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Marketing Pattern of Coloured Broiler Birds in Karnataka

Lavanya R. Satyanarayan K. Jagadeeswary V. Narasimha Murthy H. N. Upendra H. A. Shilpa Shree J.
Vol 7(4), 220-227
DOI- http://dx.doi.org/10.5455/ijlr.20170225035901

Day old coloured broiler chicks are being produced and distributed by department of Poultry Science, Veterinary College, Hebbal, Bengaluru under All India Co-ordinated Research Project on poultry breeding for meat since, 20 years all over Karnataka. But still there is a dearth for information regarding marketing pattern of coloured broiler birds in Karnataka. Hence the present study was undertaken to study the marketing pattern of coloured broiler birds in Karnataka. The study revealed that Producer- consumer was the most popular and efficient marketing channel for small farmers Whereas, Producer-nearest shopping place-consumer channel was popular among medium and large farmers. Majority of the small farmers marketed their birds at 6 weeks of age whereas, medium and large farmers marketed their birds at 8 weeks age. Average net profit received per bird was Rs.182 for small farmers, Rs.71 for medium farmers, Rs.24 for large farmers. Among the small farmers higher average price received per Kg was Rs.112 in channel 1 whereas, in case of medium farmers, average price received per Kg was Rs.110 in channel 1 and in case of large farmers, average price received per Kg was Rs.101 in channel 2. Majority of the coloured broiler farmers (55.6%) and middlemen (60.0%) expressed unfavourable opinion towards marketing of coloured broilers. Majority (87.8%) of the buyers expressed favourable opinion towards marketing of coloured broilers. Attempts can be made to provide training to the coloured broiler farmers in poultry farming. Steps to be taken for providing marketing information to the coloured broiler farmers for getting remunerative price and a forum can be recommended to discuss the marketing problems and popularization of coloured broiler birds can be undertaken through mass media.


Keywords : Coloured Broiler Marketing Channels Producer

Introduction

India’s poultry industry has transformed from a mere backyard activity into a major commercial activity. India, the world’s second largest developing country, is contributing to the expansion of the poultry sector through its rapid growth. In India, poultry sector growth is being driven by rising income, together with the emergence of vertically integrated poultry producers that have reduced consumer prices by lowering production and marketing costs (Mohanraj and Manivannan, 2012). Poultry in agriculture segment is one of the fastest growing sectors in India with an average growth rate of 6 per cent in egg production and 12 per cent for broiler production per annum (Kartikeyan and Nedunchezhian, 2013). Marketing plays a vital role in connecting producers and consumers. Efficient marketing of the produce is crucial for existence of any enterprise and the economic motive behind that is the profit which could be achieved again through efficient marketing only. In Karnataka marketing is still the weakest link and no poultry based marketing structure has been evolved in the state. Day old coloured broiler chicks are being produced and distributed by Department of Poultry Science, Veterinary College, Bengaluru under All India Co-ordinated Research Project on poultry breeding for meat since, 20 years all over Karnataka. Still, the farmers were facing difficulty in marketing of coloured broiler birds in Karnataka. Hence the present study was undertaken to study the marketing pattern of coloured broiler birds in Karnataka to provide the better information regarding its marketing.

Material and Method

The present study was conducted in Karnataka state. Following ex-post facto research design, 90 farmers were randomly selected. Farmers were classified into 3 groups based on the number of coloured broiler holdings as small, medium and large farmers. Farmers are classified into 3 groups based on the number of coloured broiler holding as small (<100 birds), medium (101-500 birds) and large farmers (>500 birds). Thirty farmers were selected from each group. Statistical tools used were frequencies, percentages and ranking.

