Business Opportunities in Agriculture: 150 Field Interviews (Book)

Middlemen make a killing at the cost of farmers

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editorialteam

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The poultry industry in this part of the world is in the process of taking shape. The consumption is huge and the growth is upbeat. Though still unorganized, if tackled timely and effectively and given an appropriate course can figure as the corner stone of the economy and a founding of a vibrant and versatile industry.

At the moment, the sector is being dominated by the commercial broiler farms being established in every nook and corner of the Valley. About 4500 in number, these farms are responsible for rearing of 300 lakh viable broilers per year. Another 150 lakh broilers and culls are being imported from outside the State. The overwhelmingly non-vegetarian eating habits of the Valley dwellers contribute towards the using up of more than one lakh birds on daily basis.

Under the present system, a poultry entrepreneur puts in lots of efforts in rearing of the stocks as per the technical norms. The maintenance of proper space, temperature, ventilation, biosecurity, medication and vaccination is being undertaken appropriately besides feeding and provision of ample potable water for the birds. A close rapport is being maintained with the experts of the Animal Husbandry Department for tackling any eventuality of a disease outbreak. When the stocks attain the marketable weight, the real ordeal of the entrepreneur begins.

Although the imports of the commercial broiler stocks are dwindling, the impact on the local market is huge. The poultry dealers who act as middlemen between the farmers and the retailers spoil the whole broth. Their greed to earn more bucks in a short time prefer outside poultry stocks than the local ones. Reason being that the stocks transported from outside are under starvation during transshipment and as soon as unloaded into their godowns are fed heavily for the quick weight gains as these starved birds eat full. The consumer gets cheated when the retailer weighs the bird on the weighing scale and pays unknowingly for the feed in the crop at the rate of the live bird.

Sometimes there arises a situation when the dealer has to lift the birds from the local farmers and the trading between the two parties shall throw sufficient light on the exploitation by the middlemen. While negotiating the rates, the dealer offers at least Rs. 5 per kilo gram of live broiler less than the rates at which he can get the same commodity from the dealer importing from outside the State. Another condition is being put around by the dealer that the birds shall be lifted in the morning only if kept off-feed and off-water overnight. While weighing the consignment, still a deduction of 1 per cent in the total weight is being made on the pretext of weight loss.

Interestingly, the poultry farmer does not get cash for its produce but is presented a post-dated cheque having a minimum of 15 to 20 days for its encashment in contrast to the cash transaction with the outside dealer. As soon as the consignment is collected from the farm, it is delivered to the retailers on the same average weight. The dealer and the retailer have nothing at stake and still take the lion’s share while as the poultry entrepreneur has everything at stake and only gets peanuts, that too when the rate is favorable and the stocks give their optimum production.

The middlemen make it sure to grab maximum benefit from the trade at the cost of the poor farmer and the consumer. To make it more obscure, the Department of Consumer Affairs and Public Distribution System, Jammu and Kashmir fixes the rates of the poultry and poultry products on the basis of the mandi rates prevalent at the time in Delhi and Punjab which puts another back-breaking burden on the farmer and the middlemen enjoy the swag. The state of affairs is flattering for the middleman and the retailer while as for the poultry entrepreneur and the consumer, it is very much inauspicious.

Having dealt with in detail the obstacles confronting the poultry development in the Valley, it is justifiable to present here the solutions to the predicament:

1. An extensive awareness campaign by the Animal Husbandry Department for educating the farmers about the setting up of their own retail sales outlets where about 20 per cent of their produce can be marketed directly.

2. To facilitate the sustenance of the poultry industry in the Valley, the experts of the Animal Husbandry Department need to be empowered for fixing the whole sale and retail prices of the live and the dressed poultry as per the production cost.

3. Hygienically dressed and chilled poultry meat needs to be popularized among the masses by launching an awareness campaign involving the health experts and religious scholars.

4. The dependence on imports of poultry and poultry based inputs has to be reduced by commencing the establishment of Breeding Farms, Hatcheries and Feed Manufacturing Plants in the private sector. Animal Husbandry Department has to act as a facilitator and assist in dissemination of related information to the prospective entrepreneurs.

5. Establishment of Poultry Mandis on the analogy of Fruit Mandis at every District Headquarter where the farmers and retailers shall be handling the market directly.

The suggestions put forward shall pave way for the employment generation in the poultry sector, for which the present set up in the Government is too intense, and shall have long bearing significance in the establishment of an organized industry for the benefit of all the stakeholders.

