Agriculture Products Marketing in Bangladesh, Final

8/13/2019 Agriculture Products Marketing in Bangladesh, Final

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A Term Paper on Agriculture Product Marketing(Alive broiler chicken & egg Marketing System in Bangladesh)

Submitted by

Md. Mazharul Mannan 13DM013B.M. a!hiuddin Mahtab 13DM03"Milton Mondol 13DM0"#Sakib Alam 13DM0"$Mainul %a!an 13DM0&'

Submitted to(Mr. Abdu! Samad )ho*dhurySenior Management Counselor

Dated( December 10+ "013

Banglade!h ,n!titute o- Management B,M/4, Sobhanbag, Mirpur oad, !haka"#$%


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December 10+ "013

Mr. Abdu! Samad )ho*dhurySenior Management Counselor

Bangladesh 'nstitute o Management (B'M)4, Sobhanbag, Mirpur oad, !haka"#$%

Sub ect( Term Paper propo!al on Agriculture Product Marketing Ali e Broilerchicken 2 gg/

,ntroduction(

Bangladesh is an agriculture country *o+ a days broiler arm & layer arm are setting upincreasingly day by day Still no+ +e have a lack o uantity o egg & meat againstdemand o egg & meat Moreover marketing system is not proper in our country

-e this pro.ect, -e +ant to study & observe marketing system o alive broiler chicken &egg -hat actors o the system create competitiveness & smoothness in the system/ !oesit really matter +hether they have their o+n distribution system outlet or someone elsehandles the same/ -hether it a ects the institution buyer, +holeseller, retailers & otherconsumers 0o+ do they maintain their distribution channel, cohesiveness & smoothoperations throughout the country/ -hat aids them to reach the remotest to urban corner othe country +ithout causing too much delay/

Md. Mazharul Mannan 13DM013B. M. a!hiuddin Mahtab 13DM03"Milton Mondol 13DM0"#Sakib Alam 13DM0"$

Mainul %a!an 13DM0&'


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Agriculture Product Marketing

(Alive broiler chicken & egg Marketing System in Bangladesh)

Ab!tract 1his study has been discussed about the e2isting 3oultry products processing and

marketing system, its problems and its potential solutions in Bangladesh 1raditionally

chickens are sold alive till today, because o lacking trust on slaughtering

method (0alal or not), ear o disease or dead birds slaughtered, lack o

processing and preserving technology and skilled man po+er 4gg

grading and packing has not yet been developed Marketing system o it is in

traditional As a result producers are not getting remunerative price that is +hy

middleman are being gainer 1here ore modern 3oultry processing plant, preserving

technology and proper marketing channels are suggested to establish

4ey *ord!( Chicken, meat, egg, processing, preservation, marketing, system

and channel


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,ntroduction

3oultry meat is the astest gro+ing component o global meat production,

consumption, and trade, +ith developing and transition economies playing a

leading role in its e2pansion 'n addition to providing opportunities to

increased poultry e2ports, rising poultry production spurs gro+th in global

import demand or eeds and other inputs and in investment

opportunities in these sectors Bangladesh no+ has a large and rapidly

e2panding poultry sector 2pansion o poultry industry in Bangladesh is

being driven by rising incomes o the consumers and a shi t in industry

structure to+ards integrated o+nership and coordination o the input,

production, and marketing operations involved in poultry production

(vertical integration) 1hese actors, in addition to government policies

a ecting eed supply levels, +ill help shape uture gro+th in the poultry

industry in Bangladesh, as +ell as in emerging trade and investment

opportunities

1he poultry sub"sector is crucial in the conte2t o agricultural gro+th and

improvement o diet or the people in Bangladesh 1his sub"sector is

particularly important in the sense that it is a signi icant source o supply o

protein and nutrition in a household5s nutritional intake 't is an attractive

economic activity as +ell, especially to +omen and the poorer sections

3oultry arms in Bangladesh are gro+ing ast in recent times -ith a high

population and income gro+th, urbani6ation and high"income elasticity o

demand, the demand or poultry products is e2pected to increase appreciably

in the uture 0ence, the number o poultry arms is also e2pected to e2pand

over time

3oultry rearing can play a vital role in a country like Bangladesh +here most

o the people are landless, disadvantaged and devoid o ormal education or

skill to participate in income generating activities 3oultry can be an

important tool to ight poverty not only or this group o people but also or

the distressed +omen as poultry re uires minimum land, short capital and

skill 'n Bangladesh, the poultry sector is also an integral part o the armingsystem 1he number o poultry gre+ at an annual rate o 7 percent over the


