Supply Chain Analysis of Poultry

in Bangladesh

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Egg Hatcheries

Broiler Farms

Broiler Wholesalers

Broiler Retailers

Ready Food

Layer Farms

Egg Wholesalers

Restaurants

Feed Producers

Egg Retailers

Fish Feeds/Fertilizers

Transporters

Introduction: Supply Chain for Commercial Poultry

Rural Assembly Markets

Rural Wholesalers

Restaurants

Urban Wholesalers

Beparis/Farias

Sub-urban Retailers

Ready Food

Rural Households

Urban Retailers

Transporters

Introduction (contd.): Supply Chain for Backyard Chickens

Literature Review

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No integrated supply chain analysis of poultry.

A few studies covered some particular aspect of the chain in isolation.

Some focused on economic aspects (Rahman, Sorensen, Jensen, and Dolberg, 1997; Newnham, 2000; Quasem, 2001; Dolberg, 2003; Islam, 2003)

A few focused on the epidemiological aspects (Sil, Das, Islam, and Rahman, 2002; USAID-ATDP, 2005)

Objectives of the Study

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In understanding the supply chain of poultry, this study examines:

1.Marketing channels and participants

2.Costs, margins and profits associated with marketing and the process of price formation

3.Possible channels through which poultry diseases spread and threaten bird and human lives.

Methodological Approach

Five regions were selected based on poultry population: Chittagong, Comilla, Dhaka, Dinajpur and Jessore;

Quantitative techniques (interviews) (i) on households, (ii) beparis/farias, (iii) wholesalers’ agents, (iv) suburban retailers, (v) urban wholesalers, (vi) urban retailers of backyard chickens AND (vii) poultry feed firms, (viii) poultry hatcheries, (ix-x) broiler and layer farms, (xi-xiv)

wholesalers and retailers of both broilers and eggs of commercial poultry

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Methodological Approach

Qualitative information through focus group discussions (FGDs), key informant interviews (KIIs), and observations of the markets on the market chains

BUT NOT the Commercial Production Process.

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Results: Commercial Poultry I: Feed Producers

Ten feed mills surveyed: 3 in Chittagong and 7 in Dhaka;

Cleaning practices in feed mills are not satisfactory; A few feed mills have no designated area for loading

of feed and unloading of input supplies; Of those sites selected, 80% of the feed mills in

Dhaka and 33% in Chittagong use different antibiotics in feed formulation. In addition, a significant of feed mills in Dhaka use enzymes and growth promoters;

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Commercial Poultry II: Hatcheries

Six hatcheries surveyed: 3 in Chittagong and 3 in Dhaka;

33% of the hatcheries in Dhaka use antibiotics; DOCs are susceptible to Ranikhet, Gumbro (IBD), loose

motion, diarrhea, Coryza, Salmonella, Bronchitis, etc. 66% of the hatcheries throw un-hatched eggs, dead

chicks into nearby pit;

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Commercial Poultry III: Broiler Farms

50 commercial broiler farms in Chittagong, Comilla, Dhaka, Dinajpur, and Jessore surveyed;

Hardly have any “No Admittance” sign posted; 50% of the farms in Chittagong and Jessore and 10% in

Dinajpur are visited by migratory birds; Have no designated area for loading or unloading;

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Commercial Poultry IV: Layer Farms

30 farms: 10 in Dhaka and 5 each in Chittagong, Comilla, Dinajpur, and Jessore surveyed;

50% of the layer farms do not have strong fencing around them;

Abuse of antibiotics; Less than half of the layer farms in all regions have

hand washing facility

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Marketing Chain of Commercial Poultry I: Egg Wholesalers

24 egg wholesalers: 6 each in Dhaka and Chittagong and 4 each in Comilla, Dinajpur, and Jessore surveyed;

Eggs are transported mostly by vans or other means; receive eggs daily and mix the unsold and newly arrived

ones together; Majority of the vehicles are not cleaned properly; wash hands only before eating and after they return

home

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Marketing Chain of Commercial Poultry II: Egg Retailers

