2010

AMCAP SCHOOL OF MANAGEMENT, AMCAP BUILDING, E-7&8 KANTA KHATURIA COLONY, BIKANER

1

INDEX

1) Acknowledgement ……………………………………………………………….……..32) Executive summary …………………………………………………………………….53) Poultry industry……….………………………………………………………………...74) Venky’s India limited………………………………………………………………….105) Research objective …………………………………………………………………....116) Research methodology ………………………………………………………………..127) Poultry Trade at New Delhi...…………………………………………………………138) Persons involved & supply chain in poultry trade …………………………………....199) Cost addition at different level ………………………………………………………..2910) Distribution Channel…………………………………………………………………..3311) Outcome of research…………………………………………………………………..3912) Recommendation……………………………………………………………………...4813) Conclusion…………………………………………………………………………….5214) Limitations………………………………………………………………………….....5415) Questionnaire……………………………………………………………………….....5516) References…………………………………………………………………………......66

.

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CERTIFICATE

THIS IS TO CERTIFY THAT THE PROJECT WORK DONE ON “THE POULTRY

TRADE AT NEW DELHI” SUBMITTED TO “AMCAP SCHOOL OF

MANAGEMENT, BIKANER” BY NAWAL KISHORE SURANA IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF PG

DIPLOMA IN BUSINESS ADMINISTRATION, IS A BONA FIDE WORK CARRIED

OUT BY HIM UNDER MY SUPERVISION AND GUIDANCE.

THIS WORK HAS NOT BEEN SUBMITTED ANYWHERE ELSE FOR ANY OTHER

DEGREE/DIPLOMA. THE ORIGINAL WORK WAS DONE DURING 17.05.2010 TO

16.07.2010 IN VENKY’S INDIA LIMITED AT DELHI.

DATE:

SEAL/STAMP OF THE ORGANIZATION

NAME OF THE GUIDE

3

ACKNOWLEDGEMENT

I am deeply thankful to our director Mr. Sudheer Sharma, for giving me the opportunity

to understand, analyze poultry industry. During this project, I was enlightened with a

broad perspective of Marketing Management.

I would like to thank Mr. M. K. Gupta, Mr. R. K. Sharma, Mr. D. S. Oberoi & Mr. Shiv

Kumar who took out time from their busy schedule and shared their valuable experience

& help me to do a live project on “The Poultry Trade at Delhi ”, without which this

project would never have been possible.

I am cordially thankful to Dr. Kadam H.H., Dr. Rakesh Purohit, Mr. Virendra malik and

Mr. Rakesh Thakur who helped me to get better insight of broiler and layer industry.

Last but not the least I would like to thank all those individuals who directly or indirectly

helped in the completion of the project.

Nawal Kishore Surana

4

EXUCUTIVE SUMMERY

The poultry industry was largely a backyard venture before the 1960s which has been

transformed into a vibrant agribusiness with an annual turnover of Rs 45 000 crores. Today,

India is the third largest egg producer in the world (after China and the United States of

America), and the ninth largest broiler producer. Undoubtedly, this impressive growth is a result

of several factors, such as active developmental support from the state and central government,

research and development support from research institutes, international collaboration and

private sector participation.

It plays a major role in the fight against malnutrition and poverty among the rural masses of our

country. The importance of poultry sector in solving the problems of unemployment and under-

employment is well conceived by planners and personnel in the developmental programmers.

Among the livestock vocations poultry farming requires only less capital investment and it is

same time has in added advancing ensuring quick returns.

In comparison with the rest of the livestock sector, the poultry industry in India is more

scientific, better organized and continuously progressing towards modernization. Breeding and

feeding management has improved through education, training, competition, expansion and

survival instincts. Annual per capita consumption of eggs is 43, and that of broiler meat is 1.600

gm. these figures are low in comparison with developed countries.

The industry has great potential to expand because 30 percent of the country's population (about

300 million people) is developing economically and the demand for poultry products is therefore

likely to grow.

The poultry industry has witnessed several ups and downs in the last 25 years as a result of

unplanned growth and a lack of government regulation. Currently, The poultry industry has been

growing at an average of 10% in layers and 15-20% in broilers for several years.

5

The poultry industry is very modern, with pure-line breeding, the latest vaccines and medicines,

environmentally controlled poultry houses, up-to-date processing units, the latest management

practices, chicken processing, exports of hatching eggs and excellent feed quality.

Today, however, globalization is posing greater challenges: namely, making the industry

globally competitive and viable; and fulfilling the enormous potential for growth that is

presented by changing food habits and preferences.

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POULTRY INDUSTRY

Poultry is one of the fastest growing segments of the agricultural sector in India today. India has

become the third largest egg producer in the world, and one of the top ten broiler producers.

Table eggs and broiler meat are the major end products of the poultry sector in India.

The poultry industry is a Rs.45, 000 crore industry, providing direct and indirect employment to

over 4 million persons.

Poultry is also another way of getting food and food security in India. The poultry industry

has been growing at an average of 10% in layers and 15-20% in broilers for several years.

The annual per capita availability of eggs and chicken meat has also increased from a mere 10

eggs and 146 grams in 1970s to around 43 eggs and 1.6 kg respectively and is set to double by

2015.

The changing eating habits, cropping fast food outlets and quick service restaurants speak highly

in favor of improvement in levels of poultry production over the next many years.

The poultry industry has suffered major losses with problems such as bird flu, spiraling costs of

feed materials such as maize and soya because of low production. Good monsoon can help in the

crop cycle improving for these crops coupled with a rationalization of prices.

This industry holds promise although a word of caution that though livestock is an industry

where diseases such as avian flu can mar the best laid plans.

With the prices of pulses, a cheap source of protein, ruling high, consumers are now turning to

poultry for their health needs. The sector will stand to gain as long as this trend continues.

Most attractive feature of poultry industry- From India’s Perspective

Poultry is labor intensive and has a potential to create 25,000 more jobs on the consumption of 1 more egg per capita and similarly 25,000 additional jobs on the consumption of 100 gm more chicken meat per capita.

7

The organized sector of poultry industry is contributing nearly 70% of the total output and the

rest 30% in the unorganized sector. The broiler industry is dominated by southern states in our

country with nearly 50% of total output coming from these states. The layer industry once again

is represented more in southern states especially, Andhra Pradesh, Tamil Nadu and Maharashtra

producing nearly 70% of the country's egg production. India's 75% of egg produce is consumed

by the 25% population living in urban and semi-urban areas. Presently about 800 hatcheries are

operating in the country. 

This growth in the past few decades made India third largest producer of eggs and ninth largest

producer of poultry broiler. At present the industry is estimated at over Rs 45,000 crore and is

expected to grow over Rs 60,000 crore by 2010.

India produces 1,400 million chickens a year, which is close to 27 million a week, of which 95%

is traded, alive. According to a market report the poultry production and consumption in the

domestic markets is slated to grow by 66% to approximately 2.3 million tons by 2010.

India is the third largest producer of egg and ninth largest producer of poultry meat. The

Indian poultry production is considered the cheapest in the world.

By the year 2010 India is expected to produce 260 million layers (77700 million eggs) and 3500

million broilers (5.9 million tonnes). Per capita consumption of meat will be around 3.5 to 4.5 kg

and eggs will be around 65 and it is expected to contribute Rs 60,000 crore to the GDP.

