Assignment

on
Agricultural produce marketing

Topics: Marketing for Poultry and Egg

Submitted By: Submitted To:

Group Number:04 Name: Mst. Anjuman Ara

Department of Marketing Designation: Assistant professor
University of Rajshahi Department of marketing,

University of Rajshahi

Submission Date: 08/09/2020

 GROUP NUMBER:04
Course Name: Agricultural Produce Marketing
Assignment On: Marketing for Poultry and Egg
Group member list:
No. Student Name Student ID

01. MD. Hasanuzzaman Polash 1811135166

02. Sanjida Islam Nuhash 1812335169

03. Mehrab Hossain 1810835170

04. Saurav Kumar Biswas 1810935171

05. Shakil Hossain 1811035172

06. MD. Nazmul Hossain 1810935175

07. MD. Tanvir Hossain 1810135176

08. Barhadul Alam 1811035178

09. Samapti Khatun 1812435179

10. Musharaf Hossain 1810535180

11. Siam Sarkar Shad 1811135182

12. MD. Sabbir Islam 1810435184

Question No:01 Overview of poultry and egg farm.
Poultry farming is the form of animal husbandry which raises domesticated birds such as
chickens, ducks, turkeys and geese to produce meat or eggs for food. It has originated from the
agricultural era. Poultry – mostly chickens – are farmed in great numbers. More than 60 billion
chickens are killed for consumption annually.Chickens raised for eggs are known as layers, while
chickens raised for meat are called broilers.

Poultry farming in Bangladesh is the process of keeping different types of birds for meat, egg,
feather or sale. In Bangladesh, poultry birds are widely used for meat and egg.There Is A Lot
Poultry Feed Companies in Bangladesh.Among Them "Nourish" "Chhuya Agro Products Limited"
"Provita" Are The Leading Ones.

Poultry farming business has plenty of benefits. Therefore, many farmers prefer to invest in this
business. People generally establish poultry farm for the purpose of producing eggs, meat and
generating high revenue from these products. Around, billions of chickens are raised
throughout the world as a good source of food from their eggs and meat.

Marketing process of various types of poultry products is very easy as they have a huge demand
globally. So you don't have to worry about marketing your products. You can easily sell your
farm products in your nearest local market or big supermarkets.

Poultry is a commercial business which helps people to maintain the economy. In the
agricultural production, poultry production is a prime case, which vertically integrates. This
industry has two splits and these are, ‘poultry meat production and egg production.’ The
coatings give us eggs and from broilers, we can get meat. In fact, the poultry business is praise
able and beneficial activity and one may advance this business by reading these notes.
Question No: 02 Features of Poultry and Egg.

Poultry farming is the form of animal husbandry which raises domesticated birds such as
chickens, ducks, turkeys and geese to produce meat or eggs for food. It has originated from the
agricultural era. Poultry, mostly chickens are farmed in great numbers.

For good production of poultry birds, good management practises are important, such as
maintenance of temperature & hygienic conditions in the shelter, sufficient feed and as well as
prevention and control of diseases/pests.

Physical Characteristics of poultry -

Height of bantam hen –

15cm, large fowl –
Size: 70cm

Bantam hen 500g,

Large Sussex male
Weight: 4.1kg

Bantam 20g, large fowl

Weight at hatch: 35 – 40g

Incubation period: 19 – 21 days

Range of breeding ages:
Bantams: 6 months to
approximately 4 years,
for large fowls 9 –12
months to
approximately 4 years.
For large fowls
breeding may extend
till death, however,
they are not usually
used for this extent of
time.
 Body temperature: 40
– 42°C Heart rate: 180
Healthy characteristics: – 340 beats per minute

Features of Eggs:

Poultry eggs – which are important for embryo development – are also one of the major nutrient
sources for humans. Egg albumen is the main part of the egg (representing about 60%), and
consists of water (88%), proteins (11%), minerals and carbohydrates (1%). The various proteins
in egg albumen are responsible for the foaming, emulsifying, and gelling properties which have
led to the many applications of egg albumen in food processing and human medicine.

Difference in the protein composition of egg albumen can lead to varied nutritional values in the
eggs of different poultry species. Egg albumen is considered as one of the most balanced amino
acid sources for humans.

The egg quality traits between different species differed significantly, for example:

- egg weight (from 11 to 139 grammes),

- egg shape (from 1.28 to 1.44),

- proportion of yolk (from 19.3 to 37.9%), and

- breaking strength (from 0.91 to 8.04 kg/cm²)

There was a close similarity of amino acid composition between duck and goose albumen, and
between chicken, quail and turkey albumen.
Question No:03 Production Procedures.

Poultry Farming:
Poultry farming is the form of animal husbandry which raises domesticated birds such as
chickens, ducks, turkeys and geese to produce meat or eggs for food. It has originated from the
agricultural era. Poultry – mostly chickens – are farmed in great numbers. More than 60 billion
chickens are killed for consumption annually. Chickens raised for eggs are known as layers,
while chickens raised for meat are called broilers.

Production Procedures of Layer :

Commercial hens usually begin laying eggs at 16–21 weeks of age, although production
gradually declines soon after from approximately 25 weeks of age.This means that in many
countries, by approximately 72 weeks of age, flocks are considered economically unviable and
are slaughtered after approximately 12 months of egg production,[9] although chickens will
naturally live for 6 or more years. In some countries, hens are forced moulted to re-invigorate
egg-laying.

