An Economic Analysis of Cattle Marketing in Eastern Dry Zone of Karnataka

Abstract

Cattle markets play an important role in connecting sellers and buyers and an efficient market is essential to promote the growth. An ex-post facto research design was adopted to study the economic analysis of cattle marketing in eastern dry zone of Karnataka. The study sample comprised of six cattle markets and two annual cattle fairs. Ten sellers, buyers and five brokers from each market and cattle fair were selected randomly. The study revealed that majority of cattle was transacted through channel 2 (57.76%), where broker negotiated the sale of cattle between seller and buyer. Marketing cost for bullock sale was highest (Rs.3, 784.29) in channel 4, where animal brought by traders were sold to buyers with the help of brokers. Expense on transportation was the major component of total marketing cost in all marketing channels. Brokerage accounted for 5.52 per cent of total marketing cost. Least expensive (Rs.841.00) channel for marketing of cow was found to be channel 1, where direct negotiation between seller and buyer reduced the expenses. Marketing cost was maximum (Rs.1480.41) when marketed through traders and brokers (Channel 4). Transportation (Rs.46.44) and own expenditures (Rs.23.01) were major components of the total marketing cost. Most efficient channel for marketing of bullock found to be channel 1, which had least difference between price received by the seller and effective price paid by the buyer. Marketing cost was highest in channel 4 and only 88.71 per cent of buyers’ rupee was received by the seller. Similar to bullocks, most efficient channel for cow marketing was channel 1. In this channel seller received 93.61 per cent of buyers’ rupee.