No agriculture sub-sector is growing as fast as the Indian poultry, making it the most dynamic

and rapidly emerging sector of livestock economy. The export of poultry meat is expected to

reach Rs 1,500 crore by 2010. Indian agriculture contributes 16 per cent to the GDP of which

17% is contributed by poultry.

The poultry industry has responded well to technological changes and has grown faster than the

dairy and ruminant meat sector. Enhancement of genetic potential has been the most important

factor in the growth of this sector. However, this has been complemented by health and nutrition

technologies.

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Although, the Indian poultry industry is on a rise due to modern practice method of poultry

farming but a major section of the industry still suffers from some bottlenecks, like the following

Lack of proper basic infrastructure like storage facility, transport, cold storage chains

Fluctuations in the price of poultry products

Interference of many market intermediaries

Availability of proper nutritious feed in absence of corn or maize, which constitutes

the bulk of broiler feed

Lack of proper disease knowledge of the fowls

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VENKY’S INDIA LIMITED

A listed public limited Poultry Company

Venky's (India) Limited formerly known as Western Hatcheries Limited was established in 1976,

mainly to produce day-old layer and broiler chicks for the dense poultry markets of North India.

Over the years, Venky's (India) Limited diversified in new activities, adding tremendous value to

the company, giving it an edge in technology and high returns on investment.

The company faces competition from the unorganized sector in the Processed Chicken segment.

However, the company has carved a niche for itself and supplies its products to quality-

conscious institutional consumers in the hospitality industry. These include Domino's, KFC, Mc

Donalds and Pizza Hut, major five star hotels and flight kitchens.

The company is witnessing a good growth in demand from this segment. The company also sells

various poultry products in the ready-to-eat segment through a nationwide distribution network.

These products are sold under the brand name Venky’s and are available at Supermarkets and

retail stores in all major cities in India

KEY GROWTH FACTORS FOR VIL

Market Leader, a pioneer in Poultry Industry with fully integrated and world class

facilities

Converting itself into a FMCG company with a large array of branded products

Huge outsourcing potential remains to be untapped as stores like Walmart, etc, are

looking toward India for its various shelf products including Ready to Eat Chicken

products. Venky’s is ideally placed to capitalize this opportunity.

Poultry industry has tremendous growth potential with low consumption of eggs and

poultry meat when compared to world standards.

WTO agreements may force EU to cut subsidies thereby offer huge export potential

Early entrant in high margin pet food business

Proximity to Middle East market with its own brand

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RESEARCH OBJECTIVE

The objective of this study is to:

Analyze the Poultry trade at Delhi covering chicken, dressed chicken and

processed chicken and Egg.

The study addresses the following issues:

How cost get added from farmer’s gate to consumer.

Understand the supply chain management of Institutions, Quick service

restaurants (QSR), Modern Retailers and Traditional Retailer.

Try to identify their cost components and weight age of cost components in total

costs

Identify the problems facing by farmers, wholesaler and retailer.

Get Idea about chicken consumption in Delhi and reason behind increasing

demand of chicken

Find out seasonal effect on demand and supply of egg and chicken

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RESEARCH METHODOLOGY

Research method used here is based on primary and secondary data.

SOURCES OF DATA

i) Primary data:

Primary data are those, which are collected afresh and for the first time, and thus happen to be

original in character. It is the backbone of any study. It is obtained from respondents with the

help of widely used and well-known method of survey, through a well-structured questionnaire.

In this research Primary data collected directly from the people involved in trade of poultry and

poultry products

ii) Secondary data:

Secondary data are those which have already been collected by someone else and which have

already been passed through the statistical process. In this case one is not confronted with the

problems that are usually associated with the collection of original data. Secondary data either is

published data or unpublished data.

Secondary data is collected from govt. publications, journals, magazines, financial records, web

sites and annual publications of the company.

In this study secondary source used is websites. Secondary data consisted of finding information

from the Company website and the Internet.

Research methods used to study and analyze the Poultry trade done by observing and

preparing a Questionnaire & obtaining information directly from market survey by

meeting and taking interview of the persons who are related to this field. I tried to meet as

many people as possible to get fair idea about poultry trade.

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POULTRY TRADE AT DELHI

Trade and commerce have played a pivotal role in shaping the development of Delhi’s economy

by making a significant contribution in terms of tax revenues and providing gainful employment.

Delhi is the biggest consumption centre in North India. Delhi distinguishes itself as a centre for

entrepot trade which means that large part of its economic activity is concerned with the

redistribution of goods produced elsewhere and imported for local sales as well as for export to

other states i.e. interstate sales.

It has attained the status of a major distribution centre by virtue of its geographical location and

other historical factors, availability of infrastructure facilities etc. That it is a major distribution

centre is borne out by the fact that 49% of fuel oil, 47% of foodgrains, 44% of iron and steel and

78%of fruits and vegetables imported into Delhi are re-exported.

Delhi is capital of India as well as source of income for people who belong to other states of

India but live in Delhi due to Job or Business. As population is increasing, demand of chicken

and eggs are increasing in Delhi.

FISH, POULTRY & EGG MARKETING COMMITTEE, GAZIPUR

This committee established in 1992 deals with fish, poultry and egg. There are 88 shops for the

poultry market and 196 shops for the fish market at Gazipur. The area under Fish market is

60,000 Sq Mtrs. and the area under Poultry Market is 15.808 Acres.

The arrivals of poultry items, i.e. chicken and fish during last five years in indicated below:

13

BROILER TRADE AT DELHI

In Delhi Gazipur Mandi is playing a vital role in trade of live birds. Farmers bring Broiler

and Layer both type of birds here.

Gazipur Mandi is the ultimate market where farmers bring their birds in trucks sell their

birds through commission agent.

After coming at Mandi farmer gives authority of selling birds to any of commission agent

according to their choice and past experience.

At Mandi Retailers, Wholesalers, intermediaries come and purchase birds according to

their requirement.

Every buyer has to pay Rs. 1 as Mandi tax per Rs. 100. It means a buyer purchases birds

of worth Rs. 1000 than he has to pay Rs. 10.

In Gazipur there are many commission agents who take commission from farmer for

selling their birds which is 3.12% of total transaction.

A big commission agent generally sells 2-3 trucks combination of small truck (capacity

of 112-124 carats) and big truck (capacity of 200-220 carats).

A big commission agent sells 4000-7000 birds daily which depends upon market

demand.

At Gazipur Mandi daily arrival of trucks are between 150-160.

At Gazipur Mandi there are near about 90 shops.

If we assume that among 150 trucks, there are 90 big trucks of 200 carat capacity and 60

small sized trucks of 112 carat capacity. Than total birds come in the Mandi is near about

250000 birds if one carat has 10 birds.

Farmers of Hariana, Punjab, U.P., Rajasthan, M.P. brings their birds at Gazipur Mandi.

At Gazipur Mandi, from last 10 years, trading of birds happens through weighing of

birds.

At Gazipur Mandi there is facility of dressing of birds is available.

At Gazipur Mandi, some transporters are available who provide transportation facility to

retailer or wholesaler to supply their birds at their required place.

Some of big wholesaler don’t do dress bird at their shop they deliver their birds to dresser

at Gazipur Mandi and get back dressed chicken and further they supply this dressed

chicken at some retail shops and institutional buyer and hotels.

