Evaluation of periodical changes in Market margin in Different Livestock Products

Evaluation of periodical changes in Evaluation of periodical changes in Market margin in Different Livestock Market margin in Different Livestock

Products Products

R.M. ChandrasenaR.M. ChandrasenaAsst. Director Asst. Director

Div. Farming Systems Economics and Div. Farming Systems Economics and MarketingMarketing

2010-2011

ObjectivesObjectives

To determine cost of production of livestock To determine cost of production of livestock products in different production systems products in different production systems and to estimate their market marginsand to estimate their market margins

To forecast future production trends with To forecast future production trends with the changes in the cost of different inputsthe changes in the cost of different inputs

To estimate major cost components To estimate major cost components between producer and the consumer price between producer and the consumer price

Expected outputExpected output

Small scale farmers are benefited by knowing Small scale farmers are benefited by knowing the total cost and then to determine the total cost and then to determine appropriate salable priceappropriate salable price

When fixing control price, this study would When fixing control price, this study would benefit in determining a fair price to both benefit in determining a fair price to both producer and consumerproducer and consumer

Useful in determining value addition Useful in determining value addition

Goat Marketing System Goat Marketing System

BrokerProducer Tender / Collector

Butcher

Retailer

Beef Marketing System Beef Marketing System

AgentProducer Tender / Collector

Butcher

Retailer

Pig Marketing System Pig Marketing System

Collector Butcher Retailer

Retailer

Retailer

Producer

Collector Processor

Consumer

Buffalo Milk Curd Production Buffalo Milk Curd Production

Farmer / Producer

Selling Price - Rs.55.00/ lit

(55-60)

TransportCurd Production Labor - Rs. 2.50Pot - Rs. 12.00Other - Rs. 3.00

Total Production Cost=Rs.(55.00+2.50+12.00+3.00)=Rs.74.00 One liter Curd Pot (74-80)

Buying Price RetailerRs. 110 (110- 112)

Consumer PriceRs. 130.00(130 -140)

Rs.1.50/lit(1.50-2.00)

TransportRs.2.00

Beef Marketing Channel and Market Beef Marketing Channel and Market Margin Distribution (Anuradhapura)Margin Distribution (Anuradhapura)

Producer Broker Agent / Collector

Butcher Retailer

Selling Price Rs.320/Kg(100%)

Producer Selling PriceRs.208/Kg(65%)

Marketing Margin

Rs.112/ Kg(35 %)

Broker2%Rs. 6.40

Transport3 %Rs.9.60

Agent7%Rs.38.40

Retailer11 %Rs.35.20

Bucher12 %Rs.38.40

COST OF PRODUCTION BROILER CHIKEN (1 Kg)COST OF PRODUCTION BROILER CHIKEN (1 Kg)

Rs-1.5 Kg 74+34 Rs.111.00

B.F-1.8 Kg 68-56 Rs. 122.40

InputsInputs Rs.Rs.

feedfeed 223.40223.40

ChickChick 50.0050.00

WaterWater 2.002.00

LightLight 5.005.00

LaborLabor 16.0016.00

S*PS*P 15.0015.00

Total cost / BroilerTotal cost / Broiler 311.40311.40

(Assumption Average Dress Wt = 1.5 Kg)Cop 1Kg = 210.00S*P – Slaughter and packing

Broiler Chicken Market MarginBroiler Chicken Market MarginCOPRs. 210.00 /Kg

Producer Price Retailer BuyingPrice Rs. 320.00

Retailer SellingPrice Rs. 370.00

Rs. 250.00

(100%)(67.5%)

Mm (32.5 %)Rs. 120.00

Beef Marketing Channel and Market Margin Transport from Beef Marketing Channel and Market Margin Transport from Remote Area to Urban Area(1Kg)Remote Area to Urban Area(1Kg)

(Lunugamwehera / Thanamalwila / Monaragala)

Producer Price Retailer Price

Rs.450 (100 %)Rs.450 (50 %) Market MarginRs. 225 (50 %)

