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

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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

  • 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

  • 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

Producer

Broker

Tender / Collector

Butcher

Retailer


Beef Marketing System

Producer

Agent

Tender / Collector

Butcher

Retailer


Pig Marketing System

Collector

Butcher

Retailer

Consumer

Producer

Retailer

Collector

Processor

Retailer


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)

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)

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

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)

(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 )

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

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


Rural Area Pork Marketing Channel & Market Margin

Rs. 220 per Kg Cost of Production


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


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

  • 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

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

  • Difficulties in accessing reliable data sources in various agencies


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

  • 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


For further information, please contact;

Director Veterinary Research

Veterinary Research Institute,

Gannoruwa,

Peradeniya.


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