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Challenges and Prospects of Poultry Industry in Bangladesh

Mohammad khairul Islam
Assistant Professor
Department of Mathematics, Ananda Mohan College, Mymensingh, Bangladesh

Dr. Mohammed Forhad Uddin
Associate Professor
Department of Mathematics Bangladesh University of Engineering and Technology (BUET) Dhaka, Bangladesh

Abstract/ Executive Summary:

Poultry industry is one of the most promising sectors for Bangladesh. This industry can provide various opportunities to increase GDP growth rate plus equitable distribution through arranging food security as well as ensuring self-employment, creating purchasing power and reducing poverty at a large scale. About 44 per cent of daily human intake of animal protein comes from livestock products. The poultry industry has been supplying quality protein to the people of Bangladesh at the lowest price in the world. The study outlined major concerns focusing on the entire problem. The following points have been finally considered as comprehensive issues; lack of quality chicks, high price of feed, marketing problem, insufficient bank loan, lack of quality vaccine, the vaccine price is very high and bird flu. It is observed that to import poultry-related products huge amount of valuable foreign exchange will be spent. We have proposed for providing subsidies to the local industry and protect safeguard to the local entrepreneurs of the poultry industry.

Keywords: Poultry, Problem, Prospect, Dropping, Bangladesh

Location: In Bangladesh

Start Date:

End Date:

Program Area: Risk Management in Agriculture

Commodity: Poultry

Objectives:

Objectives of the study as follows:

• To identify the problems of poultry farms in Bangladesh.

• To investigate the structure of poultry production cost and determines the profitability of poultry keeping.

• To address risks associated with the poultry industry and how to mitigate those risks for the sustainable growth and development of the poultry industry.

• To determine the impact of the poultry industry on the food supply chain of Bangladesh.

Methodology:

Data collection and Data analysis This study primary data was collected by means of a questionnaire survey and interview with the poultry farmers in different poultry farm of Bangladesh. Questions were asked to know the Production cost and Profit margin. In the first time the farmers given their valuable data to complete the study. The study outlined major concerns focusing on the entire problems. The followings points have been finally consider as comprehensive issues; lack of quality chicks, high price of feed, marketing problem, insufficient bank loan, lack of quality vaccine, the vaccine price is very high. Most of the farmers do not have any training about the poultry farms. They depend on the raw materials suppliers. The farmers are very loser due to bird flu. Every year many of farms are collapsing due to bird flu. The small farmers do not have any contract farming facilities. Recently, ABFL (Aftab Bahumukhi Farms Ltd) started contract breeder-stock farming. The ABFL’s hatchery production systems depend totally on import of grandparent stock from abroad, usually from France, the United States of America and the Netherlands. The ABFL rears the imported birds under its own supervision. The eggs obtained from the grandparent stock are hatched and the day-old chicks are distributed to the selected contract-grower farmers as breeder-stock birds. After 25 weeks of rearing, the parent stock birds start producing hatchable eggs, which the ABFL buys back. After hatching, they distribute the day-old chicks to contract and independent broiler farmers for rearing as broilers. The ABFL’s internal insurance scheme, mentioned above, also covers the breeder-stock farms, but the premium and compensation rates are different. Farmers contribute 4percent of the day-old chick price to the fund as a premium, and get refunds based on the rate of mortality. If the mortality is less than 10 percent, 11–25 percent or 26–50 percent, then 70, 60, 50 percent, respectively, of the contribution made by the farmer is refunded. If the mortality rate is above 50 percent, then the farmer can claim for the full insured sum. In this case, Tk 60 per bird is paid if the bird dies at the laying stage. In the event of a bird dying during the growing stage, Tk 100 per bird is paid to the farmer. Because of this measure, farmers feel secure and are encouraged to subscribe to the scheme. Major challenges: According to the Food and Agriculture Organization, each person should take 56 kilograms of meat and 365 eggs every year. But in Bangladesh, per head intake of meat is only 11.27kg and egg 30 per year. As a result, people suffer from malnutrition. Dobson and Quarder (2005) commented that the country’s pervasive poverty may limit the number of people who can afford to consume chicken as suggested by the simple relationship between per capita GDP and chicken consumption. If population growth continues at this rate, protein deficiency will rise. Currently, as per UNICEF report total population is 16.40 core. If population growth rate rises at the rate of 1.40 % per annum, then protein deficiency will rise, which can be mitigated from the poultry sector as this sector has immense potentialities. Avian Influenza outbreak- A threat for poultry growth: Due to Avian Influenza, the industry suffered losses of around Tk 700 core (as per Breeder’s Association of Bangladesh). This was a huge loss for the producers and they did not get any sort of financial help to mitigate it. Saidur Rahman Babu, General Secretary of BAB said that 60 percent of poultry farms and 70 percent of hatcheries and breeding farms were closed due to bird flu invasion in 2007-2008 period. Problem of middlemen: Currently eggs and chickens are being distributed through middlemen, as a result, the farmers are not getting actual price. For the last six/seven months, they have been counting huge losses, as the production cost is high and selling price is low. The actual producers don’t get the benefit of the high price as they are oppressed by the middlemen who suck the profit. Moreover, the end-users i.e. customer has to pay higher price.

Source of Information: European Journal of Business and Management; ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.7, 2014

Article Link (Online Journal): www.iiste.org

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Battered by the Avian flu, floods and cyclone Sidr, the country’s previously booming poultry industry shrunk in 2007 and struggled to recover in 2008, weighed down by higher feed costs and weak demand, industry sources warned. In the country, the epidemic of some infections coupled with an increase in feed cost sometimes emerges to be the most significant hinders for this industry. The poultry industry in Bangladesh is very diverse. The production of layer chicken is characterized by large-scale, intensive, commercial production systems with modern technology and imported hybrids. However, it faces a number of challenges. For the commercial layer chicken sector, its main concern would be the threat from global competition, because it is a high-cost producer by world standards. Another important factor that hampers production growth is the lack of an efficient marketing system such as collection, storage, processing and marketing of eggs and poultry meat, particularly in the rural areas. The future of the commercial sector will depend largely on the availability of cheap feed sources and improvements in production and marketing efficiency. The poultry sector has not remained as a single sector, rather it has emerged as a multidimensional sector involving multifarious activities and demanding big investments. This is an expanding sector needing diversification in technology, production of feeds, medicine and vaccine, skilled manpower and above all wider scale of investment. In this respect, poultry deserves to get more attention farm policymakers.

Knowledge Management: Journal