Author - Dr. S M Altaf Gilani, is a Veterinarian working with Animal Husbandry Department.

Readers can share their views and comments on the article. If they have any question for Dr. Gilani please post it here. It will be answered by Dr. Gilani.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Post harvest Management of the Agriculture produces:-

There are “P’ of agriculture Production, Post harvest, Processing, Packaging. To deliver the agriculture produce to end customer one must be focused on these P, Profit can be only generated if the complete channel is accurate, without any deviation. These P are the complete requirement of a agriculture producer.

The govt scheme run through the subsidy, the subsidy is enjoyed by the Policy implementing body and the supplier Company.

These middleman are service provider... IF some one can handle the task up to the final product , he will enjoy all the benefit. Middle man work at very risk... because he is bounded at both end.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

garaty

New Member
Dear Dr. Gilani,
I am in agreement with you on this topic. Further, your suggestions to the farmers to have their own outlet makes sense but the real-estate cost makes it nonviable in today's scenario where the rentals and deposits for a place are sky rocketing. I believe the farm gate rates should be announced logically keeping in mind the input/ production cost to the farmer. More so educating consumers on frozen poultry is very important as frozen poultry is hygienic, cost effective and has better shelf life too.
Middle east, Malaysia, Singapore and many other Asian countries are consuming frozen chicken. There seems to be a myth in our country that fresh chicken only tastes good. In my opinion frozen chicken has no difference in taste if de-freezing is done in the right manner and the other advantages being hygienic, more chicken for the same price, control over spread of microorganisms.
Thanks & Regards,
Anant Garaty,
Consultant Bio-security.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)


Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
Dear Dr. Gilani,

What can be done to stop this exploitation of poultry farmers?

Regards,
Shweta
1. Poultry farmers need to set up their own retail sales outlets so that 20 per cent of their produce can be marketed directly. These retail outlets should be established on scientific lines and both live and dressed birds should be made available.
2. The retail rates for the poultry are being decided by the Consumer Affairs and Public Distribution Department on the mandi rates prevalent in Punjab and Delhi. Actually it should be fixed by the experts of the Animal Husbandry Department on the basis of production cost.
3. Poultry being sold in the wet market should be discouraged and it should be processed so that the farmers get the remunerative prices for their produce.

As told by -
Dr. Gilani
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
Dear Mr. Gilani,

How do you think these inputs can be put into practice? Do you feel poultry farmers are resisting themselves to take these actions? Why?

Regards,
Shweta
 
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Business Opportunities in Agriculture: 150 Field Interviews (Book)

Dear Dr Geelani and Shweta,

Every one is specialized in his field. The farmer who produce the material at his poultry farm in Kupwara (Kashmir). He can not be a seller in Shrinagar or New Delhi. His major task is production we must enhance his skill to produce quality and quantity, we should not try to divert his mind toward the selling. he must be paid for his production The next thing is processing and storage, Govt must develop the efficient infrastructure for the same.

There is geographical distance between production place and market. If some where there is production facility , all the material can be consumed in the production area. There must be two clear rout one production route and another supply rout. The producer just produce the material and the production reach to the storage hub or processing hub.

The must be three clear process for agriculture production.

Production.
Storage and Processing.
Marketing.

We have to develop all three process. We have to make them specialize in their particular field. Instead of mixing all these three , The grower will get more benefit in his specialization.

The rate must be decided on the basis of production cost. While going for more professional we can reduce the operating cost, the farmer and costumer both will benefit from it.

The simple equation is that running a 500 liter refrigerator will cheaper than running 5 refrigerator of 100 liter each.

The Co-operative Model of AMUL is best example of the same.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
Dear Mr. Gilani,

How do you think these inputs can be put into practice? Do you poultry farmers are resisting them to take these actions? Why?

Regards,
Shweta
No it is very easy to put these suggestions into action. Only thing needed is to create awareness among the farmer community. I am getting a very good response for the same. Yes, there will be resistance from the broker community ONLY.

As told by-
Dr. Altaf Gilani
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

There are two things one removal of broker and second development of efficiency and distributing the return to the grower.

By removal of broker you can get efficiency and good return, yes by developing the infrastructure you can make them to keep them self away from channel.

I am not saying that the making the grower into seller cant not be successful. It can be successful but can it be successful on large level, It is ok for a village or town level can a small grower from village of kashmir can sell out his produce in Kerala .

