The experience with mini-hatcheries technology in BangladeshRota A.¹, Brett N ¹, Nahar J.², Rahman S.M.R. ², Ali Y.², Sarwar A.², Fattah K.A.²

¹ International Fund for Agricultural Development, IFAD. Rome, Italy² Micro Finance and Technical Support Project, PKSF, Dhaka, Bangladesh

SUMMARYIn rural poultry development projects, the possibility of producing day-old chicks(DOCs) which are viable for production and at a low cost is one of the key successfactors for sustainability and economic viability. DOCs are difficult to transport fromcommercial hatcheries to isolated areas. It is therefore crucial to produce them inremote locations. The Microfinance and Technical Support Project (MFTSP)implemented by IFAD and Palli Karma-Sahayak Foundation (PKSF) in Bangladesh hasmade possible for poor women to operate low-tech mini-hatcheries profitably,essentially by addressing the management constraints.

Mini-hatcheries are successful under the climatic conditions of Bangladesh, althoughsome reduce or completely stop the operation during the winter period from midNovember till February. An enabling economic environment is certainly key for thesuccessful adoption of this technology. However, the challenge is its replication in othercountries where there is a demand of chicks in rural areas. This can be achieved byadapting the technology to a wider range of climatic conditions.

RESUME

Dans des projets de développement de l’élevage rural de volaille, la possibilité deproduire des poussins d'un jour, viables à la production et à un coût modéré est un desfacteurs de principaux succès pour la durabilité et la viabilité économique. Il estdifficile transporter des poussins d'un jour depuis des établissements commerciauxd'incubation vers des régions isolées. Il est donc crucial de les produire directementdans les sites isolés. Le projet de Support a la Micro-finance et aux Services Techniques(MFTSP) mis en œuvre par le FIDA et la fondation Palli Karma-Sahayak (PKSF) auBangladesh a permis à des femmes pauvres d'utiliser avec profit des mini-incubateurscaractérises par une simple technologie, surtout en résolvant les contraintes de gestion.

Les mini-incubateurs sont bien adaptés aux conditions climatiques du Bangladesh, bienque certains éleveurs réduisent ou arrêtent complètement les opérations d’incubation etd’élevage des poussins entre mi-novembre et février. An environnent économiquefavorable est certainement un élément clé pour l’adoption avec succès de cettetechnologie. Le défi toutefois est sa réplication dans d'autres pays où il y a une demandede poussins en milieu rural. Ceci peut être atteint en adaptant la technologie à desconditions climatiques différentes.

Key words: Rural poultry development-Day-old chick-DOC-Mini-hatcheries-Bangladesh

I - INTRODUCTIONThe Microfinance and Technical Support (MFTS) Project is the result of a successfulcollaboration between the Palli Karma–Sahayak Foundation (PKSF) and theInternational Fund for Agricultural Development (IFAD). PKSF is the apex funding andcapacity building institutions for microfinance programmes carried out by variousMicrofinance Institutions (MFIs) in Bangladesh. PKSF has been established by the

Government of Bangladesh in 1990 for helping the poor, the landless and the asset lessin order to enable them to gain access to resources for productive undertakings and/oremployment and for enhancing the quality of their life.

The project is being implemented in 97 sub-districts of 13 districts in the south andnortheastern part of Bangladesh. The goal of the project is to improve the livelihood andfood security of 276,000 moderate and ultra poor households and the empowerment ofwomen by adoption of sustainable IGAs and livestock technology. The project waslaunched in October 2003 will end in 2010.

MFTS has undertaken scaling up a wide range of appropriate technological packagesfor investing in rural poultry production as a thrust tool for poor-resource households toimprove their livelihood. The project poultry model is characterized by six features: 1)micro-credit for project beneficiaries; 2) NGOs capacity strengthening and building onrural poultry development; 3) organization of the beneficiaries into enterprises, villageorganization, and unions by NGOs; 4) overall training of stakeholders; 5) equipmentand infrastructure development; and 6) monitoring and evaluation. The poultry chainmodel comprises Model poultry breeders, Mini hatcheries, Chick rearers and Poultrykeepers.

