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5.3 Rationale for Size Category

The Thai research team classified their sample farms into three to four categories: small-scale, medium-low-scale, medium-high-scale, and large-scale as defined in Table 5.2. For swine, small-scale consisted of one to 100 heads; medium-scale was divided into medium-low with 101 to 500 heads, and medium-high with 501 to 1,000 heads; and large-scale consisted of more than 1,000 heads. Layer farms operating below 10,000 birds were categorized as small-scale; between 10,001 to 50,000 birds were sorted as medium-scale; and more than 50,000 birds were classified as large-scale farms. Broiler farms were grouped into four farm sizes: small-scale with one to 5,000 birds; medium-low with 5,001 to 10,000 birds; medium-high with 10,000 to 20,000; and large-scale with more than 20,000 farms. Dairy farms having one to 10 cows were labeled as small-scale farms; those having 21 to 50 cows were grouped as medium-scale farms, further disaggregated as medium-low (21-30 cows) and medium-high (31-50 cows); and farms with more than 50 cows were considered as large-scale farms.

Based on the number of milk animals, the India dairy team categorized their sample farms into three categories: small-scale (consisting of one to four animals), medium-scale (four to ten animals), and large-scale (more than 10 animals). For poultry farms in India, small-scale was categorized as having less than 10,000 birds, while large-scale as having more than 10,000 birds.

The Brazil sample for swine farms was divided into small-scale with less than 100 sows, medium-scale with 101 to 1,000 sows, and large-scale operations with more than 1,000 sows. For broilers and layers, small-scale operations were defined as having an inventory of under 10,000 birds and more than 10,000 birds were classified as operating on a large-scale. Small producers of dairy were those having less than 50 herds, medium-scale farms were those having 51 to 70 herds, and large-scale farms were those having more than 70 herds.

In the Philippines, hog raisers operating less than 100 sows were categorized as smallholders; beyond that, they were classified as large-scale/commercial raisers. Smallholder activities have been defined as those that mainly use household resources (labor and land). The size of holdings was relatively small; hired labor was not normally required or expected. The commercial sample, however, was disaggregated into two categories: medium-sized commercial (100-1,000 heads) and large-scale commercial (more than 1,000 heads). Large-scale commercial may differ from small-medium commercials in the existence of economies of scale in feed mixing, breeding, and processing of output (integration to processing).

Broiler production in the Philippines has become largely commercial, with contract production as the dominant arrangement. Minimum contract sizes have been set at about 10,000 birds. Hence, farms that raise less than 10,000 birds were considered smallholders, while larger farms were categorized as large-scale or commercial.

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