Environmental conditions are often automatically controlled in egg-laying systems. For

example, the duration of the light phase is initially increased to prompt the beginning of egg-
laying at 16–20 weeks of age and then mimics summer day length which stimulates the hens to
continue laying eggs all year round; normally, egg production occurs only in the warmer
months. Some commercial breeds of hen can produce over 300 eggs a year.

Free-range Farming:
Free-range poultry farming allows chickens to roam freely for a period of the day, although they
are usually confined in sheds at night to protect them from predators or kept indoors if the
weather is particularly bad.The RSPCA "Welfare standards for laying hens and pullets" indicates
that the stocking rate must not exceed 1,000 birds per hectare (10 m2 per hen) of range
available and a minimum area of overhead shade/shelter of 8 m2 per 1,000 hens must be
provided.
Free-range farming of egg-laying hens is increasing its share of the market. Suitable land
requires adequate drainage to minimise worms and coccidial oocysts, suitable protection from
prevailing winds, good ventilation, access and protection from predators. Excess heat, cold or
damp can have a harmful effect on the animals and their productivity. Free range farmers have
less control than farmers using cages in what food their chickens eat, which can lead to
unreliable productivity, though supplementary feeding reduces this uncertainty. In some farms,
the manure from free range poultry can be used to benefit crops.

The benefits of free range poultry farming for laying hens include opportunities for natural
behaviours such as pecking, scratching, foraging and exercise outdoors.

Both intensive and free-range farming have animal welfare concerns. Cannibalism, feather
pecking and vent pecking can be common, prompting some farmers to use beak trimming as a
preventative measure, although reducing stocking rates would eliminate these
problems.Diseases can be common and the animals are vulnerable to predators.Barn systems
have been found to have the worst bird welfare.

Free-run Farming:
Instead of keeping them in cages, free-run laying hens roam freely within an enclosed barn. This
type of housing also provides enrichment for the hens, including nesting boxes and perches
that are often located along the floor of the barn. Many believe that this type of housing is
better for the bird than any caging system, but it has its disadvantages, too. Due to the increase
in activity of the birds, dust levels tend to elevate and the air quality decreases. When air
quality drops, so does production as this compromises the health and welfare of both birds and
their caretakers.
Organic Farming:

In organic egg-laying systems, chickens are also free-range. Organic systems are based upon
restrictions on the routine use of synthetic yolk colourants, in-feed or in-water medications,
other food additives and synthetic amino acids, and a lower stocking density and smaller group
sizes.The Soil Association standards used to certify organic flocks in the UK, indicate a maximum
outdoors stocking density of 1,000 birds per hectare and a maximum of 2,000 hens in each
poultry house.

Yarding Farming:
While often confused with free range farming, yarding is actually a separate method by which a
hutch and fenced-off area outside are combined when farming poultry. The distinction is that
free-range poultry are either totally unfenced, or the fence is so distant that it has little
influence on their freedom of movement.The birds are released daily from hutches or coops.
The hens usually lay eggs either on the floor of the coop or in baskets if provided by the farmer.
This husbandry technique can be complicated if used with roosters, mostly because of their
aggressive behavior.

Battery cage Farming:

The majority of hens in many countries are housed in battery cages. Farmers must move
towards enriched housing or use a cage-free system. These are small cages, usually made of
metal in modern systems, housing 3 to 8 hens. The walls are made of either solid metal or
mesh, and the floor is sloped wire mesh to allow the feces to drop through and eggs to roll onto
an egg-collecting conveyor belt. Water is usually provided by overhead nipple systems, and
food in a trough along the front of the cage replenished at regular intervals by a mechanical
system.

Battery cages are arranged in long rows as multiple tiers, often with cages back-to-back. Within
a single barn, there may be several floors containing battery cages meaning that a single shed
may contain many tens of thousands of hens. Light intensity is often kept low (e.g. 10 lux) to
reduce feather pecking and vent pecking. Benefits of battery cages include easier care for the
birds, floor-laid eggs (which are expensive to collect) are eliminated, eggs are cleaner, capture
at the end of lay is expedited, generally less feed is required to produce eggs, broodiness is
eliminated, more hens may be housed in a given house floor space, internal parasites are more
easily treated, and labor requirements are generally much reduced.

In farms using cages for egg production, there are more birds per unit area; this allows for
greater productivity and lower food costs. Floor space ranges upwards from 300 cm2 per hen.
Animal welfare scientists have been critical of battery cages because they do not provide hens
with sufficient space to stand, walk, flap their wings, perch, or make a nest, and it is widely
considered that hens suffer through boredom and frustration through being unable to perform
these behaviours.This can lead to a wide range of abnormal behaviours, some of which are
injurious to the hens or their cage mates.

