A Term Paper on Agriculture Product Marketing

(Alive broiler chicken & egg Marketing System in Bangladesh)

Submitted by
Md. Mazharul Mannan B.M. a!hiuddin Mahtab Milton Mondol Sakib Alam Mainul %a!an 13DM013 13DM03" 13DM0"# 13DM0"$ 13DM0&'

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

Dated( December 10+ "013

Banglade!h ,n!titute o- Management .B,M/

4, Sobhanbag, Mirpur oad, !haka"#$%&

December 10+ "013 Mr. Abdu! Samad )ho*dhury Senior Management Counselor Bangladesh 'nstitute o( Management (B'M) 4, Sobhanbag, Mirpur oad, !haka"#$%&

Sub0ect( Term Paper propo!al on Agriculture Product Marketing .Ali1e Broiler chicken 2 3gg/
,ntroduction( Bangladesh is an agriculture country) *o+ a days broiler (arm & layer (arm are setting up increasingly day by day) Still no+ +e have a lack o( ,uantity o( egg & meat against demand 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/ !oes it really matter +hether they have their o+n distribution system outlet or someone else handles the same/ -hether it a((ects the institution buyer, +holeseller, retailers & other consumers) 0o+ do they maintain their distribution channel, cohesiveness & smooth operations throughout the country/ -hat aids them to reach the remotest to urban corner o( the country +ithout causing too much delay/

Md. Mazharul Mannan B. M. a!hiuddin Mahtab Milton Mondol Sakib Alam Mainul %a!an

13DM013 13DM03" 13DM0"# 13DM0"$ 13DM0&'

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

,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) 42pansion 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 (arming system) 1he number o( poultry gre+ at an annual rate o( 7)& percent over the

period #88%"8&) 1he share o( poultry in the animal protein o( the human diet in Bangladesh increased (rom #4 percent in #8&& to $9 percent in #8:& (Alam, #88&)) 1he emerging poultry 'ndustry are gradually increasing in Bangladesh) But, about :7; 3oultry meat and &:; eggs are produced (rom the (arm layered chicken and ducks reared in backyard (0ossain, $%##)) About &%,%%% small and big poultry (arms have been established mainly close to the city areas +here broilers or layers are introduced) 1otal number o( chicken are #9% million and meat production are 4#%%%"7%%%% tons, +here broiler meat are 9<,%%% tons and the rest come (rom scavenging chickens (0assall, $%%8)) 1raditionally chickens are sold alive) !uring last (e+ years, a (e+ commercial (arms +ith increased broiler production have introduced dressed and (ro6en chicken and gradually getting market, especially in hotels, restaurant and among a (e+ educated customers) ecently, consumer=s attraction to+ards (ast (ood in(luenced the dressed chicken marketing) 't is un(ortunate that there is no technology to produce hygienic poultry products, by"products and (urther processed) Chicken meat, color, (lavor, te2ture, appearance and nutrients (or o2idation or hydrolysis or other chemical reactions may be lost due to storage>preserve (?ddin, $%%#)) 3re"chilling period o( dressed carcass +ith skin is to be at least : h be(ore (ree6ing (or retaining better carcass ,uality (3andey et al), #8:8)) @ree6ing temperature is also a matter in these regards) Some research +ork noted that pre"chilled carcass +ith skin may be stored (or #:" $% days at "$A%)<BC as (ro6en temperature (Bulgakova, #8&<C ?ddin, $%%#), 7 months at "#:BC and # year at "9%BC in the li,uid *"(ro6en +ithout a((ecting on (lavours, aroma, tenderness, .uiciness, p0, moisture binding capacity and consistency (Duslyannikov and Eoreshkov, #8&7)) But in Bangladesh none o( +ork on above parameters o( preservation and also on 1CC, 1FC and on bones darking) Most o( the consumers buy chicken alive and get them slaughter, de"(eather and eviscerate either at the corner o( the market or at house) @or dressed broilers there is lack o( trust in slaughtering methodC +hether it is done by halal method, (ear o( disease broiler slaughtering and (ear o( dead broiler slaughtering) !ressed chicken is easy and convenient to the consumers, relie( bothering o( processing and save time) 1here(ore, demand (or dressed chicken is increasing all over the -orld +ith the

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 areC 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 51er1ie* 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,<:8 poultry (irms, +hich increased substantially to reach a number o( #<%,%%% by the year $%##"#$) igure 1( Trend in the 6umber Poultry irm! in Banglade!h + Source( attah ."000/ and , )
."01"/

