Livestock
plays an important role in the national economy of Bangladesh with a direct
contribution of around 3 % percent to the agricultural GDP and providing 15
percent of total employment in the economy. The livestock sub-sector that
includes poultry offers important employment and livelihood opportunities
particularly for the rural poor, including the functionally landless, many of
whom regard livestock as a main livelihood option. About 75 percent people rely
on livestock to some extent for their livelihood, which clearly indicates that
the poverty reduction potential of the livestock sub-sector is high. According
to Bangladesh Economic Review, (2006), the growth rate in GDP in 2004-05 for
livestock was the highest of any sub-sector at 7.23%, compared to 0.15% for
crops, and 3.65% for fisheries sub-sector. These changes have been prompted by
a rapid growth in demand for livestock products due to increase in income,
rising population, and urban growth.
It
is an established fact that high quality animal protein in the form of milk,
meat and eggs is extremely important for the proper physical and mental growth
of human being. In Bangladesh, around 8% of total protein for human consumption
comes from livestock. Hides and skin of cattle, buffaloes, goats and sheep are
valuable export items, ranked third in earnings after RMG and shrimp.
Surprisingly, Bangladesh has one of the highest cattle densities: 145 large
ruminants/km2 compared with 90 for India, 30 for Ethiopia, and 20
for Brazil. But most of them trace their origin to a poor genetic base. The
average weight of local cattle ranges from 125 to 150 kg for cows and from 200
to 250 kg for bulls that falls 25-35% short of the average weight of
all-purpose cattle in India. Milk yields are extremely low: 200-250 liter
during a 10-month lactation period in contrast to 800 liter for Pakistan, 500 liter
for India, and 700 liter for all Asia. Despite highest cattle densities in Bangladesh,
the current production of milk, meat and eggs are inadequate to meet the
current requirement and the deficits are 85.9, 77.4 and 73.1% respectively. If
5% GDP growth rate is considered then the current production of these
commodities need to be increase 2.5 to 3.0 times by the year 2020 to feed the
growing population in the country. This illustrates how urgent is the need to
increase the production of milk, meat and eggs. The PRSP (Poverty Reduction
Strategy Paper) stresses the importance of the livestock sub-sector in
sustaining the acceleration of poverty reduction in the country. The dynamic
potential of this emerging sub-sector thus requires critical policy attention.
In
the past, due importance was not given to the development of the livestock
sub-sector despite its significant contribution to the national economy. In the
Financial Year 2006-07 the livestock sub-sector received only about 1.0 percent
of the total budget allocation, or only about 3.5 percent of the agricultural
sector budget. Though production of animal protein has maintained an upward
trend, per capita availability of animal protein presently stands at around 21
gm meat/day, 43 ml milk/day and 41 eggs/year vis-a-vis the recommended intakes
of 120 gm meat/day, 250 ml milk/day and 104 eggs/year. Shortage of quality
inputs, inadequate services and physical infrastructure, institutional
weaknesses in terms of weak regulatory framework and enforcement, limited
skilled manpower and resources, and inadequate research and technological advancement
are all continuing to act as constraints to livestock development.
The
growth opportunities in the livestock sub-sector vary significantly among the
species. Qualitative rather than quantitative development of large ruminants
(cattle and buffalo), a parallel increase of the productivity and population
size of the small ruminants (goat and sheep), and poultry keeping emerges as
promising to offer substantial growth potentials with a positive impact on
nutrition, employment and poverty alleviation. Research and technological
development merit priority to counteract allied problems in the fields of feed,
breed and disease and meet the challenge of the country’s livestock sector in
the 21st century
National
Livestock Development Policy has been prepared to address the key challenges
and opportunity for a comprehensive sustainable development of the Livestock
sub-sector through creating an enabling policy framework.
Bangladesh
is rich in farm animal (cattle, buffalo goat, sheep, horse, pig, chicken, duck,
geese & pigeon) genetic resources (FAnGR). The proportion of improved
cattle in the country is still found less than 3% and the number of is also
very low. Goat, sheep and poultry farm was established at the district level
for producing improved breed and the supply of these to the farm level. The
number was found still insignificant. There is, however, a high degree of
inequality for land holdings, but a low degree of inequality for livestock
holdings. The distribution of indigenous breed is less unequal than the
distribution of improved breeds. There is a possibility of improvement in rural
income distribution with an increase in investment for indigenous livestock
development. The landless and small farm holdings own the highest percentage of
poultry; sheep and goats. While the medium and large farms possess significant
percentage of cattle and buffaloes and the improved breeds of all species.
Thus, the investment in small ruminant and poultry species will greatly help
generate employment and income for the rural poor and thus improve livelihood.
However, the database on the distribution of livestock population and their
prices among the agro-ecological regions was not available. This study is an
outcome of focusing on district level statistics and formal and informal
marketing systems and the evolutionary process in regional marketing of the
animal and their products.
Nature
and Characteristics
From the view point of marketing in regard to livestock
sector there are some special nature and characteristics. The products which
are produced from the animal resource these are meat, milk, egg, wool, leather,
bone, hoof and horn etc. It is most favorable to the people. Marketing of these
types of product contain different characteristics, those are discussed below.
Number of customers: From higher level to low level
all classes people have the demand of the products like meat, leather, milk
etc. So the numbers of customers for these products are large in number and it
is often available in the market.
Buying objective: Basically it is purchased for
personal or family consumption. Sometimes sellers purchase it for their
business purpose.
Purchase quantity: Sellers purchase it on the
basis of customer demand and customer purchase it on the basis of family need.
Indeed, the quantity of purchase is not too large.
Frequency of purchase: It is daily useable
product. So customers purchase this kind of products again and again for their
consumption. In business purpose the frequency of purchase has a significant
role.
Perish ability of the product: Most
of the product in case of livestock is perishable in nature. This product is
not durable but sometimes it is may durable to some product such as leather. We
collect or storage this perishable goods in cold and proper humidity care.
Per unit price: Per unit cost is comparatively
low. With lowest possible price these types of products can be purchased.
Price flexibility: In some cases such as
religious program inadequate supply than adequate demand, the effect of
livestock disease may change the price flexibility.
High quality: Its price is low but quality
is high. Egg, meat provides protein to the people and plays an important role
to remove malnutrition and ensuring sound health.
Regular Demand: It has regular demand in the
market. Leather and wool of animal are used as raw material in the industry.
Our meat processing and Leather industries are completely depended on animal
meat and leather. Luxurious things are made in handicraft using bone, horn,
teeth and hoof of the animal. Animal dung is also used in agricultural land as
organic fertilizer.
Earning foreign currency: We can earn foreign
currency from livestock sector. Approximately 9% of total foreign currency is earned
by exporting leather and leather products every year. Leather is mentionable
export product of our country.
Low effort for sale: These types of products have
unique demand and certain customer so sellers need not to take more promotional
efforts to sell.
Finally we can say that different types of livestock product
contain different types of characteristics. Though there remain some special
characteristics we can mention that livestock play a vital role to domestic
production as well as national Income.
Organizations behind Livestock Marketing
Public Sector Services
DLS
under the Ministry of Fisheries and Livestock (MOFL) is the apex body, which
implements and coordinates all livestock services activities in the country.
DLS also has the mandate to ensure production and delivery of livestock inputs
such as breeding materials, fodder genetic materials, vaccines, diagnosis and
treatment of animals/birds, strict obedience of quarantine laws and effective
disease control.
Some
public sector organizations also provide delivery of livestock services to
farmers. These are –
Ø Palli Karma
Sahayak Foundation/পল্লী কর্ম সহায়ক ফাউন্ডেশন (PKSF)
Ø Bangladesh
Rural Development Board (BRDB)
Ø Bangladesh
Milk Producers’ Co-operative Union Limited (MilkVita)
Non-Governmental Organizations (NGOs)
Around
20 national and 150 local NGOs are engaged in delivering livestock services to farmers.
The major services are social mobilization e.g. group formation, skill
development training in connection with livestock and poultry rearing,
micro-credit, disease protection and some output services. The Go/DLS/NGO
relationship creates a positive environment in offering the best skill
development training and ensuring effective technical back up services.
