1. Supply Chain Analysis of Poultry in Bangladesh 1

2. Egg Hatcheries Broiler Farms Broiler Wholesalers Broiler Retailers Ready Food Layer Farms Egg Wholesalers Restaurants Feed Producers Egg Retailers Fish Feeds/Fertilizers Transporters Introduction: Supply Chain for Commercial Poultry

3. Rural Assembly Markets Rural Wholesalers Restaurants Urban Wholesalers Beparis/Farias Sub-urban Retailers Ready Food Rural Households Urban Retailers Transporters Introduction (contd.): Supply Chain for Backyard Chickens

4. Literature Review 4 No integrated supply chain analysis of poultry. A few studies covered some particular aspect of the chain in isolation. Some focused on economic aspects (Rahman, Sorensen, Jensen, and Dolberg, 1997; Newnham, 2000; Quasem, 2001; Dolberg, 2003; Islam, 2003) A few focused on the epidemiological aspects (Sil, Das, Islam, and Rahman, 2002; USAID-ATDP, 2005)

5. Objectives of the Study 5 In understanding the supply chain of poultry, this study examines: 1.Marketing channels and participants 2.Costs, margins and profits associated with marketing and the process of price formation 3.Possible channels through which poultry diseases spread and threaten bird and human lives.

6. Methodological Approach Five regions were selected based on poultry population: Chittagong, Comilla, Dhaka, Dinajpur and Jessore; Quantitative techniques (interviews) (i) on households, (ii) beparis/farias, (iii) wholesalers agents, (iv) suburban retailers, (v) urban wholesalers, (vi) urban retailers of backyard chickens AND (vii) poultry feed firms, (viii) poultry hatcheries, (ix-x) broiler and layer farms, (xi-xiv) wholesalers and retailers of both broilers and eggs of commercial poultry 6

7. Methodological Approach Qualitative information through focus group discussions (FGDs), key informant interviews (KIIs), and observations of the markets on the market chains BUT NOT the Commercial Production Process. 7

8. Results: Commercial Poultry I: Feed Producers Ten feed mills surveyed: 3 in Chittagong and 7 in Dhaka; Cleaning practices in feed mills are not satisfactory; A few feed mills have no designated area for loading of feed and unloading of input supplies; Of those sites selected, 80% of the feed mills in Dhaka and 33% in Chittagong use different antibiotics in feed formulation. In addition, a significant of feed mills in Dhaka use enzymes and growth promoters; 8

9. Commercial Poultry II: Hatcheries Six hatcheries surveyed: 3 in Chittagong and 3 in Dhaka; 33% of the hatcheries in Dhaka use antibiotics; DOCs are susceptible to Ranikhet, Gumbro (IBD), loose motion, diarrhea, Coryza, Salmonella, Bronchitis, etc. 66% of the hatcheries throw un-hatched eggs, dead chicks into nearby pit; 9

10. Commercial Poultry III: Broiler Farms 50 commercial broiler farms in Chittagong, Comilla, Dhaka, Dinajpur, and Jessore surveyed; Hardly have any No Admittance sign posted; 50% of the farms in Chittagong and Jessore and 10% in Dinajpur are visited by migratory birds; Have no designated area for loading or unloading; 10

11. Commercial Poultry IV: Layer Farms 30 farms: 10 in Dhaka and 5 each in Chittagong, Comilla, Dinajpur, and Jessore surveyed; 50% of the layer farms do not have strong fencing around them; Abuse of antibiotics; Less than half of the layer farms in all regions have hand washing facility 11

12. Marketing Chain of Commercial Poultry I: Egg Wholesalers 24 egg wholesalers: 6 each in Dhaka and Chittagong and 4 each in Comilla, Dinajpur, and Jessore surveyed; Eggs are transported mostly by vans or other means; receive eggs daily and mix the unsold and newly arrived ones together; Majority of the vehicles are not cleaned properly; wash hands only before eating and after they return home 12

13. Marketing Chain of Commercial Poultry II: Egg Retailers Total 26 egg retailers in five regions; Transportation of eggs varies in different surveyed regions; pickup vans, trucks and sometimes by hand Receive eggs daily and mix the unsold and newly arrived eggs together; Regular cleaning of transport vehicles and crates is rare; Very seldom a small percent uses masks and towels; Frequency of using soap during hand washing is very low