#7%,%%% #4%,%%% #$%,%%% #%%,%%% :%,%%% 7%,%%% 4%,%%% $%,%%% % #889"84 #884"8< 88<"87 $%%<"%7 $%%:"%8 $%##"#$

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
Kear #8:% $$%9# 8&87 7&7<7 #$7&$ #88% $4%#7 $#8%4 #%<%&: #<$48 $%%% $4&9% 9<$9$ #<%7%% #&984 Annual Dro+th ate $%# $ $<#<% 9:%84 #<#<%% #&:88 #88$"$%%$ %)8 :)4 4)< #)8 $%%$"$%#$ %)9 4)8 9)& #)9

Species Cattle and Bu((alos Sheep and Doats 3oultry 1otal livestock

Source( A5STAT *oteG J?L livestock ?nit Conversion (%)$%) and 3oultry (%)#%) atioG Cattle and Bu((alo (%)<%), Sheep and Doats (%)#%), 3ig

1able $ presents the trend in annual meat production in Bangladesh) Average annual gro+th rate o( poultry production +as 4)9 percent and 9)4 percent during the eighties and nineties respectively, +hile average annual gro+th o( meat production +as 9)8 percent and 9)4 percent during the eighties and nineties respectively) 3oultry sector contribution to the country5s overall meat production has been remained unchanged to one"(orth)

Table "( Trend in Annual Production o- Meat .000 MT/

Kear #8:% $%8 #$9 $4 <9 #88% 9%: #49 &< :% $%%% 4$8 #&7 #9$ ##$ $%%$ 447 #:$ #4% ##< Annual Dro+th ate #88$"$%%# 9)8 #)< ##)8 4)9 $%%$"$%#$ 9)4 $)# <): 9)4

3roduct 1otal Meat Bee(, Bu((alo Mutton, Doat 3oultry

SourceG @AMS1A1

31olution o- De1elopment Pro0ect! 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 *DM sector in Bangladesh has pursued poultry production as a tool (or poverty alleviation) Bangladesh ural Advancement Committee (B AC), the leading *DM has played the important role in the development and e2ecution o( the model in Bangladesh +ith support (rom various donors including '@A!, @AM, !A*'!A, Asian !evelopment Bank (A!B)) Bet+een #8&: and #8:$, B AC poultry programme did not have any model or designC it +as being implemented on an ad hoc basis) Jater a pilot pro.ect +as carried out in Manikgon.) Based on the e2periences o( the Manikgon. pro.ect, B AC and !JS together replicated the model during #8:<":& on a pilot scale in 9$ thanas mainly in the north+estern part o( the country through <4 area o((ices o( B AC +ith assistance (rom @AM>?*!3) 1he outcome o( the e2tended pilot pro.ect appeared to be positive) Based on these e2periences, the model +as (urther modi(ied and replicated through three large pro.ects during #88$"$%%9 +ith the assistance o( !A*'!A, '@A!, A!B and the Dovernment o( Bangladesh (1able 4)) According to Alam (#88&), the a(orementioned pro.ects generated substantial positive impacts on poultry production, employment and income generation in rural areas) 1he bene(iciaries o( the pro.ect had been the poor +omen) 1he generation o( income and employment opportunities through these pro.ects enhanced the status o( those +omen in their (amilies and societies) Also, as the income o( bene(iciary households increased, they +ere able to consume more chicken and eggs produced by them) Table 3( )ontribution o- the 7i1e!tock Sector to 8DP
Kear $%%#"$%%$ Share o( Jivestock Sector to D!3 (;) Annual Dro+th ate o( the Jivestock Sector Annual Dro+th ate o( the Agricultural Sector $):% $)$ $%#%"## $)8< $):# $%#$"#9 $)8$ 7)#<

SourceG !i((erent 'ssues o( Statistical 3ocket Book, Bangladesh Bureau o( Statistics

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 4nterprise !evelopment @acility (S4!@), the current market si6e o( the poultry industry is N# billion and is supporting nearly < million people directly or indirectly through %)#< 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( scale that 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 *DM 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 *DMs 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,

