Report On Current scenario of poultry sector in Gazipur

Report On

Current scenario of poultry sector in Gazipur

Submitted to Farhan Enam Course Instructor BUS 314

Submitted by: Rezaul Alam Omar--- 794 Md. Saifuzzaman--- 816 Hasibul Haque Sakib--- 818 Tanjeem Hossain--- 1479 Mehedi Hasan Faruque--- 1569 17th Batch BBA Program

Institute of Business Administration Jahangirnagar University Savar, Dhaka-1342.

Date of Submission: May 04, 2011

Letter of Transmittal
May 04, 2011 Farhan Enam Course Instructor BUS 314 Institute of Business Administration Jahangirnagar University Savar, Dhaka. Subject: Submission of a report on Current scenario of poultry sector in Gazipur

Dear Sir, Here is a report on Current scenario of poultry sector in Gazipur that you have assigned us for the partial fulfillment of our Course. In preparing the report we conducted a survey as per instructions and made sincere efforts to collect the data, relevant information, and analyzed all the data accordingly. We have attached the questionnaire of the survey with this report. We have tried to make the report a comprehensive one within the given time. Any sort of suggestion regarding the report will be greatly acknowledged and we will feel gratified if our report serves its purpose. Thanking you

Sincerely Yours, Rezaul Alam Omar--- 794 Md. Saifuzzaman--- 816 Hasibul Haque Sakib--- 818 Tanjeem Hossain--- 1479 Mehedi Hasan Faruque--- 1569 3

Acknowledgement

It is our immense pleasure to submit this report on Current scenario of poultry sector in Gazipur. Upon completion of this report, we pay our heartiest gratitude to our course teacher Farhan Enam for his sublime guidance on various important issues related with the topic, without which our report outline might not be possible. We are grateful to our course teacher Farhan Enam for his guidance and advices on writing reports. We followed his lectures on report writing to complete this report.

Table of Contents Contents Letter of transmittal Acknowledgement Table of contents Executive summery Part One
1.1 Purpose 1.2 Scope 1.3 Limitations 8 8 9

Page 3 4 5 6

Part Two
2.0 2.1 2.2 2.3 2.4 2.5 Sector Profile Market System Sector trends Constraint Analysis Major problem areas Major Invention Strategies 11 14 17 19 19 23

Part Three
3.1 Sector Potentials 30

Part Four
4.1 TEAM Vision of the Sector 33

Part Five
3.1 TEAM Strategy 35

Part Six
3.1 Intended Impact 38 39

Bibliography

Executive Summery
Poultry is a substantial contributor to food supply of Bangladesh. Many small and medium farmers are rearing poultry birds in Bangladesh. Bangladesh is considered as one of the most appropriate countries in the world for poultry rearing. Development of poultry has generated considerable employment through the production and the marketing of poultry and poultry related products. Small improvements in this industry will, in productive and economic terms, give substantial increases to the benefits of the household may obtain from poultry, measured as a relative increase of output. In real terms, output may go up to $150 per yeara small amount of money, but in a situation where total income do not exceed $476 a year, such possibilities for improvement of livelihood deserve to be pursued. The revolution in poultry industry has achieved more than 200 percent growth last 5 years though they are facing scarcity of efficient or skilled workforce, mainly because of new technology, using locally available feed ingredients, breeding, hatching and other inputs. Having such potentiality for a long time, Bangladesh could not be able to prepare her human resources for this industry. If Bangladesh will be able to do so, the human resources can contribute much more than what they are performing now. It will generate much more protein in our domestic needs. This paper aims to show the picture of the growth of poultry industry, status of existing labor or workforces and some recommendations regarding its policy matter.

P A R T O N E

INTRODUCTION

1.1 Purpose
The topic is Current scenario of poultry sector in Gazipur. The main idea of this topic is to find out the current scenario of poultry sector in Gazipur, the problems, the prospects. This report will comprise only the present market situation of poultry sector in Gazipur.

1.2 Scope
To gather relevant information we conducted a study on poultry sector of Gazipur. We considered few poultry farms of Gazipur as the sample. We assumed this sample as the representative of the total area. The whole survey is not possible for some limitations. Our study was open and we did not focus on any particular farm. Actually we tried to find out the problems and prospects over there.

1.3 Limitation
During the research period we had to face some problems pointed below. As a result of these problems, it may weaken the base of the work and some of the information provided here may have minor discrepancy from the fact. The problems faced are as follows: Lack of availability of information. Time constraints. Some biasness due to the small sample size. Non availability of any research report on poultry sector in Gazipur.

