shahzadReg. #: 2006-ag-1003

Roll # : 603

Meat & Egg Marketing in

PakistanSubmitted to. Dr. ZIA-UR-REHMAN

.

Marketing Marketing can be defined as :

Performance of business activities that directs the flow of goods & services from the producer to consumer or user.

It involves following factors:Buying SellingPhysical movement b/w point of production &

point of consumption

HistoryPoultry farming in Pakistan began in 1960’s.Rapid growth in 1970’s.The no. of poultry farm increased from year to

year.Production in early 70’s grew in the range of

20-30% per annum.In the 80’s the annual growth rate continued

b/w 10-15%

Marketing setup in PakistanPoultry industry produce 2 major products i.e.

poultry egg & meat.Marketable broiler are produced at 6wks of their

age.Egg production takes an annual cycle.Production requires diff. supporting activities.Eggs are sold directly from cages without

cleaning, candling & grading.Poultry is sold through wet markets in Pakistan

Current status

• Investment in poultry sec. is about 1 million US $

Includes over 20,000 Farms, 285 Hatcheries,141 Feed Mills.

4 GP companies operating in Pak includes Al-Noor Group, Grand Parent Poultry Pvt. Ltd., Haider GP Project & Quality Poultry Breeder.

Total annual production= 5 M parent stock chicks 50 % of which is provided by Hubbard.

Al-Noor Group is only 1 that has layer GP.Annual production of layer parents is 0.3

Million.Total no. of layer & broiler breeder in Pak is

430.

Major Companies in Breeding Operations

6 Major Companies in Pak.Big Bird Group of Companies Lahore,Hi-Tech Poultry Breeders Lahore,Islamabad Chicks Rwp.K&N Group of Poultries Karachi.Olympia Poultry Farms Lahore,Sadiq Bros. Rwp.

Factors Effecting Marketing

Factors which effect marketing are as follows

Age & maturityAppearance of birds or carcassSexSize of birds Weight of birds at the time of marketing

Poultry Processing for Marketing

Processing involves following steps:

SlaughteringScaldingPlucking or defeatheringEviscerationPacking

MARKETING CHANNELS

Means or the path through which the product travel from producer to end consumer.

BROILER MARKETING CHANNALS

POULTRY FARMER ( PRODUCER)

WHOLESALER

RETAILER

ULTIMATE CONSUMER

(DOMESTIC)

EGG MARKETING CHANNEL

POULTRY FARMER ( PRODUCER)

WHOLESALER

RETAILER

ULTIMATE CONSUMER

Main points of marketing channels

Egg market fluctuate on daily basis.Wholesaler & retailer buy according to the

size of the eggs but the retailer sells to the consumer without any grading.

Some farmers have yearly contract with wholesaler.

Market is dependent upon the no. of buyers & sellers in the wholesaler market.

Retailer can earn more then wholesaler.

Broiler Marketing Survey

180 large & small broiler farms in Karachi Lahore Faisalabad & Islamabad were surveyed.

There are following 4 probable channels of distribution of broilers.

(F) (W) (R) (C)

1FarmerWholesalerRetailerConsumerFWRC

2FarmerWholesaler -ConsumerFW-C

3Farmer -RetailerConsumerF-RC

4Farmer - -ConsumerF--C

Channels of distribution in PAKISTAN

KarachiLahoreFsd.IslamabadTotal Avg.

FWRC

80% 95% 58% 99%83.75%

FW-C 15% - 5% - 5%

F-RC - - 22% 0.5% 5.83%

F—C 5% - 15% 0.5% 5.62%

EGG MARKETING SURVEY

Usually there are agreements b/w the commission agents & farmers who collect the eggs 1-2 times in a wk then they may supply direct to retailer or salesman

Breakage rates is 3-5%. Wholesaler also do some grading. They pay 50-60 Rs. pr case les for medium

eggs & 150-200 per case for small eggs Some people may go for storage of eggs which

costs 15-20Rs./case/month

Poultry Feed Marketing

Marketing expenses on 1 bag is 20-25 RS.Price of feed depends on price of

ingredients & Govt. policies.Feed mills offer 8-10 % commission to

feed distributors.Offer 40-60% credit to distributors.

Marketing channels:Feed mill feed distributors farmer

Marketing Of Day Old ChicksBusiness is usually on total cash basis.Chick price fluctuate on daily basis.Seasonal fluctuation.Chick grading on hatchery.Chicks are distributed in boxes of 100 chick

capacity.Commission agent get 0.25-1.0 Rs /chick.

Marketing channel:Hatchery Agency Layer /Broiler farms

(Distributor(

Problems

Eggs are directly sold from cages without cleaning, candling & grading.

Seasonal fluctuations.Inadequate management.Chicken is still luxury in our country.

Opportunities/AdvantagesCheapest source of animal protein.Less time required to rise.Less land required.Unique characters of poultry products.Fertility rate is highQuick & efficient process of converting non

edible protein into edible protein (meat + egg).Poultry manure is a good fertilizer.

Recommendations To Improve Poultry Marketing In Pakistan

Channel of distribution should be shortened.

Reduction in duties to import equipments.Farmer should have their own sale outlets.Scope of export of processed poultry

products to Middle East & other countries should be accessed properly.