1. Project Proposal - 2010 Mr. R. M. Chandrasena Mr. D. V. S. De S. Gamage

2. Project Identity Project title : Study on Market margin in Different Livestock Products in the Sri Lanka. Study on Market margin in Different Livestock Products in the Sri Lanka. Name and Address of submitting institution : Division of Farming Systems, Economics. Division of Farming Systems, Economics. Location where the project is to be conducted: Island Wide. Island Wide.

3. Scientific Background of the Project and it’s justification Total agriculture sector contributes 11.9% to the GDP (CB 2007), This amounts to Rs. 418353.0 million Even though there is a high demand for livestock products during the past two decades its contribution to the GDP is only 1.2% The annual growth rate in agriculture is about 2.2% - 2.5%.

4. Scientific Background of the Project and it’s justification The poultry is the only sector that is closer to this growth rate, but dairy sector is enjoying less than 1% growth during the past two decades, whereas, goat and swine is stagnant. Low market margins may have contributed to this situation

5. Livestock Statistics 20062007 National Cattle Population(m) 1.51.5 Neat Cattle(m) 1.21.2 Buffalo(m)0.30.3 Milk Production(Milk-L) 196.6202.00 Milk Products(m/l) 8.612.1 Cop Milk Rs/L 21.0021.00 National Egg Production(M) 901.2915.6 National Chicken Production(MT) 78.8100.1 Beef(MT)1275512593 Mutton(MT)355368 Pork(MT)7541115

6.  M arket Margin is defined as the price difference of the product between the price paid by consumer and received by producer. Market Margin = Consumer price – Producer price  I n the livestock products market margin is an important issue and directly related to the income for farmers producing livestock products especially at the small scale farming.

7. Objective The aim of the study is to determine cost of livestock product produced by the livestock farmers and to estimate market margin in different livestock products. Also study is expected to provide meaningful parameters that would be of valuable use for the policy makers.

8. Materials and Methods Data will be collection from Data will be collection from - Producer - Producer - Consumers - Consumers - Retailers - Retailers - Middlemen - Middlemen - Whole Seller - Whole Seller - Agent - Agent - Collector - Collector by using a face-to-face questionnaire each person will be select based on random sampling method. The size of the sample is determine availability of the resources. by using a face-to-face questionnaire each person will be select based on random sampling method. The size of the sample is determine availability of the resources. Project Duration - 24 Months Stud - Market margin analysis Location - Island wide Sampling - Random Sampling Method Data Collection - Informal and formal method Data Analysis - Statistical Package for social science Proposal data of commencement of project } 2010.01.01 Proposal data of commencement of project } 2010.01.01

9. Outline of proposed activities in subsequent years (indicate annually) (Year 2010) Selection of the study area Identification of Target group Producer Producer Consumer Consumer Retailer Retailer Middleman Middleman Whole Seller Whole Seller Agent Agent Collector Collector Degree of value addition TransportationStorage Brand promotion etc..

10. Data Collection Secondary Data Collection Informer discussion with key personal Development of questionnaire Pre testing questionnaire Training of enumerators Survey

11. Expected output of the project The aim of the study is to determine cost of livestock product produced by the livestock farmers and to estimate market margin in different livestock products. Also study is expected to provide meaningful parameters that would be of valuable use for the policy makers.

12. Technology transfer Give proposals for technology/information communication of project results to scientists, extension workers and other stakeholders : Indicate possible adaptive research need. Research findings will be published in journals. Research output will also be published in Veterinary Research News, which is a bulletin available for farmers as well as for extension workers in Sri Lanka.

13. Expected budget for the Project 1(a) Salaries and Wages Staff Category Working Time % Estimate Project cost (Rs) Principle Investigator 60239436.00 Co-Scientist 1 20108000.00 1(b) required equipment – Nil

14. Year 2010 1(c) Expendable Supplies Item Estimated Project cost Stationary15000.00 Total15000.00 1(d) Travel and Fuel requirementDescriptionDestination Through out the Mode of Transport Government vehicle Purpose visit Data collection Return distance km/trip 450 No of visit/year 30 Total (6000/= per trip) 180000.00

15. 1(e) other cost Item Estimate Project cost Technical Assistant 1 120000.00 120000.00 Other10000.00 1(f) Total Estimated project cost Rs. 325000.00

16. Year 2011 1(c) Expendable Supplies Item Estimated Project cost Stationary15000.00 Total15000.00 1(d) Travel and Fuel requirementDescriptionDestination Through out the Mode of Transport Government vehicle Purpose visit Data collection Return distance km/trip 450 No of visit/year 20 Total (6000/= per trip) 120000.00

17. 1(e) other cost Item Estimate Project cost Technical Assistant 1 120000.00 120000.00 Other10000.00 1(f) Total Estimated project cost Rs. 265000.00

18. Budget summary Year 1 (Rs.) Year 2 (Rs.) Salary120000.00120000.00 Stationary15000.0015000.00 Travel & Fuel 180000.00120000.00 Other Costs 10,000.0010000.00 Total325000.00265000.00 Total Estimated Project Cost Rs. 590000.00