P A R T Sector Profile T W O
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Sector Status Land and life are closely entwined in Bangladesh. Over 80% of the Country's people live in the rural sector and are highly dependent on an agricultural system that is finely attuned to a tropical monsoon climate. The Human Development Reports 2005 of UNDP indicates that the total population in Bangladesh is 14.18 crore at an annual growth rate of 1.7 percent. The per capita income is only US$ 476 (BBS 2006) and the percentage of literacy is around 51.6 percent (BBS 2006, BANBEIS). 50 percent of the households are functionally landless (22 percent of the households owning no land other than their homesteads and 28 percent owning only up to 0.50 acre) while 6 percent of the land owning households are controlling more than 40 percent of the total land. About 47.5 percent people live below the poverty line and they receive less than 1900 calorie per person per day as against the standard of 2300 calories (HDI, UNDP 1996). In 1998-99, total meat production in Bangladesh was 656,000 tones, of which chicken and duck meat contributed 154,000 tons, which ranked second after beef. Per capita meat consumption was only 5.12 kg per year (Statistical yearbook of Bangladesh 2000), and per capita protein intake 63gm per day (Statistical Bulletin Bangladesh 2003) which is markedly below recommended requirements. As protein intake is recommended to be in the range of 0.8 to 1.6 gm/day per kg body weight for humans (Anonymous 1998), this requires 56 to 112g protein per day for a person of 70 kg body weight. Thus there is a need to increase the animal protein production to fulfill the demand of the people and subsequently to make them sound and healthy for increasing their working ability. Meat production could be increased through chicken rearing, and chicken meat is the most popular meat throughout the country. In urban or rural areas, any great festival of either religion or social origin is unimaginable without

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roasted chicken. People think that it is a great dishonor not to serve roast chicken at a festival. In a condition, where majority of the people are landless, under privileged, malnourished, uneducated and poor, poultry rearing play a very important role for income generation, poverty eradication, women empowerment, nutrition, food security and country's economical and developmental procedure. Livestock rearing rarely forms a separate land-use enterprise in Bangladesh. Nearly all animals are kept on farms, closely integrated into agricultural production systems. There are over 116.5 million chickens. However, with increasing population and decreasing land holdings, the number of poultry is increasing at an annual rate of 5.9% (Reneta Statistical Year Book, 2005). At present most of the poultry birds are reared under scavenging conditions. Despite rapid development of intensive poultry production in the private sector, per capita availability of poultry meat and egg is still very low. This is largely due to lower productivity of the indigenous birds reared under scavenging conditions. This led researchers to put their efforts on identifying the problems faced by the poultry farmers and recommending some suggestions to overcome them. The theme has been explored through three major questions: What is the present status of poultry production in Bangladesh? What are the problems faced by the poultry farmers in the country? What are the ways to overcome those problems? Poultry in Bangladesh plays a pivotal role in the economy of the country that directly involves about 85% of peoples who live in the rural area. Bangladesh has a long historical record of poultry rearing under traditional backyard farming. In 1935 improved variety of birds were first imported from foreign countries by the Government. In 1947, six poultry farms were setup in different locations in the country for supplying hatching eggs and chicks (Reneta Statistical Year Book, 2005). After that, improved variety breeds like White Leghorn, RIR, etc. from the western country like USA were imported by the Bangladesh government for 12

multiplication and distribution to rural poultry raiser. The commercial poultry rising started in the country in a smaller scale, which brought economic return to the distressed women and unemployed youth along with some interested semiurban and urban poultry raisers to meet the growing demand of eggs and meat. In 1964, a commercial poultry farm, Eggs and Hens Ltd., was established by the Late Mr. Ekramul Hossain, which could be recognized as a mother poultry industry in the private poultry sector. After the liberation of Bangladesh, BIMAN Bangladesh Airlines, started a commercial poultry farm in the name of Biman Poultry Complex at Savar, Dhaka with a contractual agreement with Poultry Breeding Farm of Canada for catering their own flying services and as well as transferring the commercial poultry farming technology to the farmers. The NGOs, especially BRAC, has developed rural poultry model for the poor farmers that actually stimulated poultry rearing activities in rural areas in 1983. In early nineties, a number of private parent stock farms started their operation to produce commercial day old broiler and layer chicks (Reneta Statistical Year Book, 2005). All the literature shows that poultry is such an item, which can contribute massively to our countrys GDP if this industry can be able to make skilled human resources. Nevertheless, lack of adequate infrastructure is the main scarce of this sector. In the last two decades the poultry industry has grown from a handful of medium sized operations to a large industry. Poultry farms having sizes ranging from a few hundred birds to several hundred thousand birds are mushrooming throughout the country. This phenomenal growth has resulted from the decline in the supply of the other two protein sources, namely, fish and beef. The decline of the fishing industry has been the result of filling up of ponds and the general insecurity of investments in rural areas. Even though fish farms have substituted much of the lost supply, the availability of fish has declined significantly. The high price of most species of fish is the clearest evidence of that. The supply of cattle was always fairly low, and it is the import from 13