Furnished cage Farming:

Furnished cages, sometimes called 'enriched' or 'modified' cages, are cages for egg-laying hens
which have been designed to allow the hens to perform their "natural behaviors" whilst
retaining their economic and husbandry advantages, and also provide some of the welfare
advantages of non-cage systems. Many design features of furnished cages have been
incorporated because research in animal welfare science has shown them to be of benefit to
the hens. In the UK, the Defra "Code for the Welfare of Laying Hens" states furnished cages
should provide at least 750 cm2 of cage area per hen, 600 cm2 of which should be usable; the
height of the cage other than that above the usable area should be at least 20 cm at every point
and no cage should have a total area that is less than 2000 cm2. In addition, furnished cages
should provide a nest, litter such that pecking and scratching are possible, appropriate perches
allowing at least 15 cm per hen, a claw-shortening device, and a feed trough which may be used
without restriction providing 12 cm per hen. Furnished cages (Enriched) give the hens more
space than the conventional battery cages, so that each bird may spread their wings without
touching one another if desired. Enrichment such as nest boxes, perches, and dust baths are
also provided so that the birds may carry out their natural behaviors such as nesting, roosting,
and scratching as though they were outdoors.
Enrichment of laying hen cages ultimately results in better bone quality. This is a result of the
increased activity in the hens from the additional space and enrichment provided in the
furnished housing system.

Although the enriched housing system has its advantages such as reduced aggression towards
one another and cleaner eggs, modern egg laying breeds often suffer from osteoporosis which
results in the chicken's skeletal system being weakened. During egg production, large amounts
of calcium are transferred from bones to create egg-shells. Although dietary calcium levels are
adequate, absorption of dietary calcium is not always sufficient, given the intensity of
production, to fully replenish bone calcium. This can lead to increases in bone breakages,
particularly when the hens are being removed from cages at the end of laying. Osteoporosis
may be prevented by free range and cage-free housing systems, as they have shown to have a
beneficial impact on the skeletal system of the hens compared to those housed in caged
systems.

Countries such as Austria, Belgium or Germany are planning to ban furnished cages until 2025
additionally to the already banned conventional cages.

Production Procedures of Broiler:

Indoor Farming
Meat chickens, commonly called broilers, are floor-raised on litter such as wood shavings,
peanut shells, and rice hulls, indoors in climate-controlled housing. Under modern farming
methods, meat chickens reared indoors reach slaughter weight at 5 to 9 weeks of age, as they
have been selectively bred to do so. In the first week of a broiler's life, it can grow up to 300
percent of its body size. A nine-week-old broiler averages over 9 pounds in body weight. At nine
weeks, a hen will average around 7 pounds and a rooster will weigh around 12 pounds, having a
nine-pound average.

Broilers are not raised in cages. They are raised in large, open structures known as grow out
houses. A farmer receives the birds from the hatchery at one day old. A grow out consists of 5
to 9 weeks according to how big the kill plant wants the chickens to be. These houses are
equipped with mechanical systems to deliver feed and water to the birds. They have ventilation
systems and heaters that function as needed. The floor of the house is covered with bedding
material consisting of wood chips, rice hulls, or peanut shells. In some cases they can be grown
over dry litter or compost. Because dry bedding helps maintain flock health, most grow out
houses have enclosed watering systems which reduce spillage.

Keeping birds inside a house protects them from predators such as hawks and foxes. Some
houses are equipped with curtain walls, which can be rolled up in good weather to admit
natural light and fresh air. Most growout houses built in recent years feature “tunnel
ventilation,” in which a bank of fans draws fresh air through the house.

Traditionally, a flock of broilers consist of about 20,000 birds in a grow out house that measures
400/500 feet long and 40/50 feet wide, thus providing about eight-tenths of a square foot per
bird. More modern houses are often larger and contain more birds, but the floor space
allotment still meets the needs of the birds. The larger the bird is grown the fewer chickens are
put in each house, to give the bigger bird more space per square foot.

Chicken feed consists primarily of corn and soybean meal with the addition of essential
vitamins and minerals. No hormones or steroids are allowed in raising chickens.

Issues with indoor husbandry

In intensive broiler sheds, the air can become highly polluted with ammonia from the
droppings. In this case, a farmer must run more fans to bring in more clean fresh air. If not this
can damage the chickens' eyes and respiratory systems and can cause painful burns on their
legs (called hock burns) and blisters on their feet. Broilers bred for fast growth have a high rate
of leg deformities because the large breast muscles cause distortions of the developing legs and
pelvis, and the birds cannot support their increased body weight. In cases where the chickens
become crippled and can't walk farmers have to go in and pull them out. Because they cannot
move easily, the chickens are not able to adjust their environment to avoid heat, cold or dirt as
they would in natural conditions. The added weight and overcrowding also puts a strain on
their hearts and lungs and Ascites can develop. In the case of no ventilation due to power
failure during a heat wave, 20,000 chickens can die in a short period of time. In a good grow out
a farmer should sell between 92 and 96 percent of their flock. With a 1.80 to a 2.0 feed
conversion ratio. After the marketing of birds the farmer must clean out and prepare for
another flock. A farmer should average 4 to 5 grow outs a year.

Indoor with higher welfare

In a "higher welfare" system, chickens are kept indoors but with more space (around 14 to 16
birds per square metre).They have a richer environment for example with natural light or straw
bales that encourage foraging and perching. The chickens grow more slowly and live for up to
two weeks longer than intensively farmed birds. The benefits of higher welfare indoor systems
are the reduced growth rate, less crowding and more opportunities for natural behaviour.

