Evaluation of periodical changes in Market margin in Different Livestock Products R.M. Chandrasena Asst. Director Div. Farming Systems Economics and Marketing

Objectives  To determine cost of production of livestock products in different production systems and to estimate their market margins  To forecast future production trends with the changes in the cost of different inputs  To estimate major cost components between producer and the consumer price

Expected output  Small scale farmers are benefited by knowing the total cost and then to determine appropriate salable price  When fixing control price, this study would benefit in determining a fair price to both producer and consumer  Useful in determining value addition

Goat Marketing System Broker Producer Tender / Collector Butcher Retailer

Beef Marketing System Agent Producer Tender / Collector Butcher Retailer

Pig Marketing System CollectorButcherRetailer Producer CollectorProcessor Consumer

Buffalo Milk Curd Production Farmer / Producer Selling Price - Rs.55.00/ lit (55-60) Transport Curd Production Labor - Rs Pot - Rs Other- Rs Total Production Cost =Rs.( ) =Rs One liter Curd Pot (74-80) Buying Price Retailer Rs. 110 ( ) Consumer Price Rs ( ) Rs.1.50/lit ( ) Transport Rs.2.00

Beef Marketing Channel and Market Margin Distribution (Anuradhapura) ProducerBroker Agent / Collector Butcher Retailer Selling Price Rs.320/Kg (100%) Producer Selling Price Rs.208/Kg (65%) Marketing Margin Rs.112/ Kg (35 %) Broker 2% Rs Transport 3 % Rs.9.60 Agent 7% Rs Retailer 11 % Rs Bucher 12 % Rs.38.40

COST OF PRODUCTION BROILER CHIKEN (1 Kg) Rs-1.5 Kg Rs B.F-1.8 Kg 68-56Rs InputsRs. feed Chick Water Light Labor S*P Total cost / Broiler (Assumption Average Dress Wt = 1.5 Kg) Cop 1Kg = S*P – Slaughter and packing

Broiler Chicken Market Margin COP Rs /Kg Producer Price Retailer Buying Price Rs Retailer Selling Price Rs Rs (100%) (67.5%) Mm (32.5 %) Rs

Beef Marketing Channel and Market Margin Transport from Remote Area to Urban Area(1Kg) (Lunugamwehera / Thanamalwila / Monaragala) Producer Price Retailer Price Rs.450 (100 %)Rs.450 (50 %) Market Margin Rs. 225 (50 %) Barracker 9.00 Agent T.P Other Bucher Retailer 76.50

MUTTON MARKETING CHNAL AND MAKET MARGIN (Consumer Average Price Rs / Kg ) Producer Price Rs /Kg (67 %) Broke Price Rs (2 %) Trader / Collector Price Rs Butcher Price Rs /Kg (10 %) Retailer Price Rs /Kg (12 %) Consumer Price Rs /kg PRODUCER Rs /kg (67%) CONSUMER Rs /kg (100%) Market Margin Rs / Kg (33 %)

YOGHURT PRODUCTION Producer cop / Price Rs: 9.00/cup Producer Selling Price Rs / cup Retailer buying Price Rs.15.00/ cup Consumer Price Rs / cup Profit Rs Profit Rs. 5.00/cup

Rs. 220 per Kg Cost of Production Producer Price Rs. 260 /= per Kg Bucher Rs. 320/= per Kg Retailer Price Rs.400 /= per Kg Rural Area Pork Marketing Channel & Market Margin

Pork Marketing Channel 2 Market Margin Producer Price Cop Retailer Price Market Margin Rs / Kg (35 %) Rs (65 %) Rs (100 %) T.P Other 9.00 Bucher Retailer Collector Broker 9.00

Milk Collection, distribution and Consume Systems

Progress  Secondary Data collection completed.  Informal discussion with key personal completed.  Development of questionnaire completed.  Field survey completed.  Data edits completed.  Data analysis completed.  Terminal report writing in progress.

Some of the major issues in Agricultural marketing  High price fluctuation  High market margin  Poor infrastructure facilities.  Lack Integration between Input supply, Production, and Marketing.  Heavy post harvest losses.  Influence of the middleman in Agricultural Marketing process.

Constraints  Supporting services were not available and thus expenditure on personals remained unspent  Difficulties in accessing reliable data sources in various agencies

Observations  The market margin changes with the weather condition, festival season and natural disasters.  There were two types of marketing channels Short channel-Both producer and consumer benefited Short channel-Both producer and consumer benefited Long Channel-High waste, Low margin for producer and high purchasing price for consumer Long Channel-High waste, Low margin for producer and high purchasing price for consumer  Extent of value addition can be determined  Product supply through export is heavily depend on the forecasted demand of the hotel keepers  Main factors which determines the retail price are population density and the religion

Acknowledgements  Department of animal production and health for funding the project  Director VRI all the staff and research monitoring committee  Provincial councils, Milco, Nestle, NLDB for their invaluable support in various aspects

For further information, please contact; Director Veterinary Research Veterinary Research Institute, Gannoruwa, Peradeniya.