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.