Free-range Farming
Free-range broilers are reared under similar conditions to free-range egg-laying hens. The
breeds grow more slowly than those used for indoor rearing and usually reach slaughter weight
at approximately 8 weeks of age.The benefits of free-range poultry farming include
opportunities for natural behaviours such as pecking, scratching, foraging and exercise
outdoors. Because they grow slower and have opportunities for exercise, free-range broilers
often have better leg and heart health.
Organic Farming
Organic broiler chickens are reared under similar conditions to free-range broilers but with
restrictions on the routine use of in-feed or in-water medications, other food additives and
synthetic amino acids. The breeds used are slower growing, more traditional breeds and
typically reach slaughter weight at around 12 weeks of age.They have a larger space allowance
outside (at least 2 square metres and sometimes up to 10 square metres per bird).The Soil
Association standards indicate a maximum outdoors stocking density of 2,500 birds per hectare
and a maximum of 1,000 broilers per poultry house.

Challenges of Poultry Farming :

Antibiotics
Antibiotics have been used in poultry farming in mass quantities since 1951, when the Food and
Drug Administration (FDA) approved their use. Scientists had found that chickens fed an
antibiotic residue grew 50 percent faster than controls. The chickens laid more eggs and
experienced lower mortality and less illness. Upon this discovery, farmers transitioned from
expensive animal proteins to comparatively inexpensive antibiotics and B12. Chickens were
now reaching their market weight at a much faster rate and at a lower cost. With a growing
population and greater demand on the farmers, antibiotics appeared to be an ideal and cost-
effective way to increase the output of poultry. Since this discovery, antibiotics have been
routinely used in poultry production, but more recently have been the topic of debate
secondary to the fear of bacterial antibiotic resistance.

Arsenic
Poultry feed can include roxarsone or nitarsone, arsenical antimicrobial drugs that also
promote growth. Roxarsone was used as a broiler starter by about 70% of the broiler growers
between 1995 and 2000.The drugs have generated controversy because it contains arsenic,
which is highly toxic to humans. This arsenic could be transmitted through run-off from the
poultry yards. A 2004 study by the U.S. magazine Consumer Reports reported "no detectable
arsenic in our samples of muscle" but found "A few of our chicken-liver samples has an amount
that according to EPA standards could cause neurological problems in a child who ate 2 ounces
of cooked liver per week or in an adult who ate 5.5 ounces per week." The U.S. Food and Drug
Administration (FDA), however, is the organization responsible for the regulation of foods in
America, and all samples tested were "far less than the... amount allowed in a food product."

Avian influenza
There is also a risk that crowded conditions in chicken farms will allow avian influenza (bird flu)
to spread quickly. A United Nations press release states: "Governments, local authorities and
international agencies need to take a greatly increased role in combating the role of factory-
farming, commerce in live poultry, and wildlife markets which provide ideal conditions for the
virus to spread and mutate into a more dangerous form"

Mortality
Mortality is a daily consideration for poultry farmers, and the carcasses must be disposed of in
order to limit the spread of disease and the prevalence of pests. There are a variety of methods
of disposal, the most common being burial, composting, incineration, and rendering.
Environmental concerns surrounding each of these methods deal with nutrient pollution into
the surrounding soil and groundwater – because of these concerns, in many countries practice
of burial in pits is heavily regulated or disallowed. Farmers may construct their own facilities for
composting, or purchase equipment to begin incineration or storage for rendering.

Composting offers a safe and practical use for the organic material, while proper management
of a composting site limits odor and presence of pests. Incineration offers a swiffer disposal
method, but uses fuel energy and thus brings varying costs. Rendering has the advantage of
being handled off site, and the use of freezers can eliminate the spread of pathogens in storage
awaiting pickup. Government organizations may offer financial assistance to farmers looking to
begin utilizing environmentally friendly mortality solutions.
Waste management
Poultry production requires regular control of excrement, and in many parts of the world,
production operations, especially larger operations, need to comply with environmental
regulations and protections. Different from mammalian excrement, in poultry (and all birds)
urine and feces are excreted as a combined manure, and the result is both wetter and higher in
concentrated nitrogen.

Waste can be managed wet, dry or by some combination. Wet management is particularly used
in battery egg laying operations, where the waste is sluiced out with constantly or occasionally
flowing water. Water is also used to clean the floors around nesting sites that are separate from
open runs. Dry management particularly refers to dry litter such as sawdust that is removed as
needed. Dry can also include open pasture where manure is absorbed by the existing soil and
vegetation, but needs to be monitored diligently so as to not overwhelm the ground capacity
and lead to runoff and other pollution problems.

Both liquid sluicings and dry litter are used as organic fertilizers, but the wet bulk of liquids
manure is harder to ship and is often limited to more local use, while the latter is easier to
distribute in bulk and in commercial packaging.

Question No 04: Factors for product pricing and cost for production.
(Marketing for poultry and egg).
Main factors affecting price determination of product are: 1. Product Cost 2. The Utility and
Demand 3. Extent of Competition in the Market 4. Government and Legal Regulations 5. Pricing
Objectives 6. Marketing Methods Used.

