ILRI study identifies interventions to reduce exit from Bangladesh's poultry industry

Policy interventions to address farmers' shortage of capital, low profit margins and constraints in the supply of day-old chicks can help to reduce the rate of exit from Bangladesh's poultry industry, a research study by the International Livestock Research Institute (ILRI) reports.

The results of the study are contained in a policy brief (published December 2011) that highlights findings of surveys carried out in 2005 and 2007 to assess the reasons for exit from the poultry sector in Bangladesh and possible solutions. The study considered both broiler and layer enterprises, and large- and small-scale poultry keepers.

The study was carried out in collaboration with partners from the Bangladesh Agricultural University and the Bangladesh Ministry of Food and Disaster Management.

Download the brief.

Citation
Jabbar MA, Rahman MH, Talukder RK and Saha SK. 2011. Exit from Bangladesh's poultry industry: Causes and solutions. ILRI Policy Brief. ILRI (International Livestock Research Institute), Nairobi.

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ILRI Research Report: Contract poultry farming in Bangladesh

ILRI report quantifies demand for improved quality and safety of livestock products among urban Bangladeshi consumers

Demand for animal products has been increasing rapidly in Bangladesh due to urbanization and increases in per capita income.

There are rudimentary indications that demand for improved food quality and safety has also been increasing and that consumers were willing to pay higher prices for such attributes of products.

However, there is little empirical evidence on the criteria and indicators of quality and safety that consumers use in their buying decisions, or that suppliers use in differentiating products to promote sales, or the extent to which consumers are willing to pay for such attributes.

This study is the first attempt to comprehensively characterize and quantify Bangladeshi urban demand for animal products with a focus on quality and safety.

Based on a multi-stage sample survey of 900 households from Dhaka and Mymensingh cities, successive analyses present statements of preference based on ratings, identified quality criteria, stated sources of supply and recent purchasing behaviour both at home and away from home, and econometric analysis of relationships between price ratings and quality ratings across attributes, so as to generate willingness to pay for those attributes.

The findings show that officially defined grades and quality standards of livestock products are either absent or poorly defined and enforced.

On the other hand, producers and consumers in the market use specific attributes or criteria and indicators to differentiate quality and safety of livestock products and they also charge and pay different prices based on those attributes.

Although targeted at urban populations, considerable variation between locations in terms of the product preferences and attributes used to differentiate quality was identified.

Establishment of standards and grades will become necessary to meet consumer demand on the one hand and facilitate producers and market agents to respond to consumer demand on the other.

Whether smallholders will have any comparative advantage in supplying an expanding market requiring more homogenous and better quality and safer products need to be studied regularly along with studies on consumer demand because of the dynamic nature of the emerging and evolving market, the industry and the sector.

Access the report here.

Citation
Islam SMF and Jabbar MA. 2010. Consumer preferences and demand for livestock products in urban Bangladesh. ILRI Research Report No. 23. ILRI (International Livestock Research Institute), Nairobi, Kenya.

ILRI research report features case studies on consumer demand for livestock products in Africa and Asia

Rising developing country demand for livestock products propelled by income and population growth, and by urbanization offers poverty reduction opportunities to actors in the supply chain.

The increase in volumes demanded also features diversification and increased demand for quality attributes. Reliable food safety and information on animal husbandry and geographic origin have long been recognized as value-adding differentiation mechanisms in the developed world.

Anecdotal accounts suggest that this is also the case in developing countries.

However, little consistent rigorously researched evidence has been published on this subject.

This report presents results based on case studies conducted in a number of developing countries in Asia and Africa: Bangladesh, Cambodia, Ethiopia, India, Kenya, Tunisia, and Vietnam.

An overview of the theoretically consistent methods used and a synthesis of the results obtained in the various case studies are presented first followed by the case studies each describing a study of specific commodities in specific developing country locations.

A consistent set of results emerges, wherein consumers exhibit willingness to pay for quality and safety in animal-origin foods, and within which this willingness to pay is strongest amongst the wealthy and the urban dwellers.

However, the intricacy and variety of quality definition and measurement are demonstrated fully, as they occur between and within countries, commodity groups and other settings.

The key message from the results is the evidence that quality and safety considerations in products of animal origin food provide commercial opportunities for developing country producers, market actors and industry participants.

Access the report here.

Citation
Jabbar MA, Baker D and Fadiga ML. (eds). 2010. Demand for livestock products in developing countries with a focus on quality and safety attributes: Evidence from Asia and Africa. ILRI Research Report No. 24. ILRI (International Livestock Research Institute), Nairobi, Kenya.

Collaborators present preliminary study results on poultry and dairy farming in Bangladesh

Livestock-sector stakeholders in Bangladesh held a workshop to discuss key findings of ILRI-sponsored research on poultry and dairy farming.

The workshop titled ‘Demand-driven opportunities for transformation of the livestock sector: Role of contract farming and breeding’ was held on 24 May 2009 in the conference hall of the Faculty of Agricultural Economics and Rural Sociology, Bangladesh Agricultural University (BAU), Mymensingh.

The objective was to share the findings of three studies sponsored by ILRI with EU funding and implemented jointly with BAU and Bangabandhu Shaikh Mujibur Rahman Agricultural University (BSMRAU), Gazipur.

These were on urban demand for livestock products with a focus on quality and safety attributes, and contract farming in poultry and dairy.

An additional survey was conducted on stakeholder perspectives on breeding strategy and choice of breeds, which was not in the original work plan and this was also presented.

Over 70 participants attended the workshop which drew representatives from universities, the Ministry of Fisheries and Livestock, the Department of Livestock Services, research institutes and private-sector NGOs as well as several small-scale commercial poultry and dairy farmers.

Dr Mohammad Jabbar welcomed the participants on behalf of ILRI and made a brief presentation describing the background and importance of the studies and the mode of collaboration with BAU and BSMRAU.

Dr Jabbar is the immediate former leader of the Changing Demand and Market Institutions Operating Project in the Markets Theme. He is now based in Bangladesh and works with the theme as a consultant on a number of projects.

The workshop was opened by Mr Mohammad Shah Alam, Secretary in the Ministry of Fisheries and Livestock.

Prof M A S Mandal, Vice Chancellor of BAU, Prof T H Miah, Dean of the Faculty of Agricultural Economics and Rural Sociology, and Prof Habibur Rahman, study coordinator and workshop organizer also spoke at the opening session.

They all lauded the studies, considering them timely given the on-going commercialization of poultry and dairy activities in Bangladesh.

Four papers were presented in the business session covering the key findings of the studies.

The findings were considered very useful under the current dynamics of the livestock sector and the results generated lively discussion and debate.

There was not enough time for in-depth presentation of results and more detailed discussion.

However, one jointly printed publication, two draft reports and one paper presentation were distributed to the participants so that they could have access to the full study reports.

The draft reports will be reviewed and formally published in due course.

ILRI research report: Contract poultry farming in Bangladesh

ILRI's Markets theme has published a research report titled Alternative institutional arrangements for contract farming in poultry production in Bangladesh and their impacts on equity. The study identified forms of market institutions that would allow smallholder poultry producers in Bangladesh to engage in commercial production of broilers and eggs so as to raise household incomes under rapidly differentiating livestock markets.

Citation
Jabbar MA, Rahman MH, Talukder RK and Raha SK. 2007. Alternative institutional arrangements for contract farming in poultry production in Bangladesh and their impacts on equity. ILRI Research Report 7. ILRI (International Livestock Research Institute), Nairobi, Kenya. 98 pp.

Download the report