Goat Marketing System in Rajasthan

Shalander Kumar

K. Kareemulla

C.A. Rama Rao

Central Research Institute for Dryland Agriculture, Hyderabad - 500 059

OUTLINES

Background

Objectives

Methodology

Results

Conclusions and Implications

BACKGROUND

Livestock rearing is the most stable economic activity

Goats constitute the largest share (34%) - more important

Goats have greater promise due to increasing demand and resilience,

Improved market access and efficient marketing – key driver for success of goat rearing to its full potential as means of stable income & poverty alleviation, however….

Marketing of livestock spl. Small ruminants is a neglected area

Market information is grossly inadequate, Arrangements unsatisfactory

BACKGROUND

High margins of middlemen, transaction cost (small market surplus), unnecessary transportation, mortality during transit

Even the technology adoption and private investmentwould come only if good market is available for goat productsTherefore this study was planned to comprehend the goat marketing system in Rajasthan

OBJECTIVES

a) Study the marketing behavior of farmers, b) Marketing channels, c) Existing goat markets and d) Examine constraints in marketing of goats

ande) Draw some policy suggestions

METHODOLOGYObservation PointsPrimary sources:

•Goat keepers

•Goat traders/ commission agents

•Livestock market committees

•Butchers/ meat sellers

•Livestock markets

Secondary sources:

•Records of livestock markets

METHODOLOGYSample

Goat keepers: 120

6060

22

AjmerJaipur

ESAZ of Raj

No. households

No. Tehsil

DistrictZone

Livestock markets : Ajmer, Jaipur & BalaheriGoat traders/ commission agents : 15Livestock market committees : 3Butchers/ meat sellers : 10

Methodology

Personal interviews

Focused group discussions

Descriptive analysis

Marketing, channels, cost, margins and price spread

RESULTS

Characteristics of goat farmers

Flock size: 3.05 to 46.23 breeding goats

Proportion of landless: 43 %

Landholding size: 3.42 to 6.92 ha (flock & land size not related)

Main occupation: Goat rearing- 46%, Agriculture- 42%

Education: 63% farmers illiterate

Share of different age groups in total sale of goats in different categories

05

1015202530354045

< 3 month 3-6 month 6-12monthmale

6-12monthfemale

>12monthmale

>12monthfemale

Age groups

% o

f tot

al s

ale

of li

ve g

oa 50tsVery-small Small Medium Large Overall

Share of different age groups in total sale of goats, overall

38.79

23.08

11.09

5.62

11.01

10.41

< 3 months 3-6 months 6-12 months male 6-12 months female > 12 months male > 12 months female

Reasons of sale of early age kids

01020

30405060

7080

% fa

rmer

s

Urgent cash needs

Scarcity o

f feed resources

Risk of m

ortality/dise

ase

More profitable

Unaware of optimum age

Pressure of money le

nder

Lack of sp

aceOthers

Goat marketing channels in operation

MeatXI. Farmer–Petty trader - Wholesaler/Interstate trader –Processor -Exporter

MeatX. Farmer–Petty trader - Wholesaler/Interstate trader – Exporter

BreedingIX. Farmer–Petty trader - Wholesaler/Interstate trader – Commercial Farmers

BreedingVIII. Farmer–Petty trader - Wholesaler/Interstate trader – Petty trader – Farmers

BreedingVII. Farmer – Government agencies and NGOs - Farmer

MeatVI. Farmer–Petty trader - Wholesaler/Interstate trader – Petty trader -Butcher/Retailer - Consumer

MeatV. Farmer–Petty trader - Wholesaler/Interstate trader - Butcher/Retailer – Consumer

MeatIV. Farmer–Petty trader – Butcher/Retailer – ConsumerMeatIII. Farmer–Butcher/Retailer - ConsumerBreedingII. Farmer–Petty trader – Farmer BreedingI.Farmer -Farmer

End use of goats

Channel

Percentage of goats sold through different marketing channels

8.26

61.35

5.53

15.19

9.66

Farmer – Farmer in villageFarmer –Butcher/ trader in villageFarmer – Other agencies in villageFarmer – Butcher/ trader in weekly marketFarmer -Trader in distant market

Distribution of sale of live goats by trading place and buyers (in %)

9.661511.93.950Trader District level market

3.192.954.562.921.09FarmerWeekly market

12.00

11.7913.6711.67

4.36Butcher/trader

Weekly market

5.333.955.574.8613.11Govt. agencies/ NGOs

Village

61.35

61.8461.2662.01

59.94Butcher/trader

Village

8.474.473.0414.59

21.5Farmer Village

Overall

LargeMedium

Small

Very small

BuyersPlace of trading

}75%

Unit of sale of live goats

010203040506070

% b

uyer

Per head Per pair Per groups

Unit of sale

Farmers Traders

Methods of price fixation

0102030405060708090

% o

f dea

ls

Open auction Under-cover

--90Milk yield

207060Age

607080Breed (colour and body size)

609070Body weight

KidsAdult maleAdult female

Percent tradersParticular

Basis of price fixation

Price spread in different channels

------IX.