neighboring India that has held up the supply. The most readily available and affordable protein is poultry. Market System The main inputs used by poultry farms are: day old chicks, feed and medicine. The market structure and distribution system of these inputs are discussed below: Day old chicks There are over one hundred poultry hatcheries firms in Bangladesh. The market structure of hatchery is oligopolistic in nature. One study showed that the largest four hatcheries controlled 45% and 65% of production in the case of broiler and layer respectively. They have associations and price of chicks differ a little among the farms. In this market structure the big farms fix the price and the small ones follow them. The individual hatchery sets price unilaterally considering the probable reaction of other farms. This type of price setting may be termed as interdependent action without agreement. The other characteristics of this industry are: atomistic buying condition, evidence of product differentiation in the form of strain and existence of barrier to entry in the form of huge capital requirement. In order to get chicks the poultry farms have to place order through agent well ahead. For ensuring timely delivery of day old chicks (DOC) the farms require advance deposit of a portion of contract value. One study showed that 84% of farms paid about 30% of full amount in advance for getting DOC. The farms have to wait 3 to 8 weeks for delivery of DOC after advance payment. After receiving chicks, the agent sells them to farm owner and receive commission fixed by the hatchery. Generally the price of chick remains the same throughout the year. Sometimes price changes due to change in demand.

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The farm owners mentioned various problems in the case of buying chicks. Sometimes they failed to purchase the necessary number of chick due to shortage of supply. As it is very difficult for them to identify good chicks, sometimes they have to accept bad quality (C grade) chicks. Generally they cannot purchase chicks directly from the hatchery and have to book earlier through agent. They have no scope to bargain and have to purchase at prices fixed by the hatcheries. The price, according to them, was much higher and the hatchery earns abnormal profit. A study showed that although economic profit existed in the hatchery industry, one-third of capacity remained unutilized during 2002. Feed The broiler farms purchase readymade feed for their birds. On the other hand, the layer farms prepare own feed after purchasing ingredients from the market. Like hatchery, the feed mills supply feed through their agents/dealers via their sales centers at a price fixed by them. The price of feed does not vary much throughout the year. However, at times of high demand the agents raise price by creating artificial scarcity. The structure of feed mill industry in Bangladesh is moderate concentrated oligopoly. It was found that the largest four firms produced one-third of total industrys production. A degree of interdependency in determining price was found among the firms. They were always conscious about the probable reaction of the rivals in the case of setting/changing price. As a result, the price variation across firms was not significant. The price per kg of feed ranged from Tk. 14 to Tk. 16. Atomistic buying condition, product differentiation in the form of quality and entry barrier in terms of less access to liquid fund were the major characteristics of this industry. The capacity utilization of this industry was satisfactory, which was 94% during 1999 and the profit margin was found positive.

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The layer farms purchased ingredients like maize, bran, soybean and oyster shell from wholesaler, protein, laycin, enzyme plus, mithionin and layer premix from agents/dealers and salt from retailers. The price of ingredients such as protein, enzyme, premix etc. supplied by different companies was more or less the same in the study area. The farm owners faced problems of selecting good quality of feed. As a result, sometimes they incurred loss by purchasing adulterated feed. Sometimes necessary feed was not available in the market. The layer farm complained on the non-availability of ready feed in the market. Medicine The farms purchased medicine from agents at price fixed by the company. At the time of large-scale disease attack the agents raised price of necessary medicine by creating artificial scarcity. The price of the same medicine varied markedly across different companies. For example, the retail price of Arifs Allvit was Tk 182 per 100gm, whereas the same medicine/ vitamin of Square named Megavit was sold at Tk.400 per 100 gm. Due to ignorance, the farm owners faced problem of selecting appropriate good medicine at the time of need. Sometimes, it is complained that the necessary medicine either was not available or available at a higher price. Marketing Chains of Broiler and Eggs Egg The market participants involved in marketing of egg are farm owner, Dalal, Aratdar (large wholesaler), Wholesaler, Hawker and retailer. The farm owners sold 90% of their eggs at their farm gate to the Aratdar and 10% to wholesaler through Dalal. Dalals are the local people who arrange contacting farm owners with Aratdar or wholesaler for transaction. They received Tk. 4 to Tk. 5 for