Some
NGOs such as BRAC, Proshika, RDRS and Swanirvor Bangladesh (স্বনির্ভর
বাংলাদেশ) have master trainers with technical qualification, which qualify
them to offer effective technical skill development training to their field
staff.
Private Sector
Around
120 private sector poultry farms and hatcheries produce hybrid day old chicks,
broilers and concentrate feed usually to support small-scale commercial poultry
farms located in the urban and peri-urban areas.
There
are about 25 pharmaceutical companies in Bangladesh. They have expanded their market
by 15-20 per cent annually and the quality of vaccines is found to be effective
compared to similar vaccines provided by DLS. They either manufacture or import
livestock drugs, vaccines, sera, premix and vitamins and the customers are
mostly small-scale commercial livestock entrepreneurs and some smallholder
farmers. These firms provide farmers in the country with drugs, vitamins and
feed pre-mixes within almost all livestock categories.
Photo:
A private goat-farm in a sub-urban area
Demand and Supply of livestock in Bangladesh
There is a high demand for meat in the
local markets. In the past, the beef price was relatively low due the ready
supply of cattle from neighboring country. But it is a great matter of sorrow
that, the supply has recently been restricted and as a result meat prices have
increased sharply.
Constraints to long term development of the
beef industry include lack of improved breeds, low meat quality, and insurance
among smallholders. Actually, the demand for beef is greater than the supply of
beef.
Table 01: Demand,
supply and deficit of meat, milk and eggs/person/year (2007-2008)
Products
|
Requirement
|
Available
|
Deficit
|
Percent
of deficit
|
Meat
(kg)
|
43.25
|
9.12
|
34.13
|
78.9
|
Milk
(Liter)
|
91.25
|
17.50
|
73.75
|
80.82
|
Eggs (No.)
|
104
|
36
|
68
|
65.35
|
Source:
FAO/APHCA (2008)
v Present
status of livestock:
Livestock production in Bangladesh in 2007-08 was cattle 23
million, Buffalo-1.3 million, Goats-21.6 million, Sheep-2.8 million, Source:
(Bangladesh Economic Reuiew-2009 and DLS). Here, the per-capita number of
cattle was 0.16, goats-0.15, sheep-0.01.
Source: DLS
2009 and Bangladesh Economic Review 2009
Table 02: Per-Capita number of domestic
animal (2002-2008)
Types of animal
|
2002-03
|
2003-04
|
2004-05
|
2005-06
|
2006-07
|
2007-08
|
Cattle
|
0.18
|
0.17
|
0.7
|
0.17
|
0.16
|
0.16
|
Cows
|
0.17
|
0.17
|
0.16
|
0.16
|
0.16
|
0.16
|
Buffaloes
|
.001
|
0.001
|
0.001
|
0.001
|
0.001
|
0.001
|
Goats
|
0.13
|
0.13
|
0.13
|
0.14
|
0.14
|
0.15
|
Sheep
|
0.09
|
0.01
|
0.01
|
0.01
|
0.01
|
0.01
|
Source: DLS
2009 and Bangladesh Economic Review 2009
Bangladesh is one of the highest densities
of livestock in the world, 145 lare ruminants/km2 compared with 90
for India, 30 for Ethiopia, and 20 for Brazil.
Despite the highest density of cattle population in
Bangladesh, the productivity of all the species is far below the world average
weight of local cows ranges from 125-150 kg bulls, 200-250 kg that falls 25-35
short of the average weight of all purpose cattle in India. Average body weight
of goats is 8 kg, sheep-10kg, and buffalo-150 kg. (DLS-2009).
Table 03: Productivity
of different livestock spices in terms of meat in 2007-08 in Bangladesh.
Meat
|
No. of cows, 000
|
Production (mmt)
|
Unit production
|
Indigenous
cattle
|
3664
|
0.293
|
80 kg/cattle
|
Imported
cattle
|
139
|
0.252
|
150 kg
|
Buffalo
|
139
|
0.018
|
130 kg/Buffalo
|
Goat
|
8193
|
0.082
|
10 kg/Goat
|
Sheep
|
917
|
0.009
|
10 kg/Sheep
|
Source: DLS-2009
About 89% of rural household rear poultry and the average
number of birds per household are 6.8, supply 20.8% of the country’s total egg
and 37.3% of meat (BBS-2009).
Table 04: Trends in production of fish, Meat, Milk and Egg:
2001-2008
Year
|
Fish
(mill. tons)
|
Meat
(mill. tons)
|
Milk
(mill. tons)
|
Egg
(mill. No.s)
|
2001-02
|
1.89
|
0.78
|
1.78
|
4424
|
2002-03
|
1.99
|
0.83
|
1.82
|
4777
|
2003-04
|
2.10
|
0.91
|
1.99
|
4780
|
2004-05
|
2.22
|
1.06
|
2.14
|
5623
|
2005-06
|
2.33
|
1.13
|
2.27
|
5422
|
2006-07
|
-
|
1.03
|
2.28
|
5370
|
2007-08
|
-
|
1.04
|
2.65
|
5603
|
Source:
Bangladesh CPP on
Food Security, 2007 and BBS, 2009
The low productivity of local livestock species is the
resultant effect of low genetic potentialities poor nutrition, disease control
and management practices in addition calving interval and a late age at puberty
in case of large ruminants.
To develop environment friendly and sustainable livestock
production system, it is essentially needed to increase the productivity of per
livestock unit through improvement in the genetic potentialities, ensured
better nutrition and good health management practices resulting an increase in
the quality rather than in numbers. Although an upward trend in the production
of meat from 2001-08 is evident from the above Table-04, the per capita
availability of meat 20 gm/day. Total production in the years 2002-2008 as
shown in Table-04 was meat 0.78-1.04 million ton at a growth rate of (114.3%)
Table 05: Yield potentialities of
Livestock products and per-head availability in Bangladesh
Mill.
Tons/no
|
Contribution
of
each sp
%
|
Per-head
availability in kg/year
|
Per
head
/day
in gm
|
||
M
I L K
|
Total
|
2.65
|
18.2
|
50.
|
|
Cows
(Cross bred)
|
1.5
|
56.60
|
10.3
|
||
Local
|
0.95
|
35.85
|
6.51
|
||
Buffalo
|
0.15
|
5.66
|
1.03
|
||
Others
|
0.05
|
1.89
|
0.34
|
||
M
E A T
|
Total
|
1.04
|
7.13
|
20.0
|
|
Local
cattle
|
0.29
|
27.88
|
2.00
|
||
Imported
|
0.25
|
24.04
|
1.70
|
||
Buffalo
|
0.02
|
1.92
|
0.14
|
||
Goat
|
0.08
|
7.69
|
0.55
|
||
Sheep
|
0.01
|
0.96
|
0.07
|
||
Chicken
|
0.34
|
32.69
|
2.33
|
||
Ducks
|
0.05
|
4.81
|
0.34
|
||
E
G G S
|
Total
mill.nos.
|
5653.10
|
38.74
|
0.11
|
|
Local
|
849.5
|
15.03
|
5.82
|
||
Commercial
|
4477.0
|
79.20
|
30.7
|
||
Ducks
|
326.6
|
5.78
|
2.23
|
Source: BBS
and DLS (2009) Population in 2008 (145.93 million).
Production of livestock is lowest than the demand for
livestock. In this case it is needed to take long term plan to increase the
production of livestock.
