Search This Blog

Loading...

Livestock and Meat Marketing


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.
goats1.jpg
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.
                        DSCN1416.JPG
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.
d6d9f26230.jpg            chamra.jpg
 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.
Meat.bmp
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.
d6d9f26230.jpgThree 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