In rural poultry development projects, the possibility of producing day-old chicks(DOCs) which are viable for production and at a low cost is one of the key successfactors for sustainability and economic viability. DOCs are difficult to transport fromcommercial hatcheries to isolated areas. It is therefore crucial to produce them inremote locations. An important achievement of MFTSP has been the establishment andsuccessful operation of a large number of mini-hatcheries for the production of day-oldchicks/ducklings. When the technology was introduced in Bangladesh in the 70s,chicken egg hatching was found to be equally successful. Yet, the attempt todisseminate this technology among the poor under various small holder livestockprojects since early 90s with support from IFAD, DANIDA and Asian DevelopmentBank (ADB), could not succeed. The main reason was a poor management of the fertileeggs supply chain. As a result, the enterprises were not popular with projectparticipants, and projects had to rely on a limited supply of chicks from the Directorateof Livestock Services (DLS) farms or abandon promotion of improved breeds (Sonali,which is a crossbred between Fayoumi and Rhode Island Red breed) and revert to lessproductive local chickens (desi) hens. However, the MFTSP implemented by IFAD andPalli Karma-Sahayak Foundation (PKSF) has made possible to poor women to operatemini-hatcheries profitably, essentially by addressing the management constraints.

II - MATERIALS AND METHODSMini hatchery is a local technique where heated rice husk is used as a means of artificialincubation for hatching chicken/duck eggs. At first this technology is originated inChina to hatch only duck eggs because duck egg-shell is less brittle than chicken eggshell. The DOCs are Sonali breed, a cross between Rhode Island Red (RIR) male andFayoumi female, which allows significant increase of egg production under semi-scavenging conditions. The mini hatchery units can vary in size with a capacity for afew hundred eggs to several thousands, and the establishment cost in MFTSP rangesfrom about US$10 to US$425 per hatchery. About 10 items are needed for hatcherymanagement (a detailed daily plan of activities is provided in annex I), as follows (seepictures in annex II):- incubation room- incubation box

- incubation cylinder- hatching bed- petrol lamp- thermometer- bamboo tray- colour cloth- candling box- rice husk

At first the incubation box and two (or three) cylinders (which are made of bamboo) areneeded to be set up in a dark room (incubation room), possibly well insulated. Thecylinders are to be placed in central point (see fig 1-2 in annex II). Then the vacuum ofthe incubation chamber should be filled up with rice husk (fig.3). A petrol lamp(Harikan) should always be kept in one cylinder alternately during the entire hatchingperiod to keep the chamber warm up to 98-100 F or 37-38C (fig. 4).

Mini-hatchery owners buy their fertile eggs from other project participants who runsmall parent farms in confined production systems to ensure the pureness of the parentlines which are Fayoumi females and Rhode Island Red males. After hatching, the mini-hatchery sells their day-old chicks to Chick Rearing Unit (CRU) and after 8 weeks theCRU sells to yet another category of project participants, who keep poultry for eggproduction. Any surplus of chicken may be sold in the local market.

RESULTS AND DISCUSSIONSUp to June 2007, MFTS mini-hatchery owners have completed 2,027 batches. Theaverage chick production per batch was 223 and the hatchability rate 70%, ranging from23 per cent to 94 per cent. The average of hatchability rate of 70% is very satisfactory,considering that in most of the mini-hatcheries operated with kerosene fuel. Sonaya andSwan (2004) reported that hatchability from 65-75% should be expected.

Women trained by the project 113

Operating units 188

Batches hatched 2,027

Average number of eggs set per batch 317

Chicks hatched per batch 223

Hatchability 70%

Purchasing cost of fertile eggs Taka 5 (USD 0.073)

Production cost per batch Taka 2,146 (USD 31)

Selling price of day-old chick Taka 15 (USD 0.217)

Average gross income per batch Taka 3,855 (USD 55.9)

Net income per batch Taka 1,709 (USD 24.77)Table I: A summary of results with the rice husk hatchery in MFTSP by July 2007

Mini-hatcheries are among the most important Income Generating Activities (IGAs)required to complete the poultry production model chain in the project area. MFTSPreports show that the average net income earned per woman was Tk. 1,709 equivalentto USD 24.77. Earning this amount in a three-week period represents a significant

addition to the income of the women who operate the hatcheries (women involved inthe project live with less than 1 dollar a day).

This important achievement of MFTSP was however not anticipated in the projectdesign as, at that time, it was widely believed that this technology was not a practicalproposition for back-yard poultry in Bangladesh. A number of studies of theBangladesh poultry model have identified possible reasons why mini-hatcheries had notworked well prior to MFTSP.

The “Study on Danida Support to the Livestock Sector - Smallholder Poultry Sub-Sector -in Bangladesh 1993-2005” (Riise, J.C et al., 2005) mentions that womendropped out due to problems of profitability and service delivery.