1. Product Cost:
The most important factor affecting the price of a product is its cost.Product cost refers to the
total of fixed costs, variable costs and semi variable costs incurred during the production,
distribution and selling of the product. Fixed costs are those costs which remain fixed at all the
levels of production or sales.
2. The Utility and Demand:

Usually, consumers demand more units of a product when its price is low and vice versa.
However, when the demand for a product is elastic, little variation in the price may result in large
changes in quantity demanded. In case of inelastic demand, a change in the prices does not affect
the demand significantly. Thus, a firm can charge higher profits in case of inelastic demand.

Moreover, the buyer is ready to pay up to that point where he perceives utility from product to
be at least equal to price paid. Thus, both utility and demand for a product affect its price.

3. Extent of Competition in the Market:

The next important factor affecting the price for a product is the nature and degree of
competition in the market. A firm can fix any price for its product if the degree of competition is
low.

However, when the level of competition is very high, the price of a product is determined on the
basis of price of competitors’ products, their features and quality etc. For example, Aman Feed
Ltd company cannot fix the prices of its broiler & egg without considering the prices of Advance
poultry and fish company.

4. Government and Legal Regulations:

The firms which have monopoly in the market, usually charge high price for their products. In
order to protect the interest of the public, the government intervenes and regulates the prices
of the commodities for this purpose; it declares some products as essential products for example.
Life saving drugs etc.

5. Pricing Objectives:

Another important factor, affecting the price of a product or service is the pricing objectives .

Following are the pricing objectives of any business:

(a)Profit Maximization:
Usually the objective of any business is to maximize the profit. During short run, a firm can earn
maximum profit by charging high price. However, during long run, a firm reduces price per unit
to capture bigger share of the market and hence earn high profits through increased sales.

(b) Obtaining Market Share Leadership:

If the firm’s objective is to obtain a big market share, it keeps the price per unit low so that there
is an increase in sales.

(c) Surviving in a Competitive Market:

If a firm is not able to face the competition and is finding difficulties in surviving, it may resort to
free offer, discount or may try to liquidate its stock even at BOP (Best Obtainable Price).

(d) Attaining Product Quality Leadership:

Generally, firm charges higher prices to cover high quality and high cost if it’s backed by above
objective.

6. Marketing Methods Used:

The various marketing methods such as distribution system, quality of salesmen, advertising,
type of packaging, customer services, etc. also affect the price of a product. For example, a
poultry firm will charge high profit if it is using expensive feed for eating its broiler.

Cost of Production:

Cost of production refers to the total cost incurred by a business to produce a specific quantity
of a product or offer a service. Production costs may include things such as labor, raw materials,
or consumable supplies. In economics, the cost of production is defined as the expenditures
incurred to obtain the factors of production such as labor, land, and capital, that are needed in
the production process of a product.

For example, the production costs for a motor vehicle tire may include expenses such as
rubber, labor needed to produce the product, and various manufacturing supplies. In the service
industry, the costs of production may entail the material costs of delivering the service, as well as
the labor costs paid to employees tasked with providing the service.

Types of Costs of Production

There are various types of costs of production that businesses may incur in the course of
manufacturing a product or offering a service. They include the following:

1. Fixed costs

Fixed costs are expenses that do not change with the amount of output produced.
This means that the costs remain unchanged even when there is zero production
or when the business has reached its maximum production capacity

Fixed costs tend to be time-limited, and they are only fixed in relation to the
production for a certain period. In the long term, the costs of producing a product
are variable and will change from one period to another.

2. Variable costs

Variable costs are costs that change with the changes in the level of production.
That is, they rise as the production volume increases and decrease as the
production volume decreases. If the production volume is zero, then no variable
costs are incurred. Examples of variable costs include sales commission, utility
costs, raw materials, and direct labor costs.

3. Total cost

Total cost encompasses both variable and fixed costs. It takes into account all the
costs incurred in the production process or when offering a service. For example,
assume that a textile company incurs a production cost of $9 per shirt, and it
produced 1,000 units during the last month. The company also pays a rent of
$1,500 per month. The total cost includes the variable cost of $9,000 ($9 x 1,000)
and a fixed cost of $1,500 per month, bringing the total cost to $10,500.
4. Average cost

The average cost refers to the total cost of production divided by the number of
units produced. It can also be obtained by summing the average variable costs and
the average fixed costs. Management uses average costs to make decisions pricing
its products for maximum revenue or profit.

The goal of the company should be to minimize the average cost per unit so that it
can increase the profit margin without increasing costs.

5. Marginal cost

Marginal cost is the cost of producing one additional unit of output. It shows the increase in total
cost coming from the production of one more

product unit. Since fixed costs remain constant regardless of any increase in output, marginal
cost is mainly affected by changes in variable costs. The management of a company relies on
marginal costing to make decisions on resource allocation, looking to allocate production
resources in a way that is optimally profitable.

How to Calculate the Cost?

The first step when calculating the cost involved in making a product is to determine the fixed
costs. The next step is to determine the variable costs incurred in the production process. Then,
add the fixed costs and variable costs, and divide the total cost by the number of items produced
to get the average cost per unit.

Average cost per unit =

For the company to make a profit, the selling price must be higher than the cost per unit. Setting
a price that is below the cost per unit will result in losses. It is, therefore, critically important that
the company be able to accurately assess all of its costs.
Question No: 05 Supply of The Product In The Market.
A channel is a means by which products such as Poultry And Poultry Products are sold to a
customer. Products may be sold through various types of retail establishments, service providers
directly and indirectly involved with the product, or adjacent industries that see sales demand for
the product among their customer base.

