Goat Marketing System in Rajasthan
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1 Goat Marketing System in Rajasthan Shalander Kumar K. Kareemulla C.A. Rama Rao Central Research Institute for Dryland Agriculture, Hyderabad
2 OUTLINES Background Objectives Methodology Results Conclusions and Implications
3 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
4 BACKGROUND High margins of middlemen, transaction cost (small market surplus), unnecessary transportation, mortality during transit Even the technology adoption and private investment would come only if good market is available for goat products Therefore this study was planned to comprehend the goat marketing system in Rajasthan
5 OBJECTIVES a) Study the marketing behavior of farmers, b) Marketing channels, c) Existing goat markets and d) Examine constraints in marketing of goats and e) Draw some policy suggestions
6 Observation Points METHODOLOGY Primary sources: Goat keepers Goat traders/ commission agents Livestock market committees Butchers/ meat sellers Livestock markets Secondary sources: Records of livestock markets
7 METHODOLOGY Sample Goat keepers: 120 Zone District No. Tehsil No. household s ESAZ of Raj Ajmer Jaipur Livestock markets : Ajmer, Jaipur & Balaheri Goat traders/ commission agents : 15 Livestock market committees : 3 Butchers/ meat sellers : 10
8 Methodology Personal interviews Focused group discussions Descriptive analysis Marketing, channels, cost, margins and price spread
9 RESULTS Characteristics of goat farmers Flock size: 3.05 to 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
10 Share of different age groups in total sale of goats in different categories Very-small Small Medium Large Overall ts % of total sale of live goa < 3 month 3-6 month 6-12 month male 6-12 month female >12 month male >12 month female Age groups
11 Share of different age groups in total sale of goats, overall < 3 months 3-6 months 6-12 months male 6-12 months female > 12 months male > 12 months female
12 Others Reasons of sale of early age kids % farmers Urgent cash needs Scarcity of feed resources Risk of mortality/disease More profitable Unaware of optimum age Pressure of money lender Lack of space
13 Goat marketing channels in operation Channel I.Farmer -Farmer II. Farmer Petty trader Farmer III. Farmer Butcher/Retailer - Consumer IV. Farmer Petty trader Butcher/Retailer Consumer V. Farmer Petty trader - Wholesaler/Interstate trader - Butcher/Retailer Consumer VI. Farmer Petty trader - Wholesaler/Interstate trader Petty trader - Butcher/Retailer - Consumer VII. Farmer Government agencies and NGOs - Farmer VIII. Farmer Petty trader - Wholesaler/Interstate trader Petty trader Farmers IX. Farmer Petty trader - Wholesaler/Interstate trader Commercial Farmers X. Farmer Petty trader - Wholesaler/Interstate trader Exporter XI. Farmer Petty trader - Wholesaler/Interstate trader Processor - Exporter End use of goats Breeding Breeding Meat Meat Meat Meat Breeding Breeding Breeding Meat Meat
14 Percentage of goats sold through different marketing channels Farmer Farmer in village Farmer Butcher/ trader in village Farmer Other agencies in village Farmer Butcher/ trader in weekly market Farmer -Trader in distant market
15 Distribution of sale of live goats by trading place and buyers (in %) Place of trading Buyers Very small Smal l Medi um Large Ove rall Village Farmer Village Village Butcher/trade r Govt. agencies/ NGOs }75% Weekly market Butcher/trade r Weekly market Farmer District level market Trader
16 Unit of sale of live goats Farmers Traders % buyer Per head Per pair Per groups Unit of sale
17 Methods of price fixation % of deals Open auction Under-cover
18 Basis of price fixation Particular Percent traders Adult female Adult male Kids Body weight Breed (colour body size) and Age Milk yield
19 Price spread in different channels Channel I. II. III. IV. VII. VIII. IX. Farmer s price m male (average weight 20 kg) Consumer s price Farmer s share in consumer s rupee 72 65
20 Price spread in different channels Channel I. II. III. Farmer s price Breeding female of m age (average weight 30 kg) Consumer s price Farmer s share in consumer s rupee IV. VII VIII # 60 IX # 58 # The goats were sold to the goat breeders outside the state in Uttar Pradesh and Madhya Pradesh
21 Cost and margins in the festive sale of males (Fattening period: days) Market No. male trade d buying price/ goat, Rs. Collectio n & fattening cost, Rs. Sale price/ goat, Rs. Net margin/ goat, Rs. N.margi n as % of sale price Market I Market II Market III
22 Profile of livestock markets in Rajasthan Name of market Area of market place (m 2 ) Day of operati on Arrivals per market day Arrivals per day in peak period Market fee per/animal, Rs. Annual income Rs. in lakh Balahe rhi 5000 Tuesday Ajmer Tuesday Saturda y % of value of goat Jaipur 3500 Thursd ay Saturda y % of value of goat
23 Market functionaries and their participation Name of market Commissio n agents Big trader Market functionaries Petty/smal l traders Butcher Seller farmers Buyers farmers Balaherhi Ajmer Jaipur Overall
24 Petty /rural traders They 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,
25 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%
26 Constraints faced by farmers in goat markets Particulars High marketing fee/ commission: should be 1 % of value of goat Lack of transparency in trading: under cover method Very poor access to market/ price information Prevalence of collusive activity of traders % farmer Poor infrastructure No 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 disease No presence of any livestock extension agency in the market No representation of goat farmers in the market committees Harassment by police and animal welfare department during transporting the goats
27 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 , Trader s price: Rs , Price of adult: Share at present: about 10% There is need to make organized efforts to institutionalize
28 Price and composition of purchase of goats by butchers Types of goats Weak and old Grown males Kids (<6 Months) Overall up Kids (6-12 months) Share in total purchase (%) Purchase price (Rs./kg live wt.) Value of by products: About Rs. 500/ goat Marketing cost of the butcher/meat seller (Rs. /kg live wt.) Total cost Rs./kg live wt Goat farmer s share in consumer s rupee: 68 %
29 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 price Even one percent of goat keepers were not satisfied with the existing system of marketing.
30 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 intelligence Live goats must be marketed on body weight basis and not on per head basis.
31 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)
32
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