The simple answer "No".

To get the return we will have to work out on cost minimization , that can be only possible while playing with number and quantity. The efficiency of your affords will be maximum while going with bulk quantity.

I am not talking about small scale. The farmer will get more return if he give the cooked chicken. Some time there is also demand of live birds. These are not the question in big game.

If we want to give good return to the farmer then we will have to work out on cost minimization and production efficiency.

I am not saying that Dr Geelani is wrong , He is saying what he has experienced or got the result.

My concern is making them player, the same what China vegetable is playing in Indian market. They are earning after exporting and selling the material at retail in India cheaper than our production.

IF we will develop such type of system. The broker will no where sustain in the channel. He will be forced himself to move out.
 
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Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
Dear Mr. Prajapat,

What ever you have mentioned is correct infact a farmer loves farming and gets utmost satisfaction in growing/producing varied items in his farm. However, these days he is forced to put his hands in marketing too because he is not able to get the 'appropriate' returns of the hard work he puts in for producing high quality stuff.

When we as end user expect quality for the produce then it is natural for a farmer to expect right returns for his hard work. May be this is the way farmers would be able to grow and prosper, which anyway is good if he can manage it along with production.

In addition, the solution you suggest might be practical but finally it has to be practiced by the farmers themselves.

Regards,
Shweta
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

altafgilani

New Member
Dear Mr. Prajapat,

What ever you have mentioned is correct infact a farmer loves farming and gets utmost satisfaction in growing/producing varied items in his farm. However, these days he is forced to put his hands in marketing too because he is not able to get the 'appropriate' returns of the hard work he puts in for producing high quality stuff.

When we as end user expect quality for the produce then it is natural for a farmer to expect right returns for his hard work. May be this is the way farmers would be able to grow and prosper, which anyway is good if he can manage it along with production.

In addition, the solution you suggest might be practical but finally it has to be practiced by the farmers themselves.

Regards,
Shweta
Dear Mr. Prajapat,
How would it feel that a merchandise being sold at the farm level at Rs. 60/ per kg encountering a loss of Rs. 10 per kg and reaching to the consumer at Rs. 80/ per kg, middlemen earning a profit of Rs. 20/ per kg. Is it not an exploitation? How to put an end to it? Workable suggestions put up in the article.

Thanks and regards
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Dear Shweta,

In poultry there are three things. Rearing the birds, transportation & storage, slaughter them & make the meat available for customer.

Rearing the birds: - One of the critical task in the world. There is huge unexpected loss to farmer; the poultry need 24 hour take care. If there is outcome of disease in the morning you will find that all the birds are dead. They need extra hygienic condition to survive, time to time vaccination and medicines. In some cases diseased bird are sold in the market. The growers still need a lot of training on bird rearing. Selling bird is another task and selling a healthy bird is different task. The grower can’t examine the disease at his poultry, might be some time he can supply the diseased bird. The human consume infected meat, which may lead to another disease in human. If the grower starts slaughter bird at poultry farm that may lead to infection of disease in another birds. In the rearing of bird there must be major concern.

1. Rearing of healthy birds.
2. Minimization of death of birds.
3. Marginal increase in weight of bird with growing rate on per unit increase in feed.


No middle men are involved up to this process. The farmers face a huge loss in rearing of birds, due to outbreak of disease. Increase in weight of birds with decreasing marginal rate. In this process profitability matters than quantity......
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Dear Shweta,

In poultry there are three things. Rearing the birds, transportation & storage, slaughter them & make the meat available for customer.

Rearing the birds: - One of the critical task in the world. There is huge unexpected loss to farmer; the poultry need 24 hour take care. If there is outcome of disease in the morning you will find that all the birds are dead. They need extra hygienic condition to survive, time to time vaccination and medicines. In some cases diseased bird are sold in the market. The growers still need a lot of training on bird rearing. Selling bird is another task and selling a healthy bird is different task. The grower can’t examine the disease at his poultry, might be some time he can supply the diseased bird. The human consume infected meat, which may lead to another disease in human. If the grower starts slaughter bird at poultry farm that may lead to infection of disease in another birds. In the rearing of bird there must be major concern.

1. Rearing of healthy birds.
2. Minimization of death of birds.
3. Marginal increase in weight of bird with growing rate on per unit increase in feed.


No middle men are involved up to this process. The farmers face a huge loss in rearing of birds, due to outbreak of disease. Increase in weight of birds with decreasing marginal rate. In this process profitability matters than quantity......
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Dear Dr. A. Geelani.