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Small retailer generally don’t go Gazipur Mandi or at any Mandi, he purchases live birds

from nearest big wholesaler or direct broiler farm(if possible)

FLUCTUATION IN AVERAGE MONTHLY CHICKEN (SMALL &

MEDIUM SIZED) PRICE THROUGH LAST ONE YEAR

MonthAverage monthly price of medium sized chicken/kg.

Average monthly price of small sized chicken/kg.

May, 09 56.7 57.96

June, 09 62 62.76

July, 09 62.11 60.55

August, 09 58.6 62.74

September, 09 63.21 71.21

October, 09 66.48 76.11

November, 09 57.57 65.65

December, 09 50.74 58.07

January, 10 64.3 67.93

February, 10 63.17 69.58

March, 10 66.19 71.66

April, 10 67.23 67.92

May, 10 76.07 75.55

15

May, 0

9

June, 09

July, 09

August,

09

Septem

ber, 09

October,

09

November,

09

December,

09

January

, 10

Febru

ary, 1

0

March, 1

0

April, 10

May, 1

00

10

20

30

40

50

60

70

80

Average monthly price of medium sized chicken/kg.Average monthly price of tandoori sized chicken/kg.

INTERPRETATION

We can see the average monthly price of small sized (tandoori) chicken is high except few

months.

If we look at the trend of prices, which is affected by demand, we find that demand of small

sized chicken (tandoori) is more in comparison to medium sized chicken.

We can see prices are rising in summers also because chick cost, feed cost and labor cost has

been increased.

EGG TRADE AT DELHI

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Mostly egg farmer are situated at Panipat, Karnal and Barwala district.

In Delhi, wholesalers do contract basis purchasing from farmers. Whenever farmer has eggs in

sufficient number, distributor sends his vehicle to bring those eggs or distributor collects eggs on

daily basis from farmer (if farmer has large production capacity).

Various farmers don’t have contract basis selling than they sell their eggs in open market at

market price.

FLUCTUATION IN AVERAGE MONTHLY EGG PRICE THROUGH

LAST ONE YEAR:

Month Average monthly price/100 eggs

May, 09 213.32

June, 09 231.73

July, 09 221

August, 09 214.87

September, 09 235.2

October, 09 248.42

November, 09 295.9

December, 09 260.81

January, 10 267.61

February, 10 242.54

March, 10 222.13

April, 10 194.07

May, 10 223.06

17

May, 0

9

June, 09

July, 09

August,

09

Septem

ber, 09

October,

09

November,

09

December,

09

January

, 10

Febru

ary, 1

0

March, 1

0

April, 10

May, 1

00

50

100

150

200

250

300

350

Average monthly price/100 eggs

Average monthly price/100 eggs

INTERPRETATION

We can see through line chart that throughout last one year almost average monthly egg prices

are more than 200.

Prices of egg start rising with end of summer season. From end of August month prices of egg

Start rising till November than it starts declining till the April Than it again start rising from the

end of April. We can see this trend again has been start from the end of April 10.

This price fluctuation depends upon demand and supply of eggs. In summers, people don’t like

to eat eggs so demand is less and prices of eggs falls down.

PERSONS INVOLVED IN POULTRY TRADE

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In poultry trade, various people are involved directly and indirectly. After each step, some cost

goes add up.

A) PERSONS INVOLVED IN CHICKEN/ DRESSED CHICKEN TRADE

1. Farmer

2. Feed manufacturer

3. Transport service provider

4. Commission agent at Mandi

5. Intermediary merchant

6. Wholesaler/ processing units

7. Retailer

8. consumer

FARMER:

He gets day old chicks from hatcheries than he brood them until birds get good body weight. In

winter more is demand so prices of tandoori chicken(small sized bird of body weight of 1100 –

1300 gm) is high so fulfill demand that demand he sells bird of that size.

In summers due to less feed intake and mortality birds, get less body weight in same period so

farmer make them medium and large size bird and sell in market.

Sometimes farmers sell their birds in small quantity to residents of nearby area at good price.

FEED MANUFACTURER:

Feed manufacturer also plays an important role from the day when chicks come to the day of

sale. Good quality of feed helps chicks to gain body weight with good FCR.

Some of the farmers make their own feed.

TRANSPORT SERVICE PROVIDER:

When the birds get enough body weight than farmers call the local transport service provider or

mandidar to avail transport facility for birds to Mandi from farm.

COMMISSION AGENT AT MANDI:

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After arriving at Mandi, farmer authorizes a Commission agent to sell his birds. In return, he

takes some commission. Commission agent sells the birds according to Mandi price, which

depends upon demand and supply of any particular sized bird on that day at Mandi.

INTERMEDIARY MERCHANTS:

Some person purchase birds directly from farms and retain those birds at their own farm for

mostly one or two days. During this period, they sell these birds to local retailer, wholesalers and

hotels.

Some merchant purchase birds from Gazipur Mandi and retains & feeds the birds at Gazipur

Mandi than sell those birds on the same day at Gazipur Mandi.

WHOLESALER/ PROCESSING UNITS:

Big wholesaler purchases birds from Mandi. Some of them do not dress bird at their shop, they

get dressed chicken by using dressing facility available at Gazipur Mandi.

Wholesaler also gets dressed chicken from big firms like skylark, venky’s Bromark etc.

Processing units mostly have contract farming and generally purchase from farmers but

sometimes they purchase from Mandi to fulfill their requirement.

RETAILER:

Retailer can purchase direct from farm if he is localides otherwise he purchase live birds from

big wholesaler or dressed chicken from companies like skylark, venky’s which is selling chicken

with bran name of BROMARK.

CONSUMER:

Some intermediaries at Gazipur Mandi, who purchases in little quantity and sells at Mandi so

sometimes consumers purchase from such intermediary merchants at Mandi.

Mostly consumers purchase from retailers.

SUPPLY CHAIN FOR CHICKEN

20

21

Pure line / Grand Grandparent

Grand parents

Parent Breeding Farm

Hatchery

Day Old Chicks

Feed Mill

Commercial farming

Wholesale Market (Mandi)

Wholesaler

Retailer

Consumer

Processing plant

B) PERSONS INVOVLED IN SEMIPROCESSED CHICKEN/ READY TO

COOK CHICKEN TRADE

1. Farmer

2. Processing units

3. Depot

4. Distributor

5. Sales representative

6. Transporter

7. Retailer

8. Consumer

FARMER:

Farmers sell their birds to company (if there is contract farming) otherwise, they sell their birds

at Mandi. If company have extra requirement than it purchase from Mandi also.

PROCESSING UNITS:

Mostly processing units prefer to purchase from direct farmers to reduce its cost. These plants

purchase birds through Mandi whenever it is not able to get required number and then do further

processing at their plant until packaging. Processing units have capacity of processing of 4000-

6000 birds/hour.

DEPOT:

Each company, which is in this field, has a big cold storage called depot. Depot manager

supplies products according to forecasted demand to the distributor. Some time Depot manager

sends products to the institution, QSR and Modern retailer, with whom company has contract

one year.

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TRANSPORTER:

For such type of products air conditioned vehicle is required for supply. To store these products -

18 to -20 degree Celsius temperature is required. Company incurs transportation cost from

company to depot and from depot to distributor. When distributor place his order, most probably

he gets delivery of products same day.

DISTRIBUTOR:

After getting products from depot, he also store products in cold storage. Further, he supplies

products to retailers. In any specific area, there is only one distributor, only if that person is able

to cater that region.

