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Class 31: Feed Conversion Ratio / Dozen Eggs or Kilogram of Meat. Marketing Channels in Poultry-Integration
Class 31: Feed Conversion Ratio / Dozen Eggs or Kilogram of Meat. Marketing Channels in Poultry-Integration
Marketing channels in
poultry-Integration.
Egg marketing : The wholesale rade of eggs in big cities, where potential demand exists, is in the
hands of a few traders who have monopolized this trade for their own advantages. Egg prices
vary from one market to another and from one season to another. In summer, the egg prices
crash down to a level which is sometimes less than the cost of production, even though the retail
price does not vary proportionately. Therefore proper attention has to be given to the problem of
most efficient disposal of market eggs.
Distribution channel.
The eggs are distributed through different channels, viz. producers to consumers, producers via
retailers to consumers, producers via assesmblers to consumers, wholesalers, retrailers to
consumers, and producers to consumers via co-op societies/egg marketing organizations. Eggs
should be distributed through relatively shorter channels to speed up supply and avoid delay and
repeated handling.
Marketing agencies.
Marketing of eggs is primarily handled by traders and commission agents. The NAFED
regulates price stabilization activities. The NECC nowadays plays vary important role in
Government
Farm
MARKETING OF BROILERS
Marketing plays a vital role in overall development of any economic unit, since marketing
consists of the performance of business activities that direct the flow of goods and services from
the producer to the consumer or user for the transfer of title of the ownership of goods .In broiler
marketing ,the producers/farmers and buyer are brought together.
Market is a place wherein the exchange of goods or the change of title of goods takes place.
Broiler marketing Covers the job of
1. assembling of birds from the area of production
2. converting them into cut that are in demand by the final consumers and
3. placing these products in the hands of such at the desired place, at the right time and in
quality.
Thus the marketing of broilers includes all the intermediaries from the producer to the final
consumer in the channel of marketing.
The large farms which had their own retail outlets, made more profit due to better sale price
per kilogram live weight. In Tamilnadu 41.98% of farmers resorted to direct marketing,
45.68% through middleman and 12.34 % resorted to both direct and through middlemen.
MARKETING INTERMEDIARIES
Marketing Intermediaries are institutions that facilitates flow of goods and services
between poultry industry and its final market. They include wholesaler, agents (brokers),
transporting companies, warehouses and retailers.
CURRENT MARKETING SYSTEM.
At present in Tamilnadu, broilers are marketed through i. Wholesalers ii. Retailers with cold
storage (deep freezer facilities ),iii Retailers without cold storage facilities, iv. Chain storage
v.Hotels and restaurants
Retailer with cold storage
These retailers sell broiler and layer chicken regularly either as fresh or frozen
depending on the facilities and demand from the consumers. These retailers also stock
other animal products in addition to chicken products Many retailers have
slaughtering facilities at their premises. Some retailers
purchase dressed chicken from wholesalers and sell them after packing
with a margin. The higher income and middle income groups of consumers
prefer to purchase these frozen /chilled chicken as they are kept in hygienic condition
.RETAILER WITHOUT COLD STORAGE FACILITIES.
These retailers mostly purchase live broiler from wholesalers / producers and stock the live birds
in their premises .As and when the consumers demand ,the live birds are dressed and sold as
fresh and remaining birds are kept for subsequent days sale -since most of the consumers of
middle and lower middle class people like only fresh chicken rather than frozen or chilled .
Now a days these retailers even started selling portion of chicken.
CHAIN STORES
There are many organizations having branches situated at different localities of the same city and
different towns ranging from 3to 6 branches with cold storage facilities. All the branches of each
organization are under central ownership and control .It is a compromise between large scale and
small scale organizations. The management , purchase , processing and controls are centralized
while sales are decentralized and carried out on a small scale. The chain stores obtain their
supplies directly from producers instead from wholesalers. They buy in lots and perform the
work of wholesalers in respect of transport , warehousing, risk bearing and financing .Chain
stores are strictly retailers enterprise to eliminate the wholesalers.
MARKETING CHANNEL
Marketing Channels simply mean the paths or routes through which produce from the producer
reach the ultimate destination ( consumers). There are five different marketing channels being
identified in broiler marketing in Tamilnadu.
1.Producers----- Wholesaler--------Retailer-------Consumer.
2. Producers----- Wholesaler -------Consumer.
3. Producers-----Chain store -------Consumer.
4. Producers -------Consumer.
5.Producer------Integrator/Commission Agent------Wholesaler-----Retailer----Consumer.
The first channel is more commonly observed in all the cities. The wholesaler purchase the live
birds from farm itself on live weight basis and transport in their own transport vehicle and sell to
retailers either live or dressed and the retailer in turn sell the product to consumers. In general
live birds are preferred over dressed chicken in the city, accordingly large number of live birds
are sold to retailers. The wholesaler take the risk of transport , storage losses due to shrinkage
and mortality.
In the second channel retailer procure the birds from the farm and sell to the consumer either
dressed or live.
In the third channel , the chain store procure birds from the farm and sell them after processing
to consumers.
In the fourth channel, the birds are either sold as live or dressed and in this the producer is able
to get 100 percent of consumers rupee since there are no intermediary.
The fifth channel, operates mostly outside the state and in the districts where the integration of
poultry farming is gaining momentum.
CONSTRAINTS OF MARKETING.
1. Increase cost of feed.
2. Variable quality of poultry feed.
3. Presence of many poultry diseases(Panic sales with low price).
4. Seasonal fluctuation in poultry meat prices.
5. Unorganized market infrastructure.
6. Non-adherence to quality and safety standards(Bio Security Measures).
7. Lack of Vertical integration.
8. Little efforts for manufacturing value added products.
9. Due to unplanned growth in poultry industry, mushroom growth of small hatcheries
without adequate hatchery hygienic practices.
10. Unexpected arrival from other states.
11. Chicken meat is more perishable than egg and thus requires an immediate sale.
12. Lack of consumer preference.
13. Transportation of dressed chicken carcasses in refrigerated trucks to marketing centers is
costly affair.
14. Defective processing, storage and distribution of dressed carcasses