Table
06: Projected demand and supply of livestock
food products upto year
2030, taking into consideration the projected
population growth. BBS -2009
2008
|
2010
|
2015
|
|||||||
Demand
|
Available
|
Deficit
%
|
Demand
|
Target Pro.
|
Deficit
%
|
Demand
|
Target Pro.
|
Deficit
%
|
|
Milk mill.ton
|
13.3
(250ml
/head/day)
|
2.65
(50ml/
head/day)
|
80.0
|
13.5
(250ml
/head/day)
|
2.8
(51ml/head
/day)
|
79
|
14.5
(250ml/head/
day)
|
3.44
(59.3ml
/head/day)
|
76
|
Meat mill.ton
|
6.3
(120gm
/head/day)
|
1.1
(20.6gm/
head/day)
|
82.5
|
6.5
(120gm/
head/day)
|
1.3
(24.2gm
/head/day)
|
80
|
6.96
(120gm/head
/day)
|
1.56
(27.0gm
/head/day)
|
78
|
Egg mill.No.
|
15174
(104/head/
year)
|
5653
(38.74/
head/year)
|
63
|
15376
(104/
head/year)
|
6997
(47.33/head
/year)
|
35.6
|
16527
(104/head/
year)
|
8479
(50/head
/day)
|
49
|
2020
|
2025
|
2030
|
|||||||
Demand
|
Target Pro.
|
Deficit
%
|
Demand
|
Target Pro.
|
Deficit
%
|
Demand
|
Target Pro.
|
Deficit
%
|
|
Milk
mill.ton
|
15.5
(250ml
/head/day)
|
4.8
(77.6ml/
head/day)
|
69
|
16.4
(250ml
/head/day)
|
8.67
(132ml/
head/day
|
47
|
17.5
(250ml
/head/day)
|
15.6
(225ml
/head/day)
|
11
|
Meat
mil.ton
|
7.4
(120gm/
head/day)
|
2.5
(40gm
/head/day)
|
67
|
7.9
(120gm/
head/day)
|
4.24
(64.5gm
/head/day)
|
47
|
8.3
(120gm/
head/day)
|
7.2
(104gm
/head/day)
|
14
|
Egg mil. No.
|
17628
(104/
head/year)
|
13867
(82/
head/year)
|
23
|
18740
(104/
head/year)
|
18027
(112.5
/head/year)
|
3.8
|
19750
(104/
head/year)
|
19829
(104
/head/year)
|
0
|
Source: BBS (2009);
Population of 2008, 145.93 million;
Projected population of 2010, 147.86million; 2015, 158.96 million; 2020, 169.54
million; 2025, 180.21 million; 2030,
169.85 million.
Table 07:
Projected
demand and availability of milk, meat and egg taking the nutritional
requirement and projected population growth in consideration
Demand
and
|
Production
(2008-09)
|
Demand
and
|
Production
(2010-11)
|
Demand
and
|
Production
(2014-15)
|
||||
Demand
|
Production
achieved
|
Demand
|
Production
Target
|
Demand
|
Production
Target
|
||||
Milk
MMT
|
13.15
(250ml
/person/day)
|
2.286
(44ml
/person/day)
|
13.49
(250ml
/person/day)
|
2.752
(51ml
/person/day)
|
14.18
(250ml
/person/day)
|
3.63
(64.15ml
/person/day)
|
|||
Meat
MMT
|
6.31
(120gm
/person/day)
|
1.084
(20.6gm/person/day)
|
6.47
(120gm
/person/day
|
1.30
(24.18gm
/person/d)
|
6.80
(120gm
/person/d)
|
1.74
(30.66gm
/person/d)
|
|||
Egg
Mill.
No.
|
14997
(104/
person/y)
|
4696
(33/person/yr)
|
15376
(104/
person/y)
|
6997
(47.33
/person/y)
|
16169
(104/person/y)
|
9505
(61.15/yr
/person)
|
|||
Source: Projected figures of BBS,
Economic Review-2009 and DLS, 2009
Projected population figure of 2008-09 as 144.20 million, 2009-10 as
146.02million, 2010-11 as 147.85 million, 2011-12 as 149.72million, 2012-13 as 151.60million,
2013-14 as 153.52 million, and 2014-15 as 155.45 million (Gr-1.26%).
SFYP and DLS projected the requirement and availability of livestock
products up to 2021 as shown in Table 07. In the projected estimates it was
shown that an increase in the production of milk 158% in the year 2013 and 225%
in the yr. 2021; meat 397% in the yr. 2013 and 168% in the yr 2021; egg 274% in
the yr. 2013 and 114.9% in the yr. 2021 from the base line year 2008. If this
production estimate can be achieved 100% then there will be self sufficiency in
egg and slightly below in case of milk and meat.
It is assumed that 30 million people consume less than 1900 Kcal per
capita per day as against 2300Kcal; 47million still live below the poverty level (The Human
Development Report-1998). In comparison to US and World average consumption of
milk, meat and egg per person per year it will be seen that Bangladesh remains
far below than US- 117.3, 124 and 14.5 kg and World average 46.4, 37.9 and 8.0
kg respectively (SFYP 2009).
In the present paper the projected estimates for requirements and
production of milk, meat and egg is shown in Table 06. At the present
production status Bangladesh has a shortage of milk, meat and egg 80, 84 and
63% of the total requirement of the country.
To achieve the projected demands for milk, meat and eggs strategic
plans will have to be required to have 1.3- 1.5 times increase in the
production in the years 2015 and 2020 from the base line yr.2008 and in the
years 2020 and 2030 an increase of 1.5 – 1.8 times as shown in Table 06.
Marketing Plan
For livestock and meat marketing, planning
is most important things. To bring meat up to consumption level, there must
have a strong plan from production to consumption of livestock. In planning of
livestock and meat, when to sale, how to sale, where to sale are very
important questions.
Livestock producers should make marketing
decisions every day of the year. In fact, deciding not to produce for a time is
itself a marketing decision because it prolongs the day when production will
begin and, therefore, when the day to sell arrives. The most common marketing
decisions, however, are where to sell, how to sell, and when to sell. Although
every producer faces these questions, the appropriate decision depends on the
individual. Each livestock producer must weigh the alternatives available to him
in the context of his own business objectives and personal goals.
v
Why develop a marketing plan?
Marketing decisions are not made in a vacuum.
They depend upon and are an important part of a complete production and farm
management plan. The objectives of a marketing plan need to ensure the short-
term survival as well as the long-term success of the business. Short-term
survival requires sufficient cash flow to cover variable cost, debt
obligations, and family living expenses. Long-term success of the livestock
enterprise requires a return to the fixed assets used in production. It is
essential for both short-term and long-term marketing decisions that the
producers know their costs of production. Accepting a Tk.50 hog price may be a
good decision for the producer with a Tk.40 break-even, but a disaster for the
producer with a Tk.52 variable cost.
Besides cash flow concerns, marketing
decisions should provide an income that is reasonably predict- able. This
stability allows the producer to make additional production and management
decisions with some confidence that he will be able to carry them through to
completion. Often less price risk may result in a lower price received. While
it is tempting to try to hit the big profit home run it does little good if you
strike out due to cash flow problems in the short run.
An equally important concern for producers
making marketing decisions is that the criteria used to evaluate the
alternatives be practical. The marketing plan should accurately incorporate key
elements and yet be simple enough as to not discourage its use. These key
elements include marketing goals and objectives, the producer’s current market
potential, cost of production estimates, a realistic view of the current market
environment, and a contingency plan to fall back on should problems arise. It
must also be flexible enough to change with evolving market conditions.
Finally, a marketing plan should not cost more than the return it generates.
This cost includes the time required to learn and operate the system.
v
Specify marketing goals and
objectives
Marketing goals and objectives are essential
to a good marketing plan. Goals should be simple, measurable, and reflect a
longer run target for marketing skills. For example, receiving a net market
price that is 10 percent above the quoted market price for a given period is a
good goal. It is simple and it can be measured. In addition, it is realistic. A
goal of selling all of your production at the top of the market is an admirable
goal, but not a good one if you become discouraged and quit trying. The target
may always be set higher once you learn how to shoot accurately.
Marketing
objectives tend to be shorter term in nature, more specified, and typically
warrant some action if achieved. In fact, it may be wise to have multiple price
objectives each with a different significance and different actions. Consider
the example below of a farrow-to-finish operation setting price objectives for
its June marketing.