SALES REPRESENTATIVES:

Sales representatives are the person who brings the order from retailer as well as identify

potential buyer. Company as well as retailer both has sales representatives.

Sales representatives and sales manager of that region sit together and forecast the next month’s

demand of distributor and make planer or planogram for next month than sales office of that

region sends those data to head quarter and then according to that planer plant sends those

quantity to depot.

Depot manager has planer and sends decided quantity of the products to distributor according to

forecasted demand in the planer.

RETAILER:

According to demand, he places his order to distributor. Distributor supplies products through his

vehicle. If any retailer is not able to sell any particular product than distributor transfer that

product at another retailer’s shop. If any products cross expiry date than company, return the

money and packets are destroyed at distributor level.

CONSUMER:

Consumer purchases these products from retailer’s shop and enjoy the product.

23

SUPPLY CHAIN FOR VALUE ADDED PRODUCTS

24

Processing plant of Vertical Integrator

Live Market / Mandi Commercial Broiler Farm

Further processing and chicken turned into final product

Waste unit

Depot where products are stored for further supply

Distributor

Retailer

Consumer

OTHER VALUE ADDED PRODUCT PROVIDER:

In Delhi, there are many branded restaurants as well as simple hotels, dhabas and road side seller

of value added products.

For chicken:

All big restaurants and as well as restaurants which has branches and dhabas in Delhi purchase

chicken in dressed condition. All have contracts with some supplier or vendors. After getting

chicken pieces they have their own recipe to make value added products. All these make & serve

the products only According to consumer’s choice.

In delhi, some take and away type of kitchens who also provides home delivery actually these

type of service provider don’t have enough space for customer to sit and eat at shop.

For egg:

Mostly value added egg and egg product s are sold through roadside seller. Restaurants and

Dhabas also provide value added products. These all have specific supplier or retailer for egg.

Egg product can be sold through road side seller but there is rare chance for chicken because

there is hygienic factor attached with chicken.

25

3) PERSON INVOLVED IN EGG TRADE:

Persons are:

1. Farmer

2. Price setter organizations

3. Transporter

4. Contractor

5. Distributor

6. Wholesaler

7. Retailer

8. Consumer

FARMER:

Farmer purchases day old chicks from hatcheries. He retains and raises the chicks. After feeding

20 weeks, he gets normal sized eggs. He retains the bird till 72 weeks than he sends the birds at

Mandi and get money according to market price. Some farmers sell eggs in open market and few

farmers sell 50% of eggs to contractor and remaining in open market.

Some farmers supplies eggs directly to hotels, institutions and modern retailers. At farm, labor

collects the egg and put them into the tray.

PRICE SETTER OGANIZATIONS:

For price, setting there is NECC who decides the price according to the supply and the demand

of egg. Besides this in Barwala, farmer and distributor or their agent sit together and decide the

price of next day.

26

TRANSPORTER:

Here transporter has two different roles. One is for fetching eggs from farmers. Second is to

bring the birds at Mandi from the farm. for both purpose there are different transportation service

provider.

CONTRACTOR:

Most of farmers have contracts for their egg production. Contractor sends his vehicle to farmer’s

farm and loads the vehicle with the help of labors.

DISTRIBUTOR:

Distributor gets eggs through contractor or directly from farmers. Further, he supplies to

wholesalers.

WHOLESALER:

Wholesaler gets eggs from distributors. He sells the eggs to retailer, hotels etc.

RETAILER:

Retailer is direct seller to consumers.

CONSUMER:

Consumer is the end user of egg.

27

SUPPLY CHAIN FOR EGG

28

Pure line / Grand Grandparent

Grand parents

Parent Breeding Farm

Day Old Chicks

Commercial Layer farm

Contractor/Distributor

Feed mills

Wholesaler

Retailer

Consumer

Institutions, Modern Retailer

Processing units which makes some products and do export

COST ADDITION & PROFIT MARGIN FOR CHICKEN AND

EGG AT DIFFERENT LEVEL:

COST ADDITION AT DIFFERENT LEVELS FOR CHICKEN (Calculation

for small size bird of body weight 1.3 kg.)

Particular Amount

Cost of chick 28

Cost of feed ( 1.7 × 18 ) 30.6

Medication and Vaccination cost (per bird) 2

Labor + power+ Rent (per bird) 2

Other expenses (cleaning exp., wooden dust etc.) 3

Production cost of body weight 1.3 kg 65.6

Production cost per kg (65.6/ 1.3) 50.46

Transportation cost from farm gate to Mandi per bird (depends upon distance of farm from Mandi) 3

Commission charged by agent( 3.12 % of whole transaction )(3.12% of 70) 2.246

Total cost till selling 55.706

Profit per kg. for farmer 14.294

Market price per kg (assumed) 70

Transportation exp. ( Rs. 32 per carat of 8 bird in summers) 4

Feed+ labor+ electricity+ rent of shop +mortality (.75 +1+.5+1+.75) 4

Wastage ( 50 % of 70) 35

Total cost for retailer till selling 113

Profit per kg. for retailer 27

Selling price(per kg) 140

29

43%

47%

3%3%

5%

Production cost components & their weightage per bird of 1.3 kg

Cost of chickCost of feed Medication and Vaccination costLabor + power+ Rent other expenses (cleaning exp.,wooden dust etc.)

INTERPETATION

In total production cost, cost of feed is major contributor in production cost after that cost of

chick second largest contributor in production cost.

Some farmers prefer to purchase chicks from local hatcheries to reduce production cost because

local hatcheries provides chicks at lesser price than renowned chick provider like Venky’s.

Farmers also make their own feed to reduce the production cost.

If farmer has chicks of renowned company and has, proper management and quality feed than he

can reduce cost as well as can maximum return on his investment.

30

COST ADDITION AT DIFFERENT LEVELS FOR EGG

Particular Amount

Cost of chick (22.2+.3) 22.5

Total feed consumption in pre lay stage (6.3 × 12) 75.6

Vaccination + Medication 10

Labor + Power + Rent (20 × 20/52 ) 7.69

Pullet cost 115.79

Feed consumption in Laying period 42 × 12.5 525

Medication + Vaccination in Laying period 3

(Labor + Power + Rent) in laying period 20

Total cost of layer till 5% HHP 663.79

Selling Price of a Layer Rs 30/kg. 45

Actual cost of Layer 618.79

Total number of Hen House egg 300

Cost per egg 2.062633333

Profit/egg 0.117366667

Selling Price of an Egg at farm gate 2.18

Amount shared by contractor & wholesaler 0.12

Market price 2.3

Profit of Retailer per egg 0.7

Retailer 3

31

Except this, farmers sell the manure, which is nitrogen rich, mixture of shit of layer, medicines

and feed. Farmer can sell Breakage eggs to bakeries.

In Delhi, Wholesaler generally pays 10 paisa per egg less than market price to the farmer. This

10 paisa is consisted of expenses and profit, like this:

PARTICULAR AMOUNT IN PAISA/ EGG

Transportation charges from farm to shop 5

Breakage 1

Labor 1

Supply expenses to Retailers 1

Profit 2

50%

10%

10%

10%

20%

Transportation charges from farm to shopBreakageLaborSupply expenses to RetailersProfit

32

DISTRIBUTION CHANNEL FOR CHICKEN AND EGG

DISTRIBUTION CHANNELS:

Path or 'pipeline' through which goods and services flow in one direction (from vendor to

the consumer), and the payments generated by them flow in the opposite direction (from

consumer to the vendor) called distribution channel.

