Contract growing is a marketing and financial strategy.
Marketing in a sense that they need a steady supply of product and promote their company as a premium supplier of hogs.
Financial in a sense that rather than hire people to work for them as laborer and pay premiums like SSS, philhealth etc they will just use contract growing system.
Same as poultry not all will succeed with contract growing. One friend of mine say that in poultry contract growing sometimes they loss 2 harvest and break even in another 2 and earn in 1 harvest. There are times that year end they earn.
IT's the same with franchising it is not a sure game that you will earn if you franchise their tried and tested product.
I'm not saying that contract growing is not a good investment.
Just want to remind you that livestock is not an easy business to deal with but once you have mastered it, it is very rewarding.
You will just sit like a king and monitor your farm