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(tabBhahumukhi 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

marketing channel (or selling processed broilers o( the contract (arms) 1hey have also initiated e((ort to populari6e cut up parts among the elite customers o( cities) A part o( the poultry by products likeC viscera, blood, (eather, shank etc are used as (ish (eed, +hile ma.ority o( by products are simply +asted and pollute the environment) 3oultry dropping is the important source o( (ertili6er to (ertile the land) Source o( ?ric acid in poultry droppings is converted into urea) The -ollo*ing problem! are ari!en *ith proce!!ed poultry product!( A (e+ commercial (arms are processing broiler but improper sanitary measurement in processing plant to maintain microbial load +hich in(luence spoilage and considerable odors o( meat due to (ollo+ing reasonsG a) Jack o( scienti(ic kno+ledge about processing and skilled manpo+er b) lack o( modern instrument and e,uipments c) non plan processing plant to maintain the hygienic measurement d) manual processing, deteriorate the ,uality o( meat (Slaughtering de"(eathering, evisceration etc) e) lack o( re(rigeration (acilities () none o( technology on preservation (3re"chilled, +ith or +ithout skin, ho+ long and temperature etc)) 3gg( 4gg is the perishable poultry product) 1he systematic method egg processing and grading has not been developed) 4ggs are sold +ithout packing and grading) 1able eggs are used in the restaurant, hotel and various types o( industry) 4ggshell may be used as a source o( calcium (Ca) in the diet o( poultry) 4gg grading and packing is essentialG a) to prevent egg breakage problem due to transportation and reduce spoilage o( egg b) to (acilitate egg storing c) to remove heterogeneity o( eggs (or ma2imum bene(it, +hich appraise consumer choice and capability to purchase)

Marketing o- poultry meat and egg( Marketing system remains still in traditional and heterogeneous condition) As a result, producers are not getting remunerative price and the consumers are paying more price per unit

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( simultaneously advertise 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)

3gg Marketing( 1he egg business during the past ten years (#884"$%%4) has not been highly pro(itable (or the typical egg (armer selling his products on a +holesale basis) 4gg (arms must either be e2tremely e((icient or sell their product (or signi(icantly higher prices than the traditional (arm price) Small producers (less than #%,%%% hens) must sell most o( their eggs directly to the consumer in order to capture a greater percentage o( the sale price) 1his means they +ill not only be involved +ith production, but also +ith processing and marketing) 1o get into the egg business, one should (irst locate a suitable piece o( property that is isolated (rom neighbors +ho may complain about the nuisances associated +ith poultry keeping and also isolated (rom other poultry (arms +hich may be a source o( un+anted poultry diseases) 'n addition, such property must be properly 6oned (or poultry use) 3oultry housing and e,uipment can be as simple as a shed roo( +ith chicken +ire (encing, nests, +ater (ountains and hand"(illed (eeders to an environmentally controlled (ully automated cage layer house) 0ousing and e,uipment can be purchased ne+ or obtained (rom another (arm that is going out o( business) 0ousing and e,uipment, there(ore, can be obtained at practically no cost (e2cept (or the cost o( going and getting it and putting it back up) to as much as N#%)%% per hen (or a Oturn"keyO high"tech (acility ready (or your (lock) 1o obtain a (lock, one can purchase old hens (rom a local poultry (arm, ready to lay pullets (#: to $% +eeks old) or one day old baby chicks to raise) 1he (irst system +ould be the least e2pensive, but it +ould also be the most risky relative to disease and the (lock +ould not per(orm as +ell as a younger (lock) Such birds may be #: to $4 months o( age +hen purchased and their cost +ould usually be in the N)<% to N)&< range) A (lock o( this type should be immediately molted (ollo+ing housing) '( started pullets +ere obtained, the cost +ould be N$)<% to N9)<% each at #7 to $% +eeks o( age) 1hese pullets +ould be (ully vaccinated and ready to commence laying +ithin a (e+ +eeks o( arrival) '( day"old chicks +ere obtained, rearing (acilities +ould be re,uired to raise them (or the #7 to $% +eek rearing period) 1his +ould re,uire a separate house and brooders (heaters) (or the (irst (our +eeks) @emale chicks can be obtained (rom a variety o( sources (or prices ranging (rom N)<% to N)&< each) A vaccination program is recommended to protect them (rom the prevalent poultry diseases in the area) @eed is the largest cost item and #4 to #: pounds +ill be re,uired (or each pullet you raise depending upon the breed or strain used) 1he -hite Jeghorn

