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
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.