A distribution channel can be as short as being direct from the vendor to the consumer or may

include several inter-connected (usually independent but mutually dependent)intermediaries such

as wholesalers, distributors, agents, retailers. Each intermediary receives the item at

one pricing point and moves it to the next higher pricing point until it reaches the final buyer.

Distribution channels are set of interdependent organization involved in the process of making

a Product or Service available for use or consumption.

Today Modern retail, Institutions and QSR have central purchasing, strong distribution channel

and very strong MIS system for stock management and continuous availability at stores.

Modern retailer like Reliance fresh uses Minimum Bin Quantity (MBQ) & Target Minimum

Bin Quantity (TMBQ) for their stores.

33

DISTRIBUTION CHANNEL FOR CHICKEN AND EGG IN MODERN

RETAIL:

Modern retail store provides various products under one roof to meet consumer’s daily need.

Besides providing a huge range of products of different brands, they also ensure the customer

about quality of products.

Modern retail is the need of current life style of people because people have very busy schedule

of working life and they cannot move here and there in search products so these stores has

become the part of life of working population as well as young generation.

Modern retailers have very strong MIS system, which provides each store’s requirement to

distribution channel (DC). According to whole requirement of products, DC generates

Purchasing Order (PO) after that that PO goes to manufacturer’s or supplier’s sales department.

Manufacturer’s DC takes required action and goods supplies from warehouse or plant of

manufacturer to DC of Modern Retailer. DC sends it to its different stores according to

requirement.

Sometimes Modern Retailer sells private labels for that they purchase directly from producer and

brings to DC where packaging is done in packet of different weights then those packaged private

labels goes to its store.

Mostly, modern retailer prefers to get products in packaged form. For this, they do contract basis

central purchasing with certain product specification under Terms & Conditions (T&C). For

example: for chicken and egg supply, different Modern retailers have different vendor or

supplier

Reliance fresh has separate store for chicken and mutton selling named Reliance delight .

At Reliance delight, reliance get dressed packaged as well as open chicken from skylark

with brand name Nutrich in packing of 500gm and 1000gm. Nazeer is another brand

which is sold by reliance in dressed chicken.

34

For ready to eat or ready to heat, no Modern retailer is dependent on single vendor or

brand. Most of all are selling, popular brands like Venky’s, Yummiez, Al kabeer, Sumeru

etc.

For Egg all have different supplier. Reliance fresh as well as reliance delight both sell egg

in packaged as well as in open tray. Reliance gets packaged egg from Agrocorpex India

limited and for supply in tray, it has arora poultries etc. Adiyya Birla group’s More is also

sells egg but in tray as well as in open basket.

Central purchasing means only head office do purchasing for all stores and than that purchased

products comes at warehouses of modern retailer and for further supply of products, Modern

retailer’s DC is responsible.

For distribution of goods, both manufacturer and Modern retailer have Distribution channel

(DC).

DISTRIBUTION CHANNEL FOR CHICKEN AND EGG

35

Manufacturer/ supplier

Modern Retailer

Consumer

DISTRIBUTION CHANNEL FOR CHICKEN AND EGG IN

INSTITUTIONS:

Mostly all institutions have central purchasing system. For chicken and egg, they do almost one

year contract with vendors. For this, institutions invite Tenders from vendors whoever fills

tender with minimum price, gets the one-year contract for supply.

In this one-year contract sometimes vendor enjoy huge profit and loss also because he has to

supply at fix price and he does not do anything with market price. Whatever is market price he

has to supply at tender price only.

Institutions like PIND BALLUCHI, NIRRULA’S HOTELS etc. do that. For ex. In Delhi, Kallu

& company supplies chicken to all PIND BALLUCHI restaurants.

DISTRIBUTION CHANNEL

36

Supplier / Manufacturer

Institution

Consumer

DISTRIBUTION CHANNEL FOR CHICKEN AND EGG IN QUICK

SERVICE RESTUARANTS (QSRs):

Cost is the main factor at which every businessperson should concentrate and analyze that how

he can reduce his cost and at which minimum price, he can sell his products to maintain a certain

profit level. For this, he has to control rising cost of raw materials as well as secure continuous

supply of raw material from contractor in any circumstances.

QSR also do central basis purchasing with keeping good quality standards in mind. QSR also

follow various quality standards in service as well as food.

QSR do contract basis purchase and open purchasing from selected manufacturer under various

terms & conditions and required specification.

According to specification, manufacturer provides tailor made products to QSR’S Distribution

channel (DC) Than QSR supplies products to their outlets. Sometime if plant of manufacturer is

not able to supply than depot arranges supply.

DISTRIBUTION CHANNEL

Ex. Distributional channel of Venky’s packaged chicken products to KFC, Domino, Pizza hut

and Mcdonald etc.

37

Manufacturer’s processing plant/ Depot

QSR

Consumer

DISTRIBUTION CHANNEL FOR CHICKEN AND EGG TRADITIONAL

RETAIL:

Traditional retail does not follow any quality standards for selling. Traditional retailer just wants

to sell their products and consumer also purchase due to reputation of retailer.

Chicken pieces is supplied in plastics bags after dressing to small restaurants, hotels and retailers

in very unhygienic situation and same situation with distribution of Egg which is supplied in

cycle riksha to small retailer openly in tray.

Restaurants and hotels serve chicken and egg after some value addition to consumers.

In case of ready to cook or semi processed chicken retailer is totally dependent on distributor.

In case of traditional retailer, there is no intermediary between retailer and consumer but for

supply of goods and service, retailer is very dependent on wholesaler or supplier so wholesaler

and supplier are essential part of distribution channel of traditional retail.

DISTRIBUTION CHANNEL

38

Wholesaler/supplier

Retailer / Small restaurants / Hotels

Consumer

OUTCOME OF RESEARCH

A) IN CASE OF BROILER FARMER:

All interviewed farmers were having very good experience of broiler farming of more than 10

years. Outcomes are

1) Among all, 7.14 % farmers were using cob-400 breed, 28.57 % farmers were

using Marshel-R, 35.71 % were using cob-100 and rest 28.57 %, sometimes use

hubbard, sometimes cob-100 & 400.

Farmers who were using any specific breed they were having good supporting

argument in regarding why they use that breed. In case of choosing chicks of any

company price factor plays most important role as well as past performance of

flock of any breed also plays a role to some extent. Availability of chicks also

matters.

2) Among all 42.85 % were giving MBM in feed to birds.

3) Among all 85.71 % were following all in all out concept for farming.

4) All most everyone was very much aware about his production cost component

and its weightage in production cost.

5) All farmers sell their birds at Gazipur Mandi. Prices of chicken are decided at

Mandi, which depends upon demand and supply of chicken at Mandi.

6) Normal mortality rate is 3 – 8 % but it is very uncertain that what will be

mortality it may be normal or may goes up to 100 %. Mortality depends upon how

a farmer take cares his flock.

7) problems in broiler farming

Labor shortage

Increasing labor rate

Un uniformity of chicks and early day’s mortality of chicks

No Government support

Huge uncertainty in mortality

Electricity

39

Hatchery supplies chicks and takes responsibility of mortality in

earlier days only, if problem is related to hatchery.