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selling 100 eggs from the farm owner for their service. Sometimes they did not disclose the actual selling price to the farm owner. After purchasing eggs from farm owner, the Aratdars sell two third of their eggs to wholesaler and one thirds to retailer. The wholesalers purchase most of their product from Aratdars (large wholesaler) and sell two-third to retailers and one fourth to hotel owners. They dispose of some amounts to Hawker and directly to consumers. Retailers purchase 60% eggs from wholesalers and 40% from Aratdars and sell 70% to consumers and 30% to hotel owners. Broiler Like egg marketing chain, the intermediaries involved in broiler marketing are farm owner, Dalal, Aratdar (large wholesaler), Wholesaler, Hawker and retailer. The broiler farms sell 80% of their produce to the Aratdars and 20% to wholesalers at their farm gate through Dalals who help the owner to sell product. Dalals generally obtained Tk. 50 for selling per 100 kg of broiler. The Aratdars, on the other hand, sell 73% of their product to wholesalers, 15% to hotel owners and 12% to retailers. The wholesalers vend one half to retailers and one fourth directly to consumers. They also dispose of over 20% to hotel owners and a little quantity to Hawkers. Retailers purchase 80% eggs from wholesalers and 20% from Aratdars and sell 86% to consumers and 12% to hotel owners. Sector Trends Seasonal Price Variation Egg: The seasonal price index of egg was the highest in October and the lowest in April. After initial peak in February, the price began to fall and reached the lowest level in April. After April, the price began to rise and reached the highest level in October with a small decrease in September. The seasonal price indices showed three peaks in the months of April, July and October. The prices 17

remained higher than average in February, July to November and they were lower than average in the remaining months. The difference between the highest and the lowest indices and the coefficient of variation on indices were 20.06 and 6.75 respectively. The causes of such price variation might be as follows: i) In winter season, production of eggs increases because of congenial climate. Conversely, the production remains lower in summer season. Average production of egg per day and price received in different months by the sample farms show that there is a strong negative relation between production and price. The correlation coefficient between production and price was estimated at 0.792. ii) Due to more availability of indigenous poultry eggs (chicken and duck) in April, the price of eggs remains at the lowest level. Another reason for lower price during April to June is that in those months, the demand for egg is lower due to hot weather. iii) Because of lower production, the price of egg is generally the highest in October. Moreover, higher demand due to cold weather causes the price to rise in October- November. Broiler: The broiler price started to rise from November, reached peak in March, decreased thereafter and finally reached the lowest level in October. Unlike egg price, the broiler price was the highest in MarchApril and the lowest in September-October. The price remained above average (100) during January to July and below average during August to December. Compared with egg, the seasonal price fluctuation of broiler was found lower. Another interesting result is that negative relation existed between the seasonal price variation of egg and broiler. That means when the egg price was higher, the broiler price was lower. Lower production due to unfavorable weather condition causes higher broiler price in March-April. Moreover, in this period the availability of fish is lower. On 18

the other hand, the price remains lower during autumn season (SeptemberOctober) because of higher production arising from favorable weather condition and because of availability of more fish in the market. Instead of winter, broiler production is the highest during autumn because during winter the mortality of smaller chicks is higher due to cold weather. Besides, during winter season the demand remains slightly higher due to occurrence of more social ceremonies like marriage, picnics etc. Price is mainly determined on the basis of demand and supply of broiler in the market. However, influence of supply was higher than that of demand because supply was more fluctuating.

Constraint Analysis
Major Problem Areas
The major problems requiring intervention validated in the program are as follows: 1. Lack of comprehensive poultry policy guideline was considered as a basic constraint to ensure proper implementation of rules and regulations pertaining to sustenance of the industry. This was true for the entire value chain where concerns related to bio-security, health management, pricing policies, quality assurance, etc. were identified as issues requiring immediate attention. 2. The associations of the poultry farmers across the chain were considered weak as well as across the value chain they were found to be competitive rather than complementary. Thus a symbiotic relationship is nonexistent resulting in exploitation by certain groups.

