POLUTRY MARKETING POLUTRY MARKETING THROUGH INTEGRATIONTHROUGH INTEGRATION

M.G.NikamM.G.Nikam

RVD-12/16RVD-12/16

Poultry Production & Poultry Production & MarketingMarketing

Production Housing Feeding Management Health care

Marketing Equally

important Different

marketing channels

Middle man role Integration

Integration

Definition – Association between the integrator and producer

Component of integration a. Integrator b. Producer / farmer

Role of integratorRole of integrator

Supply of all inputsSupply of all inputs

- Chicks, Feed, Medicines, - Chicks, Feed, Medicines, Vaccines, Vaccines,

Veterinary servicesVeterinary services Take back the end products Take back the end products

– – live birds / eggslive birds / eggs The real owner of the birdsThe real owner of the birds

Role of producerRole of producer

Must have shed, feeders, waterers and Must have shed, feeders, waterers and other equipmentsother equipments

Own electricity chargesOwn electricity charges Own labour chargesOwn labour charges Must follow the integrators instructionsMust follow the integrators instructions Get remuneration on take back of end Get remuneration on take back of end

productsproducts Contract growersContract growers

Types of integrationTypes of integration

IntegrationIntegration

VerticalVertical HorizontalHorizontal

VerticalVertical

BackwardBackward ForwardForward

Integration -BroilersIntegration -Broilers

Integrator – Supply of all inputsIntegrator – Supply of all inputs Producer – Farm facilitiesProducer – Farm facilities

Remuneration to producerRemuneration to producer

Based on average body weight, Based on average body weight, FCR and livabilityFCR and livability

Some integrator -Some integrator -

Based on FCR Based on FCR

Rs.2.00 to 2.70/kg live weightRs.2.00 to 2.70/kg live weight

Based on production costBased on production cost

Example: Example:

Production cost (PC) : Rs.30.00/kgProduction cost (PC) : Rs.30.00/kg

Farmers remuneration : Rs. Farmers remuneration : Rs. 2.50/kg2.50/kg

One rupee less than PC : Rs. 2.70/kgOne rupee less than PC : Rs. 2.70/kg

One rupee more than PC: Rs. 2.30/kgOne rupee more than PC: Rs. 2.30/kg

Based on European Economic Factor Based on European Economic Factor (EEF).(EEF).

Avg. L.Wt (kg) x Livability (%)Avg. L.Wt (kg) x Livability (%)

EEF= --------------------------------------= x 100EEF= --------------------------------------= x 100

FCR x Age of birds (days)FCR x Age of birds (days)

Pricing of broilersPricing of broilers

BCC and individual recommendationBCC and individual recommendation Farm gate rate (A) – Supply and Farm gate rate (A) – Supply and

demanddemand Whole sale rate – A + Rs.8-9/kg live Whole sale rate – A + Rs.8-9/kg live

weight (B)weight (B) Meat sales (minimum rate)Meat sales (minimum rate)

Dressed with skin – B + 50% of BDressed with skin – B + 50% of B

Dressed without skin – B + 60% of BDressed without skin – B + 60% of B

Integration - LayersIntegration - Layers

Recently introducedRecently introduced Similar to broiler integration Similar to broiler integration

except type of input and output.except type of input and output. Two type of integrationTwo type of integration

Grower integration Grower integration

Layer integrationLayer integration

Grower integrationGrower integration

Day- old layer chicksDay- old layer chicks All inputsAll inputs Reared upto 15 weeks of ageReared upto 15 weeks of age Take back of growersTake back of growers Remuneration – Rs.0.40 to Remuneration – Rs.0.40 to

0.50/bird/week for the available 0.50/bird/week for the available birdsbirds

Layer integrationLayer integration

Starts at the age of 15-18 weeksStarts at the age of 15-18 weeks Remuneration based on HHEPRemuneration based on HHEP Minimum of 6-7 paise / eggMinimum of 6-7 paise / egg If egg price is more than Rs. 1.50, If egg price is more than Rs. 1.50,

additional incentives will be givenadditional incentives will be given 6-8% of standard mortality will be 6-8% of standard mortality will be

allowedallowed

Integration – J.quailIntegration – J.quail

Similar to broilerSimilar to broiler Rate is per bird basis and not on Rate is per bird basis and not on

live weight basislive weight basis Average body weight is 180-200 g Average body weight is 180-200 g

at 28 -30 days of age at 28 -30 days of age Remuneration – Rs.1.25 to 1.50 / Remuneration – Rs.1.25 to 1.50 /

birdbird

Integration – Desi fowlIntegration – Desi fowl

Back yard system of rearingBack yard system of rearing Commercial farming – intensive Commercial farming – intensive

systemsystem Similar to broilerSimilar to broiler Remuneration – Rs.5.50 to 7.00/ kg Remuneration – Rs.5.50 to 7.00/ kg

live weight after 90-100 days of live weight after 90-100 days of rearingrearing

Integration - Emu

Chicks sales – 1, 2 and 3 months of age at the rate of Rs. 4000 to 8000 per bird

All inputs like that of broiler After 15 months, Rs.12,000/- paid

to farmer

Selling at 15 months – Rs.15,000/ bird

Take back of egg @ Rs.1000 to 1200 / egg or

Live bird @ Rs.300-350/kg live weight

All inputs by the farmer

Advantages to integratorsAdvantages to integrators

Assured of returnsAssured of returns Can have controlCan have control Owner of the productsOwner of the products

Advantages to farmersAdvantages to farmers

No huge investmentsNo huge investments Assured remunerationAssured remuneration Need not worry marketNeed not worry market Need not bother about health careNeed not bother about health care

Impact on industryImpact on industry

Rearing in even remote villagesRearing in even remote villages Improved socio-economic statusImproved socio-economic status Better promotionBetter promotion Processing of productsProcessing of products Value additionValue addition Few people can control the Few people can control the

industryindustry

ConclusionsConclusions

Better marketing approachBetter marketing approach Monopoly of few integratorsMonopoly of few integrators

THANKS