Md. Shamsuzzamana
Sheikh Morshed Jahanb
DBA Student, Institute of Business Administration, University of Dhaka, Bangladesh
Associate Professor, Institute of Business Administration, University of Dhaka, Bangladesh
Email: fatherofsaiki@gmail.com
Email: smj@iba-du.edu
Abstract
In the last half decade, there has been a visible growth in the poultry industry of Bangladesh leading to an increase in the per capita availability and consumption of chicken meat and egg. Although this growth has resulted in the minimization of the gap of human protein requirement, but compared to other developing countries as well as developed countries, per capita meat consumption is still very much lower. So there is a vast opportunity to improve total poultry industry by setting proper strategy to manage challenges and using opportunities effectively as well as efficiently. As a result the prime objectives of researchers are to explore the challenges and opportunities of poultry hatcheries focusing on SME players. Primary data has been collected by in-depth interviews and focus group discussions with different tiers of poultry professionals. Major findings of the research are the knowledge gap in respect of competitive dynamics, strategic management, global linkage potentials and modern technologies as well as another prime constraint is funding and fund management in terms of accessibility, availability and affordability (3A)
Keywords: SME (Small & Medium Enterprise); Poultry Hatchery; GP (Grand Parents); PS (Parents Stock);
DOC (Day Old Chicken); Triple Triangle Framework (TTF)
Introduction
Poultry have been domesticated for thousands of years. Archaeological evidence suggests that domesticated chickens existed in China 8000 years ago and that they later spread to Western Europe, possible by the way of Russia. Domestication may had occurred separately in India or domesticated birds may have been introduced from Southeast Asia [1]. From the then village household poultry rearing started in Bangladesh. But commercial poultry farming has been pioneered by the Eggs and Hens Ltd. as early as 1954 and steered by the Biman Poultry Complex after the independence, commercial poultry industry took a smooth take off through heavy investment of private sectors during nineties, and it accounts for an estimated capital investment of about US$ 3.0 billion facilitating employment of about 6.0 million peoples [2]. After that poultry industry has started to grow aggressively in the commercial sector, even then considering consumption of poultry meat, Bangladesh ranks as one of the lowest consuming countries. Industry observers claim that the average consumer eats about 3.2 kg of poultry meat annually [3]. OEFD-FAO Agricultural Outlook, however, states that the per capita consumption is even lower at just 1.2 kg per year per person. This figure is lower than regional countries like India and Pakistan. The cause of such a low consumption figure is due to the vast population sector in the country who fall into the poor and middle class. These people consume meat occasionally and have a lower per capita income compared to the neighbors India and Pakistan.
In comparison, Malaysia and the United States are at the top end of the poultry meat consumption chart, with 41.4kg per capita and 47.6kg per capita respectively [3]. So it can be clearly concluded that there is a big gap between demand and supply of poultry meat in Bangladesh considering developed as well as developing neighboring countries. Now a day’s poultry industry is one of the extreme potential sector for a developing country like Bangladesh. This industry has high potential to help nation by broadening the scope food security especially enhancing protein availability, affordability and
consumption.
It is unquestionable that in the modern global business arena the Small and medium scale Enterprise (SME) is the engine of economic growth considering major national economic indicators like GDP growth acceleration, reducing poverty, income equality and regional disparity through increasing purchase power by generating employment, minimizing balance of trade by using the export potentials, finally improving inclusive economic growth. Poultry hatchery which is the starting point of poultry value chain are also playing a very vital role to minimize demand- supply gap of human protein requirement resulting in healthier Bangladesh. Now a days, importance of SME hatcheries is very commendable, since most of the small commercial broiler and layer farms are highly dependent on SME hatcheries for commercial DOC and other related supports. Because of regional connectivity, relationship and convenience they take support from them rather than large players. If we can properly activate them, only SME players could be able to fulfill the local demand as well as work as active component of value chain of large players to take all kind of preparedness for entering global market.