8) With increasing demand of chicken, farmer’s income and profit are as same as

previous because cost of production also has increased in same ratio.

9) Farmer says:

Small farmers will be finished. A person who does not have

technical knowledge, good quality of chicks and proper

management, should not enter in this field because it business

which has huge uncertainty.

Government does not provide any help.

We have to pay cash for chicks but we have to sell birds on credit.

B) IN CASE OF LAYER FARMER:

All Layer famers were having good experience of layer farming. Outcomes are:

1) Among all 76.47 % were using BV-300 only and rest were using Bovan & BV-

300 both. User of BV-300 were satisfied with it and reason behind that was

Better immunity power

Suitable for North Indian climate

Good performance

2) Among all 47.05 % were having proper knowledge of component and their

weightage I production cost.

3) Among all, 76.47 % farmers destroy breakaged eggs but 23.53 % either give them

to labor or sell to bakeries.

4) Among all 64.70 % sell their egg on contract basis, 29.41 % sell in open market

only 5.88 % sell contract basis as well as in open market.

5) Among all only 11.76 % were willing to sell their eggs to big retailer or

institutional buyer, only 5.88 % is selling their eggs to big retailer like Bharti

Walmatrt and 82.35 % were very much unwilling to sell to them.

40

6) Reason behind unwillingness to sell eggs to big retailer

Incurrence of extra cost like appointing extra labor, packaging

Investment for hygienic condition

Credit sell and late payment

7) All were doing B2B dealing.

8) Problems in Layer farming

Labor shortage

No Government Aid

Fluctuation in weather

Disease

Price fluctuation

9) Reason behind not selling eggs by making own brands while it may be more

profitable for them

Extra capital

Extra manpower will be required

Arrangement of supply chain network

Extra investment of time

Extra expenses for marketing and advertisement

10) Among all, 17.65 % were in favor in NECC.

11) Among all, 41.17 % said that NECC do some activity.

c) IN CASE OF DRESSED CHICKEN SELLER:

41

Outcomes are

1) Among all, 66.67 % seller purchase birds from Gazipur wholesale market and rest

33.33 % purchase from nearest farm or wholesaler.

2) Among all, 66.67 % seller dress bird at their shop, 20 % seller dress their birds by

dresser at Gazipur Mandi and 13.33 % purchase direct dressed chicken.

3) Only 60 % were having fair idea about their cost and weightage of cost

component.

4) Ideal wastage is 30% in case of small and large sized bird but in case of small

sized bird it varies between 30 % - 50%.

5) Among all, 46.67 % provide Home delivery.

6) Among all 66.67 % do B2C dealing and rest do B2B & B2C both.

7) problems

No proper & perfect cleaning facility

Police disturb during transportation in night

Transportation problem

Big retailer

Fluctuation in prices

Electricity & labor

No substitute of polytheen bags

8) Ready to eat or Ready to cook chicken is not threat for them because among 10

consumers rarely 1 demand for packaged or ready to cook chicken.

9) Reason behind increasing demand of chicken day by day

Prices of vegetables & pulses is continuously rising

vegetarian people also have started to eat it

doctors suggest to avoid red meat

due to health reason people like it

D) IN CASE OF SEMI PROCESSED/ READY TO COOK CCHICKEN

SELLER:

Outcomes are

42

1) Whoever is selling venky’s product also selling Godrej, Al Kabeer and Sumeru

etc

2) Venky’s is enjoying first mover advantage.

3) Godrej is doing aggressive marketing but in this field, Venky’s is lagging behind.

4) No shopkeeper forces any consumer to purchase any specific brand and don’t

assure about quality of product because shopkeeper thinks that brand name is

enough for sell.

5) Among 10 customer only rarely 1 demands for packaged chicken

6) Some of them also doing both B2B & B2C dealing

7) About future of processed or ready to cook chicken

Bright future because day by day variety in products is increasing

new generation is liking it

In near future, number of working women will increasing so

demand will increase.

READY TO COOK AND READY TO EAT CHICKEN

Ready to cook chicken means before eating it need some cooking and ready to eat means directly eatable.

43

Venky’s is the first national brand in the processed

chicken segment. VIL is a preferred supplier to the Indian

outlets of McDonalds, KFC, Pizza Hut, and Domino’s.

Other market players are:

yummiez form Godrej-Tyson Meatzaa Suguna homebites Quick meal Al-kabeer sumeru

Market share of players

During research I found among 100 persons, 60-70 person demands Venky’s products and due to

new entrant and schemes Godrej is able to grab 15 % market share because 10-20 persons

demands Godrej’s products. In rest 20% there are Meatzaa, Al kabeer and Sumeru & various

regional players like Quick Meal, BHL etc.

65%

15%

20%

Market share

Venky'sGodrejSumeru, Alkabeer,Meatzaa & others

REASON BEHIND SUCH MARKET SHARE

1) PORTER GENERIC STRATEGIES

44

Venky’s is using product differentiation strategy through its quality products and due to this

uniqueness or core competency it is in position of market development as well as product

development.

2) First mover advantage

3) Strong R&D support

4) World class infrastructure

5) Strong distribution channel

6) Good market reputation

OPPORTUNITY FOR SEMIPROCESSED/READY TO EAT CHICKEN

45

1) CHANGE IN EATING HABITS With westernization, we can see change in eating habits of Indians. It is expected that 200

million people shift to processed and packaged food by 2010. In metro cities number of working

woman also increase which will work in favor of packaged and processed food.

2) LARGE DOMESTIC MARKET

India is one of the largest emerging markets, with a population of over one billion. India is one of

the largest economies in the world in terms of purchasing power and has a strong middle class

base of 300 million.

Rural and urban potential

Rural-urban profile

Urban Rural

Population 2001-02 (mn household) 53 135

Population 2009-10 (mn household) 69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Universe of Outlets (mn) 1 3.3

Source: Statistical Outline of India (2001-02), NCAER

Around 70 per cent of the total households in India (188 million) resides in the rural areas. The

total number of rural households was expected to rise from 135 million in 2001-02 to 153

million in 2009-10. This presents the largest potential market in the world. The annual size of the

rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing

incomes at both the rural and the urban level, the market potential is expected to expand further.

3) DEMAND-SUPPLY GAP

Currently, only a small percentage of the raw materials in India processed into value added

products even as the demand for processed and convenience food is on the rise. This demand

supply gap indicates an untapped opportunity.

46

THREATS FOR SEMIPROCESSED/READY TO EAT CICKEN

1) PREFERENCE OF FRESH DRESSED CHICKEN

During research, I found that in among every 10 people somewhere 10 out of 10 and somewhere

9 among 10 preferred dressed chicken. Among 100 total 94 people purchased dressed chicken

and only 6 purchased Semi processed/Ready to eat chicken.

94%

6%

Preference

Fresh dressed chickenSemi processed/ready to eat chicken

2) MUSLIMS DON’T PREFER

Muslim community does not prefer semi processed chicken and Frozen chicken. That

community is more than 20 % of Indian population. Muslims prefer HALAL meat.

Now many companies like Al Kabeer and Sumeru have started mentioning HALAL word on

their packaging.

RECOMMENDATIONS

A) RECOMMENDATION FOR DISTRIBUTION CHANNEL FOR

CHICKEN AND EGG TRADE

47

DISTRIBUTION CHANNEL: Distribution channel is not only making goods & services

available in market but also creating markets for goods & services.