Price objectives for farrow-to-finish operation
Objective
|
Price
|
Action
|
Cover direct cash cost
|
3500 Tk
|
Buy Put to cover all production if futures fall below 4000 ৳.
|
Cover total economic cost
|
3900 Tk
|
Hedge or buy put on half of production if futures fall below Tk.42
|
Return 400
Tk/cwt. over total cost
|
4300 Tk
|
Hedge 25% of production, add
25% for each 200 Tk. increase
|
Return 800
Tk/cwt. over total cost
|
4700 Tk
|
Hedge 75% of production
|
This producer identified different price
objectives that were important to the operation and what action would be taken
at each objective. The producer has also intuitively placed a risk weighting to
each objective by taking full protection at prices below Tk.40, taken
reasonable profits on 75 percent of production if offered, but left himself
somewhat open in the middle of the price range. Each producer’s objectives will
differ depending on his cost of production, financial and cash flow needs, and
his ability and/or willingness to bear risk.
The first step to develop a marketing plan is
to evaluate the current situation. Get the facts on cost of production and
animal quality. Determine how your marketing skills compare with some standard.
Next, what will it take to achieve a more profitable market price? Do you need
to change markets, what you produce, how you sell, or when you deliver?
Second, realize that higher prices do not
necessarily mean higher profits. An additional Tk.1/cwt. is no advantage if it
cost Tk.1.50/cwt. to get it. With live- stock, in particular, additional weight
and/or finish can lead to a price discount that lowers your net returns. For
example, sort discounts on hogs may easily cost more than they return if they
require extra marketing trips or labor that is better used elsewhere in the
operation.
Finally, because the future is unknown,
marketing decisions are based on expectations. While the exact price that will
occur next period is unknown, it does not mean that no decision can be made.
History can provide producers with useful information about the probability of
a given outcome occurring at some future date. In addition, professional market
analysis, both at universities and from private firms, can provide producers
with projections about the future.
v
Where to sell
One of the most important marketing decisions
a livestock producer makes is where to sell. The first choice is to determine
what type of market best fits his/her needs. Several types exist: terminal
markets, selling directly to the packer or a packer buying station, auction
markets, livestock dealers, special sales (feeder cattle, bred cows, bred
gilts), electronic markets (including satellite auctions and video sales), and
marketing cooperatives. Each market has unique features that may or may not fit
the farmer’s production and marketing plans.
Producers seldom have only one market for
their livestock. Creative thinking and cooperation with other producers can
often gain access to markets that are typically not considered by the
individual. However, if only one market does exist, producers should
concentrate on the remaining factors, including when and how to market.
There are six primary factors to consider
when choosing where to sell livestock:
1. Transportation cost as
affected by the distance from the market.
2. An unseen, but very important
cost, is market shrink. There are two types of shrink. The first is fill
shrink. It can’t be avoided and occurs mostly during sorting, loading, and in the
first few miles of the haul. The second is tissue shrink that occurs after the
animals are off water 12 to 14 hours. This suggests that it may be better to
sell on a carcass basis compared to live weight at a distanced market because
the carcass weight is not affected by the long haul.
3. For cattle, pencil shrink is a
stated percentage reduction in the animal’s pay weight. Typically, pencil
shrink is used to adjust the weight at a scale near the feedlot to reflect the
weight of the livestock had they been weighed at the plant. If properly used,
pencil shrink corrects for weight loss during shipping and allows for a more
accurate price comparison.
4. It is important to determine
whether the seller can effectively negotiate a fair market price for his livestock.
The buyer is a professional that is in the market every day and makes his
living by buying livestock. A seller may benefit from selling at a terminal or
auction market that attracts a large number of buyers in one location.
Likewise, the seller may benefit from marketing services offered by
professional marketing firms because they are too in the market every day.
The following questions can be
used to determine whether a farmer can benefit from a marketing service:
• Are there several buyers within a reasonable distance of the
farm?
• Are you knowledgeable of the factors that determine price?
• Are you willing to devote time to the study of market factors
and to the bargaining process?
• Can you accurately estimate grade, weight, and dressing percentage,
or are you willing to learn these skills?
• Do you have the temperament and skills needed for bargaining?
• Are you willing to live with your marketing decisions?
• Do you recognize that buyers are not doing you a favor in buying
your livestock and that it is in their best interest to buy them as cheaply as
possible?
5. Marketing fees charged by
terminal, auction markets, and professional marketing firms for their services
must also be considered when choosing a market.
6. Sorting is important because
buyers react to the uniform lots. In addition, if there are two different types
or weights of animals in the pen, a farmer may benefit from sorting and selling
to two different markets. The benefits of sorting must be weighed against the
cost of sorting. Extra equipment and time may be required and the value of that
time will be determined by its next use. For example, time is more valuable at
spring planting than it is in August.
The worksheet is a quick and
simple tool that can be used to compare alternative marketing locations.
Compare markets based on the net farm price.
Buyer
|
A
Tk. /cwt.
|
B
Tk. /cwt
|
(A) Bid
price
|
-
|
-
|
(B) Grade
and weight
|
+
|
+
|
(C)Transportation
cost
|
-
|
-
|
(D) Shrink
(% * bid price)
|
-
|
-
|
(E)
Marketing costs
|
-
|
-
|
(F) Net
farm price
|
=
|
=
|
v How to sell
Another
important question that must be answered is how to sell the livestock, live
weight, carcass weight, or grade and yield. Live weight selling is the most
common and is simple. The animals are weighed and the producer is paid an
average price per pound for the entire lot. However, factors such as shrink and
mud on the hides of cattle affect the net price that the farmer receives.
Selling
based on hot carcass weight eliminates the impact of fill shrink and mud. It is
similar to selling live weight in that an average price for all the carcasses.
To compare a carcass bid to a live bid, simply divide the live bid by the
expected dressing percentage. For example, a Tk.75 live bid is equivalent to a Tk.120.97
carcass price if the cattle dress 62 percent. The disadvantage to this method
is that the seller must trust the packer to weigh the carcass and pay the
appropriate price.
Selling
grade and yield is another marketing alternative for livestock producers and is
quickly becoming the standard for hogs. Like carcass selling, the farmer is
paid on the carcass weight of the animal.
However,
instead of being paid the average price for the entire lot, each carcass
is evaluated
separately and a price is paid that reflects its actual value. One must realize,
however, that only above average animals will receive a premium; below average
animals will be paid below average price. Thus, the farmer must have some
knowledge of how the livestock will look on the rail. Cattle and hog buying
systems have important differences that should be highlighted.
Cattle
sold by grade and yield are priced according to USDA standards and are
evaluated by a grader employed by the USDA. The carcass is given a quality
grade (choice, select etc.) and a yield grade (1, 2, 3, 4, 5) and the farmer is
paid the price agreed upon before slaughter for each category of carcasses. For
example, Choice, yield grade 2-3, 550-850 pound carcasses are priced at Tk.121
with a Tk.20 discount for yield 4, a Tk.4.50 discount for select, and a Tk.10
discount for heavy or light carcasses. The advantage to this method is the
value based pricing system. The producer is paid what the carcass is worth. In
addition, the feeder may receive the cut out information that can be used to
make future feeder cattle or seed stock buying decisions. The disadvantage is
that the seller must trust the weight and grade of the USDA grader.
Hogs
are sold on grade and carcass weight, not grade and yield. What is more
important, however, is that instead of USDA standard grades and graders, each
packer has his own grading system and the grader is an employee of the packer.
Therefore, the integrity of the packer becomes even more important. Also, it is
more difficult to compare bids and pricing systems between packers. The
advantage to this diversity in systems is that producers may be able to match
their hogs with a packer that needs that type of hogs. But farmers must experiment
to find the packer that pays the highest net carcass price for the type of hogs
he/ she has to sell. Packer buying systems are complicated and often difficult
to compare. The producer may want to compare a sample load of hogs under each
packer’s system to make comparisons on his hogs. Producers should also keep
marketing records to have a representative sample of their hogs rather than
only one load.
v When to sell
A
third key decision facing livestock producers is when to sell. Although
livestock selling decision is more limited than storable crop selling decision,
timing of the sale is still crucial. Livestock can be categorized as a growing
inventory. If they are not sold today, there is a cost associated with holding
them until tomorrow. In addition, the cost of gain increases at an increasing
rate as the animals get larger. Also to be considered is that over finished or
overweight animals are discounted when sold.
