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