Existing distribution channel for chicken & egg trade is doing well. Both buyer and vendor have

separate distribution channel to supply to its store and to depot, respectively.

Distribution channel (DC) of both buyer and supplier side play their role if we make some

changes then working of DC’s will be affected.

If we reduce any part or member of Distribution channel, it may cost to company in form of

loosing market due to improper supply. If we add more level in distribution channel it might or

might not be fruitful but it will be a cost to company.

According to me, existing supply channel is good. In modern retail, all stores of any retailer are

getting goods continuously at time and they have proper way to each and every activity like for

damage, unsold product.

Same thing is with QSR, institution and traditional retailer.

Every business should have a particular person or department to look after purchase otherwise

conflicts will arise and business will suffer.

In existing DC, DC’s of both sides doing their work in proper manner and getting things done, so

existing DC is good and any change is not required.

If we make any new DC, we have to maintain same level of existing DC in new DC also so there

is no possibility of new distribution channel so existing distribution channel is good.

Existing distribution channel is appropriate for Indian context where is lack of infrastructure.

Changes are possible at manufacturer and supplier level. Both can change the way that how they

get raw material or finished goods to reduce cost but further they have to follow existing

distribution channel.

Things can be done which are making improvement in existing distribution channel. Possible

improvements are:

48

We can add hygienic factor in traditional supply chain management, which is currently

following by a few big groups.

Big dominating player should take initiative to make people aware about health issues

which in return make a force on traditional supplier to use safety standards like covered

vehicle for egg supply to protect egg from sun rays.

Better cold storage facility should be there for frozen chicken during supply.

We can do Disintermediation. We can follow concept like ITC e- chaupal. It will

beneficial for farmers as well as for company. Due to that company will not have to pay

Mandi tax as well as farmers don’t have to pay commission to commission agent and

transportation charges so it will reduce total cost.

Venky’s can grab opportunities in rural areas where backyard poultry is still existing by

making them aware about diseases, drawbacks of backyard farming, promoting them to

do commercial farming.

It can run a programme like public and private collaboration for vaccination and poultry

improvement in areas where backyard poultry is existing. It will raise brand awareness as

well as market share.

Venky’s should collect feedback from farmers about its services and products and also

try to get suggestion from farmers to improve.

B) RECOMMENDATION FOR NECC

NECC should increase its presence in north India

NECC should try to control major fluctuation in egg prices

NECC should fix minimum supporting price for eggs

It should raise awareness about its activity among farmer

49

It should increase medical information of egg and eating benefits of egg through leaf lets,

tv ads etc.

It should try to disintermediation from egg trade for maximum benefits to farmers

It should pay for egg to farmer according to current day price of egg and not according to previous day’s price.

C) RECOMMENDATION FOR VENKY’S

Venky’s should follow “pull strategy” because it has high brand loyalty and high

involvement in semi-processed chicken. It has more than 60% market share of semi

processed chicken or ready to eat category.

50

Venky’s should pay more attention on marketing because Godrej is doing aggressive

marketing and market size is increasing so to grab the opportunity it should think over it.

Venky’s should take initiative like NECC to promote chicken eating habits for everyday.

It will help Venky’s to raise brand awareness as well as in expanding market size

because, it is market leader and it is able to expand the boundaries of market.

According to BCG matrix, Venky’s is at star position due to its first mover advantage in

ready to eat/cook packaged chicken segment. Star position shows possibility of

investment because market is growing and by investing, we can raise our market share.

CONCLUSION

India is emerging strongly as a major livestock production centre. India is currently ranked ninth

in the world as a broiler producer and is the world's third largest egg producer. India is also the

second lowest cost broiler producer and the world's lowest cost egg producer. However, meat

51

consumption in India has a religious bias and basic infrastructure like a cold chain, transport,

processing facilities and storage are lacking.

Poultry is the only industry where modern technology co-exists with the traditional poultry

keeping because poultry technology is appropriate, adaptable, accessible, available and

affordable for both the rich and the poor.

Today’s poultry farm is in contrast to the family farm of yesteryear. While in the past, a single

family farm would often sell eggs and raise chickens for sale, this function was often one of

many ways the farm produced both food and revenue. The commercial farming efforts of today

tend to be more focused and use sophisticated technology to track the status and rate of

production. The poultry farm of today is one of the more profitable operations within the farming

industry.

90% of poultry production is industrial and only 10% is back yard. India has almost reached the

industrialized level in terms of poultry production. However, forward integration in marketing

poultry is lacking.

Broiler processing, cold chain and organized retailing accounts for only 10 per cent of total

production so there is scope for investment in those sectors. Poultry is sold through fresh markets

in India and consumers prefer to buy live poultry and get it dressed in their presence. A lot of

effort is required to change that attitude and consumer confidence has to be gained that dressed

poultry is hygienic, healthy and from disease-free birds.

After liberalization it is easier to import new breeds, poultry and hatchery equipments. APEDA

has noted the potential of exports. NABARD has introduced financial scheme for modern poultry

farms.

Because of good soil, irrigation facilities, trained personnel, India has the potential to become

production base for export oriented poultry.

There are many opportunities in processing. There are very few players who are operating in

processing field. Whereas in developed countries most of egg and meat is sold as processed and

52

canned in India, most of broilers are still sold through small shops, there they are slaughtered

manually.

Production techniques for layers and broilers have reached even rural areas but many poultry

farmers face-marketing problems. It is necessary that low cost technologies are introduced for

safe storage and processing of eggs and meat.

Public and private sectors need to take up training programme for middle-level management at

poultry farms. Several policy interventions are required to protect and improve the poultry

farming and create more employment opportunities in the country.

At present, India exports eggs and meat to gulf countries. These exports are negligible. Govt. of

India should give thrust to export activity by promoting Indian poultry and agriculture. Indian

meat is preferred because it is lean. It contains less fat. Such points should be brought to the

notice of world. India has the potential skills, talents and resources to feed eggs and meat to the

world.

This is big country with a population of one billion people has the potential to become major

player in international poultry industry. Bird performance in many cases is comparable to or

even better then what one may see in developed countries.

LIMITATONS OF RESEARCH

In my research, I used these two tools of Primary research

Personal Observation

53

Personal Interviews

LIMITATIONS

Unwillingness of interviewee to explore any business secrets

No perfect data management with interviewees

Fear of Leakage of business information among interviewees

Unavailability of time with interviewees

Most of interviewees follow traditional way of fix amount pricing

Uncertainty in Poultry sector

QUESTIONNAIRE

FOR DRESSED CHICKEN SELLER

Q: What is your name?

54

Ans.

Q: From where do you purchase birds and which type of bird do you prefer?

Ans:

Q: Any specific place/supplier, then why that place/supplier?

Ans:

Q: Do you dress chicken in your shop or purchase dressed chicken directly (from where) Do you use any machinery to dress the bird?

Ans:

Q: How much cost incur till selling of final product? What are the cost components and how much weightage they have in total cost?

Ans: Cost of Raw Chicken

Wastage

Labor

Power/packaging etc

Total cost per kg.

Q: At which price do you sell your final product? How do you decide the selling price? Who decides the price at Delhi?

Ans:

Q: What do you do with wastage? How much part of total weight goes into wastage?

