by-DR RAJESH KUMAR SINGH, JAMSHEDPUR, JHARKHAND
9431309542,rajeshsinghvet@gmail.com
Egg Marketing Channels——-
• Direct marketing of eggs
include the following methods of selling:
o sales from the farm (farm gate)
o door-to-door sales
o producers’ markets and
o sales to local retail shops.
• A typical marketing channel is made up of : ———-
o Collectors
o Assembly merchants
o Wholesalers
o Retailers
Organised Marketing Channel———–
o Direct Channel: Producer
– Consumer
o Producer –Collector–Assembly Merchant – Wholesaler – Retailer – Consumer
o Producer – Wholesaler –Retailer – Consumer
o Producer – Collector- Assembly Merchant – Consumer
o Producer – Retailer – Consumer
• The efficiency of marketing channel is reflected by the share of the
consumers rupees received by the producer. The higher the share, greater the
efficiency of marketing channel
• Egg prices vary from one market to another and from one season to another. In
summer, wholesale egg prices were low to the level which is sometimes lesser
than the cost of production. Therefore proper attention has to be given to
efficient disposal of market eggs
EGG MARKETING ORGANIZATION———-
National Egg Coordination Committee (NECC)—–
• NECC was formally
registered under the Societies Registration Act in May 1982. With a membership
of more than 25,000 it is the largest single association of poultry farmers in
the world. Most of today’s egg production in India comes from NECC members.
• NECC has various centres and they exchange information among themselves which
help them to determine price for each zone. Co-ordination between zones permits
judicious movement of eggs dependent upon supply and demand.
NECC Objectives
• Price declaration
• To decide upon a reasonable price for eggs this ensures a fair return to the
farmers, decent margins to the middleman and a fair price to the customer
• To monitor the egg stock level in different production centres
• To organize and unite poultry farmers across the country
• To generate employment by encouraging people to take up egg farming and egg
trading
• To promote exports and develop export markets
NAFED——-
National Agricultural
Co-operative Marketing Federation of India (NAFED) has taken up egg marketing
in New Delhi and extended to terminal markets like Mumbai, Chennai, Calcutta,
Hyderabad and some other important industrial areas.
Main Objectives of NAFED
• Provision of reasonable remuneration to the poultry farmers
• Economic price to the consumer
• Employment to the weaker section of the society
BROILER MARKETING – INTEGRATION——–
• Integration is the
association, coordination, amalgamation of companies engaged in various stages
of production of particular product, or related products, so that, there will
be a smooth flow of inputs and outputs from one unit to other, leading to
overall reduction in the cost of production of the final product
• In all developed countries, the poultry production at present is an
integrated operation from the primary breeder to the consumer. Each stage or unit
is associated with the other stages
• An integrator will coordinate all these activities. Usually, an integrator is
the owner of the processing plant, hatchery and the feed mill and pay
commission to others for the services rendered by them
• There are only few integrators in each developed country, who will control
the entire poultry production in these countries
• The poultry farmers are acting only as contract growers receiving commission
for the eggs, broilers and turkeys produced by them. The farmers are not the
owners of the birds, but the integrators are the real owners
ACTIVITIES – BROILER INTEGRATION———
• In broiler industry, the
integrator may be owning the breeding farms, parent stock, growers, hatchery,
feed mill, rendering plant and poultry processing plant
• He will integrate with few contract parent stock farms, who will supply
hatching eggs on commission basis. The integrator is the owner of the parent
stock and will supply ready-to-lay parent stock and feed to the contract
breeder farms.
• Similarly, the integrator will supply day old broiler chicks and feed to the
contract broiler growers and take back grown up broilers, after paying growing
commission to them
• The integrator will process all the birds in his processing and further
processing plants and later supply to the super markets and restaurants for
sale
• The hatchery waste and offals are processed in the rendering plant and the
meat meal and chicken fat are used in the feed
ADVANTAGES OF INTEGRATION———–
• The cost of production of
the final product will come down, for the ultimate benefit of the consumer
• It will be possible to go for diversified products and newer fast foods
• Due to large volume of operation, the integrator can go for advertisement for
promoting his products
• All main and by products will be utilized and recycled without any wastage.