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3. Lack of Technical know-how, both technologies as well as trained people to handle the technology were found to be inadequate at all levels of the value chain. The technology related issues included knowledge regarding rearing, disease handling, productivity, etc. 4. Maintenance of bio security was considered extremely important for ensuring quality consumption by human beings. It was outlined that bio security was a problem across the value chain, though, the characteristics of bio security varied. For example in case of grandparent farm or parent farm, bio security was more a concern due to location of the farms while for the layer and broiler farms it was more of internal environment management. Again, in case of small processors, this was more a storage, processing and packaging worry. 5. Management of operations was another major weakness prevalent across the value chain resulting in poor performance, low productivity, inadequate capacity utilization, low profitability, business ethics, etc. The lack in management was mainly in the areas of general management of the firm, marketing operations, financial management, and quality control management. 0 Lack of trained manpower (technical, medical, management) to facilitate training programs at all levels was found to be another major cause hampering growth. 7. Lack of proper management information system to ensure efficient collection, processing, and dissemination of information surfaced as another major impediment towards success of the poultry sector. Lack of adequate information regarding demand, pricing, new product, feed, medication, manufacturers (poultry, feed, medicine & vaccine), etc were considered important not only for the producers but also for the business development services.

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8. Lack of adequate laboratory testing facility which is considered as a key to quality control of feed, medicine, chicks and disease control measure was identified as another major hurdle to inadequate quality and disease control practices. 9. Improper handling of medicine and vaccine was another cause of low productivity, low growth and high mortality of chicks which has a direct impact on both layers and broilers. The primary reason for this was identified to be inadequate number of trained medical practitioners and misuse of medication by some medical practitioners as well as agents under intense promotional campaign resulting from stiff competition from the manufacturers of drugs and vaccines. 10. Knowledge and practice on quality standards for feed, medicine, vaccination, and chicks is hardly visible. This has resulted in availability of spurious feed and medicine and wide variation in quality of chicks and other essential supplies. 11. Disaster management preparedness was another area of concern. It was strongly felt that majority of the actors across the chain including the government and NGO mechanisms are not equipped to handle disaster such as epidemic or even flood or other such natural disasters. 12. Inadequate publicity and negative promotion of the sector by the mass media was considered an impediment towards growth of the sector and low level of consumer trust. At the same time, the smaller farms (layers and broilers) did not have adequate financial strength to promote their contribution to the society which was considered essential for influencing the media as a promotional vehicle. The role of Consumer Association of Bangladesh (CAB) in both monitoring the activities of the producers as well as educating the consumers regarding the produce was found to be highly lacking. This was also considered to be a major cause of unethical practices

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by few followed by negative media campaigning resulting in low consumer trust. 14. The dependence on the channel members both at the intermediate as well as the end product level was considered a major hindrance towards growth of the smaller firms. The problem is associated with price control, profit margins, inadequate information, quality control, unethical practices, and above all lack of integration and understanding across the poultry value chain. 15. Access to working capital by the smaller firms in particular was considered a major hurdle. This has resulted in higher dependence on the channel members for loan and thus being dictated by them. On the other hand the financial institutions find the smaller firms as high risk clients since they operate under uncertainties of disaster and at the same time are difficult to monitor. 16. The overall distribution management of chicks, eggs, medicine, vaccine, and poultry was identified as another cause of high mortality and low profitability. The transportation, packaging, and branding was considered as inadequate across the value chain. For example inadequate cool chain resulted in low efficacy of drug and vaccine, inadequate packaging resulted in high mortality of chicks, Poor packaging of eggs causes damage as well as bacterial infestation, inadequate branding results in low quality monitoring, etc.

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Major Intervention Strategy

The intervention strategy is described based on the sixteen broad issues identified during the extensive three phase research. The implementation strategy was designed based on the outcome of the secondary research, and the two plenary sessions and has been discussed using a comprehensive approach. 1. Poultry Policy Guideline: This intervention strategy is directed towards strengthening the national poultry policy. The study clearly showed that policy is the backbone for long term success of the industry. One policy regarding the poultry sector has already been drafted which will require close assessment to ensure that issues that are specific to a certain member in the value chain and are considered extremely important is addressed. These issues may include elements related to bio-security measures across the value chain, setting standards for distribution chain for maintaining efficacy of drugs and vaccines, standards for setting quality of manufacturing practices of both medicine and feed, policy related to code of conduct of traders, issues regarding setting some standards on the academic syllabus of the veterinary education, etc. A group of donors, stakeholders may be formed to approach the government about policy to address issues outlined above. The donors may help in reassessment of the policy with participation of the major stakeholders, followed by discussion and modification of the policy. It maybe assumed that the follow up of the policy issues can be completed within 1-2 years. It was also presumed that donor group intervention is considered essential to ensure that the policy is comprehensive.