Ans:

55

Q: Do you provide any value added service (like free home delivery) to your customers?

Ans:

Q: What is total consumption of chicken according to you in Delhi?

Ans:

Q: What do you do with unsold chicken?

Ans:

Q: Who are your buyers?

Ans:

Q: Do you sell directly to big retailer, institutional buyers or QSR?

Ans:

Q: Type of selling (B2B or B2C)?

Ans:

Q: How do you manage your supply chain?

Ans:

Q: What are the problems which you face in this field?

Ans:

Q: Do you think that ready to eat or semi processed chicken is threat for you?

Ans:

56

Q: Why do you don’t sell packaged chicken by making your own brand (if shopkeeper has sound economic position)?

Ans:

Q: There is any seasonal effect on demand and supply of chicken?

Ans:

Q: Do you think there is any meat which is competitor of chicken?

Ans:

Q: Is demand of chicken is increasing day by day? What is the reason behind demand of chicken?

Ans:

Q: Have you heard about Venky’s? How is their product?

Ans:

Q: Any useful information for me which you would like to share?

Ans:

Q: Okay Thanks for sparing time and attending this interview?

NAME AND SIGNATURE OF THE INTERVIEWEE

NAME OF THE FIRM

ADDRESS

CONTACT DETAILS

2) FOR SEMI PROCESSED/READY TO EAT CHICKEN SELLER

Q: What is your name?

Ans.

57

Q: From where do you purchase these products and which brand do you prefer?

Ans:

Q: Any specific brand? Why that Brand?

Ans:

Q: How do you assure your customer about quality?

Ans:

Q: How much cost incur till selling of product? What are the cost components and how much weightage they have in total cost?

Ans: purchasing cost:

Labor Cost:

Transportation:

Chilling/power cost if any:

Total cost:

Q: At which price do you sell your final product? How do you decide the selling price? Who decides it?

Ans:

Q: Do you provide any value added service (like free home delivery) to your customers? What is usual radius? How much does it cost per delivery?

Ans:

58

Q: What is total consumption of semi processed and ready to eat chicken according to you in Delhi?

Ans:

Q: What do you do with unsold product?

Ans:

Q: Who are your buyers?

Ans:

Q: Type of selling (B2B or B2C)?

Ans:

Q: How do you manage your supply chain?

Ans:

Q: What are the problems which you face in this field?

Ans:

Q: There is any seasonal effect on demand and supply of your product?

Ans:

Q: Do you think there is any meat which is competitor of chicken & why?

Ans:

59

Q: Is demand of chicken is increasing day by day? What is the reason behind demand of chicken?

Ans:

Q: What is current demand of semi processed or ready to eat chicken in market?

Ans:

Q: What are the opportunities according to you for semi processed and ready to eat chicken in near future?

Ans:

Q: Have you heard about Venky’s? How is their product?

Ans:

Q: Are you satisfied with Venky’s product’s performance & any suggestion to improve?

Ans:

Q: Any useful information for me which you would like to share?

Ans:

Q: Okay, Thanks for sparing time and attending this interview?

Signature of the interviewee

Name

Name of the firm

Address

Contact particular

3) For poultry farmer

Q: What is your name?

Ans.

60

Q: From where do you get chicks and which breed do you prefer?

Ans:

Q: Any specific reason why that breed?

Ans:

Q: What are the ingredients of feed which do you give the chicks?

Ans:

Q: How many different aged flocks do you have at one time?

Ans:

Q: What are cost factors according to you & how do you calculate your total cost and profit margin?

Ans: Cost of chick = Rs.

Total Feed Consumed till selling (in kg)*price/kg = Rs.

Total Medication + Vaccination Cost = Rs.

Labor+ Power+ Rent till selling = Rs.

Transportation cost = Rs.

Total Cost till selling (sum of the above 5 items) = Rs.

Q: Is there different prices for chicken according to their weight, size or colour? How much buyer’s interference in price deciding?

Ans:

61

Q: What is mortality rate? Is it varies with seasons? What do you do with dead bird?

Ans:

Q: What do you do for disease free environment?

Ans:

Q: To whom do you sell your bird to contractor, institutional buyer, and consumer or at Mandi?

Ans:

Q: Why do you don’t sell directly to big retailer or institutional buyers?

Ans:

Q: What do you do for your supply chain management?

Ans:

Q: What are the problems which you face in this field?

Ans:

Q: Do you know VH Group? Have you ever purchased chicks from VH Group & what was response?

Ans:

62

Q: Do you think, as increasing consumption of chicken day by day your income level is also increasing and now you earn more profit than past?

Ans:

Q: From where do you get financial aid whenever required? Does government provide any facility to you (like loan etc.)?

Ans:

Q: Any useful information for me which you would like to share?

Ans:

Q: Okay Thanks for sparing time and attending this interview?

Signature of the farmer

Name of the Farmer

Mobile Number of the Farmer

Address of the farmer

4) FOR EGG FARMER

Q: What is your name?

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Ans.

Q: From where do you get chicks and which breed do you prefer?

Ans:

Q: Any specific than why that breed?

Ans:

Q: What are the ingredients of feed which do you give the chicks?

Ans:

Q: How do you take care of flocks?

Ans:

Q: What are cost factors according to you & how do you calculate your total cost and profit margin?

Ans: Pullet Depreciation= Pullet cost-cull bird price=Rs.

Total Feed Consumed in laying period(in kgs)*price/kg=Rs.

Total Medication+Vaccination Cost in Laying period= Rs.

Labor+Power+Rent during laying period = Rs.

Total Cost during Laying Period(sum of the above 4 items)= Rs.

Total Number of Eggs laid per hen housed at 5% Hen Day production level=

(HHP)

Total Cost/ Hen Housed Egg= Rs.________

Q: Is there different prices for eggs according to their weight, size or colour? How much buyer’s interference in price deciding?

Ans:

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Q: What do you do with breakage eggs?

Ans:

Q: To whom do you sell your eggs, contractor, institutional buyer, consumer or at Mandi?

Ans:

Q: Why do you don’t sell directly to big retailer or institutional buyers?

Ans:

Q: Type of selling (B2B or B2C)?

Ans:

Q: what do you do for your supply chain management?

Ans:

Q: What are the problems which you face in this field?

Ans:

Q: What do you think about packaged eggs? It is beneficial for big retailer to sell packaged eggs?

Ans:

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Q: Why do you don’t sell packaged eggs by making your own brand (if farmer has sound economic position)?

Ans:

Q: What is egg market size in Delhi? Daily egg consumption in Delhi?

Ans:

Q: What is the role of NECC?

Ans:

Q: What can NECC do better?

Ans:

Q: Any useful information for me which you would like to share?

Ans:

Q: Okay Thanks for sparing time and attending this interview?

Signature of the farmer

Name of the Farmer

Mobile Number of the Farmer

Address of the farmer

REFFERENCES

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WEBSITES

www.ezinearticles.com

http://mofpi.nic.in

www.poultryindia.co.in

www.venkys.com

www.fao.org

www.business.mapsofindia.com

www.rainfedfarming.org

www.delhi.gov.in

www.ris.org.in

www.ghallabhansali.com

www.tajagroproducts.com

http://ffymag.com

www.agriculturalproductsindia.com

www.mydigitalfc.com

http://business.gov.in

REPORTS

ECONOMIC SURVEY OF DELHI, 2008-2009

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THANK YOU

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