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change o li e style, ood habit and lack o availability o manpo+er 'n the

developed country , chickens are slaughtered, processed and package at

processing plant only 1he consumer purchased ro6en packed chicken either

+hole chicken or cut up parts 1hough demand o dressed chicken is

increasing, but uality control is not at all developed in Bangladesh 1he problems o

live marketing are ha6ardous or environment, spread disease, and increase cost o

production or transportation, death or handling and storing @or the lack o(

processing (acilities and proper marketing o( poultry and poultry

products, (armers are not getting remunerative price So, +e need to

establish suitable poultry product processing and preserving technology

and marketing system or domestic market and e2port +ith a reasonable price

3oultry 'ndustry in BangladeshG A Silent evolution

5 er ie* o- the Poultry ,ndu!try'n Bangladesh, around :8 percent o rural households rear poultry through traditional

3roduction systems like Hlo+ input"lo+ outputI Jocal chicken dominates poultry

production Most birds are kept in small locks under a scavenging system +ith eed

generally available rom household +aste, homestead pickings, and crop residues

3roductivity o the local hens is lo+ and losses due to diseases and predators are high

1he constraints to productivity ho+ever, are not only related to disease but also to

management systems, lack o supplementary eeding, predators, and inappropriate

breeds (Sale ue, $%%#)

@igureG# sho+s that in #889"84 there +ere only 49,


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Table( 1 reports that the poultry sector +as gro+ing at 4 < percent throughout the decade

o eighties, +hile the gro+th rate +as 9 percent throughout nineties -hile the gro+th rate

o total livestock +as # 8 percent and # 9 percent during the eighties and nineties

respectively, such gro+th o poultry irms +as remarkable 0o+ever, during the nineties,

poultry sector attracted the attention o policymakers and development organisations as an

important tool or poverty reduction

1able #G Jivestock 3opulation in Bangladesh

Species Kear

#8:% #88%

Annual Dro+th ate

$%%% $%# $ #88$"$%%$ $%%$"$%#$

Cattle and Bu alos $$%9# $4%#7 $4 9% $


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olution o- De elopment Pro ect! in the Poultry ,ndu!try in Banglade!h

Jike many developing countries, poultry is a common enterprise in rural Bangladesh 3oultry

is sometimes used as the irst investment or a livestock ladder (in the sense that one can

move rom poultry to goat>sheep to cattle etc ) to increase income and get out o poverty

1here ore, government, as +ell as the *D sector in Bangladesh has pursued poultry

production as a tool or poverty alleviation Bangladesh ural Advancement Committee

(B AC), the leading *D has played the important role in the development and e2ecution o

the model in Bangladesh +ith support rom various donors including '@A!, @A , !A*'!A,

Asian !evelopment Bank (A!B) Bet+een #8 : and #8:$, B AC poultry programme did

not have any model or design it +as being implemented on an ad hoc basis Jater a pilot

pro.ect +as carried out in Manikgon. Based on the e2periences o the Manikgon. pro.ect,

B AC and !JS together replicated the model during #8:


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1he poultry sector happens to be one o the prime components o the total livestock

population 3oultry constitutes #4 percent o the total value o livestock output !uring #8:9 and #887,

the chicken population increased substantially +ith an annual gro+th rate o 9 7 percent (Alam,

$%%$) According to the South Asia nterprise !evelopment @acility (S !@), the current market si6e o

the poultry industry is N# billion and is supporting nearly < million people directly or indirectlythrough % #< million poultry arms 3oultry constitutes # 7 percent o Bangladesh D!3 currently

(1he 3oultry Site com)

