Redefining Poultry Sector: Scenario of Post Covid Era

Md. Ahad Jahin Sarker

After ready made garments, Poultry sector is the most promising sector for Bangladesh. This sector alone meets about 36% of protein intake of daily consumption. This sector has almost closed the gap between demand and availability by increasing supply of both meat and egg.

Bangladesh’s poultry sector is gearing up to export eggs and poultry meat by 2024, especially to the Middle East, a big market for halal meat . But the recent global pandemic situation has put full stop to this promising sector . About tk 11.45 billion loss was estimated till April ,04 and day by day it has reached in humongous numbers . In the post covid era, things will not be the same . A huge paradigm shift may shake up all the middle small enterprenures.

 

How Poultry Sector Works  

Before we deep dive in  how this pandemic situation will affect our poultry sector we will have a 

short overview on how this sector works .


 

 Above these two flowchart shows us the traditional marketing system . This system is almost constant for medium and small farms .Producers supply the products to the traders or wholesalers ,then they distribute the marginal shops , restaurants and selling points. This is an in general scenario for Bangladesh. If we look further deep down, Grand Parent stock farms and  Parent stock farms are also involved in the process .Breeder’s farm, Hatchery, rearing farm all work in synchronizing so there is a continuous flow  of meat and eggs .


If we analyze this whole process , we can sort out some basic problems , such as -

 

  1. Producers have no control over the product pricing .Producers are normally bound to the Grand Parent stock farms , Parent stock farms , Feed comapnies . There are no fixed policies for regulating and combining these .
  2. Whole operation procedure is manual . This point is much more valuable in this pandemic situation . Because lockdown hampers regular activities like the hatchery operation , transportation and feed transportation  .
  3. Most of the middle and small farmers are low in investment and they can’t distribute their product to the consumers . It results in an unjustified fluctuation in the product pricing .
  4. This situation leads to creating more and more intermediaries and syndicates to control the prices of every component of this sector  .The only victims  are the consumers and producers here.
  5. No limitations of  using antibiotics and harmful chemicals to ensure the increased output. Consumers can’t track the whole flowcharts to see whether their products are safe or not  

 

Problems of Covid Affected World

COVID-19 spreads primarily when people are in close contact and one person inhales small droplets produced by an infected person (symptomatic or not) coughing, sneezing, talking, or singing.

 This results in social distancing to put a stop to it's spreading. A total lockdown to the transport , government and non government operations were on hold for several months . In poultry sector

  1. Feed transportation
  2. DOC transportation
  3. Vaccine imports
  4. Feed imports
  5. Farm labour unavailability  

Additional to these problems , the most feared problem is restaurants , chain sops , local markets, are closed down . This put a stop to the continuous flow starting from the GPS farm to the hand of the consumer . As a result DOCs are piling up in the hatchery farms causing a huge drop of the chick price . Egg supply dropped as well as the price .

 

What Could Be The Next Possible Solutions

Covid-19 pandemic brought a huge change in the business arena .  People are in lockdown situations . A large portion of people are forced to do work from home . Suddenly the virtual world seems the only way to run all the errands . Consumers of all aspects prefer the virtual world for shopping .

So our poultry entrepreneurs can target that market and focus their investment to develop or shift the business virtually . This even true for big corporations like C.P. Bangladesh Co. Ltd (Food), Aftab Bahumukhi Farms Ltd, Kazi Farms Group, Nourish Bangladesh etc .

Here is a model of layer marketing channel for  post covid world.

 This much more simple version than the previous one,so what’s the significance of this model?

 Here are they -

       In this model consumers can track their products’ supply lines . It assures the product quality .

       This model allows consumers of every step to purchase their product online . It reduces the  manpower for distribution and customer services .

       As the transportation system and total lockdown is withdrawn to minimum level , farm operations can be done with minimal manpower .

       A lot of  people can be employed in the delivery system and transportation system.


Drawbacks and Solutions of this Model

This model has some drawbacks but with some few easy tweaks it can be used as an efficient model .Few are pointed here -

  1. There is no virtual market place for this kind of operation .Initially, the platforms for online grocery shops can be used . But a foolproof market system need to be established
  2. Rural producers are not much familiar with technologies , they will face primary shock . But if the government train the farmers to get familiar with virtual marketplace everything will be much more easy .
  3. Even though we shift our marketplace totally to a different paradigm , we still are going to need labour force to operate the farms . By maintaining social distance , we can easily run our operations  This model is reducing manpower in distribution and marketing, which is a great point in this pandemic situation .

Conclusion

This model can’t alone backup the Tk 35,000 crore industry. Government should collaborate with the private sector, share knowledge, and provide incentives. A proposal is given in the budget for fiscal year 2020-2021 to lower the prices of poultry raw materials. If that happens , this will be a great help for the medium and small farmers . Our entrepreneurs should adapt in this new era of business . To fulfill the national demand of poultry and poultry products it is needed to expand the poultry business to all over the country. The government food and nutrition security policy would have been in trouble if the poultry sector stopped it’s journey . To mitigate food deficit, especially that of protein, the poultry sector needs special attention.

 

Resources

1) https://thefinancialexpress.com.bd/trade/poultry-negotiates-the-thorny-growth-path-1582518109

2)  https://www.bbc.com/bengali/news-53005234 at_custom2=facebook_page&at_medium=custom7&at_custom1=%5Bpost+type%5D&at_custom3=BBC+Bangla&at_custom4=DEBF38EE-ABD9-11EA-BE27 E89696E8478F&at_campaign=64&fbclid=IwAR1yGcmluoF30Y3ne9COxJVysKMOse8eQ6YomyGI1JJZ34pEveVbkK_nyCA

3)     https://www.dhakatribune.com/bangladesh/agriculture/2019/03/28/usda-bangladesh-s-poultry-sector-gearing-up-for-export-in-5-yr-time

4)   https://scialert.net/fulltext/?doi=ajpsaj.2017.1.13#:~:text=Population%20and%20growth%20of%20poultry,population%20is%20about9%2048.86.

5) https://www.hlb.global/international-business-models-for-a-post-covid-19-world/


Writer

Md. Ahad Jahin Sarker
Student
Faculty of Animal Husbandry, BAU
+8801795328377
jahinbau@gmail.com





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