Research on the distinct channels in which is sold can enable companies to increase sales by:

Developing specific products or marketing campaign tailored to industry needs

Controlling for channel conflict in which different channels are competing to sell Poultry And
Poultry Products to the same set of customers

Find resellers or distributors that can make it easier for companies to do business with your product

Identify types of competitors in adjacent industries that you may be unaware of

Sales channel strategy can be as simple as identifying potential retailers interested in Poultry And
Poultry Products, or it may be as complex as developing differentiated products that resellers can
modify or include in larger, customized orders.

Channel marketing for market research and strategic analysis shows economic activity for Poultry
And Poultry Products. U.S. national statistics on revenues and product sales. Business strategy and
channel strategy for marketing managers and product managers to make informed decisions using
the latest research.

Analysis of sales for Poultry And Poultry Products, broken down by industry. Identify new
channels and prioritize marketing within each channel. When developing a go-to-market strategy
for product sales, ensure that all possible channels are being considered and appropriately
allocated.

Further research on each industry is available should you require depth on market size trends and
financials within each sales channel.
Question No: 06 Promotional Activities of Poultry and Egg.
1.Bypassing the middlemen-: Most poultry farmers rely on middlemen to help sell their products.
They sell in bulk to other people who in turn sell to the consumers. If you want to sell faster, then
you should sell both in wholesale quantities and resale quantities.

You can sell in retail quantities if you have your own sales outlet. Look for a good location to rent
a store and then use it to stock products from your farm so that in addition to selling to wholesalers,
you can also sell to retailers.

2. Take your business online-: Everybody hangs around the internet these days. A large percentage
of people make use of the internet around the world daily and if you want your business to thrive,
you cannot close your eyes to the internet. Your social media account is a very good place to
promote your business and increase awareness for your products.

I have a lady that I am following on Instagram who regularly posts pictures of attractively
packaged, fresh products from her poultry farm on her page. She has a lot of followers and people
keep asking her where they can get her products in the south even though she’s based in the North.
I am very sure that a lot of Northerners patronize her too.

If you want to sell your products faster, you should have a strong internet presence so that people
can order for products online and even those that do not order online would be able to recognize
and buy your products when they see it in supermarkets or grocery stores.

3. Become a supplier to Hotels and Restaurants-: Write a brilliant proposal with clearly thought-
out incentives that you can offer and send it to managers of hotels and restaurants. Offer to be their
major supplier of poultry meat and eggs. Hotels and restaurants always have foods with poultry
meat or foods made with eggs on their menu and they have to get their eggs from somewhere.
You can help them to have access to a regular supply of fresh eggs without stress. Note that a lot
of hotels and restaurants already have people supplying them, so you should think of how to
outsmart these people by offering mouth-watering incentives.

4. Employ Marketers-: Marketers? For a poultry farm? Yes, marketers for your poultry farm can
increase your sales by more than 30%. Just employ some commission-based marketers who would
earn a certain percentage from the sales they make.

5. Feed your Birds well-: Yes, this is a marketing idea too. When you feed your birds well, they
produce big and good quality eggs which are what the consumers want. If you want your products
to be top choice for consumers, then you have to pay attention to the quality of products you
generate and in poultry farming; that means paying attention to the type of foods you feed your
birds with because good food equals good eggs and quality meat.

6. Have your own Abattoir-: Don’t just stop at selling to other companies to package; nothing stops
you from having your own abattoir too where you can package and brand your own products for
sales and supply.

7. Advertise your products-: You should also engage in advertising and promotions. You don’t
buy what you don’t know. Do you? People mostly buy products they know or have heard about
and when you advertise your products, it helps to increase awareness and subsequently, demand
for your products.

8. Carry out marketing research-: Another way by which you can increase sales of your poultry
products is by carrying out marketing research regularly. When you do so, you would be able to
have a clear idea of what your customer’s want, areas where there is insufficient supply of products
and things you can do to improve the quality of products you offer your customers.
9. Try home delivery services-: Home delivery services work too. This is because a lot of people
are often too busy to make trips to the Grocery Store and then a lot of people love their eggs fresh.

You can take advantage of this to offer home delivery services to people who prefer to buy fresh
eggs or people who find it easier to order for stuffs from the comfort of their home. You could also
serve senior citizens, the physically challenged or sick people who cannot make trips to grocery
stores to buy meat and eggs.

10. Use Attractive Packaging-: When designing packaging materials for your poultry products,
you must ensure that it is attractive and stands out from every other product in the market. Good
packaging can attract more buyers.

Another thing you must know is that people look now out for nutritional information when they
buy food items. So, you should consider adding some information about your products like calorie
contents, protein, vitamins and all other information that health conscious people would want to
know about.