Seasonal
price patterns for livestock affect the selling decision. These patterns provide
decision makers with some insight as to future price changes. While there is no
guarantee that this year’s price will behave as historic prices, the
probabilities generated by historic price patterns are still helpful. Likewise,
price discounts also follow a seasonal pattern. Finally, farmers may want to
consider separating pricing from delivery. By using forward contracts, futures
markets or options markets, it is possible to make the pricing decision any
time before delivery to take advantage of favorable prices when they arise.
More
precise delivery decisions are often more difficult to make and many times less
important to the pricing decisions. The appropriate time of day to sell is
nearly impossible to determine. It may be more important to consider when it is
convenient to load the animals and how to reduce handling stress on the animals
as it affects shrink. Also take into account weighing conditions when deciding
when to deliver.
The
day of week is also difficult to determine. Traditionally, early in the week is
more active, with Thursday and Friday having the highest prices. Although
Thursday has a high average price, it is the most volatile. In general, if the
market is rising, sell later in the week. If the market is falling, sell
earlier in the week.
v Summary of
Marketing Plan
A
marketing plan should represent a road map to the producer with a clearly
marked route to follow to reach the desired destination. As with any route,
unforeseen detours may arise. While the plan should be flexible enough to take
advantage of market opportunities and avoid unacceptable risk, the manager
needs to keep the original goal in mind. A written marketing plan is a resource
to which one can quickly refer to help make informed marketing decisions in the
heat of battle, such as a sharp break in livestock futures prices during
planting or harvest time. Operating without a plan may cause the producer to
make a hasty decision he/she will later regret, or to miss an opportunity that
may not return.
Marketing Strategy
Pricing
The
prices of livestock and livestock products in the country are found to
fluctuate by seasons and regions mainly due to the variation in demand and
supply of those products. Livestock marketing experts observed that the price
of cattle was 20 to 40% higher during the month of Eid-ul-Azha (Muslim
festival). Price data collected by DAM for the last 10 years revealed that the
prices of livestock products did not follow any definite trend during
1993-2003. However, the prices of meat and live chicken were found to have
risen to its highest level during May to July and to its lowest level during
January to February. In the case of milk and eggs, the highest prices prevailed
during October to December. The period for the lowest milk price was identified
as June to August and that for eggs was January to February.
Table
8: Monthly
prices of livestock and products in Bangladesh
Month
|
Milk (Tk/100L)
|
Egg (Tk./100)
|
Live chicken
Desi (Tk/Kg)
|
Live chicken
Broiler (Tk/Kg)
|
Meat (Tk./Kg)
|
January
|
1750
|
300
|
90
|
60
|
85
|
February
|
1755
|
320
|
85
|
62
|
90
|
March
|
1700
|
320
|
92
|
65
|
90
|
April
|
1750
|
345
|
93
|
65
|
95
|
May
|
1790
|
355
|
94
|
68
|
95
|
June
|
1798
|
356
|
96
|
70
|
100
|
July
|
1810
|
354
|
98
|
68
|
100
|
August
|
1800
|
350
|
99
|
65
|
95
|
September
|
1789
|
345
|
91
|
64
|
96
|
October
|
1812
|
385
|
90
|
65
|
92
|
November
|
1852
|
388
|
91
|
66
|
92
|
December
|
1900
|
390
|
92
|
64
|
90
|
Source: Directorate
of Agricultural Marketing (DAM), 2002
Distribution
Marketing
channels and distribution are composed mainly of the private marketing
intermediaries, virtually without any government regulations, who handle the
marketing system of livestock and livestock products in Bangladesh. Many
middlemen/traders are involved in the process of livestock marketing (Table 09).
The marketing of livestock and livestock products are characterized by poor and
unhygienic market places, unorganized traders, absence of grading, lack of
information, seasonality in demand and price variation. The marketing of
livestock products has remained underdeveloped for a long time.
Photo: Retailers waiting for
customers
The
small holders in the country rear livestock, produce livestock products and
sell them in the weekly local markets from where stocks are transported for
consumption in the urban areas. The other source of beef cattle consumed in the
country is importation from India. Milk and egg marketing is mostly carried out
in an unorganized manner. Organized processing and marketing of milk is,
however, done by the Milk Vita and the Savar Dairy Farm, in a limited scale.
The Milk Vita is playing a crucial role in milk marketing. Some private
commercial dairy farms (e.g. Aftab Dairy) and NGOs (e.g. Aarong (আড়ং) Dairy) have also developed improved marketing systems for milk. In
the case of broiler, some private commercial farms, developed in and around
urban areas in the country, are trying to introduce improved marketing system
for their produce. However, due to imperfect marketing system substantial
fluctuations are apparent in the prices of livestock and their products.
Table
09: Classification
of market actors by livestock and livestock products
Trader type
|
Livestock type
|
Associated product
|
1. Producer seller
|
1. Cattle
2. Goat
3. Poultry
|
1. Milk
2. Live cattle
1. Live goat
1. Egg
2. Live poultry
|
2. Wholesaler-cum-retailer
2.1 Faria
(hawker)
2.2 Bepari
(local traders)
2.3 Goala
(local milk collector)
|
1. Poultry
1. Cattle
1. goat
1. Poultry
1. Cattle
|
1. Egg
2. Live poultry
1. Live cattle
1. Live goat
1. Egg
2. Live poultry
1. Milk
2. Curd milk
|
3. Commission agent
3.1 Aratdar
3.2 Dalal (Broker)
|
1. Poultry
1. Cattle
|
1. Live poultry
1. Live cattle
|
4. Retailer
4.1 Butcher
4.2 Grocery trader
4.3 Processor
4.4 Restaurant trader
4.5
Bakery Trader
|
1. Cattle
2. Goat
1. Poultry
2. Cattle
1. Cattle
1. Cattle
2. Goat
3. Poultry
1. Cattle
2. Goat
3. Poultry
|
1. Beef
2. Goat
1. Egg
1. Milk
2. Ghee
1. Yoghurt
2. Curd
milk
3. Ghee
4. Sweetmeats
1. Beef
2.
Milk
1.
Goat meat
1.
Egg
2.
Chicken meat
1. Beef
2.
Goat meat
3.
Egg
|
Consumption
It is assumed that around 3.5 million cattle are slaughtered
annually. About 40% of the slaughtered cattle (e.g. 3.5 million head are
imported/cross borders traded from India. Similarly around 15 million goats are
slaughtered the total slaughter of both cattle and goats ground 40% are
performed during Eid-Ul-Azha. In recent years, there has been some organized
raising of cattle for meat purpose (i.e. fattening) which is more pronounced
preceding festivals such as Eid-Ul-Azha, Eid-Ul-Fitr etc. In marketing point of
view, each and every product is produced for consumption. Bangladesh is a
Muslim country. As a result most of the people of our country prefer meat.
There are also some Hindu people living in our country. In spite of this,
demand for meat is more than the supply of meat. But our neighboring country
India produces huge member of livestock. And at the time of festival
(Eid-Ul-Azha, Eid-Ul-Fitr) India supplies livestock in our country to fulfill
our demand, we specially tak bulls, goats, cows, buffaloes and sheep.
Photo: Collecting
Leather after Eid-Ul-Azha Photo: Processed
Leather
Primary Functions of
Livestock Marketing
Assembling
Collecting scattered products from different sources all over
the world is called assembling. Assembling is very important in livestock and
meat marketing. Livestock (cows, bulks buffaloes, goats and sheep) are reared
in different areas of Bangladesh. There are few farms exist in our country from
where we can collect livestock for fulfilling the demand of our people. In
rural area people rear livestock mainly for their personal uses as meat, milk,
fuel, fertilizer, etc.
But it is not enough for satisfying the needs of our people.
For this reason we need to import livestock from different foreign countries.
