less representation, then they are arranged in a cluster, form where they opt for a

DEVELOPMENT MANAGEMENT INSTITUTE 3

representative, who voice their concern thus taking part in the cooperative. Through the election, people
are chosen for this role.

Election

To ensure a fair election, Kesla often conducts the election under the Registrar field officer, who often
conducts the election, at the interval of 5 years, where on keeping elected as a member of governing
body, they are registered at the registered office of Bhopal. While another reason for withholding
election under an outside person is avoiding any form or internal turmoil, which may erupt due to
favoritism or preference for someone, who influenced the inner working of the cooperative, thus
ensuring the true representation of the producers and supplier ( people to whom KPS serve as their
social objectives).

Board Level Participation and Decision-making process.

Member Participation in GB and Decision-making process

To ensure the participation of all staff ( both off-field and on-field ), Kesla often opts for two types of
meeting, which is described below:

Supervisor meeting
In this meeting, which happens weekly, on Saturday(from 11:00 am to 4:00 pm), where supervisors need
to attend with staff( often including the manager, and vet ), where the progress report of each supervisor
(which is distributed in paper format) is evaluated, and corrective measures are suggested by technical
staff with any complaint or any suggestion is invited by staff from supervisor ( in 1 meeting, there was a
proposal of extracting fine from absent supervisors, without any prior proper notice), which was
approved by staff and share in supervisors WhatsApp group.

Pre-Placement meeting
At the beginning of any new slot (5 in number), there is the provision of having a pre-placement
meeting, wherewith that particular supervisor, a staff (technical in nature) is often meet with a
cooperative member ( 15 in number), where all training regarding poultry management is revised and
any new improvement, which is approved by KPS, with the arrangement of raw material revised, before
chick placement.

Cluster meeting

KPS also motivated their supervisors to meet with producers in their village, on a regular period, through
the provision of submission of mortality reports ( which they need to upload regularly), where a surprise
visit by the central supervisor and KPS (is done to check whether any particular village had any upsurge
of any disease, as in poultry, most diseases are communicable in nature, thus making the whole batch of
hatchery invalid., while as a process of performance evaluation).

DEVELOPMENT MANAGEMENT INSTITUTE 4

Organization .

General Body

Governing Body

Elected representatives from each cluster/village)

To elect office bearers

President and Vice-President & appoint Staff

Provide overall direction, review, and decision making

through monthly meetings on every 10th of the month.

Manager

Technical and marketing staff

• Central purchasing of
Accounts Staff inputs. Processing of raw
• Accounts reconciliation & materials (feed factory)
followed by distribution to
payment Enterprise
supervisors.
performance (input price,
• DOC distributed directly to
margin, sale price, etc.) producers
• Review of operations. • Medicines & vaccines-stock
• Cluster/village/producers keeping & distribution to
level problem. supervisors
• Approval/decision (other • Inputs stock keeping &
distribution to supervisors
• Coordinating
Supervisors
• Receiving the inputs

• Distribution to producers and stock keeping

• Production monitoring

• Maintains producer's book

• Lifting of birds.

DEVELOPMENT MANAGEMENT INSTITUTE 5