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) Mnce 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 4< cents per do6en) @eed can be purchased in #%% pound bags or in bulk by the ton) '( bulk (eed is used, it should be stored in steel bins to e2clude rodents and rain) 'n order to have a balanced (lock relative to egg si6e, egg ,uality and productivity, periodic placement o( ne+ birds is re,uired) 'n most cases this re,uires at least (our di((erent (locks (ages) on the premise at any time) Such (locks should be maintained separate (rom one another (or health reasons) 4ach (lock +ill produce a di((erent egg si6e, ,uality o( egg and rate o( egg production relative to their respective ages) @locks are normally kept (or one year o( lay (to #: months o( age) or recycled (molted) at 7< +eeks o( age and kept (or an additional 9< to 4% +eeks be(ore they are sold as (o+l) A typical (lock +ill lay $# " $$ do6en eggs per hen per year) Mne"age (arms usually have (e+er disease problems, but (rom a marketing standpoint, the lack o( eggs o( di((erent si6es and ,uality to meet the needs o( customers make this (orm o( management less (easible) 4ggs can be sold +holesale to an egg processor +ho is responsible (or cleaning, si6ing, grading (candling) and packaging the product or these processes can be done by the egg producer) State regulations dictate egg si6e and ,uality standards that must be used in grading eggs and in the marking o( containers or signs) @or more in(ormation on 1he these regulations see httpG>>animalscience)ucdavis)edu>Avian>p(s$4a)htm)) source o( in(ormation i( you intend to market eggs) local Agricultural

Commissioner=s o((ice is responsible (or en(orcing these standards and is a use(ul

3roducts) policy,

easons (or non "remunerative price to small producers areG

a) 3roducers are unable to establish a marketing system +ithout having Dovernment b) they are too (ar (rom consumers, c) they are not able to (ind out, +hat consumer +ant or need, d) they are too small as regards out put, e) they do not have vehicle to bring their products to consumers, () most o( the consumers are not habituated to eat broiler meat, g) live chicken marketing is popular in Bangladesh, because o( trust on dressed birds (or slaughtering method (0alal or not), diseased or dead bird) 1here(ore, appropriate marketing channel is needed (or (avor o( producer or consumer)

Pricing o- broiler and egg( 't varies +ith the supply, demand (or poultry and poultry products) Since there is no marketing channel in Bangladesh, seller and buyer bargain in (i2ing price) !ue to perishability o( eggs, increasing mortality o( broiler and availability o( production, seller does not go to bargain +ith buyer) 1he processed birds are normally sold at hotel or departmental store) Most o( the consumers pre(er small si6e live bird (around # kg) even per unit price is higher than bigger si6e birds) 'ndigenous chicken are sold on the basis o( si6e, age, appearance, se2, color) 1he price o( indigenous chicken is almost double to broiler (Barua et al), $%##C Aini, #88%)) 4ggs are sold on the basis o( types, species and color (e2otic and indigenous chicken, duck etc)) 1he price o( bro+n shell egg is about #%; higher than that o( +hite egg and indigenous egg price is about 7; higher than (arm egg price (0ossain, $%#$)) 1he average consumption o( meat +as %):%, #)4# and $%)%% kg year = and egg +as 9%, 98 and 9$)< year= in Bangladesh, 'ndia and ?SA respectively (0u,ue, $%%#)) 1he price o( live broiler and egg are presented in the 1able #) Marketing problems are (aced by the @armersG Most o( the consumers are interested to purchase live birds instead o( processed birds due to lack o( trust, +hether the birds +ere slaughtered as 0alal method, dead or diseased birds (!as and aba, #88:))

)on!umer pre-erence( Most o( the ultimate consumers pre(er desi chicken because o( their taste, (irmness, pigmentation and leanness) Supply o- de!i chicken( -hen the chickens are (ound in large number, buying decision is negatively in(luenced) Storage -acilitie!( @armers have no storage (acilities and storing instruction (0o+ and ho+ long should be stored) Tran!portation( Small producers are a((ected adversely in selling o( poultry products through loosing +eight and breakage o( eggs) 1he consumers are buying +ith a e2pense o( higher price) 1he unscrupulous middleman is taking the advantages (0ossain, $%##) )ut up broiler( Since consumer has no concept on +hite and dark meat, there is no premium price on breast meat)

Price 1ariation( 3rice varies in di((erent seasons) 4ggs are sold at higher price in +inter than in summer) 1he opposite trend is true in case o( broiler marketing (1able #)) Collection o( chicken 3rocessing o( chicken (maintaining the hygienic (actors) 3ackage o( processed birds Storage dressed broiler>cut up parts !istribution to the selling point Table 1( Monthly market price o- ali1e broiler and egg! in "013 4gg -hole sale price 1k"#%% egg &%%"&<% &%%"&9< 7:%"&<% &#%"&4% 7:%"&%% &%%"&9% 7<%"&9% &%%"&9% &$%"&<% &9%"&7% &9%"&<% &<%":%% &<%":%% :%%":<% &<%":%% &<%":%% &%%":%% &<%":%% &%%"&<% &<%":%% &<%":%% &<%":$% &<%":%% :%%":<% etail price