We mainly collect livestock from India. For fulfilling the needs we also
collect various species of livestock and semen from foreign countries, like,
Newzealand, Australia, Scotland, Switzerland, France, Holland, Pakistan,
Ireland, some of the Breeds of livestock are Ayrshire, Brown Swiss, Guernsey
Holstein Friesian, Jersey, Sahiwal sindhi, Hariana these are Dairy Breeds.
There are also Angus, Brahman Charolais, Devon, Dexter, Here ford for producing
beef. There are also some breeds which are found in Bangladesh i.e. Red
Chittagong, Local bull. Loval cow. These are the various breeds of cows Black
Bengal goat, Jamunapari Bectal goat, sirohi, Sannen Angora, etc.
Sheep ® Boorola marino, Awassi,
Blew dumaine, cheoviot, Dorset Hampshire Lincon. etc.
Buffalo ® Zafrabadi,
murrah, Nili Ravi, Mehsana.
Grading
An efficient marketing system must move as large a quantity
of processors to the customers and deliver them in as good condition as
possible commensurate with reasonable marketing costs. There is a little
question but that the development of a system of describing products by grade
names has greatly contributed to marketing efficiency and offers marketing
firms an opportunity to differentiate their products for profitable pricing and
marketing.
One of the chief purposes of grading is to make it easy for
the buyer to identify the quality of a product by a simple system of grade
names.
Livestock and meat are graded depending some characteristics
which are color, odor, taste, length, weight, size, density, firmness, strength
cleanliness, decay, age, maturity, shape and so on, almost indefinitely
designations solve the problem of ranking is such grade as AA or AAA are not
used but Some progress has been made in the A., B, C grading of canned
livestock and meat,® three grades, with grade
A the best and C the poorest.
The goal in establishing grading system appears to be the
selection of high powered objectives that give no indication of rank, as,
choice, Fancy, prime, Extra and Jumbo. The use of understandable grade
designations as 1, 2, 3 or A, B, C is disliked simply because they are
understandable.
Most customers know that “1” and “A” come before “2” and “B”
and that “3” and “C” are Third ranking. But the use of 2 and 3 or B and C
attaches a stigma to the livestock and meat and hinders customer acceptance
even though products in these grades may be perfectly satisfactory for their use.
Packaging
Proper packaging of meat is very important factor in case of
meat marketing. Attractive and informative packaging attracts customer minds.
Adequate packaging can protect meat from undesirable impacts.
Purpose
of packaging: The basic purpose of packaging is to protect
meat and meat products from undesirable impact on quality including
microbiological and physiochemical alterations. Packaging protects food stuff
during processing, storage, and distribution form:
Þ Contamination by dirt
(by contact with surfaces and hands)
Þ Contamination by
micro-organisms (bacteria, moulds yeasts)
Þ Contamination by
parasites (mainly insects)
Þ Contamination by toxic
substances (chemical).
Þ Influences affecting
color, smell and taste (off-odour, light, oxygen).
Adequate packaging can prevent the above listed secondary contamination
of meat products.
Primary
function of packaging:
Þ Protect against physical
change.
Þ Protect against chemical
change.
Þ Protect against
microbes.
Þ Present the product to
the customer in an attractive manner.
Following steps helps properly package and store meat for
optimum freshness.
1. Clear plastic wrap: Clear plastic wrap and
bags are made from three major categories of plastics ® polyethylene (PE),
Polyvinylidene chloride (PVCD) and Polyvinyl chloride (PVC).
2. Butcher wrap paper: This layer provides
good insulation to protect from freezer burn.
3. Masking tape: Here sealed the product
with masking tape. It also provides good insulation to protect from freezer
burn.
4. Vacuum packaging system: Vacuum package meat for
shorter-term storage in the refrigerator where they can be kept for up to two
weeks.
5. Permanent marker: It is the last step of
packaging.
Characteristics affecting packaging requirements:
Þ Color is the most
important single factor affecting customer acceptance.
Þ Moisture and gas are to
be kept in mind.
Þ Organoleptic characteristics
must be evaluated.
Storage
Proper storage of meat helps extend it shelf life and allows
us to take advantage of sale and bulk buying. It can help our budget by
reducing wastage due to spoilage or freezer burn. When we store meat collectly,
it also can mean better flavor because we are keeping it fresh.
Meat comes from animals that can carry bacteria which might
make us sick. Bacteria can multiply rapidly and cause food to spoil or make it
unsafe. Bacteria produce the slime, toxins, off colors and odors associated
with food spoilage. So we need to proper storing of meat. Bu following way we
can sore meat.
Storing
of uncooked meat: Buy meat as fresh as possible. The fresher meat,
the better it will taste and the longer its shelf life. Meat should be stored
at a temperature to help preserve its quality and prevent the growth of illness
causing bacteria. Chilling meat to below 400F is recommended. Meat
can be chilled or frozen. In order to freeze meat we must drop the temperature
below 280F.
Refrigerating
meat: Refrigeration is a good way to store meat for short periods
of time. Refrigerated meat should be stored below 350F and wrapped
to prevent dehydration, odor absorption and contamination of the meat and other
food of our refrigerator. Food spoilage bacteria grow best at environment
temperature of 700F to 1000F. So the temperature of
refrigerator should be below 350F.
Freezing
Meat: Freezing is an excellent way to store meat for longer period
of time. It allows the meat to maintain most of its physical properties, taste,
texture, smell and nutritive, properties. Small amounts of nutrients (salts,
proteins, peptides, amino acids and water-soluble vitamins) are lost as drip
when the meat is thawed.
Frozen meat will have a different color than flesh meat. We
should learn to recognize the “normal” frozen meat color so that we can
identify frozen meat which may have an unusual color and may constant
temperature that is below 00 (-100F is better).
Frozen storage time is extended by proper packaging, which
is sealed to prevent air and moisture exchange and protects against freezer bun
(areas of severe deby dration on the surface of the meat). The table below
shows the maximum recommended length of storage for different meat products at
00F for the preservation of optimum quality.
Types of meat
Beef
Lamb
Poultry
Ground Lamb
|
Freezer
storage time
6
months
6
months
4
months
6
months
|
Meats
that should not be frozen: Sliced meats such as lunch meat should only
be frozen if they are vacuum packed. When not vacuum packed they can develop a
rancid flavor within a matter of days or weeks.
Freezing
of cooked meat: Precooked meat and poultry will have a “warmed
over” flavor when cooked are second time. This loss or “fresh cooked flavor can
be minimized by vegetable or seed flour bared sources or gravies. This is
because the natural anti-oxidants found in many vegetables and seeds prevent
the lipid oxidation which contributes to the “warmed over” taste.
Prospects of Livestock Sector
Technological change in livestock sub-sector has been slow
compared to crop sub-sector. During the period when Green Revolution was
achieved in crop agriculture through technological change and appropriate
policy interventions, livestock sub-sector remained less sensitive and
responsive to its developmental needs. It is only in recent years, some
technological interventions and limited policy reforms, particularly in poultry
sector has made significant impact on livestock production. Intensive farming practices,
including environment control modern housing system, improved feeds, modern
equipment like gas brooder, nipple drinker, etc. have been introduced along
with the use of improved management systems. Introduction of hybrid poultry has
greatly improved meat and egg production. A new poultry hybrid called “Sonali”
has been developed locally by DLS and is being widely used in some areas by
smallholder poultry farmers. Grand parent stock of improved poultry breeds is
now available in the country. Milk production has also increased due to
increased use of cross bred cows. Use of deep frozen semen for artificial insemination
has significantly improved cattle breeding program. Small scale dairy farming
has increased due to introduction of modern milk processing and packaging
techniques. PPR vaccine for goat has been developed along with PPR
identification techniques, which has enhanced goat farming by small farmers. Number
of goats has increased from 5.6 million in 1960 to 21.6 million in 2008. (Table 10)
Significant advances have taken place in commercial and small
scale poultry farming due to changes in public policy. Poultry population has
increased from 20 million in 1960 to 252.3 million in 2008 (Table 10). The
Government has waived taxes and tariffs on imported inputs for commercial
poultry production. Tax holiday for poultry enterprises, and land tax has been
made equivalent to what is given for crop agriculture. Poultry industry is also
given 20% rebate on electric bills. The Government has imposed ban on the
import of table and hatching eggs. Dairy processing and feed mills are now
considered as agro-based industry by the Bangladesh Bank. A number of livestock
Act is under process of approval. Bangladesh Animal Diseases Act, 2005 and
Bangladesh Animal and Animal Product Quarantine Act, 2005 have been
promulgated. These policy changes have had positive impact on livestock
development.