The Bangladesh Participatory Livestock Development Project I (PLDP I) evaluationstudy indicates that the mini-hatchery was the weakest link in the poultry productionchain. At the time of the evaluation, there were very few operating chick hatcheries, andhatching rates were in the range 50% to 70%. Most operating mini-hatcheries producedducklings with a hatching rate of 80% to 90%. Chicks from mini-hatcheries were said tohave reduced stamina, and profitability was undermined by incubators of theDepartment of Livestock Service (DLS) selling chicks (presumably Sonali) at Tk8 each,Tk2 below the market price. The study mentions that four out of seven mini-hatcheryoperators interviewed thought their units were too small, but four also thought trainingwas good, and six said that technical support from local NGOs involved as serviceproviders under PLDP I was good (although only two got regular visits). The samereport commented that model breeder units lacked a market for fertile eggs.

The IFAD evaluation study of the Smallholder Livestock Development Project (SLDP)(Dolberg F, Mallorie E., Brett N., 2002) reports that only 13% of DOCs supplies camefrom project mini-hatcheries. Many hatching eggs for mini-hatcheries came from themarket not from model breeders. The average was hatching rate 67%. Mini-hatcheriesstopped operating as they lacked a market for DOCs from model rearers. Prices ofDOCs were Tk8.00 each, hatching eggs Tk3.00 and table eggs Tk2.75. The authorsconcluded that DOCs production from mini-hatcheries was technically andoperationally difficult, which made them a high risk enterprise and unable to competewith other sources of chicks.

The IFAD Project Completion Report for SLDP-1 also states that mini-hatcheries wereunable to compete, due to poor quality hatching eggs, and were labour intensive whichacted as a disincentive to continue. There was minimal trade between poultry modelenterprises. The hatching rate was in the range 50% to 80% with an average of 67%.There was also an inadequate supply of hatching eggs.

Given this history of failure, why are mini-hatcheries now so successful? The practicaltraining for a complete hatching cycle provided by MFTSP through the DLS duck farmat Narayanganj, together with improved technical support, are held to be major reasonswhy mini-hatcheries are now working so much better. However the average hatchingrate for SLDP-1 of 67% was not much less than the 70% now achieved by MFTSP.There are clearly other additional reasons. These include a reduction in labour inputs aseggs are no longer turned at night, more attractive economics, and better integration intolocal markets.

Also, the improved economics of mini-hatchery operation are related to the increases inthe premium for hatching eggs over table eggs (which give breeding units greaterincentives) and in the margin between the cost of these hatching eggs and the sale price

of DOCs. Current prices for DOCs range from Tk16 to Tk21 each, fertile eggs areTk6.00 and table eggs are Tk4.00 to Tk5.00. SLDP-1 data gives a margin of 166% fromfertile egg to DOCs (Tk3.00 to Tk8.00) and a premium of 10% for fertile eggs overtable eggs (Tk3.00 compared with Tk2.75). Current margins are much better: 200%from fertile egg to DOCs (Tk6.00 to Tk18.00), while hatching eggs are now worth a33% premium over table eggs (Tk6.00 compared with Tk4.50). These margins make theoperation of both mini hatcheries and model breeders definitely more profitable.

Furthermore, a policy of allowing individual enterprise owners to decide on volume ofproduction, markets and prices contributed to the improvement of mini-hatcheriestechnical and economic performances. Earlier projects have tried to manage the supplychain though dictating the number and scale of each type of enterprise for one NGOarea office. NGOs were themselves heavily involved in buying/selling and in arrangingtransport logistics. The current approach allows individuals to adjust production scaleand seasonality to meet market demands. Individual hatchery owners make their ownarrangements for supplies of fertile eggs and some have established their own breedingunits for this purpose (and some fertile egg producers have set up hatcheries).

Finally, another reason why market opportunities and the economics of mini hatcherieshave improved may be the general growth in the rural economy. Village level demandfor poultry is no longer able to be satisfied by traditional desi birds, and rural areas arebetter connected to towns, allowing them to access urban markets. This means there isa demand for DOCs at the village level and not just in the peri-urban areas that arewithin reach of automated large scale hatcheries. In the face of this increased demand,subsidised production by DLS farms is no longer able to distort prices. This is themarket opportunity that mini-hatcheries are exploiting, with many chicks going formeat rather than egg production (assisted by the fact that the Sonali cross gets thepremium price of a desi bird).

CONCLUSIONSMini-hatcheries technology proved to be successful under the socio-economic andclimatic conditions of Bangladesh, although some reduce or completely stop theoperation during the winter period from mid November till February. The main lessonslearnt from this experience have a lot to do with sustainable development, as a numberof conditions must apply in order for the technology to be successful. Above all there isthe Human Factor:

Reduced workload: the workload for poor women has been changed in an importantway. Before it was required to turn the eggs during the night while now therequirement is to turn the eggs before going to bed and in the morning.

