The persistence of agrarian crises and failure of crop diversification policies in green revolution regions of India such as Punjab necessitate exploring the role of allied agricultural sectors such as livestock for small farmer livelihood generation. A comprehensive analysis of broiler contract farming in Punjab shows that though broiler contract farming was inclusive, as growers were less resourceful, less literate and less experienced than their non-contract counterparts, value sharing with small growers did not happen. As a result, profitability from broiler rearing was lower in contract farming as compared to non-contract (independent) production. The case study suggests the collectivisation of small growers through cooperatives/producer company mechanisms to negotiate with the contracting agency in terms of prices and the effective regulation of contract farming for the protection of farmer interests.