Three tables
are given below showing the number of domestic animals (1960-2008), employment
characteristics of livestock sector (1993-1994) and sectoral growth rate of GDP
at constant prices (1998-2008).
Table 10: Number of Domestic Animals: (1960-2008)
Type of
Animals
|
Census year
|
|||||||||
1960
|
1977
|
1983-84
|
1996
|
2008
|
||||||
Total No. (000)
|
Per Capita
(No.)
|
Total No. (000)
|
Per Capita
(No.)
|
Total No. (000)
|
Per Capita
(No.)
|
Total No. (000)
|
Per Capita
(No.)
|
Total No. (000)
|
Per Capita
(No.)
|
|
Poultry
|
20096
|
0.37
|
53590
|
0.64
|
73813
|
0.72
|
126668
|
1.03
|
252300
|
1.74
|
Sheep
|
477
|
0.01
|
508
|
0.01
|
767
|
0.01
|
1690
|
0.01
|
2800
|
0.01
|
Goats
|
5660
|
0.10
|
8436
|
0.10
|
13658
|
0.13
|
12920
|
0.11
|
21600
|
0.15
|
Buffaloes
|
455
|
0.01
|
469
|
0.01
|
567
|
0.01
|
723
|
0.01
|
1300
|
0.001
|
Cattle
|
18961
|
0.34
|
20509
|
0.25
|
21495
|
0.21
|
21572
|
0.18
|
24200
|
0.16
|
Source: BBS 1993, 1998, DLS 2009 and Bangladesh Economic Review 2009
Table 11: Employment Characteristics of Livestock Sector, 1993-94
Employment(million-person-year)
|
Direct labor
coefficient*
|
Value added (% of gross output)
|
|||
Total
|
Share (per
cent)
|
||||
Hired
|
Family
|
||||
Livestock
|
6.95
|
21.9
|
78.1
|
81.3
|
50.8
|
Poultry
|
1.18
|
22.0
|
78.0
|
67.3
|
44.3
|
Other
livestock
|
5.77
|
21.9
|
78.1
|
85.0
|
52.5
|
Crops
|
8.98
|
59.7
|
40.3
|
28.0
|
54.8
|
Fishery
|
1.40
|
31.1
|
68.9
|
18.5
|
47.9
|
Forestry
|
0.35
|
37.9
|
62.1
|
5.1
|
43.8
|
* In
person-year per million Taka of gross output
Source: Planning
Commission/BIDS 1998
Table 12: GDP at constant price, 1998-2008 (in percent)
Sub-sect
|
1998-99
|
1999-2000
|
2000-01
|
2001- 02
|
2002-03
|
2003-04
|
2004-05
|
2005-06
|
2006-07
|
2007-08
|
Crops
& Veg.
|
3.11
|
8.10
|
6.18
|
2.39
|
2.88
|
4.27
|
0.15
|
5.03
|
4.43
|
2.67
|
Livestock
|
2.69
|
2.74
|
2.81
|
4.70
|
4.51
|
4.98
|
7.23
|
6.15
|
5.49
|
2.44
|
Forestry
|
5.16
|
4.94
|
4.85
|
4.91
|
4.43
|
4.18
|
5.09
|
5.18
|
5.24
|
5.47
|
Fisheries
|
9.96
|
8.87
|
4.53
|
2.22
|
2.33
|
3.09
|
3.65
|
3.91
|
4.07
|
4.18
|
Source: Bangladesh
Economic Review -2009
Bangladesh
Economic Review 2009 shows the highest growth rate of livestock sub-sector in
GDP at constant prices (base yr. 1995-96) in the years 2004-05, 7.23% and
2005-06, 6.15% compared to 0.15% crops and vegetables and 3.91%.fisheries. A
lower rate of growth in subsequent years 2006 – 07, 5.49% and 2007-08, 2.44%
was observed (Table -12) which may be due to the incidence of Avian Influenza
causing a serious loss of poultry birds.
Table
13: Contribution
of sector wise GDP at constant price (base yr.1995-96) in Percent
Sub sector
|
1998-99
|
1999-00
|
2000-01
|
2001-02
|
2002-03
|
2003-04
|
2004-05
|
2005-06
|
2006-07
|
2007-08
|
Crops and Vegetables
|
14.33
|
14.59
|
14.70
|
13.75
|
13.43
|
13.23
|
12.51
|
12.28
|
12.00
|
11.64
|
Livestock
|
3.12
|
3.02
|
2.95
|
2.96
|
2.93
|
2.91
|
2.95
|
2.92
|
2.88
|
2.79
|
Forestry
|
1.90
|
1.88
|
1.87
|
1.88
|
1.86
|
1.83
|
1.82
|
1.79
|
1.75
|
1.75
|
Fisheries
|
5.93
|
6.09
|
5.51
|
5.40
|
5.25
|
5.11
|
5.00
|
4.86
|
4.73
|
4.67
|
Source: Bangladesh Economic Review -2009
The
current contribution of livestock sub- sector to overall GDP is about 2.73% which
is 17.15% of agricultural GDP. The export earnings from leather and leather
goods is 4.31% of the total export, 20% of the population is directly and 50%
is partly dependent on this sector (Draft SFYP-2009).
The
current contribution of livestock to the overall GDP is approximately 3.4%
(Islam, 2004), providing 15% of total employment in the economy. Its share of
employment in the agriculture sector is 39%. The livestock sub-sector offers
greater employment opportunities particularly for the rural poor, many of whom
regard livestock as their only livelihood option. Employment opportunity in
livestock is comparable to crops. Small-scale livestock farming during
1993-2002 provided self-employment to approximately 3.0 million poor women
(DANIDA, 2002). The poverty reduction potential of the livestock sub-sector is
high, but there are problems too. Productivity is low, and technical knowledge
is quite limited. There is little organized farming of cattle and buffalo; land
is a major constraint meaning that feed shortages are critical, and there is a
desire by most livestock owners to own more livestock rather than focus on
improved methods of more efficient production.
The
importance of livestock production has increased in Bangladesh as witnessed by
the growth of the sub-sector over the last few decades and the contribution to
employment in the country. Some 90% of rural households keep some livestock,
and nearly 20 million households keep cattle under traditional farming systems
(BBS, 1994). According to DLS livestock population in Bangladesh in 2007-08 was
cattle 23 million, buffalo 1.3 million, goats 21.6 million, sheep 2.8 million,
chicken 212.5 million and ducks 39.8 million. The per capita number of cattle
was 0.16, goats 0.15, sheep 0.01, chicken 1.47 and ducks 0.27.
