July 02, 2010

POULTRY MARKETING: the NOVELTY

During one of my market research tours in Mwakijembe Market, Kinango District, I met Mama Mutuma, a renowned poultry business lady common with buying local free-range chicken. Curious on how she operated her business. I noted the following: 
a) That she buys an average of 100 chickens per week at an average price of Kshs 400 per chicken each weighing an approximate weight of 2.5kgs. These birds are bought from Mwakijembe and Ndavaya locations, Kinango District.
b) Her point of source was on-farm (was regarded as most expensive), market places and also by using middles men to purchase birds and latter sell to her.
c) Most of these birds were cocks/ cockerels because of their advantageous weight over hens.
d) She travelled to the market on averagely two (2) times per week and sold her birds at Majengo Mombasa.
e) On average she sold the birds at Kshs 500 each.
f) These birds were sold to brokers, hoteliers and Nyama choma zones.
g) Cost of transporting birds was: Kshs 200 for herself and Kshs 200 for the chicken basket with a carrying capacity of 50 adult chickens.
Therefore her approximate expenditures for 50 chickens was as follows: Kshs 400 x 50 as buying price (20,000/), while Kshs 500 x 50 as selling price, transport Kshs 500 totaling to 25,000- 20,500 = 4,500/=.
Per week, an average of Kshs 9,000/=. Conversion in Dollar/ day (1 Dollar= Kshs 75/=) = 17.14 dollars per day.
This is but just one of the few cases highlighting the success brokers sail through to make a business kill at the expense of the livestock keeper who hardly earns affluence after his/her longstanding patience and risk of raising a free-range chicken.
But how can we reverse this trend to make the producer (livestock keeper) benefit from enterprise? What strategies need to be put in place to bring out the concept of PROFITABLE LIVESTOCK VENTURE? Indigenous chicken sector has the potential of contributing to the family income considering the existing popularity, suitability to the local conditions, low-cost investment, fits into the low income economy, quick returns on investment and their potential for growth in business and Business Development Services. A few challenges face the poultry keepers in their efforts to raise the birds. Among them include: diseases, parasites and predators.
To make this production system profitable, it is relevant to engage novelty systems and principles in order to facilitate the establishment of necessary support systems that will provide sufficient basic poultry services, such as veterinary drugs; feed and poultry equipment; extension and business development services; and markets and marketing services. These activities should focus on capacity building, supporting poultry keepers to establish their production systems (micro-financial support) and developing linkages that will enhance promotion of new knowledge and technologies in poultry industry.
Greatest achievement in this industry will be to increase production of safe poultry and poultry products (to consumers) and at the same time establishing ready market by creating a demand for poultry and poultry products, all these converging at a secured supermarket shelve or an established venture where a producer and consumers will meet to exchange their satisfaction!

No comments:

Post a Comment