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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 Different Livestock Products

  • 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 Different Livestock Products

  • 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 Different Livestock Products

Producer

Broker

Tender / Collector

Butcher

Retailer


Beef marketing system
Beef Marketing System Different Livestock Products

Producer

Agent

Tender / Collector

Butcher

Retailer


Pig marketing system
Pig Marketing System Different Livestock Products

Collector

Butcher

Retailer

Consumer

Producer

Retailer

Collector

Processor

Retailer


Buffalo milk curd production
Buffalo Milk Curd Production Different Livestock Products

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) (Anuradhapura)

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 (Anuradhapura)

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 Remote Area to Urban Area(1Kg)(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 Remote Area to Urban Area(1Kg)

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 Remote Area to Urban Area(1Kg)

Rs. 220 per Kg Cost of Production


Pork marketing channel 2 market margin
Pork Marketing Channel 2 Market Margin Remote Area to Urban Area(1Kg)

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



Progress
Progress Remote Area to Urban Area(1Kg)

  • 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 Remote Area to Urban Area(1Kg)

  • 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 Remote Area to Urban Area(1Kg)

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

  • Difficulties in accessing reliable data sources in various agencies


Observations
Observations Remote Area to Urban Area(1Kg)

  • 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 Remote Area to Urban Area(1Kg)

  • 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; Remote Area to Urban Area(1Kg)

Director Veterinary Research

Veterinary Research Institute,

Gannoruwa,

Peradeniya.