poultry_value_chain_india_barbaruah

Poultry Value Chain and HPAI RiskAnalysis : Review of Learning

Dr.M.I.BarbaruahChief Development Strategist, FARMER

FAO -FARMER Study on Poultry VCA, 2012

FAO -FARMER Study on Poultry VCA

HPAI Threat and our Response!!

FIND IT FAST – KILL IT QUICKLY – STOP IT SPREADING

Inception Meeting : FAO -FARMER Study onPoultry VCA

But what should we dowhen it is almost

endemic?


HPAI Control: Importance of Targeted Initiative

Risk Communication : The mantra for success !


Removing the fear and joining hands!


The Need:


Systematic Thinking

The Suggested Framework :


Risk Analysis

The Outcome of Risk Analysis:


The Suggested Framework :


Value Chain Analysis

Activities Movements MotivationRelationships

Decisions and Actions people take to ensure:


How is the value added to a product?

The Interface between Risk Analysis (RA) andValue Chain Analysis (VCA)


The Focus:How the value chain actually work, not how they ideallywork. The aim is to Identify defects and as such the risk.

Inputs from VCA supports Risk Management and RiskCommunication.

►► Opportunities for disease transmission►► Practices aimed at risk reduction and

compliance with these,►► Resources and capability of people in the

chain to react to disease

The Study Objective ( Terms of Reference )• To record the different sub-systems in poultry value

chain and to understand value adding, horizontal andvertical chain network structures including chaingovernance mechanism;

• To qualitatively analyze the growth, constraints andperformance of select value chains in the context ofHPAI disease risk and identification of control pointsalong the poultry value chain.

• To consult with key stakeholders on potential valuechain upgrading options in the context of bettercontrol of HPAI.

Wrap up Meeting : FAO -FARMER Study onPoultry VCA


Glimpse of Focus Group Discusions ( FGD )


Glimpse of Key Informant Interview ( KII )


The designed Value ChainDiagrams

ACTIVITIES & RELATIONSHIPS


People in Poultry Industry :

Wrap up Meeting : FAO -FARMER Studyon Poultry VCA


The total production from 9 hatcheries is estimatedat 0.112 m DOC per month valued at `22.4m($0.407 m)

The total placement of day old chick (DOC) permonth within Jalpaiguri district was estimated at0.146 million per month : 60% birds caters captivemarket in North East.

The total estimated feed production from 12 feedmills is 46000 MT per month valued at ` 12.8million($ 0.233 m) per month.

The Commercial Industry at a glance:


MOVEMENT


Egg hub of Coochbehar


Findings of Sample Analysis in Jalpaiguri


58%

42% Private Farms

Contract orIntegration Farms

Private Vs Integration Farms:


78%

22% Contract growingor IntegrationCompaniesPrivate Dealers

DOC Placement: Private Vs IntegrationCompanies:


Farm Category:

34%

52%

14%Category A <=1000 birds

Category B>1000 -3000birdsCategory C >3000 birds


78%

22%Catergory A Farmsgrowing under PrivateDealerCatergory A Farmsgrowing underIntegration

Growth of small farms ( <=1000 )


MOTIVATION

Behind industry growth !

• Trade Routes : Captive Market• Easy availability of high quality inputs from Siliguri (

Private Sector investment )• Direct motivation of potential farmer by commission

agents.• Compatibility with any other agricultural operation?• Any input that is less costly here?



45 farms in a 9 sq km area (5 per sq km)

Behind farm concentration in some areas !

• Close to infrastructure of dealers• Within trade route• Socio-economic conditions


Behind high numbers of retail outlets!

• Low investment requirement• Business in credit• Poor implementation of regulatory and market

provisions by municipalities / town committees.• Engagement of wage labor as retailer by live bird

dealer.


Behind growth of Integration companies !

• Low cost of production and hence thecompetitiveness.

• Better capacity utilization of plants.



One of the Ready Bird Stock Point in Dhubri


Risky practices related to used litter


Makeshift poultry house in low lying areas


Live bird carrying vehicle being loaded near farm


Wet chicken retailing in unmarked areas of local market


Mixing of birds in local markets


Disposal of hatchery waste


High density transport of live birds


Transport of live poultry by passenger boat in Dhubri

Behind not implementing Bio-security norms!

• Low risk perception• Lack of awareness : What is risky?• Non availability or high cost of cleaning materials• Too many engagement : limited time availability


Value chain constraints in Jalpaiguri:

• Predominant market presence of companies :Squeezed margin for private dealers.

• Limited perceived incentive and absence ofmechanism for collective industry-led actions .

• Concentrated commercial cluster dependent on fewcaptive markets.

• Poor infrastructure to support active movements.• Poor investments in wet chicken markets.• Rising prices of inputs – Squeezing profit margins.• Inadequate design and demand side intervention (

e.g. for sustainable bio-secure free range farming)Wrap up Meeting : FAO -FARMER Study on

Poultry VCA

Value chain constraints in Dhubri:

• Highly informal and perceived temporary nature ofinter-state trade of live chicken ( Leading to poorinitiative and investments on bio-security by dealers )

• Poor demand side intervention as far as free rangefarming is concerned.

• Poor infrastructure to support active movements ofpoultry and farm inputs.


The control points ( Risk Management ) in : 6 ‘I’framework or value chain upgrading options.

• Institution building

• Incentive

• Infrastructure

• Investments

• Innovation

• Input


Wrap-up Meeting: FAO -FARMER Study onPoultry VCA

Strategic Risk Communication

The policy imperative for Government of WestBengal:

• State intervention to ensure fare competition betweenplayers. ( Justification: Consumer benefit, welfare andlivelihood protection )

• Incentive in the form of conditional cash transfer toindustry-led institutions ( Justification: To ensureshared accountability & to address resourceconstraints )

• Demand side intervention and private collaboration infree range sector ( Justification : Potential nichemarket demand of organic chicken / egg, bridging theKAP gap through industry led extension, supportservices)


The policy imperative for Government ofAssam:

• Facilitation of inter-state trade ( Justification: Demanddriven trade ! )

• Demand side intervention and private collaboration infree-range sector ( Justification : Possible incentivefrom niche market of organic chicken / egg, bridgingthe gap of Knowledge Attitude and Practice -KAPthrough industry led extension, support services )



Contact: [email protected]

poultry_value_chain_india_barbaruah

Technology

poultry vca

disease fao farmer study

farmerfao farmer study

poultry value chain

risk analysisfao farmer

poultry industry

value chain analysis

potential value chain