ANALYSIS OF LIVESTOCK SUPPLY CHAIN AND PRICE DISCRIMINATION BETWEEN PRODUCERS AND CONSUMERS IN BANGLADESH

Abstract

The aim of the study was to identify existing livestock product supply chains and price disparities between producers and consumers. The study was conducted in three different locations at the producer level, usually livestock farmers and consumer level in an urban area of southwestern Bangladesh. Data were collected using a pre-tested questionnaire from 90 livestock and poultry farmers and 40 consumers through face-to-face interview method. The results showed that livestock farmers had limited access to their desired markets and in more than half of the cases (53.33%), local consumers were the primary buyers of livestock products and almost half of the farmers (45.56%) sold livestock products from farmers to consumers. Poor transport systems and a moderate farm-to-market distance of 11-20 km indicate poor market access for livestock products. Price discrepancies between producers and consumers indicated that significant differences were observed as consumers paid 21.86%, 39.25%, 29.24% and 21.35% more prices for eggs, milk, poultry meat and beef, respectively than the price received by producers. Several challenges have been identified in the livestock supply chain in Bangladesh including limited access to credit and finance, inadequate extension services and technical support, and the presence of middlemen. It can be concluded that weak supply chain exists in southwestern Bangladesh and the high price disparity between producers and consumers can be reduced by improving market access for livestock products by creating an enabling environment. Therefore, small farmers can contribute to the overall development of the livestock industry in a suitable market atmosphere.

Keywords

• consumers
• marking channel
• market distance
• livestock products
• middlemen