Gender dimension: basically all operators involved in the process are women. Theyfeel free to contact the project manager, who is also a woman, for any problem theymay have. In Bangladesh, this is facilitated by a nationwide network of mobilephones.

Stakeholders’ commitment: All project stakeholders are committed to make thetechnology succeed.

A second key element is the Economic/Marketing Factor:

Better egg price: there is a premium price for hatching eggs over table eggs.

Increased demand: there is a higher demand for poultry products at village levelmainly due to improved purchasing power of rural households and bettercommunications/access with towns and urban markets.

Other key elements are the Enabling Environment Factors:

Appropriate training time and methodology: hands-on training is the methodologythat is used. With a learning by doing approach, the women go through a completehatching cycle (for ducks it is 28 days, for chicks it is 21 days).

Follow-up technical support and monitoring: these are strong features of PKSF’scorporate culture. An important reason for its success with micro-finance is thepost-training and technical back-up from technical staff in participating NGOs.

Simple and appropriate technology: mini-hatcheries do not depend on electricity butalternative energy like kerosene fuel which can be used in remote locations with noelectricity supply.

Effective management throughout the rural poultry chain: This may include:

- solid rural poultry husbandry knowledge and management, especially on bio-safety principles;

- healthy birds from good genetic material;- good flow through the rural poultry value chain;- good and rapid communication;- built-in linkages between producers of fertile eggs and the mini-hatcheries, and

from the mini-hatcheries to DOCs rearers.

The challenge is to replicate this technology in other countries where it is relevant,especially in remote villages or areas not served by electricity. However, some researchshould be done to expand the technology to be applied under a wider range of climaticconditions. In addition, preliminary data show that hatchability rate is largely influencedby the quality, handling and conservation of fertile eggs before incubation. There is alsolittle information on viability of DOC after hatching. Therefore, more investigations arealso necessary to assist project beneficiaries to improve their productivity and thusincreasing households’ nutrition and income.

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ANNEX IDos and Don’ts during the period of chicken egg-hatching are summarized in the followingchart to have a look into the instructions provided in training programs.

Days of a fullhatchingcycle

Activities

1st Day

- Select well-shaped, medium-sized eggs with smooth shell and wash them inwarm water mildly mixed with anti-bacterial lotion.

- Dry eggs with a clean piece of cloth.- Mark eggs with Batch number and ‘Dol’ number, for example, A-1.B1, A-2.B2

and so on.- Heat the eggs up to 98-100 F in sunlight or Kerosene stove. Use thermometer

or hand to measure the heat. Turn the eggs over so that they are heated evenlyat all sides. Take care that the eggs are not broken.

- Heat the husk- pillows.- Use handkerchiefs to make bundles of 30-120 eggs.- Place husk pillows inside the ‘dol’ in the setter, then the egg-bundle above it

and another pillow on top.- Finally cover the setter with gunny bag.

2nd Day- After 24 hours, check the temperature of eggs and husk. Heat them, if needed,

to reach 98-100 which is ideal for hatching.- Turn the bundle of eggs in the ‘Dol’ every 6-8 hours interval i.e. move their

position.3rd Day Turn and heat eggs and husk-pillows as you did on the second day.4th—6th Day Turn the eggs over every 6-8 hours interval

7th Day

- Do the same.- In addition, candling test should be carried out on this day. Fertile eggs show

narrow blood vein when it is kept on the candler/light (bulb). Those not fertilelook transparent with shade of the yolk. Spoilt eggs show floating spots oftenblack or hazy in color.

- Remove all spoilt and not-fertile eggs. Remember not-fertile eggs are tableeggs.

8th—12th Day Turning the fertile eggs as before.13th Day - Check temperature of eggs and heat, if needed. Turn over as before.

- Do the same with husk-pillows.14th Day - Transfer the eggs to the hatching bed. Keep them close to one another so that

their temperature is restored.- Be careful about keeping the right temperature and appropriate humidity.

Water pot should be kept under the hatching bed. Use gunny bag if needed.15th—17th

DayRound or moving the fertile eggs on the hatchery bed.

18th – 19th Day Crack on egg-shell is visible. So no need to turn them again.20th Day Chicks begin to come out of the shell.21st Day - Hatching is complete.

ANNEX IIPictures on minihatcheries

Figure 1: Incubation box with 3 incubationcylinders

Figure 2: Incubator cylinder with athermometer

Figure 3: Rice husk and cloths on the top toreduce heat dispersion

Figure 4: Incubation cylinder with petrol lampat the bottom

Figure 5: Colour cloth in which eggs will bewrapped for incubation

Figure 6: Hatching bed

Figure 7: Woman turning eggs duringincubation

Figure 3: Batch of DOCs