Marketing of Agricultural Inputs

Mid Term Project Presentation

on

Understanding of the Marketing and Supply chain of

Animal Feed Market in Gujarat

Gauri Shankar, Manoj Goswami, Saurabh Kumar, Sweta Pachlangiya
Content

 Project Objective and rationale

 Economy of Feed Intake (Mechanism and FCR)
 Supply Chain of Poultry and Dairy Product
 Animal Feed Market Analysis (Local and National)
 Consumer Behavior and Marketing Approach
 Our Methodology (road ahead…)
Project Objective

 To understand the nature of the Animal feed

market

 To understand the way the market is segmented

 To gauge the problems in distribution

management

 To understand how the consideration set of the

consumers gets determined

 To understand consumer purchase behavior

Live stock sector

 India ranks,
 Cattle – 1st
 Goats – 2nd
 Sheep – 3rd
 Poultry – 7th

 About 22.45 million people work in livestock sector

 The contribution of livestock and fisheries sector to

the total GDP during 2006-07 was 5.26% which is
31.7 % of total agricultural & allied sector GDP.

Annual report 2007:Department of animal husbandry, dairying & fisheries

India’s poultry sector

 India is among the top three eggs producing

countries in the World.

 India is among the top five chicken meat producing

countries in the World.

 Annual growth rate of egg production is5%

 Annual growth rate of broiler production is12%.

Annual report 2007:Department of animal husbandry, dairying & fisheries

Statistics

Source: Annual report 2007

Actual Protein Consumption is almost half
than the recommendation
Content

 Project Objective and rationale

 Economy of Feed Intake (Mechanism and FCR)
 Supply Chain of Poultry and Dairy Product
 Animal Feed Market Analysis (Local and National)
 Consumer Behavior and Marketing Approach
 Our Methodology (road ahead…)
Feed conversion mechanism - Cattle

Yield Curve on proper

feeding practice

Yield Curve

Body weight

-2 0 2 4 6 8 10 Month
Feed conversion mechanism - Poultry
• Breeding

• Feeds

• Feed Restriction

• Lack of water

• Protein level

• Laying house temperature

• Disease

• Age of maturity

• Age of Birds

• Egg cooling and storage

(Source: Book on Animal Husbandary by G.C. Banerjee – Chapter 12 (Poultry), Page 664-665)
Feed conversion mechanism - Broiler
Feed conversion mechanism - Layer
Content

 Project Objective and rationale

 Economy of Feed Intake (Mechanism and FCR)
 Supply Chain of Poultry and Dairy Product
 Animal Feed Market Analysis (Local and National)
 Consumer Behavior and Marketing Approach
 Our Methodology (road ahead…)
Supply Chain for Poultry Products
Supply Chain for Dairy
(Milk from Farmers to Production Unit)
Supply Chain for Dairy
(Cattle feed from distributors to farmer)
Content

 Project Objective and rationale

 Economy of Feed Intake (Mechanism and FCR)
 Supply Chain of Poultry and Dairy Product
 Animal Feed Market Analysis (Local and National)
 Consumer Behavior and Marketing Approach
 Our Methodology (road ahead…)
Animal Feed Market

Cattle Feed Poultry Feed

Local Players: Local Players:
 Kaira District Co-operative Milk  Alpha Industries Ltd
producer Ltd.  Chaitanya Biological Pvt. Ltd.
 Surat District Co-operative Milk
producers  Vijaya Enterprises
 Bharat Cattle Feed Industries  Shri Vishnu Eatables
 Alpha Industries Ltd  Shree Saran Import & Export
 Vijaya Enterprises
 Hindustan Animal Feeds
Major national player:
 Godrej Agrovet
Major national player:  Goldmohur
 Godrej Agro vet
 Avanti feeds
 Goldmohur
 SKM
 Avanti feeds
 Pioneer Feed
 Pioneer feed
 Venkateshwara Hatchenes
Group
Animal Feed Market
- National Production Figure of Key Organized Feed Player

Cattle Feed Poultry Feed

Quantity Quantity
Company (MT) Company (MT)

Godrej Agrovet 200,000 Godrej Agrovet 250,000

Goldmohur 75,000 Goldmohur 300,000

KSE Limited 175,000 SKM 150,000

Kaira Dist Co-op Milk Venkateshwara
Producers 150,000 Hatcheries Group 375,000
Surat Dist Co-op Milk
Producers 800,000 Pioneer Feed 125,000
Kolhapur Zila Sahkari
Dudh Sangh 800,000

Source – RABO Bank Report (2005

Animal Feed Market
- Private Sector Feed Production Trend (in Million MT)

Cattle Feed Poultry Feed

Source – RABO Bank Report (2005

Content

 Project Objective and rationale

 Economy of Feed Intake (Mechanism and FCR)
 Supply Chain of Poultry and Dairy Product
 Animal Feed Market Analysis (Local and National)
 Consumer Behavior and Marketing Approach
 Our Methodology (road ahead…)
Consumer Purchasing Behavior
Consumer
Marketing Psychology
Stimuli •Motivation
•Products •Perception Buying
&Services •Learning Decision
•Price •Memory Purchase
Process
•Distribution decision
•Problem
•Communication •Product choice
recognition
s •Brand choice
•Information
•Dealer choice
search
•Purchase
•Evaluation of
amount
alternatives
Other Stimuli •Purchase timing
•Purchase
•Economic •Payment
decision
•Technological Consumer method
•Post purchase
•Political Characteristics behavior
•Cultural •Cultural
•Social
•Personal
Marketing of Animal Feed

• Marketing by Relationship

• Marketing by Demonstration

• Marketing by educating farmers

• Marketing with the help of influencer like

chairman of co-op society, chilling unit owner etc

Content

 Project Objective and rationale

 Economy of Feed Intake (Mechanism and FCR)
 Supply Chain of Poultry and Dairy Product
 Animal Feed Market Analysis (Local and National)
 Consumer Behavior and Marketing Approach
 Our Methodology (road ahead…)
 Our methodology (1/2)
Research
Research Research Research Sources of
Methodolo
Objective Problem Questions Information
gy
What is livestock &
poultry statistics of
To study market Gujarat
What is the Database &
potential of
recommended & secondary Sectoral
Gujarat cattle
existing animal feed report
feed market
Understandin intake of the
animals in Gujarat
g of the Study of supply market
marketing & chain and
To study the value Database &
supply chain marketing
chain of the Animal Secondary industry
approach of
of Gujarat feed market reports
Animal feed
Animal feed market Exploratory
market. Interviews,
Segmentation of How is the Livestock
through
Animal feed & poultry market Primary
structured
market segmented
questionnair
e.
 Our methodology (2/2)
Sources
Research
Research Research of
Research Questions Methodolo
Objective Problem Informati
gy
What is the existing on
feeding practices of
the farmers in animal
feed market Exploratory
What is the
Supply chain & depths
consideration set of
marketing issues Interviews,
Understandin in the Gujarat the farmers for buying
cattle feed primary through
g of the Animal feed structured
What is the role of
marketing & market distributor in the questionnair
supply chain animal feed market e
of Gujarat What is the after sales
Animal feed services provided by
the players
market.
Evaluation of Exploratory
What is the customer
scope of branding & structure
preference & price primary
in the animal feed questionnair
sensitivity with brands
market. e
Questions?

Thank you