Question No: 07 “SWOT ANALYSIS FOR POULTRY AND EGG”

STRENGTHS

The shared values of the project members with particular reference to teamwork,
commitment and perseverance

The strong participative and democratic style of leadership demonstrated by the members of
the project

The business management skills of the project members

The managing members of the project are energetic, knowledgeable, creative and
enthusiastic

WEAKNESSES
 The lack of advanced financial management skills

The lack of a comprehensive understanding of the strategic planning framework

Lack of trained human resource in the field of poultry farming and livestock disease
prevention and control

The lack of a comprehensive marketing strategy and plan

The lack of funding to procure equipment and other assets

The low owner’s contribution as compared to the amount requested from external funders

OPPORTUNITIES

The opportunities in terms of ownership and procurement presented by Argive

The opportunities in terms of skills development by means of training presented by Agrestic

The Utilization of Information Technology to enhance the front Office and back office
operations as well as key areas such as processing, marketing and distribution

Technologies such as solar energy will be an opportunity for the project as there is potential
for a 24.8% increase in electricity prices by Eskom

Access to funding programmers such as Mafisa and the National Empowerment fund

The increasing per capita consumption of eggs

The increasing population of South Africa and double income families will be an
opportunity for the business

The reduced interest rates will mean lower costs incurred as a result of borrowed money

Government support of the Poultry Industry as it is one of the industries that is considered
to be ‘feeding the nation’

Increased emphasis on women and youth as demonstrated by financial and non-financial

support by agencies such as The National Youth Development Agency.

Increased small business support as demonstrated by the increase in small business support
forums, Small Enterprise Development agency and many more
 The opportunity to supply government institutions such as prisons, collages, departments
and other government units will be an opportunity for the business

THREATS

Compliance with various acts and laws such as the Livestock Improvement Act,
Occupational Health and Safety Act, Labour Relations Act and the Basic Conditions of
Employment Act

The threat from well-established competitors such as Chubby Chicks, Rainbow Chicken and
many more

The threat from rising electricity prices. Eskom shall increase electricity prices by at least
24.8%, this is a threat to the project as its operations will be more costly and thus force the
project to pass on the additional costs to consumers. This is a threat to the project as it has
potential to result in reduced sales and profits

Indirect competition from distant emerging commercial and subsistence farmers and other
small players in the industry

The intensity of rivalry amongst players

The threat from suppliers – in the case of feed, there is a threat of rising feed costs

The threat from substitutes or alternative protein rich food

The threat from changes in customer preferences as well as the fact that eggs are generic
products that customers can buy from other food stores

“Problems and Solution for Poultry and Egg”

The modern poultry industry aims at high production and better quality at a low cost. This, in
addition to an increase in the demand for poultry meat, necessitates constant, efficient and goal
oriented healthcare to prevent the development of diseases.

If you want to join this lucrative business or you into it before, you don’t need to be panic since
every problem has its solution. No problem you might come across in poultry farming that is
new, in one way or the order such problem was overcome.

By the time you are true with this article, that problem you are facing will be tackled and if not
you are free to let us know. The common problem facing poultry farming include any of the
following:

1. Financial problem poultry farming system

This is the most important problem which I believe affect more than 80% of farmers globally. In
one area or the other, capital contributes to the success of your farm.

Mind you, amount of capital determine the level of your farm and determine how your farm will
be equipped. Access to capital will make your farm to grow faster than those that do not have
access to any financial assistance.

Though, starting a poultry farm business requires little money, but that is when you can access
this at right time. Some farmer wants to get loan from micro finance bank, the interest charge on
the little they can afford is much, so they had to withdraw from such program.

Possible solution: the only possible solution to this problem ie poultry farming, is getting
assistance from government, government should set up a committee on how to help those that
have interest on farming activities.

By so doing they empower them, they will be the boss of their company and they will not be
looking for white collar job because they are engaged already.

2. Lack of information is a poultry farming system

This problem is as bad as the first point. If you want to succeed in life in any business or in
anything at all, you need the right information about that thing.

Some people just rush into poultry farming system without the proper information, while some
got information from the wrong source.

Getting the right information will help you in all area of your farm and you will get the reward
on time. Just look into this story of two friends, say A and B. Mr. B is poultry farmer while Mr.
A is business man, but Mr. A is wealthier than Mr. B, but for this reason Mr. A just invest on
poultry farming without proper information from Mr. B.

Don’t be surprise that Mr. B regret of his action of not getting information from reliable source.

Solution: The only solution to this type of problem is getting information from the reliable
source. Dear reader not just information, but right information from the right sources.

In the case of poultry farming system, I will strongly advice you get your information from
ministry of agriculture or from qualified veterinary doctor, hope you are following, that is good.

3. Diseases and parasites is a great poultry farming system problem

Diseases and parasites can cause losses in egg production. Some breeds of birds are resistance to
certain diseases which make them superior to those that are easily infected by many diseases.

More over if you want your laying birds for maximum production, do all you could to prevent
them against any kind of diseases. In case of any outbreak of diseases treat them immediately so
that their production will not be tampered with.

In addition, you would never want to breed an ill chicken they could pass the illnesses down to
future generations and you would have a constant battle in your hands.

Always raised the healthiest chickens together the more generations and that have healthy
chickens the more resistance they build up to diseases.

Solution: Here you need to be observant, you might not be able to identify any symptoms in
your poultry farming.

Not every disease gives any symptom, but in case you see strange sign in your farm inform your
veterinary doctor at once. By so doing, the right drugs will be prescribed.

4. Access to right birds reduces poultry farming problem

Many poultry farmers are victim of this problem, not every company that sell day old birds are
the right place to get our birds.

