A Value Chain Analysis of Live Poultry Marketing in Northwest of Dhaka City

Abstract

The poultry sub-sector has played a significant role in Bangladesh's economic growth and reduction of malnutrition. The purpose of this study is to identify the actors in the value chain and their functions, as well as to estimate the value addition of different actors in live poultry marketing. Secondary data was used to explore spatial and seasonal price changes of chicken. Primary data was acquired from 250 respondents, with 150 farmers, 70 traders, and 50 consumers, using a pretested questionnaire. The objectives were met using tabular, graphical, simple statistics, and a ratio to moving average. Poultry farmers, faria, beparie, wholesalers, and retailers were the main market actors who performed marketing functions. Native chicken had the longest marketing channel, followed by broiler and sonali. The production costs per quintal of live poultry were BDT 7,300, BDT 17,063 and BDT 9,488, respectively for native chicken, sonali and broiler. The net return was found BDT 5,182, BDT 3,714 and BDT 1,123 per quintal, respectively for native, sonali and broiler. Total marketing cost of native chicken was 1.24 times higher than sonali and 1.21 times higher than broiler. Native chicken market actors earned 5.44 times more than broiler and 1.93 times more than sonali in terms of net marketing margins. Faria, followed by retailer and bepari, incurred the largest marketing costs among the various market actors for local chicken. Retailer incurred the largest expense for sonali and broiler bird marketing, followed by bepari and wholesaler. Retailers had the largest net margin among poultry marketing intermediaries, despite having the second highest marketing expense. For native chicken, the major cost was incurred by retailers, and the major net profit was generated by retailers, as seen in the percentages of total value addition cost and total net profit by different intermediaries.  The majority of the costs for sonali bird marketing were borne by retailers, while the majority of the net profit was earned by Bepari. Retailers bear the majority of the cost of broiler marketing and receive the majority of the net profit. During the period 2010 to 2014, the seasonal price indices of broiler at retail level in Dhaka's Sadar and Savar markets were greatest in June and July and lowest in November and December, respectively. Dhaka Sadar has the largest coefficient of variation of broiler in the retail market, followed by Savar. It was discovered that the price risk of broiler in Dhaka is higher than in Savar. The medium size birds had the highest coefficients of variation at the national level, followed by small and large birds. In the case of processed poultry meat, the majority of consumers had a negative attitude. Live poultry marketing resulted in major health problems, with over 58 % of market actors suffering from various illnesses. Bio-security, halal methods, and hygienic chicken processing are all required for a viable and environmentally friendly chicken business.