Total 26 egg retailers in five regions; Transportation of eggs varies in different surveyed

regions; pickup vans, trucks and sometimes by hand Receive eggs daily and mix the unsold and newly

arrived eggs together; Regular cleaning of transport vehicles and crates is

rare; Very seldom a small percent uses masks and towels; Frequency of using soap during hand washing is very

low

Marketing Chain of Commercial Poultry III: Broiler Wholesalers

Total 20 broiler wholesalers in five regions; Buy chickens from commercial broiler farms and sell them

to urban broiler retailers; Mix chickens that arrived in the shop on different days; 20% of them bury the carcass and 5% sell them; Refuse is sold to the fish farmers. Blood and other excreta

are thrown into the drain or garbage bin;

Marketing Chain of Commercial Poultry IV: Broiler Retailers

44 broiler retailers–12 in Dhaka and 8 each in Chittagong, Comilla, Jessore and Dinajpur;

Mostly Dhaka retailers clean cages/pens daily; Sick chickens are sold to the customers 25% bury dead birds and 18% throw into the drains; Half throw refuse into dustbin and the rest sell them; Use of soap (disinfectant) is infrequent

Marketing Chain of Backyard Poultry I: Households

132 households in five regions; 11 or fewer chickens and 5 or less ducks per

household; 20-50% households keep poultry in the house where

they live; female members of the family look after the poultry; Give the carcass to the dogs or cats to devour

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Marketing Chain of Backyard Poultry II: Beparis/Farias

55 Beparis/Farias in five regions; collect poultry from door to door and transport to the

market either by rickshaw or rickshaw van 70% of the B/F are able to sell the dead birds to the

customers A majority of the B/F are somehow convinced that AI is

not risk for them;

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Marketing Chain of Backyard Poultry III:Rural Wholesalers/Agents

22 Rural Wholesalers/Agents in five regions; Collect chickens from B/F or from rural assembly

markets; Chickens are kept in bamboo made cages in the shops; Chickens are transported by vans, trucks or rickshaws; No idea about the cleaning practice of vehicles as most

of them use rented vehicles; 41% throw dead chickens are thrown into the drains. It

is not clear what is done with the rest

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Marketing Chain of Backyard Poultry IV: Suburban Retailers

55 Suburban retailers in five regions; Receive their supplies usually through rickshaws or

rickshaw vans or by hands; No idea on cleaning as mostly they use hired vehicles; Very seldom use mask as this would make customers

suspicious Retailers in Dhaka are more serious than others in

health and hygiene 70% slaughter sick or dead chickens and keep them for

selling;

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Marketing Chain of Backyard Poultry V: Urban Wholesalers

25 Urban wholesalers in five regions; collect chickens from rural wholesalers/agents and sell

them to urban retailers and sometimes directly to restaurants

Daily cleaning of the market areas; 40% clean cages or pens daily; 85% sell sick chickens to the retailers;

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Marketing Chain of Backyard Poultry VI: Urban Retailers

110 Urban retailers in five regions; Most of them are medium or small; Keep the birds in their shops for a day or two in bamboo

made cages; Mostly transported by rickshaws or rickshaw vans; Cages or pens are cleaned infrequently; even 15% in

Chittagong think that it is not necessary Less than half reported cleaning of vehicles; More than 80% sell sick chickens

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Interlocking structures throughout Bangladesh

Feed ProducersHatcheries

Broiler FarmsLayer Farms

Egg WholesalersEgg Retailers

Beparis/FeriasRural Agents

Costs and Returns of Poultry

Poultry farming is a highly profitable activity. Owners of hatcheries, broiler and layer farms invest

between 1 and 12 million taka and earn rate of returns close to and sometimes over 100 per cent.

At the backyard level an average poor household can earn 10 times of the initial investment.

Viewed from the size of the investment, commercial poultry farming does not appear to be pro-poor.

In contrast, backyard poultry needs hardly any financial capital and hence can make dent to poverty alleviation.

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Policy Recommendations

Bio-security needs to be improved Personnel involved in poultry operations should follow

the standard hygiene practices Use of uncovered vans should be restricted and

transport vehicles should be routinely disinfected; Use of antibiotics, enzymes and growth promoters has

to be monitored; Need for diagnostic facilities at in different regions;

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!!!Thank you for your attention!!!

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