Result and Discussion

Marketing Pattern of Coloured Broiler Birds in Karnataka

Marketing Channels Operating and Volume of Transaction through These Channels

The list of marketing channels for coloured broiler birds is depicted in Table 1. It was evident from the Table 1 that, majority of small (63.3%) farmers marketed their birds through channel 1 (producer-consumer). This may be due to small flock size and they were selling their birds to the neighbours and other consumers in the village. They were getting remunerative price for the birds because the average price received per Kg was more in this channel which was about Rs.112 (Table 6) which in turn increased the average net profit. As there was no involvement of middlemen this positive trend was observed. These findings are partially in accordance with Mandal et al. (2006) and Gausi et al. (2004), who found that majority of the birds were marketed through producer-consumer channel.

Majority of the medium (66.7%), large (56.7%) and overall (47.8%) farmers marketed their birds through channel 2 (producer-nearest shopping place-consumer) as the flock size was quite big. It was difficult for the farmer to sell the birds in village itself and received only moderate price for the birds due to the involvement of middlemen and wholesalers.

Table 1: Marketing channels for coloured broiler birds

Farmers
S. No. Marketing Channels Small Medium Large Overall
F* % F* % F* % F* %
1 Producer-consumer 19 63.3 4 13.3 23 25.6
2 Producer-nearest shopping place 6 20.0 20 66.7 17 56.7 43 47.8
3 Producer-wholesaler- consumer 5 16.7 3 10.0 8 8.9
4 Producer-village market-consumer 8 26.7 8 8.9
5 Producer-middlemen- consumer 3 10.0 2 6.7 5 5.6
6 Producer- town- consumer 3 10.0 3 3.3

*F- frequency

Marketing Age of the Coloured Broiler Birds in Karnataka

Among small farmers, majority (56.7%) marketed their birds at the age of six weeks because they were selling the birds directly to the consumer and age was not a factor to them. During festivals and other special occasions the farmers were selling the birds irrespective of the age of the birds. Majority of the medium (63.3%), large (56.7%) and overall (52.2%) farmers marketed their birds at the age of 8 weeks (Table 2) because the birds need to attain an appropriate weight for selling in nearest shopping place and also to wholesalers.

Table 2: Marketing age of the coloured broiler birds

Farmers
Age of Birds in Weeks Small Medium Large Overall
F* % F* % F* % F* %
4 1 3.3 1 1.1
6 17 56.7 10 33.3 11 36.7 38 42.2
8 11 36.7 19 63.3 17 56.7 47 52.2
10 1 3.3 1 3.3 2 2.2
12 1 3.3 1 1.1
14 1 3.3 1 1.1

*F- frequency

Mode of Transportation for Coloured Broiler Birds

The mode of transport for coloured broiler birds depends upon the number of birds, distance and time frame. Majority of the small farmers (73.3%) transported the birds by two wheelers because most of the birds were sold directly to the customers at the farm itself and few birds only needed transport facilities. These findings are partially in line with findings of Asif et al., 2005, who revealed that majority of poultry farmers and commission agents used motorcycles and donkey carts for transportation. Majority of the medium (66.7%), large (100.0%) and overall farmers (55.6%) transported their birds through tempo (Table 3) because birds in a flock are to be liquidated at once and all the birds need to be transported at once to nearby shops and hence, abigger transport facility is required.

Table 3: Mode of transportation for coloured broiler birds

Farmers
Mode of Transportation Small Medium Large Overall
F* % F* % F* % F* %
Tempo 20 66.7 30 100 50 55.6
Rickshaw 8 26.7 9 30 17 18.9
Two wheeler 22 73.3 1 3.3 23 25.6

*F- frequency

Average Net Profit for the Coloured Broiler Farmers

The average net profit per flock was Rs. 9,325/-, Rs. 15,462/- and Rs. 39,010/- in case of small, medium and large coloured broiler farmers, respectively (Table 4).