14. Marketing Chain of Commercial Poultry III: Broiler Wholesalers Total 20 broiler wholesalers in five regions; Buy chickens from commercial broiler farms and sell them to urban broiler retailers; Mix chickens that arrived in the shop on different days; 20% of them bury the carcass and 5% sell them; Refuse is sold to the fish farmers. Blood and other excreta are thrown into the drain or garbage bin;

15. Marketing Chain of Commercial Poultry IV: Broiler Retailers 44 broiler retailers–12 in Dhaka and 8 each in Chittagong, Comilla, Jessore and Dinajpur; Mostly Dhaka retailers clean cages/pens daily; Sick chickens are sold to the customers 25% bury dead birds and 18% throw into the drains; Half throw refuse into dustbin and the rest sell them; Use of soap (disinfectant) is infrequent

16. Marketing Chain of Backyard Poultry I: Households 132 households in five regions; 11 or fewer chickens and 5 or less ducks per household; 20-50% households keep poultry in the house where they live; female members of the family look after the poultry; Give the carcass to the dogs or cats to devour 16

17. Marketing Chain of Backyard Poultry II: Beparis/Farias 55 Beparis/Farias in five regions; collect poultry from door to door and transport to the market either by rickshaw or rickshaw van 70% of the B/F are able to sell the dead birds to the customers A majority of the B/F are somehow convinced that AI is not risk for them; 17

18. Marketing Chain of Backyard Poultry III: Rural Wholesalers/Agents 22 Rural Wholesalers/Agents in five regions; Collect chickens from B/F or from rural assembly markets; Chickens are kept in bamboo made cages in the shops; Chickens are transported by vans, trucks or rickshaws; No idea about the cleaning practice of vehicles as most of them use rented vehicles; 41% throw dead chickens are thrown into the drains. It is not clear what is done with the rest 18

19. Marketing Chain of Backyard Poultry IV: Suburban Retailers 55 Suburban retailers in five regions; Receive their supplies usually through rickshaws or rickshaw vans or by hands; No idea on cleaning as mostly they use hired vehicles; Very seldom use mask as this would make customers suspicious Retailers in Dhaka are more serious than others in health and hygiene 70% slaughter sick or dead chickens and keep them for selling; 19

20. Marketing Chain of Backyard Poultry V: Urban Wholesalers 25 Urban wholesalers in five regions; collect chickens from rural wholesalers/agents and sell them to urban retailers and sometimes directly to restaurants Daily cleaning of the market areas; 40% clean cages or pens daily; 85% sell sick chickens to the retailers; 20

21. Marketing Chain of Backyard Poultry VI: Urban Retailers 110 Urban retailers in five regions; Most of them are medium or small; Keep the birds in their shops for a day or two in bamboo made cages; Mostly transported by rickshaws or rickshaw vans; Cages or pens are cleaned infrequently; even 15% in Chittagong think that it is not necessary Less than half reported cleaning of vehicles; More than 80% sell sick chickens 21

22. Interlocking structures throughout Bangladesh Feed Producers Hatcheries Broiler Farms Layer Farms Egg Wholesalers Egg Retailers Beparis/Ferias Rural Agents

23. Costs and Returns of Poultry Poultry farming is a highly profitable activity. Owners of hatcheries, broiler and layer farms invest between 1 and 12 million taka and earn rate of returns close to and sometimes over 100 per cent. At the backyard level an average poor household can earn 10 times of the initial investment. Viewed from the size of the investment, commercial poultry farming does not appear to be pro-poor. In contrast, backyard poultry needs hardly any financial capital and hence can make dent to poverty alleviation. 23

24. Policy Recommendations Bio-security needs to be improved Personnel involved in poultry operations should follow the standard hygiene practices Use of uncovered vans should be restricted and transport vehicles should be routinely disinfected; Use of antibiotics, enzymes and growth promoters has to be monitored; Need for diagnostic facilities at in different regions; 24

25. !!!Thank you for your attention!!! 25