Barracker9.00

Agent36.00

T.P

22.50

Other13.50

Bucher67.50

Retailer76.50

MUTTON MARKETING CHNAL AND MAKET MARGINMUTTON MARKETING CHNAL AND MAKET MARGIN(Consumer Average Price Rs. 750.00/ Kg )(Consumer Average Price Rs. 750.00/ Kg )

Producer PriceRs. 500.00 /Kg(67 %)

Broke PriceRs. 15.00(2 %)

Trader / Collector PriceRs.67.50

Butcher Price Rs 75.00 /Kg(10 %)

Retailer PriceRs. 90.00 /Kg(12 %)

Consumer PriceRs. 750.00/kg

PRODUCERRs.500.00/kg(67%)

CONSUMERRs.750.00/kg(100%)

Market MarginRs. 250.00/ Kg(33 %)

YOGHURT PRODUCTIONYOGHURT PRODUCTION

Producer cop / PriceRs: 9.00/cup

Producer Selling Price

Rs. 15.00/ cup

Retailer buying Price Rs.15.00/ cup

Consumer PriceRs. 20.00/ cup

ProfitRs. 6.00

ProfitRs. 5.00/cup

Rs. 220 per Kg Cost of Production

Rural Area Pork Marketing Channel & Market Margin

Pork Marketing Channel 2 Market MarginPork Marketing Channel 2 Market Margin

Producer Price

Cop 240 .00

Retailer Price

Market MarginRs. 160.00/ Kg(35 %)

Rs. 290. 00(65 %)

Rs. 450.00(100 %)

T.P

18.00Other9.00

Bucher67.50

Retailer76.50

Collector36.00

Broker9.00

Milk Collection, distribution and Milk Collection, distribution and Consume SystemsConsume Systems

ProgressProgress

Secondary Data collection completed.Secondary Data collection completed. Informal discussion with key personal Informal discussion with key personal

completed.completed. Development of questionnaire completed.Development of questionnaire completed. Field survey completed.Field survey completed. Data edits completed.Data edits completed. Data analysis completed.Data analysis completed. Terminal report writing in progress.Terminal report writing in progress.

Some of the major issues in Some of the major issues in Agricultural marketingAgricultural marketing

High price fluctuationHigh price fluctuation High market marginHigh market margin Poor infrastructure facilities.Poor infrastructure facilities. Lack Integration between Input supply, Lack Integration between Input supply,

Production, and Marketing.Production, and Marketing. Heavy post harvest losses.Heavy post harvest losses. Influence of the middleman in Agricultural Influence of the middleman in Agricultural

Marketing process.Marketing process.

ConstraintsConstraints

Supporting services were not available Supporting services were not available and thus expenditure on personals and thus expenditure on personals remained unspentremained unspent

Difficulties in accessing reliable data Difficulties in accessing reliable data sources in various agencies sources in various agencies

ObservationsObservations The market margin changes with the weather The market margin changes with the weather

condition, festival season and natural disasters.condition, festival season and natural disasters. There were two types of marketing channelsThere were two types of marketing channels

Short channel-Both producer and consumer benefitedShort channel-Both producer and consumer benefited Long Channel-High waste, Low margin for producer and Long Channel-High waste, Low margin for producer and

high purchasing price for consumerhigh purchasing price for consumer

Extent of value addition can be determinedExtent of value addition can be determined Product supply through export is heavily depend on Product supply through export is heavily depend on

the forecasted demand of the hotel keepersthe forecasted demand of the hotel keepers Main factors which determines the retail price are Main factors which determines the retail price are

population density and the religionpopulation density and the religion

AcknowledgementsAcknowledgements Department of animal production and health for Department of animal production and health for

funding the projectfunding the project

Director VRI all the staff and research monitoring Director VRI all the staff and research monitoring committee committee

Provincial councils, Milco, Nestle, NLDB for their Provincial councils, Milco, Nestle, NLDB for their invaluable support in various aspectsinvaluable support in various aspects

For further information, please contact;

Director Veterinary ResearchVeterinary Research Institute,Gannoruwa,Peradeniya.