0 Symbiotic and Integrated Association: The association requires strengthening

and at the same time integration of the various associations across the value chain as well as across geographical region is considered essential to ensure that the strategies can be implemented successfully. In this regard, the national poultry body (BPIA) will have to take the pivotal role and develop a working guideline to ensure a symbiotic relationship amongst the various smaller

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associations. The national body is capable of undertaking the venture with some consulting support from any one donor agency. The national body should also be equipped to tackle disaster management and communicate with the media and CAB to ensure that both consumer as well as sellers rights are protected. Since USAID has been the prime mover of this project, they may take the initiative to select the donor partner and initiate the project. The time parameter can be set as immediate and can the initial guideline can be completed within six months. Once the guideline is completed, the members of various associations will be associated with the program to ensure integration in the sector. 3. Technological Efficiency: The technology issue at the grand parent and parent level was not considered lucrative for intervention since these firms have access to technology through their collaborative partners. However, the importance of technology was found seriously lacking at the layer and broiler farm levels. The study indicated both lack of technology as well as ignorance of the owners regarding benefit of technology. It is therefore recommended that an awareness building program on new technology may be launched with the help of donors and major drug producing companies using association of broiler and layer farms as the client. The program may be launched either through training modules or through distributing news items etc. This program initially will require subsidy from the donors or larger NGO such as BRAC. The program will be designed on a cost sharing basis and will show how the farms can assure financial benefit from the technology. Once the program has been launched, the association can continue to provide inputs to the industry through regular upgrading of knowledge bank. This intervention strategy can be initiated immediately after due discussion with association representatives. This will be an ongoing activity. Bio-Security: Bio-security needs were found to be varying across the value chain. However, the issue of bio-security was considered critical since this is directly associated with the quality of food to be ultimately presented for human consumption. Thus bio-security should be dealt with separately. The first level of implementation has been discussed through inclusion of bio-security measures as part of the policy paper. At the institutional level, since the type of bio-

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security varies across the value chain, different bio-security modules will have to be developed. However, the module needs to follow a standard generic model which should be developed in unison with other stakeholders so that some sort of standardization is maintained. For example, for grand parent farms location requirement, for layer farms internal management, for egg distributors cleaning of eggs, for processors hygiene, etc will be the basis. This program can be conducted with the help of the media agencies such as radio and television with sponsorship support from donor agencies, suppliers of bio-security goods and services such as large drug manufacturers, pesticide manufacturers, Parent farms, etc. The donor agencies can ask interested NGOs or other organizations to work as production houses for publicity of bio-security. These programs can gradually be transformed into commercially viable projects. Interested donor agencies can initiate discussion with probable sponsors, media, and production houses for looking at the viability of the project. The project can be initiated immediately and will be short to medium term in nature depending on how fast the solution is disseminated and implemented. Technical and Managerial Training: Management and technological capability of small firms across the board has been identified as another major hurdle impeding growth. This will require practical training programs which should involve both theoretical as well as experimental or case study based training programs designed for various level and subject matters. As a starting point lessons can be gathered from WINROCK-CARE model since they have started to develop some training modules. However, one must bear in mind that a pure theoretical approach will not be effective and thus real Bangladesh or regional case based learning will help improve the situation. Donor agencies may initiate the program by inviting interested training institutions (management, health, technology, etc) as partners. Initial support for curriculum design, case building, training pedagogy, training of trainers, and promotion may be required from donor agencies. Trainers to conduct training of trainers may be obtained from large corporations or academic institutions if required. The trainees will be asked to share costs and once the acceptability has been achieved, market based