Table 4: Average net profit (per flock) for the coloured broiler farmers in Karnataka (INR)

Farmers
Particulars Small Medium Large
N=30 N=30 N=30
Average net profit 9,325.00 15,462.00 39,010.00
Average net returns 11,589.00 51,684.00 2,28,845.00
Average variable cost 2,297.00 36,223.00 1,89,917.00
Average Variable Cost
Average feed cost 1,160.00 28,374.00 1,42,516.00
Average electricity charges 83.00 467.00 1,113.00
Average medicine charges 67.00 417.00 1,350.00
Average miscellaneous cost 127.00 580.00 1,633.00
Average transportation charges 57.00 1333.00 4,150.00
Average litter material charges 19.00 190.00 888.00
Average labour charges 1133.00 19,367.00
Average Net Returns
Average returns from the sale of birds 11,589.00 51073.00 2,25,611.00
Average returns from sale of gunny bags 223.00 1017.00
Average returns from the sale of manure 392.00 1817.00

Among small farmers average net profit received per bird was Rs.182 and average net returns per bird was Rs.219 (Table 5). This may be due to their marketing channel as they were selling their birds directly to the consumer and the average price received per Kg was more in this channel which was about Rs.112 (Table 6). The variable cost per bird was Rs.37.00 (Table 5) which is very less in case of small farmers because they don’t require pakka house for birds, feed cost was less and can be managed with available resources, labour charges was nill and expenses for medicine and litter material was also less. The birds were sold at the age of 6 weeks only, this was another factor which contributed to low variable cost.

Table 5: Average net profit (per bird) for the coloured broiler farmers (INR)

Farmers
Particulars Small Medium Large
N=30 N=30 N=30
Average net profit per bird 182.00 71.00 24.00
Average net returns per bird 219.00 212.00 184.00
Average variable cost per bird 37.00 143.00 159.00

Among medium farmers, average net profit received per bird was Rs.71, average net returns per bird was Rs.212 and average variable cost per bird was Rs.143 (Table 5). Majority of the medium farmers were selling their birds to nearest shopping place where the average price received per Kg was comparatively less i.e., Rs.104 (Table 6). The average variable cost per bird was also more for medium farmers, which was about Rs.143 (Table 5). As the flock size increases, the variable cost also increases and most of the medium farmers were selling the birds at 8 weeks of age which contributed to more feed cost and in turn more variable cost and less average net profit.

Among large farmers average net profit received per bird was Rs.24, average net returns per bird was Rs.184 and average variable cost per bird was Rs.159 (Table 5). Majority of the large farmers sold their birds at 8 weeks. Hence the average variable cost per bird was high when compared to small farmers. Feed cost and labour cost contributed much to the variable cost, hence the average net profit received per bird was very low which was about Rs.24 (Table 5). Majority of the farmers were selling the birds in nearest shopping place and considerable percentage of the birds were also sold to wholesalers. Because of interruption of middlemen and wholesaler, farmer was not getting remunerative price for their birds whereas, the farmer received average price of Rs.89 per Kg (Table 6) in channel 4 (Producer-wholesaler-consumer), Rs.83 per Kg in channel 6 (Producer- town-consumer) and Rs.60 per Kg in channel 5 (producer-middlemen-consumer).

Table 6: Average price for coloured broiler bird (Per Kg) in different marketing channels in INR

Farmers
Sl. No. Marketing Channels Small Medium Large
N=30 N=30 N=30
1 Producer-consumer 112 110
2 Producer-nearest shopping place 108 104 101
3 Producer-village market- consumer 90 90
4 Producer- wholesaler –consumer 89
5 Producer-middlemen- consumer 65 60
6 Producer- town- consumer 83

Opinion of Stakeholders Involved in Marketing of Coloured Broilers in Karnataka

Opinion of Farmers Involved in Marketing of Coloured Broiler Birds

The farmer’s opinion on marketing of coloured broiler birds was depicted in Table 7. The results indicated that 80 per cent of the small farmers had favourable opinion because they were getting remunerative price for their birds, as majority of the farmers sold their birds directly to the consumer. The average price received per kg was more in this channel Rs.112 (Table 6) and there was no involvement of middlemen. Average net profit received per bird was about Rs.182 (Table 5) which was more than the average net profit received by the medium and large farmers. They opined that coloured broiler farming provided household nutritional security, advertisements and public awareness improved the sale of coloured broilers and there was a good scope for coloured broilers in local area.