Once you are victim, no way out, you are going to spend a lot on drugs and many a time you lose
many of your birds. So many companies are facing one problem or the other, meanwhile proper
investigation allows you to get best company that sell quality birds.

Therefore one need to be careful of where they get their birds from as this determines what might
be result at the end.

Possible solution: From my research and understanding, I will recommend you consult your
veterinary doctor before you get your birds, either a day old or at any point at all, so this prevent
your poultry farming from problem of such.

5. Feed related problem poultry farming system

Feeding related problem is another problem we need to consider as this determines the growth of
rate of our birds.

Feeding is more than just given the birds feeds, they need balanced diets if you want them to do
well. Some producers mix complete feeds with cheaper scratch grains, but doing so dilutes the
levels of nutrients the chickens are receiving, and nutrient deficiencies can occur.

Nutrient deficiencies can adversely affect the growth of pullets and the level of production of
hens. The level of feed a bird will eats depend on it sizes, ages and rate of egg production, energy
level of the feed and temperature of the house i.e laying house.

Amount of feed consumed also depend on the breed of birds. Take for example, A Leghorn
chicken eats about 1/4 pound of feed per day. Brown-egg layers are slightly larger and require
more food, therefore need more feeds.
Quality of eggs is affected by the feed they eat, the quality of egg shell is determined by the level
(amount) and the presence of vitamin D, Calcium and other minerals in the feed. Pigment in the
feed determine the yolk color of the eggs, to achieve the maximum egg size in production, the
level of protein in the feed come in place and fatty acid.

Since more is known about the nutritional requirements of the chicken than of any other
domestic animals, it is not surprising that rations are scientifically balanced to assure layer health
along with optimum quality eggs at least cost. In short words, feed quality is required in
profitable laying birds.

6. Water related Problem in poultry farming system

This problem should not be underrated, the quality of water available is very important, the
acidity of the water must be checked and balanced before we give to the birds. Acidic water will
imply negative effect to the life of the birds as this will affect them in many ways.

Solution: water condition must be checked before included in feeding fowls.

7. Drugs related problem poultry farming system

This is a big threat to poultry farmers, not all drugs requires are available in the market,
sometime those available are not effective, meaning they are fake.

When some are prolong in used, they build resistance to its effect ie they will not be effective
when they are administered.

The available drugs are not effective like the former one, so this cause a lot of problem for us
farmers. Aside this, we should consult veterinary doctors for proper prescription of drugs we
must administered

Possible solution: We should consult veterinary for the right drugs for the right problem.

8. Management related problem in poultry farming system

This refers to the general hygiene of the entire farming system, if you apply the above listed
solution and you are not properly taken care of the birds.

You will end up spending big money that will not materialize. Maintain 100% hygiene for best
performer of your birds, clean their house, wash their drinkers and feeders. Remove grasses from
sounding to prevent predators that might want to affect them.

Question No: 08 Market Overview of Poultry and Egg.

Market potential
Market potentiality exists for both in domestic and export markets which is briefly explained below.

Prospect in domestic market

According to WHO – FAO joint survey, meat consumption per head in Bangladesh is 15.23 kg

per year while the requirement is 43.8 kg per person. So there is a deficit of 65.23 % to meet our

domestic requirement. It may be noted that poultry contributes 35.25% of total meat supply

(Akbar et.al 2013,p.27). On an average people consume 3.63 kg of poultry meat per year which

is expected to be 5 kg by 2015 and 12 kg by 2021 (according to Poultry Association).

So there is scope to increase chicken production by three times to meet the domestic

requirement. Similarly, egg production can be increased by 61% for attaining minimum

requirement of egg in the country. The per capita availability of egg is 41per year while the

requirement is 104 i.e. 60.58% of deficit.

The consumption of meat in developing countries grew by 70 MMT

from 26 MMT during last five years (Financial Express, 2014). This increasing trend will

continue due to increase in population, higher income and health consciousness of the people.

What to do for harvesting market potential:

A major problem in meeting nutritional requirement is lack of purchasing power of the

consumers in the country. Undertaking Programmes to enhance purchasing power of the people

through creation of productive activities is an important measure.

Steps should be adopted to produce quality and safe food for both the domestic and export

markets. To survive in the business a competitive environment is important which would ensure supply
of
all inputs at competitive price and also ensure remunerative price of poultry and its products for

the producers.

To enter the foreign market, the entrepreneurs should acquire competence in production of safe

and quality products at competitive price. They should adopt Hazzard Analysis and Critical

Control Point (HACCP) system to ensure production of safe and quality product. They should

also comply with food hygiene and trade regulations.

Export market

-----------------------

There is a group of entrepreneurs who have intention to go for export market with chicken meats

and eggs. The interested group may be encouraged to prepare themselves for export markets

about good production practices, processing of safe and quality product through adoption of

HACCP System and compliance with trade regulations. Growth in poultry products export not

only brings in additional foreign exchange for the country but benefits a large number of people

involved in the production, processing and export of such products.

Export potentiality

Poultry industry has the potentials to export to India, Pakistan, Nepal,Malaysia,Indonesia and

countries of Middle East. The consumption of meat in developing countries grew by 70 MMT

from 26 MMT during last five years (Financial Express, 2014). This increasing trend will

continue due to increase in population, higher income and health consciousness of the people.