Supply Chain Analysis of Poultry in Bangladesh

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Supply Chain Analysis of Poultryin Bangladesh
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Introduction Supply Chain for Commercial Poultry
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Introduction (contd.) Supply Chain for Backyard
Chickens
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Literature Review
No integrated supply chain analysis of
poultry. A few studies covered some particular
aspect of the chain in isolation. Some focused
on economic aspects (Rahman, Sorensen, Jensen,
and Dolberg, 1997 Newnham, 2000 Quasem, 2001
Dolberg, 2003 Islam, 2003) A few focused on the
epidemiological aspects (Sil, Das, Islam, and
Rahman, 2002 USAID-ATDP, 2005)
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Objectives of the Study

• In understanding the supply chain of poultry,
  this study examines
• Marketing channels and participants
• Costs, margins and profits associated with
  marketing and the process of price formation
• Possible channels through which poultry diseases
  spread and threaten bird and human lives.

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Methodological Approach

• Five regions were selected based on poultry
  population Chittagong, Comilla, Dhaka, Dinajpur
  and Jessore
• Quantitative techniques (interviews)
• (i) on households,
• (ii) beparis/farias,
• (iii) wholesalers agents,
• (iv) suburban retailers,
• (v) urban wholesalers,
• (vi) urban retailers of backyard chickens AND
• (vii) poultry feed firms,
• (viii) poultry hatcheries, (ix-x) broiler and
  layer farms, (xi-xiv) wholesalers and retailers
  of both broilers and eggs of commercial poultry

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Methodological Approach

• Qualitative information through
• focus group discussions (FGDs),
• key informant interviews (KIIs),
• and observations of the markets on the market
  chains
• BUT NOT the Commercial Production Process.

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Results Commercial Poultry I Feed Producers

• Ten feed mills surveyed 3 in Chittagong and 7 in
  Dhaka
• Cleaning practices in feed mills are not
  satisfactory
• A few feed mills have no designated area for
  loading of feed and unloading of input supplies
• Of those sites selected, 80 of the feed mills in
  Dhaka and 33 in Chittagong use different
  antibiotics in feed formulation. In addition, a
  significant of feed mills in Dhaka use enzymes
  and growth promoters

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Commercial Poultry II Hatcheries

• Six hatcheries surveyed 3 in Chittagong and 3 in
  Dhaka
• 33 of the hatcheries in Dhaka use antibiotics
• DOCs are susceptible to Ranikhet, Gumbro (IBD),
  loose motion, diarrhea, Coryza, Salmonella,
  Bronchitis, etc.
• 66 of the hatcheries throw un-hatched eggs, dead
  chicks into nearby pit

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Commercial Poultry III Broiler Farms

• 50 commercial broiler farms in Chittagong,
  Comilla, Dhaka, Dinajpur, and Jessore surveyed
• Hardly have any No Admittance sign posted
• 50 of the farms in Chittagong and Jessore and
  10 in Dinajpur are visited by migratory birds
• Have no designated area for loading or unloading

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Commercial Poultry IV Layer Farms

• 30 farms 10 in Dhaka and 5 each in Chittagong,
  Comilla, Dinajpur, and Jessore surveyed
• 50 of the layer farms do not have strong fencing
  around them
• Abuse of antibiotics
• Less than half of the layer farms in all regions
  have hand washing facility

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Marketing Chain of Commercial Poultry I Egg
Wholesalers

• 24 egg wholesalers 6 each in Dhaka and
  Chittagong and 4 each in Comilla, Dinajpur, and
  Jessore surveyed
• Eggs are transported mostly by vans or other
  means
• receive eggs daily and mix the unsold and newly
  arrived ones together
• Majority of the vehicles are not cleaned
  properly
• wash hands only before eating and after they
  return home

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Marketing Chain of Commercial Poultry II Egg
Retailers

• Total 26 egg retailers in five regions
• Transportation of eggs varies in different
  surveyed regions pickup vans, trucks and
  sometimes by hand
• Receive eggs daily and mix the unsold and newly
  arrived eggs together
• Regular cleaning of transport vehicles and crates
  is rare
• Very seldom a small percent uses masks and
  towels
• Frequency of using soap during hand washing is
  very low

