Evaluation of periodical changes in market margin in different livestock products
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Evaluation of periodical changes in Market margin in Different Livestock Products . 2010-2011. R.M. Chandrasena Asst. Director Div. Farming Systems Economics and Marketing. Objectives.

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Evaluation of periodical changes in market margin in different livestock products

Evaluation of periodical changes in Market margin in Different Livestock Products

2010-2011

R.M. Chandrasena

Asst. Director

Div. Farming Systems Economics and Marketing


Objectives

Objectives

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

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

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


Expected output

Expected output

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

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

  • Useful in determining value addition


Goat marketing system

Goat Marketing System

Producer

Broker

Tender / Collector

Butcher

Retailer


Beef marketing system

Beef Marketing System

Producer

Agent

Tender / Collector

Butcher

Retailer


Pig marketing system

Pig Marketing System

Collector

Butcher

Retailer

Consumer

Producer

Retailer

Collector

Processor

Retailer


Buffalo milk curd production

Buffalo Milk Curd Production

Transport

Curd Production

Labor - Rs. 2.50

Pot - Rs. 12.00

Other- Rs. 3.00

Farmer / Producer

Selling Price - Rs.55.00/ lit

(55-60)

Rs.1.50/lit

(1.50-2.00)

Total Production Cost

=Rs.(55.00+2.50+12.00+3.00)

=Rs.74.00 One liter Curd Pot (74-80)

Transport

Rs.2.00

Consumer Price

Rs. 130.00

(130 -140)

Buying Price Retailer

Rs. 110

(110- 112)


Beef marketing channel and market margin distribution anuradhapura

Beef Marketing Channel and Market Margin Distribution (Anuradhapura)

Agent /

Collector

Producer

Broker

Retailer

Butcher

Marketing Margin

Producer

Selling Price

Rs.208/Kg

(65%)

Selling Price

Rs.320/Kg

(100%)

Rs.112/ Kg

(35 %)

Broker

2%

Rs. 6.40

Transport

3 %

Rs.9.60

Agent

7%

Rs.38.40

Bucher

12 %

Rs.38.40

Retailer

11 %

Rs.35.20


Cost of production broiler chiken 1 kg

COST OF PRODUCTION BROILER CHIKEN (1 Kg)

74+34

Rs-1.5 Kg

Rs.111.00

68-56

Rs. 122.40

B.F-1.8 Kg

(Assumption Average Dress Wt = 1.5 Kg)

Cop 1Kg = 210.00

S*P – Slaughter and packing


Broiler chicken market margin

Broiler Chicken Market Margin

COP

Rs. 210.00 /Kg

Retailer Buying

Price Rs. 320.00

Producer Price

(100%)

(67.5%)

Mm (32.5 %)

Rs. 120.00

Retailer Selling

Price Rs. 370.00

Rs. 250.00


Beef marketing channel and market margin transport from remote area to urban area 1kg

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

(Lunugamwehera / Thanamalwila / Monaragala)

Retailer Price

Producer Price

Market Margin

Rs. 225 (50 %)

Rs.450 (50 %)

Rs.450 (100 %)

Agent

36.00

Retailer

76.50

T.P

22.50

Other

13.50

Barracker

9.00

Bucher

67.50


Mutton marketing chnal and maket margin consumer average price rs 750 00 kg

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

Broke Price

Rs. 15.00

(2 %)

Producer Price

Rs. 500.00 /Kg

(67 %)

Trader / Collector Price

Rs.67.50

Butcher Price

Rs 75.00 /Kg

(10 %)

Retailer Price

Rs. 90.00 /Kg

(12 %)

Consumer Price

Rs. 750.00/kg

Market Margin

Rs. 250.00/ Kg

(33 %)

CONSUMER

Rs.750.00/kg

(100%)

PRODUCER

Rs.500.00/kg

(67%)


Yoghurt production

YOGHURT PRODUCTION

Producer Selling Price

Rs. 15.00/ cup

Producer cop / Price

Rs: 9.00/cup

Profit

Rs. 6.00

Consumer Price

Rs. 20.00/ cup

Retailer buying Price

Rs.15.00/ cup

Profit

Rs. 5.00/cup


Evaluation of periodical changes in market margin in different livestock products

Rural Area Pork Marketing Channel & Market Margin

Rs. 220 per Kg Cost of Production


Pork marketing channel 2 market margin

Pork Marketing Channel 2 Market Margin

Cop 240 .00

Retailer Price

Producer Price

Market Margin

Rs. 160.00/ Kg

(35 %)

Rs. 290. 00

(65 %)

Rs. 450.00

(100 %)

T.P

18.00

Bucher

67.50

Other

9.00

Broker

9.00

Collector

36.00

Retailer

76.50


Milk collection distribution and consume systems

Milk Collection, distribution and Consume Systems


Progress

Progress

  • Secondary Data collection completed.

  • Informal discussion with key personal completed.

  • Development of questionnaire completed.

  • Field survey completed.

  • Data edits completed.

  • Data analysis completed.

  • Terminal report writing in progress.


Some of the major issues in agricultural marketing

Some of the major issues in Agricultural marketing

  • High price fluctuation

  • High market margin

  • Poor infrastructure facilities.

  • Lack Integration between Input supply, Production, and Marketing.

  • Heavy post harvest losses.

  • Influence of the middleman in Agricultural Marketing process.


Constraints

Constraints

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

  • Difficulties in accessing reliable data sources in various agencies


Observations

Observations

  • The market margin changes with the weather condition, festival season and natural disasters.

  • There were two types of marketing channels

    • Short channel-Both producer and consumer benefited

    • Long Channel-High waste, Low margin for producer and high purchasing price for consumer

  • Extent of value addition can be determined

  • Product supply through export is heavily depend on the forecasted demand of the hotel keepers

  • Main factors which determines the retail price are population density and the religion


Acknowledgements

Acknowledgements

  • Department of animal production and health for funding the project

  • Director VRI all the staff and research monitoring committee

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


Evaluation of periodical changes in market margin in different livestock products

For further information, please contact;

Director Veterinary Research

Veterinary Research Institute,

Gannoruwa,

Peradeniya.


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