Comparative Advantage
Profitability and Competitive Strength
Poultry
and dairy farming has certain specific advantage over crops, fisheries and
forestry. They require less land, least influenced by seasonal change, and the
supply of animal origin food is disproportionately low against high demand. The
current intake per caput of animal protein in Bangladesh is less than 2g per
day, against the FAO recommendation of 28g per day. Similarly, domestic milk production
accounts for only 14% of the minimum requirement (DLS, 1999). Milk availability
per caput is approximately 30 ml per day against the FAO recommendation of 250
ml. In order to meet the shortfall, powdered milk worth Tk.40–60 million is
imported every year. Milk production needs to grow by 4.2 to 5.6 percent per
annum to meet the increasing demand (Hossain and Bose, 2000). The national
deficit for milk, meat and eggs is 85.3, 90.3 and 85.7% respectively. This
illustrates the need for increasing the efficiency of milk, meat, and egg
production in the country to increase the intake of animal protein and reduce dependence
on other countries for importation of livestock products. Two recent studies
have found that dairy generates more regular cash income, and dairy production,
processing and marketing generate more employment per unit value added compared
to crops (Asadduzzaman, 2000; Omore et al., 2002). This is also the experience
of Community Livestock and Dairy Development Project of Grameen Matsha and Poshu
Sompod Foundation (গ্রামীন মৎস্য ও পশু সম্পদ ফাউন্ডেশন). There is no
clear intra-sectoral study on comparative advantage and profitability, but
profit margin of small scale dairy and poultry farming is higher than crop and
fish farming as reported by many farmers under this study, if feeds, veterinary
services, credit and access to market are ensured. Compared to the neighboring
countries, livestock farming in Bangladesh is handicapped by low productivity
and low product quality. Average milk yield is 6 L/day for an average lactation
period of 240 days (210-300 days). Small farmers do not enjoy the benefits of
Government policy. The benefit of tax holiday and low tariff goes almost
entirely to importers and large commercial farmers. There is no Act in force
and no regulatory body to ensure quality of livestock product to increase
profitability and competitive strength. Profit margin and competitive strength
can be enhanced with appropriate policy and institutional reforms.
Policy
support creating enabling environment in the livestock sub-sector has to target
factor productivity, investments and risks by (a) increasing public investment
in infrastructure and public good services, and promoting private investment,
(b) inducing shift in relative prices of inputs and outputs to correct market
distortion, rationalize the incentive structure for investment and mitigate
negative impact on environment, (c) putting in place appropriate legal and
regulatory framework, and (d) effecting institutional reform and good
governance making both public and private sector more transparent and
accountable.
Problems in Livestock Sector
Having reviewed the available reports, publications and interactions
with different stakeholders the following problems/constraints have been
identified for the lowest productivity of all the livestock species in
comparison to that of the developed and neighboring countries.
1. Breeds
a)
Lack of appropriate/suitable breed of different
livestock species and breeding materials.
b) Infertility,
long calving interval and late age at maturity
c)
Lack of conservation of potential genetic
resources
2. Feeds
a)
Shortage of feeds and fodder in respect of both
quality and quantity b) Shortage of
lands for fodder cultivation
b)
High feed price
c)
Shortage of high quality fodder germplasm
d)
Lack of appropriate processing and conservation
technology for feeds and fodder.
3. Livestock
Diseases
a)
Poor/lack
of epidemiological information
about major livestock
and poultry diseases
b)
Limited veterinary services, including poor
disease diagnostic facilities
c)
Poor/Lack of strategic disease control programs
including disease information system
d)
Serious shortage or lack of manpower in veterinary
or disease research in BLRI, currently
this is a
major obstacle to
control disease problem
in livestock production
4. Livestock Health Management
a)
Absence of animal quarantine services in the ports
b)
Lack of appropriate herd health management system
c) Lack of appropriate bio-security
system
c)
Improper implementation of waste management system
d)
Disease control Act, Quarantine Act, Fisheries and
Livestock Feed Act are still not implemented
e)
Lack of Slaughter Act
f)
Lack of wet market regulations
5. Vaccine
a) Lack/shortage
of quality vaccines against major livestock and poultry diseases
b)
b) Lack of
thermostable vaccines.
c)
Poor/lack of vaccine research in BLRI / LRI
6. Quality
control
a)
Lack
of quality control
measures for vaccines,
drugs, biologics, breeding materials, etc.
b)
Lack of quality control measures for livestock
products and bi-products
c)
Poor/Lack of preservation techniques for livestock
products and bi-products
7. Management/Marketing
a) Lack of
systemic marketing net work for live livestock and their products
b) Lack of
quality value added products in the market
c)
Lack of adequate infrastructure to the expansion
of trade and investment in the sector
Recommendation
Though
there remain various problems and shortcomings in last segment we suggest some
specific recommendation to overcome these which can be an effective solution to
develop our livestock sector and as well as meat sector.
1. Identify and solve the basic livestock problems
of the country through research;
2. Develop suitable methods for quick diagnosis and
treatment of various livestock diseases;
3. Study epidemiology and immunology of existing
various diseases and their effects;
4. Develop appropriate technologies for production
of suitable biologics;
5. Develop suitable breeds of livestock for
increasing production of milk, meat and draught power and poultry
for eggs and meat;
6. Develop methods for improving production and
preservation of fodder and feeds, and for better utilization of agricultural
by-products, wastes and non-conventional food staff for improving livestock
production;
7. Improve management and production practices that
will ensure better health and production of animal and birds;
8. Develop improved methods for collection,
processing and storage of livestock products that will reduce
spoilage and improve storage quality;
9. Assess production and marketing of various
livestock and their products and develop suitable grading and
marketing systems;
10.
Disseminate
information regarding research of livestock to farmers and through the literacy;
11.
Organize seminars,
symposiums, and
workshops on problems of national importance in the field of livestock.
12.
Strengthen BLRI by sharpening its functions, adjusting the
structure and organization and improving management, including research
management.
13.
Increase revenue budget and find alternative funding mechanisms to
support priority research programs of national importance.
14.
Establishment of mechanized slaughterhouse, with Static Flaying
Frame in all municipal areas and strict enforcement of the Slaughter Act.
15.
Initiate awareness campaign and training program for butchers,
Farias (ফড়িয়া), Beparis (ব্যাপারী) and
Aratdars (আড়তদার) to impart basic knowledge of flaying, curing and
storing.
16.
Ensure quality control and certification of hides and skins by an
appropriate body, if necessary through
promulgation of an Act.
17.
Strengthen animal nutrition and management program and expand
veterinary services of DLS for preventive
measures against diseases, and of private sector for clinical treatments.
18.
Encourage and support private sector to establish small to medium
scale industries to utilize tannery
byproducts (blood, bones, hoofs, ruminal contents, intestines, stomachs, hairs,
bile liquid, etc) for producing high quality animal feeds.
19.
Establish a Working Group to prepare a comprehensive pricing and
marketing policy for hides and skins.
20.
Collective marketing by community organization.
21.
Price incentives and improved cattle farming.
22.
Increasing credit support and enhancing access to credit.
23.
Price monitoring and dissemination.
24.
Infrastructure development.
25.
Enhancing private participation
Technical support
1.
Set up a focal
point in the relevant Ministry to carry out work related to World Trade
Organization.
2.
Agreements and to ensure implementation of notification and other
WTO obligations.
3.
Strengthen the MOC
to enhance capacity to handle increasing volume of WTO work.
4.
Train officials of
MOFL, MOC, DLS, and various livestock related industries to enable them
to fully understand WTO Agreements and deal with them effectively.
5.
Assess trade
related technical assistance needs of the Ministry of Commerce, MOFL, DLS, Tariff
Commission and Export Promotion Bureau (EPB).
6. Assign DLS responsibility for quality control of
imports and exports of livestock related products. This would require capacity
development.
Institutional support
1.
Develop capacity to
address the SPS agreement by strengthening DLS in general through institutional reform (see
section on veterinary services)
2. Support credit reform as outlined earlier in this
section.
3. Establish a farmer’s information network, with both
public support (data gathering, analysis, availability) and private support
(training, further processing of trade related information).
4.
Establish internet
communication system (ICT) and regular broadcasting of trade related
information and forecasting of prices of livestock products at local and
regional level.
ABBREVIATION
AND ACRONYMS
AEZ
– Agro-Ecological Zone
BCR
– Benefit Cost Ratio
BARC
– Bangladesh Agricultural Research
Council
BLRI
– Bangladesh Livestock Research
Institute
DLS
– Directorate of Livestock Services
FAnGR
–Farm Animal Genetic Resources
FAO
– Food and Agricultural
Organization
ILRI
– International Livestock Research
Institute
IUCN
– International Union for
Conservation of Nature
MOC
– Ministry of Commerce
MOFL
– Ministry of Fisheries and Livestock
NGO
– Non-Government Organization
PRA
– Participatory Rural Appraisal
SAARC – South Asian Association for Regional
Cooperation
