Economic analysis of value chain management in broiler chicken

Abstract

The study assessed economics of value addition of chicken in Malnad region of Karnataka. A sample of 60 farmers consisting of 30 each practicing indirect and direct marketing was selected. In the former case, chicken reaches consumers through middlemen i.e., lifters and retailers (indirect marketing), while in the later, middlemen were not present (direct marketing). Accordingly, 10 lifters and 10 retailers were selected. Pertinent data were elicited from respondents using structured schedule by survey method. Producer's shared only 50 percent of what consumer actually pays in case of indirect marketing while it was 71.50 percent in direct marketing. Farmers practicing direct marketing reaped profit of Rs. 37.01 per kg of live weight of chicken which was three times higher compared to the profit earned in indirect marketing. The dressed chicken is made available to consumer at Rs. 130 per kg in case of direct marketing as compared to Rs. 140 per kg in indirect marketing. This demonstrated the role of direct marketing in enhancement of economic welfare of consumers and producers. Hoteliers’ added value to the chicken meat bought at Rs. 140 per kg from retailers through preparation of various chicken products. It ranged between 229% in case of chicken pepper dry to 657% in case of chicken biriyani.