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Marketing Chain of Commercial Poultry III
Broiler Wholesalers

• Total 20 broiler wholesalers in five regions
• Buy chickens from commercial broiler farms and
  sell them to urban broiler retailers
• Mix chickens that arrived in the shop on
  different days
• 20 of them bury the carcass and 5 sell them
• Refuse is sold to the fish farmers. Blood and
  other excreta are thrown into the drain or
  garbage bin

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Marketing Chain of Commercial Poultry IV Broiler
Retailers

• 44 broiler retailers12 in Dhaka and 8 each in
  Chittagong, Comilla, Jessore and Dinajpur
• Mostly Dhaka retailers clean cages/pens daily
• Sick chickens are sold to the customers
• 25 bury dead birds and 18 throw into the
  drains
• Half throw refuse into dustbin and the rest sell
  them
• Use of soap (disinfectant) is infrequent

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Marketing Chain of Backyard Poultry I Households

• 132 households in five regions
• 11 or fewer chickens and 5 or less ducks per
  household
• 20-50 households keep poultry in the house where
  they live
• female members of the family look after the
  poultry
• Give the carcass to the dogs or cats to devour

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Marketing Chain of Backyard Poultry II
Beparis/Farias

• 55 Beparis/Farias in five regions
• collect poultry from door to door and transport
  to the market either by rickshaw or rickshaw van
• 70 of the B/F are able to sell the dead birds to
  the customers
• A majority of the B/F are somehow convinced that
  AI is not risk for them

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Marketing Chain of Backyard Poultry IIIRural
Wholesalers/Agents

• 22 Rural Wholesalers/Agents in five regions
• Collect chickens from B/F or from rural assembly
  markets
• Chickens are kept in bamboo made cages in the
  shops
• Chickens are transported by vans, trucks or
  rickshaws
• No idea about the cleaning practice of vehicles
  as most of them use rented vehicles
• 41 throw dead chickens are thrown into the
  drains. It is not clear what is done with the
  rest

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Marketing Chain of Backyard Poultry IV Suburban
Retailers

• 55 Suburban retailers in five regions
• Receive their supplies usually through rickshaws
  or rickshaw vans or by hands
• No idea on cleaning as mostly they use hired
  vehicles
• Very seldom use mask as this would make customers
  suspicious
• Retailers in Dhaka are more serious than others
  in health and hygiene
• 70 slaughter sick or dead chickens and keep them
  for selling

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Marketing Chain of Backyard Poultry V Urban
Wholesalers

• 25 Urban wholesalers in five regions
• collect chickens from rural wholesalers/agents
  and sell them to urban retailers and sometimes
  directly to restaurants
• Daily cleaning of the market areas
• 40 clean cages or pens daily
• 85 sell sick chickens to the retailers

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Marketing Chain of Backyard Poultry VI Urban
Retailers

• 110 Urban retailers in five regions
• Most of them are medium or small
• Keep the birds in their shops for a day or two in
  bamboo made cages
• Mostly transported by rickshaws or rickshaw vans
• Cages or pens are cleaned infrequently even 15
  in Chittagong think that it is not necessary
• Less than half reported cleaning of vehicles
• More than 80 sell sick chickens

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Interlocking structures throughout Bangladesh
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Costs and Returns of Poultry

• Poultry farming is a highly profitable activity.
• Owners of hatcheries, broiler and layer farms
  invest between 1 and 12 million taka and earn
  rate of returns close to and sometimes over 100
  per cent.
• At the backyard level an average poor household
  can earn 10 times of the initial investment.
• Viewed from the size of the investment,
  commercial poultry farming does not appear to be
  pro-poor.
• In contrast, backyard poultry needs hardly any
  financial capital and hence can make dent to
  poverty alleviation.

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Policy Recommendations

• Bio-security needs to be improved
• Personnel involved in poultry operations should
  follow the standard hygiene practices
• Use of uncovered vans should be restricted and
  transport vehicles should be routinely
  disinfected
• Use of antibiotics, enzymes and growth promoters
  has to be monitored
• Need for diagnostic facilities at in different
  regions

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