This will not only prevent environmental pollution; but also reduces the cost
of production of the main product
• It will stabilize the prices, by balancing the supply and demand
MARKETING-PROCESSED CHICKEN—————-
• The market for frozen or
chilled poultry products is only limited to few institutions i.e. hotels,
fast-food restaurant chains and to a negligent extent to urban consumers
• This very small segment of consumers is served by processing sector, whose
volume account for hardly 2% – 3% of production. However, certain State
Governments are envisaging to discourage slaughtering of birds within the
Municipal jurisdiction limits due to pollution and other issues
• If such measures are pursued, the sale of slaughtered chicken is expected to
increase and the processing units if simultaneously advertise on the quality
aspects of dressed chicken the consumers could be advised to pay slightly
higher amount for frozen/chilled chicken for their health
RURAL MARKETING——————–
• Rural Marketing is still
in dormant stage and is like a sleeping dog. It is not organized but has a
great future.
• An attraction yet to be exploited by rural farmers, is the production of
organic poultry meat and eggs this would be a special market in the cities and
has a great potential for export as developed countries would pay a premium
proce for these.
• In India the eggs and meat obtained from the country chicken is normally sold
within the community or used for the family and the marketing system is
informal and poorly developed.
• Slow and steadily, people from the villages are realizing that the meat and
the eggs of the country chicken fetch a premium price but are unable to form an
organized sector to market the meat and eggs. The sale of poultry products
enable poultry keepers to obtain money to premium spent on their own and family
needs.
• A traditional product that can be sold at a premium price can help small
producers to compete with industrial type commercial production. Ways and means
of improving the production of local chicken that will bring better revenue to
the rural poor must be planned.
• Presently in India eggs are bought by the local shop keeper. In some places
merchants from urban areas use local agents to purchase eggs and chicken from
farming families and sell them in the cities. The intermediaries involved in
this business are the main beneficiaries.
• The existence of a local market offering good sales opportunity and adequate
transport facilities are an obvious pre requisite for the development of rural
poultry.
• Rural consumers are far less homogenous than their urban counter parts. The
rural markets are less exploited and are more agricultural based. There are
many opportunities in the rural market that need to be tapped. Unfortunately
rural marketing is beset with various problems, mostly due to the geographic
spread of the villages and the distance from the main market.
• Rural salesmanship is inefficient and this could be attributed to illiteracy.
MAJOR HURDLES————————-
• The traditional marketing
activities of promotion, distribution, sales and servicing undertaken in the
urban and semi-urban areas are not available to the rural poor. The major
hurdles are:
o High distribution cost
o High initial market development expenditure.
o Inability of the small retailer to carry stock without adequate credit
facility.
o Generating effective demand for goods.
o Mass communication and promotion problems.
o Banking and credit problem.
o Management and sales management problem.
o Market research problem.
o Inadequate infrastructure facility.
o Highly dispersed and thinly populated markets.
o Low per capita, lower standards of living condition, social, economic and
cultural backwardness of the rural masses.
o Low level of exposure to different product categories.
o Cultural gap between urban based markets and rural consumers
STRATEGIES FOR RURAL MARKETING———————-
• The practice of treating rural markets as an appendage of the
urban market is not right since rural markets have their own independent
existence. These markets should be ruralised rather than trying to make them
into a convenient extension of the urban market.
• A focus on injecting a marketing culture into the villagers must be planned
and accomplished. The educated unemployed youth can be used for this mission.
Concept
• Decentralise rural markets from urban bases. Buying and selling should have
an interaction and not just be one way.
• Educated youth can be trained in salesmanship.
• Villagers can be educated on their right and know the market trend.
• The youth can be trained to be in line with newer developments.
• A computer centre where the educated youth are trained must be established
and become a centre point for learning latest trends, rates etc.
