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Marketing and Value Chain Analysis of Live Poultry in Savar Upazila

Md. Saiful Islam
Scientific Officer
Socioeconomic Research Division Bangladesh Livestock Research Institute, Savar, Dhaka-1341

Most. Mahfuja Khatun
Scientific Officer
Socioeconomic Research Division, Bangladesh Livestock Research Institute, Savar, Dhaka-1341

Abstract/ Executive Summary:

People of Bangladesh are greatly benefited from poultry meat and eggs. With a view to explain the live poultry marketing, actor’s involvement and its impact on human health, the present study was conducted. Savar upazila was purposively selected as study area. Sample included Native Chicken, Broiler and Sonali poultry farmers and traders. The total sample size was 250. Study revealed that prime market actors were poultry farmers, farias, beparies, wholesalers and retailers. Production costs per quintal of live poultry were BDT 7,300, BDT 17,063 and BDT 9,488, respectively for native, sonali and broiler. Per quintal net return was found BDT 5,182, BDT 3,714 and BDT 1,123, respectively for native, sonali and broiler. The seasonal price indices of broiler in Dhaka Sadar and Savar market the highest price indices were in the month of June and July and lowest in the month of November and December, respectively. CV of broiler was highest in Dhaka Sadar followed by Savar indicating that at Dhaka Sadar, price risk of broiler was higher compared to Savar. Majority of consumers (56%) showed negative opinion in case of processed poultry meat. As live poultry marketing brought health diseases about 58% of market actors were suffered.

Keywords: Poultry, Marketing and Return

Location: Savar Upazila

Start Date: 00-10-2014

End Date: 00-01-2015

Program Area: Socio-economic and Policy

Non-commodity: Market analysis

Objectives:

1. To identify the actors involved in value chain and their functions, and estimate the value addition, marketing costs, margins of different market actors in live poultry marketing

2. To study spatial and seasonal price fluctuation of poultry

3. To examine public health impacts of live bird markets, consumer preference towards poultry and suggest alternative policy guidelines.

Methodology:

Savar upazila is the leading area of poultry production and trading in Dhaka district. There is also locational advantage and good prospect in future of poultry marketing in the study areas. For these reasons Savar upazila was purposively selected as the study area. The samples of marketing actors (market intermediaries) were selected purposively for this study. For selecting intermediaries in the market, a list of different types of intermediaries was collected from the respective market authorities of different study areas. Faria, Bepari, wholesaler and retailer were selected based on the primary observation. For the proposed study the sample includes the indigenous, Pakistani and broiler producers and traders who were involved in poultry marketing. The selected samples were consisted of 150 farmers, 70 traders and 50 consumers. The total sample size was 270. Data were collected both from primary and secondary sources. Secondary data were collected from documents of various reports, Bangladesh Bureau of Statistics (BBS) and Department of Agricultural Marketing (DAM). Data were collected during the months of October 2014 to January 2015. Various types of analytical technique were applied to find various issues of the objectives of the present study. First, market actors were identified. Second, volume of trade through each actor was measured. Third, a market chain was drawn. And finally, the pathway of disease transmission was explored for live bird marketing. To determine the seasonal variations, co-efficient of variation of big and small size poultry prices were calculated. The following formula was used for calculating co-efficient of variation: CV = (Standard Deviation/Mean) x 100. The marketing margin and net margin of different value chain actors was estimated by the following formula: GMi =PRi- Ppi Where, GMi = Gross margin (Tk/100 birds) for ith intermediaries, PRi = Price received (Tk/100 birds) by ith intermediaries, PPi = Price paid (Tk/100 birds) by ith intermediaries, NMi = GMi-MCi , Where, NMi = Net margin (Tk/100 birds) for ith intermediaries, MCi = Marketing cost incurred (Tk/100 birds) for ith intermediaries. Value addition (%)= ((Sales Price- purchase price)/ purchase price) x 100. In order to calculate seasonal price indices of poultry ratio to moving average method was applied.

Source of Information: BLRI. 2015. Annual Research Review Workshop-2015, Bangladesh Livestock Research Institute, Savar, Dhaka-1341.pp.37-38

Article Link (Online Journal):

Funding Source:

1. Government	Budget: Two Lakh
2.	Budget: Two Lakh

Total Budget (Tk.) : Two Lakh

Achievement/Findings:

Study revealed prime market actors were poultry farmers, farias, beparies, wholesalers and retailers. Production costs per quintal of live poultry were BDT 7,300, BDT 17,063 and BDT 9,488, and net return was found BDT 5,182, BDT 3,714 and BDT 1,123, respectively for native, sonali and broiler. The total marketing cost of native chicken was 1.24 times higher than sonali and 1.21 times higher than broiler. Among the different market actors for native chicken, faria incurred highest marketing cost followed by retailer and bepari. Seasonal price indices of broiler in Dhaka Sadar and Savar market the highest price indices were in the month of June and July and lowest in the month of November and December, respectively. The CV of broiler was highest in Dhaka sadar followed by savar. It revealed that at Dhaka Sadar price risk of broiler was higher compared to savar. Majority of the consumers showed negative opinion in processed poultry meat. As live poultry marketing brought serious health diseases about 58% of market actors suffered different diseases. For sustainable and environment friendly for poultry business, it needs to ensure bio-security, halal method and hygienic way of poultry processing.

Knowledge Management: Report/Proceedings