Medium farmers (76.7%) and large farmers (83.3%) showed unfavourable opinion because they did not receive remunerative price for their birds, as they were selling the birds in nearest shopping place and received an average price of Rs.104 per kg (medium farmers) and Rs.101 (large farmers). The average net profit received per bird (Table 5) was also less for medium farmers (Rs.71.00) and large farmers (Rs.24.00) than small farmers (Rs.182.00). Middlemen were exploiting some of the large and medium farmers. It was observed from the study that wholesalers, middlemen and also shop owners in nearest shopping places were cheating the farmers in weighing of birds. The findings of the study are partially in agreement with findings of Muhammad et al. (2004) and Asif et al. (2005) who reported that middlemen were exploiting the poultry farmers, therefore producers were not getting remunerative price.

Table 7: Opinion of farmers involved in marketing of coloured broiler birds

Farmers
Opinion Small Medium Large Overall
F % F % F % F %
Favourable (16-25) 24 80 5 16.7 3 10 32 35.6
Neutral(26-35) 4 13.3 2 6.7 2 6.7 8 8.9
Unfavourable (36-48) 2 6.7 23 76.7 25 83.3 50 55.6

*F- frequency

Opinion of Middlemen Involved in Marketing of Coloured Broiler Birds

Majority (60.0%) of middlemen had unfavourable opinion (Table 8) because they opined that it was difficult to market the coloured broiler birds and middlemen were not getting remunerative price for the birds. Even the shopkeepers were refusing to purchase the birds because of lack of demand. The reason behind this could be due to lack of awareness among the public regarding the advantages of rearing coloured broiler birds. Transportation and labour charges incurred by the middlemen were also more. These findings were in accordance with findings of Mukiibi and Kirunda (2005) who revealed that the profits received by middlemen were small.

Table 8: Opinion of middlemen involved in marketing of coloured broiler birds

Opinion F %
Favourable (9-14) 1 20
Neutral (15-20) 1 20
Unfavourable (21-27) 3 60

*F- frequency

The number of middlemen involved in marketing of coloured broiler birds was found to be limited in the study area of this present work. This may be due to the fact that coloured broiler birds were produced in less number. Further, the number of farmers rearing coloured broiler birds was also limited. Hence it was felt that opinion expressed by middlemen in the present study cannot be generalized.

Opinion of Buyers Involved in Marketing of Coloured Broiler Birds in Karnataka

Majority (87.8%) of the buyers had favourable opinion (Table 9). This may be influenced by the belief that meat of coloured broiler birds was very tasty and was easily available and affordable. Buyers also had preference for coloured broiler meat as compared to mutton, chevon and fish. These results were in conformity with the findings of Srinivasa and Thammiraju (2010) and Thammiraju and Suryanarayana (2005), who reported that top priority was given to chicken because religious sentiments were playing an important role in the consumption of meat other than chicken.

Table 9: Opinion of buyers involved in marketing of coloured broiler birds

Opinion F %
Favourable (11-17) 79 87.8
Neutral (18-24) 6 6.7
Unfavourable (25-33) 5 5.6

Conclusion

The study conducted on marketing pattern of coloured broiler birds revealed that producer-nearest shopping place-consumer was the most popular marketing channel for medium and large farmers whereas, producer-consumer channel was popular among small farmers. There was no proper market evaluation rate for coloured broilers as like commercial broilers. Average net profit received per bird by the small farmers was high when compared to medium and large farmers. Majority of the coloured broiler farmers and middlemen showed unfavourable opinion towards marketing of coloured broilers whereas, majority of the buyers showed favourable opinion towards marketing of coloured broilers. Attempts can be made to provide training to the coloured broiler farmers in poultry farming. Steps need to be taken for providing marketing information to the coloured broiler farmers for getting remunerative price. Hence, a forum can be recommended to discuss the marketing problems and popularization of coloured broiler birds need to be undertaken through mass media to widen the market.

References

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