layer production

1. POLUTRY MARKETINGPOLUTRY MARKETING
THROUGH INTEGRATIONTHROUGH INTEGRATION
M.G.NikamM.G.Nikam
RVD-12/16RVD-12/16

2. Poultry Production & MarketingPoultry Production & Marketing
Production
 Housing
 Feeding
 Management
 Health care
Marketing
 Equally important
 Different
marketing
channels
 Middle man role
 Integration

3. Integration
 Definition – Association between the
integrator and producer
 Component of integration
a. Integrator
b. Producer / farmer

4. Role of integratorRole of integrator
 Supply of all inputsSupply of all inputs
- Chicks, Feed, Medicines, Vaccines,- Chicks, Feed, Medicines, Vaccines,
Veterinary servicesVeterinary services
 Take back the end productsTake back the end products
–– live birds / eggslive birds / eggs
 The real owner of the birdsThe real owner of the birds

5. Role of producerRole of producer
 Must have shed, feeders, waterers andMust have shed, feeders, waterers and
other equipmentsother equipments
 Own electricity chargesOwn electricity charges
 Own labour chargesOwn labour charges
 Must follow the integrators instructionsMust follow the integrators instructions
 Get remuneration on take back of endGet remuneration on take back of end
productsproducts
 Contract growersContract growers

6. Types of integrationTypes of integration
IntegrationIntegration
VerticalVertical HorizontalHorizontal

7. VerticalVertical
BackwardBackward ForwardForward

8. Integration -BroilersIntegration -Broilers
 Integrator – Supply of all inputsIntegrator – Supply of all inputs
 Producer – Farm facilitiesProducer – Farm facilities

9. Remuneration to producerRemuneration to producer
 Based on average body weight, FCRBased on average body weight, FCR
and livabilityand livability
 Some integrator -Some integrator -
Based on FCRBased on FCR
Rs.2.00 to 2.70/kg live weightRs.2.00 to 2.70/kg live weight

10.  Based on production costBased on production cost
Example:Example:
Production cost (PC) : Rs.30.00/kgProduction cost (PC) : Rs.30.00/kg
Farmers remuneration : Rs. 2.50/kgFarmers remuneration : Rs. 2.50/kg
One rupee less than PC : Rs. 2.70/kgOne rupee less than PC : Rs. 2.70/kg
One rupee more than PC: Rs. 2.30/kgOne rupee more than PC: Rs. 2.30/kg

11.  Based on European Economic Factor (EEF).Based on European Economic Factor (EEF).
Avg. L.Wt (kg) x Livability (%)Avg. L.Wt (kg) x Livability (%)
EEF= --------------------------------------= x 100EEF= --------------------------------------= x 100
FCR x Age of birds (days)FCR x Age of birds (days)

12. Pricing of broilersPricing of broilers
 BCC and individual recommendationBCC and individual recommendation
 Farm gate rate (A) – Supply andFarm gate rate (A) – Supply and
demanddemand
 Whole sale rate – A + Rs.8-9/kg liveWhole sale rate – A + Rs.8-9/kg live
weight (B)weight (B)
 Meat sales (minimum rate)Meat sales (minimum rate)
Dressed with skin – B + 50% of BDressed with skin – B + 50% of B
Dressed without skin – B + 60% of BDressed without skin – B + 60% of B

13. Integration - LayersIntegration - Layers
 Recently introducedRecently introduced
 Similar to broiler integration except typeSimilar to broiler integration except type
of input and output.of input and output.
 Two type of integrationTwo type of integration
Grower integrationGrower integration
Layer integrationLayer integration

14. Grower integrationGrower integration
 Day- old layer chicksDay- old layer chicks
 All inputsAll inputs
 Reared upto 15 weeks of ageReared upto 15 weeks of age
 Take back of growersTake back of growers
 Remuneration – Rs.0.40 toRemuneration – Rs.0.40 to
0.50/bird/week for the available birds0.50/bird/week for the available birds

15. Layer integrationLayer integration
 Starts at the age of 15-18 weeksStarts at the age of 15-18 weeks
 Remuneration based on HHEPRemuneration based on HHEP
 Minimum of 6-7 paise / eggMinimum of 6-7 paise / egg
 If egg price is more than Rs. 1.50,If egg price is more than Rs. 1.50,
additional incentives will be givenadditional incentives will be given
 6-8% of standard mortality will be6-8% of standard mortality will be
allowedallowed

16. Integration – J.quailIntegration – J.quail
 Similar to broilerSimilar to broiler
 Rate is per bird basis and not on liveRate is per bird basis and not on live
weight basisweight basis
 Average body weight is 180-200 g at 28Average body weight is 180-200 g at 28
-30 days of age-30 days of age
 Remuneration – Rs.1.25 to 1.50 / birdRemuneration – Rs.1.25 to 1.50 / bird

17. Integration – Desi fowlIntegration – Desi fowl
 Back yard system of rearingBack yard system of rearing
 Commercial farming – intensive systemCommercial farming – intensive system
 Similar to broilerSimilar to broiler
 Remuneration – Rs.5.50 to 7.00/ kg liveRemuneration – Rs.5.50 to 7.00/ kg live
weight after 90-100 days of rearingweight after 90-100 days of rearing

19. Integration - Emu
 Chicks sales – 1, 2 and 3 months of age
at the rate of Rs. 4000 to 8000 per bird
 All inputs like that of broiler
 After 15 months, Rs.12,000/- paid to
farmer

20.  Selling at 15 months – Rs.15,000/ bird
 Take back of egg @ Rs.1000 to 1200 /
egg or
 Live bird @ Rs.300-350/kg live weight
 All inputs by the farmer

21. Advantages to integratorsAdvantages to integrators
 Assured of returnsAssured of returns
 Can have controlCan have control
 Owner of the productsOwner of the products

22. Advantages to farmersAdvantages to farmers
 No huge investmentsNo huge investments
 Assured remunerationAssured remuneration
 Need not worry marketNeed not worry market
 Need not bother about health careNeed not bother about health care

23. Impact on industryImpact on industry
 Rearing in even remote villagesRearing in even remote villages
 Improved socio-economic statusImproved socio-economic status
 Better promotionBetter promotion
 Processing of productsProcessing of products
 Value additionValue addition
 Few people can control the industryFew people can control the industry

24. ConclusionsConclusions
 Better marketing approachBetter marketing approach
 Monopoly of few integratorsMonopoly of few integrators

25. THANKS