As a result researchers tried to find out the challenges and opportunity of SME poultry hatcheries which are the major driver for inclusive growth in the poultry industry as well as national economy of Bangladesh. Because, most of the research works were conducted on the total Poultry Industry, the Layer Industry, and the Broiler Industry, where the researchers had a lesser scope of emphasizing on SME hatcheries. Only a very limited number of research work was done on the SME Hatchery which is arguably the most important for adding value into the entire poultry industry
Limitation
The researches could not cross the barrier of limitations while doing this research that have been identified as follows
- There was an insufficient, as well as, a lack of reliable source of secondary data in government and private sector.
- Trying to analyze all the components of challenges and opportunities of poultry hatcheries of Bangladesh
would require a herculean effort, with a single research work being insufficient to portray them
entirely. - The research findings were analyzed using the Triple Triangle Framework (TTF) which has covered
salient features of the research objectives but not everything. - The researchers have conducted in-depth interviews and focus group discussion with the professionals of
ten different size of poultry hatcheries. So, there are many hatcheries which have not been covered in this research work.
Research Methodology
An intensive literature review has been conducted covering historical development, challenges and
opportunities, competitive dynamics, sustainable competitive advantage, and value chain management of poultry hatcheries focusing on local vs. global market which has given a clear indication to the researcher for developing a refined research methodology to conduct the research successfully.
Researcher has visited few hatcheries at each of large, medium and small segment to experience their operations technical and business operation methods. Most of the primary data has been collected through in-depth interview as well as focus group discussion with key informant of ten hatcheries of two from large, four from medium and four from small segment. Judgmental sampling method were followed to collect data considering required technical and managerial knowledge of poultry hatcheries. Researcher also conducted interview with the key person of different association especially General Secretary of Breeder Association of Bangladesh (BAB) and World’s Poultry Science Association, Bangladesh Branch.
A series of interviews have been conducted with respective government officials especially from research and admin wings. To know the business dynamics of feed and poultry medicine industry relating to hatchery, researchers have conducted two focus group discussion having senior management people of feed industry and poultry medicine industry. Secondary data has been retrieved from different internationally published research papers of different internationals journals, key note papers of seminars, statistical yearbooks, annual reports of public limited company, reports of and national NGO’s related to poultry hatcheries and it value chain managemen.
Acknowledgements
We are highly grateful to Md. Atiqur Rahman, Md. Asaduzzaman, Mr. Abu Kaosar Md. Saleh, Sayed Sultan Ahmed, Dr. Abu Sadat Md. Sayem, Jadu Gopal Paul, Md. Atiqur Rahman, Manager, Md. Mosharraf Hossain and Md. Saidur Rahman of Kazi Farms Group; Dr. Md. Amjad Hossain, Dr. Mozammel Hossain Sarker, Mohammad Shaheen Shah and Mohammad Abdullah of ACI Animal Health, ACI Limited; Jahirul Islam Khan Hero, Executive, Breeder’s Association of Bangladesh; A K M Salah Uddin Sarkar of Advance Agrotech (BAD) Ltd.; Md. Sirajul Hoque of Renata Limited & General Secretary, World Poultry Science Association, Bangladesh Branch; Md. Shohidul Islam, Dr. A.B.M. Khaleduzzaman, and Bibek Chandra Roy of Upazila Livestock Officer; Nokib Ulla Siddiquee, Asst. Director (Farm), Department of Livestock Services; Saidur Rahman Babu of S.B. Hatcheries Ltd. & General Secretary, Breeder Association of Bangladesh; Mr. Golam Shajlee Adeeb Chowdhury, Mr. Biplob Samadder and Md. Nazrul Islam, of Shamoli Poultry Ltd.; Mr. Md. Mahbubur Rahman and Nazrul Islam Liton of Peoples Poultry & Hatchery Ltd.; Md. Jahangir Alam of Abir Poultry Hatchery & Process Limited; Md. Ashfaqul Islam and Shaheed Israil Khan of Chicks & Feed; Dr. Debashis Paul of ACI Godrej Agrovet Private Ltd. For their valuable inputs regarding the research information as well as sharing practical knowledge and skills necessary for the research work.
References
Alders, R. and Pym, R. (June, 2009). Village Poultry: Still important to millions, eight thousand years
after domestication, World Poultry Science Journal, pp. 181-191
The Daily Ittefaq, March 10, 2011.
OECD-FAO Agricultural Outlook, 2