There are two type of Solution.

Local Solution or Farmer Level Solution:-

The Farmer who rear the bird can make a Self Help Group. They can do some research and find out the actual buyer and contact them negotiate the rate. Defiantly the real buyer will get the birds cheaper and the grower will get return more than what he was getting from middleman

Now the can form a group minimum 14 growers these grower can make time schedule of weakly duty of the members. Every day two farmer can engage in the task.

Now these grower should hire a vehicle and start delivery /trading in local market. Next day another farmers. If really middleman are making loss then these farmer group will get benefit.

This group should open an account with bank. The bank can finance other facilities also. They can have their vehicle. This is basic model of co-operative. This is a small start but solid start....
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Co-operative Poultry Model.: .......

This model is bit advance than the last one. In this model there is central Poultry farm that is used for rearing small chicks up to five-six days. All the vaccination are done then these birds are sifted to the farmer as per their capacity this model can also include the small farmers. The farmers take care of these birds. When these birds are ready to sell then they are again shifted to the main or central poultry farm. The birds are sold out after two- three days.

This model is suitable for small farmers. Where they can affords the feed of large quantity birds. This is best for rural women they can take care just 10-15 birds. The medicine facility can be arranged at the central poultry farm. A team of visiting staff can do the vaccination at farmer house level.

Either the bird can sell out, or the birds can be dressed at a particular location. The meat can be transferred to the selling point.

The profit can be shared with in the members, in this model One can easily workout on centralized processing of the birds.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Latest Article of successful poultry from Rajasthan..In the following article on thing is clear if farmer/grower want to the game maker, he will have to play with quantity, to attract the buyer. Buyer is not a problem if you give good quality regular production on time. Please go through the article.




Poultry Farming Brings Prosperity to Rajasthan Dalit Village

An article from www.daijiworld.com Jaipur, Sep 7 (IANS):

Till five years ago, Kanchanpura was a just small village in Rajasthan's Bharatpur district. Today it is in the limelight for successful poultry farming that has emancipated its Dalit families economically.

Agriculture was not a viable occupation for people in the village, tucked away in the dusty and backward region of the Kumher Panchayat Samiti. Poultry farming has come to their rescue as a high income generating livelihood opportunity on an initiative of a public service institution, Lupin Human Welfare and Research Foundation.

Sita Ram Gupta, the Foundation's executive director, said that the village took full advantage of the hand-holding support extended by Lupin. Loans were arranged from the Small Industrial Development Bank of India for 10 youths, who constructed sheds and started work under the guidance of experts.

"In the first year itself, each youth started earning Rs.30,000 to Rs.40,000. They then increased the number of chicks to about 3,000, which gave them bigger profits," said Gupta.

He said the business being run in the village with about 40,000 chicks is attracting a large number of agents and businessmen from nearby Bharatpur, Agra and Mathura. And the Dalit families are today making good profits selling eggs and fowls throughout the year.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Kasmir is the natural cold storage India. I think the preservation cost will be very less in Kashmir. That will lead to more profit for the growers. Kashmiri must utilize this natural cold storage.
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
Dear Dr. Gilani,

What motivated you to write this thought provoking article 'Middlemen make a killing at the cost of farmers'?

Regards,
Shweta
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
The facts brought before the readers in the article are true in some parts of the country, but not always. I also feel that the farmers should be educated more on this.

Shares -
Mr. M. Srikanth, Managing Partner
Sai Krishna Poultry Equipments
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

editorialteam

New Member
Dear Mr. Prajapat,
How would it feel that a merchandise being sold at the farm level at Rs. 60/ per kg encountering a loss of Rs. 10 per kg and reaching to the consumer at Rs. 80/ per kg, middlemen earning a profit of Rs. 20/ per kg. Is it not an exploitation? How to put an end to it? Workable suggestions put up in the article.

Thanks and regards
Well, in my opinion, middlemen are essential for any large scale production unit. People should not try to criticize middlemen for making a profit as profit is everybody's motive. Loss occurs when there is excess supply. There are a few things the farmers can do to avoid losses. Farmers should get better organized and come out with a price declaration mechanism. They should have a production regulation mechanism also to avoid a glut like situation which has a catastrophic effect on prices. The other means which farmers should adopt is by trying and selling to consumers directly or through cooperatives.

As told by-
Mr. Balaji,
Chandrans Poultry Farm
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

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