Problem! and the uture Policy Direction

Most o the stakeholders in the industry vie+ the lack o a comprehensive poultry policy

guideline as a ma.or constraint to ensure proper implementation o rules and regulations

pertaining to the sustenance o the poultry industry in Bangladesh 1he stakeholders also opine

that the broiler marketing system does not bene it ully rom the economies o scalethat e2ist in the industrialised production system Another important actor that hampers

production gro+th is the lack o e icient marketing system such as collection,storage,

processing and marketing o eggs and poultry meat, particularly in the rural areas

1he perception survey also revealed that there is a serious lack o technical kno+"ho+ among the

people involved in this industry 1rained people to handle technology are ound to be inade uate

regarding chicken rearing, diseases handling, productivity and other levels o the

value chain 1here is also inade uate trained manpo+er to acilitate training programmes at

all levels like technical, medical and management 't is also highlighted that there is lack o

ade uate in ormation regarding demand, pricing, ne+ product, eed, medication,

manu acturers (poultry, eed, medicine and vaccine), etc are considered important not only

or the producers but also or the business development services Jack o ade uate laboratory

testing acility is also considered another ma.or hurdle to inade uate uality and disease

control practices

't also appeared that the disaster management preparedness is another area o concern 't is strongly

elt that ma.ority o the actors across the chain including the government and *D mechanisms are

not ully e uipped to handle disaster such as epidemic or even lood or other such natural disasters

1he stakeholders vie+ that though poultry sector received ade uate access to credit mainly rom the

*D s but access to +orking capital by the smaller irms in particular still remains a

ma.or hurdle 't is also elt that the overall distribution management o chicks, eggs,


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medicine, vaccine, and poultry +as identi ied as another cause o high mortality and lo+

pro itability

As the +orld broiler market is highly competitive, +ith an increasing number o e icient

producers ighting or market share Ma.or broiler e2porters such as the ?nited States, Bra6il, and

1hailand, succeed in the international market by competitive pricing, aggressive marketing,and ne+ product development 1heir successes are based on +ell"managed and coordinated supply

chains that meet changing consumer demand and increasing government regulations 1o combat the

threat o import rom big players, the Bangladesh broiler industry re uires improving arm

productivity by adopting latest technologies and better management practices 'n addition, there

appears to be a need or the industry to become ully vertically integrated to bene it more rom the

economies o scale and scope

1here is need to adopt the latest technology in poultry raising, particularly in the areas o

environmental control and automation in eeding, drinking, and other management practices

3roduction ine iciency, along +ith the reliance on high"cost imported inputs has resulted in a higher

production cost o live birds 1echnical skills need to be considered at both armer and e2tension

levels 1raining is essential or both armers and e2tension o icers in the ollo+ing areasG disease

control, housing and e uipment, eeding, genetic improvement and marketing A basic kno+ledge in

speci ic eatures o poultry anatomy>physiology is also important to understand the basis o the

above topics 0ousing and management could be improved through appropriate armer training, pre erably conducted on" arm Jocal cra tsmen could be trained to manu acture small e uipment, like

eeders, drinkers, etc

42isting processing method o( meat and egg in Bangladesh BroilerG A

systematic technology o collection, processing, storage and distribution o broilers to the

markets and inally to the consumers ensure regular supply o live and dressed birds and stabili6e

market price Some small and big broiler arm partially processing broiler rom their o+n

stock and they are distributing directly to the restaurant or hotel or consumers A

part a ter packing and ree6ing sent to their selling point in the big cities 1he ma.or part

o the broilers are ho+ever, sold alive direct to the consumers, restaurant and hotel Some

commercial poultry arm like Biman poultry comple2, A tab Bhahumukhi poultry arm,

?nited ood comple2, 3aragon poultry arm have started a partial processing o boiler in their

o+n processing plant Biman poultry arm has sold their processing broiler (or

catering to the airline and A tab has initiated semi processing plant and establish a