------VIII.

------VII.

6521501400IV.7219501400III.

----II. ----I.

Farmer’s share in consumer’s rupee

Consumer’s price

Farmer’s price

6-8 m male (average weight 20 kg)Channel

Price spread in different channels

584200#2420IX.604050#2420VIII.----2950VII.------IV.

------III.

7632002420II. 10027002700I.

Farmer’s share in consumer’s rupee

Consumer’s price

Farmer’s price

Breeding female of 14-16 m age (average weight 30 kg)

Channel

# The goats were sold to the goat breeders outside the state in Uttar Pradesh and Madhya Pradesh

8.483754420310373512Market III

15.157805150390398021Market II

12.565354260275345016Market I

N.margin as % of sale price

Net margin/ goat, Rs.

Sale price/ goat, Rs.

Collection & fattening cost, Rs.

buying price/ goat, Rs.

No. male traded

Market

Cost and margins in the festive sale of males(Fattening period: 20-30 days)

Profile of livestock markets in Rajasthan

162.06

5% of value of goat

80003200Thursday Saturday

3500Jaipur

132.06

4% of value of goat

100004000Tuesday Saturday

72000Ajmer

55.9320 + 2070005000

Tuesday5000Balaherhi

Annual incomeRs. in

lakh

Market fee per/animal, Rs.

Arrivals per day in peak period

Arrivals per market day

Day of operation

Area of market place (m2)

Name of market

Market functionaries and their participation

175177901676916Overall151050502712Jaipur

102020035015037Ajmer

50050020100300Balaherhi

Buyers farmers

Seller farmers

ButcherPetty/small traders

Big trader

Commission agents

Market functionariesName of market

Petty /rural tradersThey were the most important link in the goat marketing network.

Goat traders were regularly visiting goat farmers/flocks in the villages on daily basis,

Each of them was a repository of information on the availability of goats of different type and age with the farmers in the traders operating area

Cost of collection and transport + mortality loss during transit (weekly market): Rs.16 to Rs.22 per grown-up goat and per kid. In village - Rs.12 and Rs.8,

Destinations of live goats bought by rural/small traders to weekly markets

Outside big traders in direct contact: 60%Local market: 30%Terminal/metropolitan markets: 30%Goat breeders: 20%

Constraints faced by farmers in goat markets

20.0Prevalence of collusive activity of traders 30.0Very poor access to market/ price information 73.3Lack of transparency in trading: under cover method

40.0High marketing fee/ commission: should be ≤ 1 % of value of goat

% farmerParticulars

Poor infrastructureNo mechanism/agency to check the mal-practices in trading of goats in market. Hardly any veterinarian in the market to check the animals for any infectious diseaseNo presence of any livestock extension agency in the marketNo representation of goat farmers in the market committeesHarassment by police and animal welfare department during transporting the goats

Interstate trade in small kids

• Sale of male goat kids at the earliest possible age (2-3 m) due to scarcity of feed resources High cost of feeding Save more milk of goats

• Sell through traders to small goat keepers (women) in UP, Bihar, WB

Ist price: Rs. 500-700, Trader’s price: Rs. 800- 1000, Price of adult:3500-5500

Share at present: about 10%

There is need to make organized efforts to institutionalize

Price and composition of purchase of goats by butchers

59554100Overall

625.55720Kids (<6 Months)

6556017Kids (6-12 months)

604.55541Grown up males

4053522Weak and old

Total cost Rs./kg live wt.

Marketing cost of the butcher/meat seller (Rs. /kg live wt.)

Purchase price (Rs./kg live wt.)

Share in total purchase (%)

Types of goats

Value of by products: About Rs. 500/ goat

Goat farmer’s share in consumer’s rupee: 68 %

Conclusions and Implications

The goat marketing in the state was completely unorganized and in the hands of large number of livestock traders and butchers and hardly attracted any interest of the government

Farmers sell goat at early uneconomic age

The market margin ranged from 24 to 42 percent of the final priceEven one percent of goat keepers were not satisfied with the existing system of marketing.

Implications…

The livestock markets should be regulated to make the system transparent Improved access to the information on prevailing market prices of goats, their products and by-products

Standards should be laid down for transportation and shipping of goat and sheep & should be effectively implemented.

Need for a system of authentic collection and reporting of market intelligenceLive goats must be marketed on body weight basis and not on per head basis.

Implications…

Every livestock market should have a weighing machine to weigh the live goats

Each village/Panchayat should have common weighing machine to weigh the goats

In view of pathetic condition of slaughterhouses there is need to encourage small size modern slaughterhouses near to the production centers

A single window system for granting permission and license to set-up meat production/ processing units need to be created (now 4 ministries)