-hole sale price Month Panuary @ebruary March April May Pune Puly August September Mctober *ovember !ecember 1k>Eg, Jive Bird #$%"#9% #$%"#9% #$<"#9< #$%"#9% ##<"#$< ##<"#$< #$%"#9% #9<"#4% #4%"#<% #4%"#<% ##%"#$< #$%"#9%

Broiler etail price 1k>Eg, Jive Bird #9<"#4< #9%"#4< #9%"#4< #$<"#9< #$<"#9< #$%"#9% #$%"#9% #4%"#<< #<%"#7< #<%"#7< #$%"#9% #$<"#9<

Another study on marketing o( commercially 3roduced eggs indicated the problems (aced by the producers and the traders are sho+n in table $ and 9 Table "( Problem! -aced by the layer -arm! in marketing o- egg Problem! 6o. o- 9e!pondent! Percent

0igher demand (or eggs o( native birds @luctuating demand Breakage o( egg in transit 0igh transportation cost 0ortal, Strikes and *atural calamities 0igh cost o( storage

$% #< $$ #8 $$ #$

8%)8# 7:)#: #%%)%% :7)97 #%%)%% <4)<<

Table 3( Marketing problem! -aced by the egg trader! 3roblems Jack o( operating capital Spoilage *o storage (acilities Jack o( ade,uate and suitable transportation system Breakage o( eggs in transit 'nade,uate market space #& (#%%)%%) : 84&)%7) $4 (#%%)%%) #7 (77)7&) & (#%%) " 4: (#%%) $4 (<%)%%) Aratder"cum "+hole seller #% (<:):$) 8 (<$)84) #$ (&%)<8) #& (#%%)%%) etailer #7 (77)7&) #& (&%):9) #4 (<:)99) #8 (&#)49) Supplier 4 (<&)#4) " " & (#%%) All 9% (7$)<%) #7 (99)99) $7 (<4)#&) 49 (:8)<9)

SourceG aba, $%#$, (or (avor o( producers and consumers, the (ollo+ing steps should be included in processing o( broiler

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 +ith a 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) Mn the other hand consumers +ill get the ,uality products +ith a reasonable price) Dovernment should give attention to improve and establish the Marketing system)

9e-erence! Aini, '), $%%8) 'ndigenous chicken production in south"4ast"Asia) -orld=s 3oult) Sci) P), 47G <#"<&) Barra, A), M)A) ) 0o+lider and K) Koshimuro, #88:)'ndigenous naked neck (o+l o( Bangladesh) -orld=s 3oult) Sci), <4G $&8"$:7) Bulgakova, J)F), #8&<) Storage o( 3oultry in the super cooled condition) 1rudy Fsesoyu6nyi *auchno"'ssledova 1elskii 'nstitut Myasnoi 3romyshlennosti,#8G #$"#4) !as, S) ) and S)E) aba, #88:) Marketing o( poultry birdsin Sylhet !istrict o( Bangladesh) 4conomic A((airs, Article *o) #) Duslyannikov, F)F), F)*) Eoreshkov, #8&7) Study o( the changes in the meat o( hens, (ro6en in li,uid *itrogen and in air during prolonged storage at lo+ temperature) Eholodilnaya 1ekhnika, #$G9%"99) 0assall and Associate 3tv) Jtd), $%%8) Bangladesh third Jivestock !evelopment pro.ect vol) Meat 3rocessing and Marketing sector, Anne2ure) 0ossain, E)S)A), $%##) Marketing o( egg and broiler in Bangladesh) Seminar and 'nternational 3oultry Sho+, organi6ed by -orld 3oultry Science Association" Bangladesh Brance, <8"78) 0u,ue, Q)M)4), #889) Current status o( 3oultry 3roduction and Marketing system in Bangladesh) Agricultural and Company Consulting, '*C) 0u,ue, Q)M)4), $%##) 3oultry 'ndustry in Bangladesh and strategies (or its improvement) $nd 'nternational 3oultry sho+ and seminar organi6ed by -orld 3oultry Science Association" Bangladesh Branch, #7" #& @ebG #<"$4) 3andey, *)E), S)E) Anand, C)M) Mohapatra and S)S)Ferma, #8:8) 3hysicochemical and microbial changes in dressed chicken during post"mortem ageing) 'ndian P) 3oult) Sci), $4G <%"<<) esearch 3ro.ect"'') BA C, ?SA'!>C04CC0'

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), $%%#) 4((ect o( storage condition on the keeping ,uality o( dressed broilers) M)S) thesis, Bangladesh Agriculture ?niversity, Mymemsingh, Bangladesh)