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pricing will automatically be implemented by the training institutions. The program can be initiated immediately specially with regard to selection of training houses. The program can be implemented within six months to a year and will vary based on the type of training to be designed. The project will be ongoing in nature. 6. Management Information System: BPIA has already started work on developing a comprehensive and integrated information system for the sector. Further lessons may be collected from BGMEA especially in terms of transmission of information. Since the basic level of management of poultry sector is different from that of the garments sector, one must be careful in designing the transmission module. For example in the garments sector all firms are equipped with internet facility while it is the reverse in case of poultry. It is therefore assumed that the medium of transmission of information will be different. The likely candidates could be cell phone operators, internet providers using voice and wireless network, print media etc. The MIS will contain information regarding all cost factors, pricing of various outputs, sourcing of materials, announcement on programs, etc. The MIS thus will be housed centrally at BPIA and connected directly with regional and sub-sectoral associations. These on the other hand can be linked with respective members. The operational cost can be generated through membership fees. Initial technical support can be provided by donor agencies and the media operators to facilitate development of the system and the network. Participation of the media operators can be made more competitive through allocation of regions. The initial discussion with members of BPIA and media operators can be initiated immediately, while the overall implementation may take from six months to a year. Laboratory Testing Facility: Laboratory testing facility for distributors, layer farmers, broiler farmers, and traders is envisioned as the basis for quality control measures. The initial support can be obtained from BLRI. BLRI can be helped to develop regional offices both in terms of infrastructure as well as technology and human resources. At the same time Large NGO such as BRAC can be asked to strengthen their present testing facilities and make it available for all. However,

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to make these laboratories commercially viable strict adherence to compliance set by national poultry policy will be a pre-requisite. These testing facilities may also in the long run be involved in promotional effort as part of their commercial operations. Furthermore, the private sector involvement in this sector can be expected once the policy guideline is implemented. 8. Protection of Consumer Rights: Consumer Association of Bangladesh (CAB) will have to be strengthened to ensure that proper quality measures are being considered to protect the rights of the consumers. At present CAB is almost inoperative due to lack of both human as well as material resources. Since CAB is directly representing the consumers and not the sellers at large, it is difficult for them to sustain in a country like Bangladesh at least during the initial stages. Thus, it is a must that first of all initiative be taken to develop the basic human resource structure for CAB. Donor agencies can help CAB in taking the first step by following models of successful countries. Once this has been developed, CAB can take up programs that will work as a bridge between the consumers and the sellers. In addition consumer awareness building to a large extent will help maintenance of all types of standards. Donor agencies will be required to directly work with CAB in this program. Once CAB initiates the awareness building campaign it is expected that the public relations wing of socially responsible corporate bodies will come forward to support CAB. To make his effort successful participation of the media will be essential. In the short term perspective this project is expected to be donor driven with support from social and environmental activists and UN bodies. Financing for Small Farmers: Financing for the smaller firms was identified as the major hurdle. This is partially because small firms stand alone are not a lucrative or safe venture. Financing can be obtained using group approach. This can once again be done by forming cooperatives or clusters of individual farmers, where the cluster becomes big enough to market their own products as well as approach appropriate donors for assistance in terms of arranging working capital. Donors can be collaterals: Donors can ensure success of farms through technical services and training thus making it easier for financial institutions to fund such

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projects. The market can learn from the models of Doyel Agro, Patgram Lalmonir hat and Agro based Cooperative, Pabna. However, both the financial institutions as well as the poultry producers can be made aware of the existing success stories through leaflets or seminar conducted by BPIA with support from donor agencies. Once the financial institutions are convinced that the model is feasible, they will themselves take initiative to promote the idea to the farmers. This program can be initiated immediately and will be short term in nature. 10. Efficient Distribution System: Strengthening of distribution system will primarily involve the channel members i.e. distributors and traders. Since the distribution system plans to strengthen storage, transportation, packaging and branding aspects, one can assume that all these at present to a large extent are controlled by the distributors and traders. Furthermore, and efficiency building in these four areas will directly contribute towards profitability enhancement of the channel members. The storage and transportation issues are highly technical including minimizing of waste and maintenance of cool chain. This program can be conducted with the help of premium engineering university of the country (BUET). This may help in developing economical means to address the problem. The packaging and branding issues are more marketing issues requiring inclusion of safety, sorting, grading, and source tracking. Thus both a qualitative as well as image building issue can be addressed to motivate channel members to participate in this program. Management experts may be involved to implement this activity. Since the channel members are difficult to persuade, it is advisable that the donor agencies organize a forum to initiate idea exchange. Once this is achieved, individual associations can be involved in the program. This can be considered as medium to long term intervention strategy.