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Broiler marketing(

1he Broiler production is marketed mostly by big armers, integrators, private

+holesalers and retailers 'n the interior pockets, the producers themselves are

marketing in small retail outlets and catering to the local re uirements -hile most o

the broiler birds are consumed +ithin the state, surplus broilers at times are sent to

other states rom A3 depending upon the supply and demand position

,ntegration(

'ntegration in Broiler production is a recent phenomenon and has been gaining

momentum or the last 9"4 years 3resently a bulk o production, about 7%; o

broilers is under 'ntegration and the rest is held by independent and small scale

producers ( armers) Jarge scale integrated producers are accounting or a gro+ing

share o output in A 3, +hich is steadily gro+ing Contract arming under integration

is assuming signi icance, +herein, armers are given all the inputs and paid gro+ing

charges based on per ormance As all"in"all"out is practiced and arm si6e is small

+ith o+ner & amily supervision o the lock, the per ormance is better and cost o

production less than stand"alone armer

Proce!!ed chicken(

1he market or ro6en or chilled poultry products is only limited to e+ institutions

i e hotels, ast" ood restaurant chains and to a negligent e2tent to urban consumers

1his very small segment o consumers is served by processing sector, +hose volume

account or hardly $; " 9; o production 0o+ever, certain State Dovernments are

envisaging to discourage slaughtering o birds +ithin the Municipal .urisdiction

limits due to pollution and other issues ' such measures are pursued, the sale o

slaughtered chicken is e2pected to increase and the processing units i simultaneouslyadvertise on the uality aspects o dressed chicken the consumers could be advised to

pay slightly higher amount or ro6en>chilled chicken or their health 'n vie+ o this,

there is scope in the coming decade or ne+ chicken processing plants to come up

and sale o processed chicken to increase both to cater to domestic market as +ell as

to cater to e2port markets


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breed is generally the most productive and e icient in converting eed to eggs

Farious bro+n egg breeds are also available 1hese are usually heavier birds and

their cost o producing eggs is higher because o higher eed consumption, but bro+n

eggs usually sell at a higher price nce laying commences, the biggest cost +ill be

or eed 'n general, it re uires 9 < to 4 < pounds o eed or each do6en eggs produced 0istorically, in most poultry areas o Cali ornia, layer rations can be

obtained or prices ranging rom N7 %% to N#% %% per #%% pounds 1his, there ore,

represents a cost o production or eed ranging rom $# to 4cut up parts

!istribution to the selling point

Table 1( Monthly market price o- ali e broiler and egg! in "013

Broiler gg

Month

-hole sale price

1k>Eg, Jive

Bird

etail price

1k>Eg, Jive

Bird

-hole sale price

1k"#%% egg

etail price

Panuary #$%"#9% #9


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0igher demand or eggs o native birds $% 8% 8#@luctuating demand #< 7: #:Breakage o egg in transit $$ #%% %%0igh transportation cost #8 :7 970ortal, Strikes and *atural calamities $$ #%% %%0igh cost o storage #$


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Attributable marketing channel in BangladeshG As suggestion the ollo+ing

marketing channels may be attributed , so that producers and consumers +ill

be bene ited in respect o price and uality poultry products @i2ed price system should

establish throughout the country, to remove bargaining ?nder this system consumers may get

poultry products rom the di erent selling point +ithout any botheration and +itha reasonable price 1o make pro itable business o poultry arming, processing, preservation

and marketing channel should be established Drading and packing o eggs should be

materiali6ed to categori6e the price as +ell as uality products 1here ore producer

+ill get the remunerative price then they +ill be encouraged to rear poultry n the

other hand consumers +ill get the uality products +ith a reasonable price Dovernment

should give attention to improve and establish the Marketing system


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9e-erence!

Aini, ' , $%%8 'ndigenous chicken production in south" ast"Asia -orld=s

3oult Sci P , 47G


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aba, S E , $%#$ 3roduction o broiler meat and egg in BangladeshG 's

marketing strategy important/ $ nd 'nternational poultry sho+ and seminar

organi6ed by -orld 3oultry Science Association"Bangladesh Branch, ppG

:4":8?ddin, M E , $%%# ect o storage condition on the keeping uality

o( dressed broilers M S thesis, Bangladesh Agriculture ?niversity,

Mymemsingh, Bangladesh

Documents

Agriculture Products Marketing in Bangladesh, Final