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P A R T
Sector Potentials

T H R E E
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The Poultry industry is one of the largest contributors to GDP and employment of Bangladesh. Over the eighties and early nineties this industry flourished tremendously and saw a phenomenal growth. Towards the last decade however, the industry went through high variations in prices and very low margins most often leading to losses especially for commercial broiler and layer farmers. In addition, the industry is facing problems associated with technology changes and proper health care measures, etc. Based on the above it was considered appropriate that a direction for future intervention be outlined to ensure steady growth of the industry. With this in view United States Agency for International Development (USAID) took the initiative along with Agro based Industries and Technology Development Project Phase II (ATDP) to develop an intervention strategy for the sector.

It is safe to suggest a donor initiated and donor specific implementation plan to ensure smooth and quick implementation of the program. USAID can take the lead role to arrange a donor consortium meet where they may show interest to participate in a specific activity of interest. This will ensure fast and smooth functioning devoid of duplication. At the same time it should be clearly understood that a national monitoring cell will be required to ensure that integration of activities is in place. This task can be jointly conducted by the donor consortium and the apex poultry association. The intervention strategy is further designed to ensure long term sustainability and acceptability of the stakeholders. To meet this end, the intervention strategies must be designed on a cost sharing strategy and must be private sector driven. However, to ensure cost efficiency and policy support, the role of the government and participation 30

of the nongovernmental organizations has been considered of prime importance. The intervention program stresses on maintaining of global standards as the ultimate measure of sustainability. This approach is expected to result in consumer satisfaction and ensure fostering under global environment.

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P A R T
Team Vision of the Sector

F O U R
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The vision for this sector will be to1. Create employment opportunities 2. Use poultry waste for producing electricity 3. Women Empowerment 4. Provide nutritious food for people

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P A R T TEAM Strategy F I V E
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The problems of poultry can be overcome if some steps are taken by the concerned authority. The main objectives are to develop huge number of unskilled people into semi skilled or skilled. There are probable steps suggested by the researchers by the opinion taken from various poultry farmers and relevant authorities. These are as follows. I. Government initiatives: To develop human resources to operate poultry sector effectively to compete locally and globally; government has to take major step like create institutions for training poultry farmers and businessmen, increasing infrastructure and financing. Government has to motivate the businessmen and their allied to come up for better training and education. II. To design Proper HRD planning for poultry farmers: Government authority should take the overall responsibility to make effective human resources through co-ordination of various agencies. This agency should monitor the co-ordination matter. Effective HR planning and coordination is equally significant for the private and the public sector in Bangladesh. Especially educational infrastructure should be updated based on need. In Bangladesh, there is lack of poultry training institutions; it should be more than that otherwise unskilled labor will never be able to meet up the future demand of protein through poultry sector. III. To arrange easy loan: Every organization like government, private financial institutions, NGOs, and foreign investors should come up to give micro credit to poultry sector. IV. To employ professional trainer: To generate the admirable flow of skilled human resources in poultry sector, professional trainer is mandatory for all. Professional trainer should be hire d from domestic or foreign sources to give

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technical knowledge, proper education, training, and motivations to the poultry farmers. V. To adapt appropriate Modern technology: A low-cost intensive or semiintensive poultry technology should be initiate d for the sake of developing skilled human resource for the poultry industry. These sorts of projects should have technical capacity and ability of farmers to provide the required inputs exclusively from their own resources. VI. To arrange workshop, seminar, and live demonstration for rele vant Poultry workers: The relevant authority should arrange workshops, seminars, conferences, and live demonstrations for imparting training to the farmers regarding the latest knowledge of poultry and marketing. VII. To develop security situation: The relevant authority should improve the security situation for smooth supply of day old chicks, live birds movements, poultry accessories and equipment movements all over the country.

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P A R T
Intended Impact

S I X
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The role of poultry sector for developing human resources is enormous. Country like Bangladesh has great emergence to develop her human resources into efficient and effective basis for the domestic market to meet up the demand of protein. It is one of the substitutes in connection with the development of Bangladesh. Skilled human resources can be able to contribute to the society in a significant way in various sectors. There is extraordinary competition in free market economy. Everybody compete with their efficient human resource and increase their productivity, innovation of new products, ensures quality assurance and create new market positioning. Moreover, efficient human resources should be created from a good institution. Consequently, human resource development through good institutions should be given the top most preference in the poultry development process of Bangladesh. After maintaining all the recommendations, skilled human resources will be built so that they will be the key factors or contributors to develop the poultry sector and Bangladesh as well.

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References:
1. Personal Interview 2. Web searches 3. Provided study materials by course teacher

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