Thereare various studies available related to Value chain analysis being undertakenby development agencies at the global level with a focus on small holders in Africancountries. In India few sporadic studies are available with respect toagricultural sector.
Feed related studies are scanty in number. A brief reviewof the relevant literature from the available sources has been made here:Accordingto a study conducted by National Institute of Animal Nutrition and Physiology(NIANP) in 2005, the availability potential of concentrates like oilseed cakes,barley, cereal grains for livestock and by-products of pulses like chunnis isabout 35.32 million tonnes. This clearly indicates the gap between requirementand availability. The estimates of Indian Livestock Industry Report 2005 ofCLFMA (Compound Livestock Feed Manufacturers Association) indicated that thecompound feed (balanced concentrate) produced by members of CLFMA andnon-members of CLFMA is about 5.5 million tonnes.
The total estimatedrequirement of compound feed is about 60 million tonnes.Blummeland Rao (2006) studied the economic value of sorghum stover traded as fodderfor urban and peri-urban production in Hyderabad and found that the sorghumfodder is brought to the Hyderabad market in cartloads from villages 50-100 kmaway. Stover selling, transporting, trading and its use in dairy productionsupport the livelihood of many people from producers (farmers) to the end.Misraet al. (2007) in their study on strategies for livestock development in rainfedagro-ecosystem of India noted that that the biggest constraint faced by thefarmers is of fodder availability. There use to be acute shortage of fodder betweenMarch and June. Fodders are fed without chopping which result into highwastage.Singhet al.
(2010) have examined the problems of traders and agribusiness corporatesin the marketing of agricultural produce and have tried to find out mechanismsto improve the market access and linkages of small and marginal farmers. Acomparison of individual farmers and members of farmers’ interest group hasrevealed that group or aggregation approach has enhanced the bargaining powerof the producers. Use of private mobile phones has improved the access tomarket information and extension.
Availability of better price information andunderstanding of markets have resulted in reduction of marketing costs andrealization of better prices of their products. Sinhaand Kumar (2010) have assessed how innovative technologies, institutions andpolicies could help in developing a value chain for tur growers. They haveanalyzed NCDEX SPOT market in the Gulbarga district of Karnataka, and havefound that with the help of NCDEX SPOT, tur grower-farmers were able to reducethe marketing cost by 50-70 per cent, incurred small charges for warehousingand realized about 5-10 per cent higher price for their produce as compared tothe traditional APMC market.Gangwaret al.
(2010) conducted a study on “Broiler’ supply Value Chain in NationalCapital Region Delhi: A case study of Ghazipur Poultry Market” and compared themarketing of broiler in Delhi in Organized and Organized market. The studyfound that most prominent channel was Producer- Commission Agent- Supplier-Distributor- Hotels/Retailers- Consumer. Marketing cost in organized market wasmarginally higher than unorganized market, but the price spread was more thantwice that of unorganized.Kumar(2010) in his study on milk marketing chains and their implications for farmersand traders in Bihar has shown that despite growing presence of modern milksupply chain, the traditional milk supply chain is still in dominance in Bihar.The traditional milk marketing seemed to offer good opportunities for the smalland resource-poor milk producers and traders. The author has argued that thetraditional milk sector should be addressed in a constructive manner andappropriate policies should be evolved, which may allow the informal players toimprove their performance including quality control and integration with theemerging modern milk supply chains.
Sidhuet al. (2010) have analyzed the supply chain of onion and cauliflower in thePatiala district of Punjab. They have shown that cultivation of onion was moreprofitable (?74,597/ha) than of cauliflower (?38,072/ha). These vegetables werebeing disposed-off mainly through commission agents / wholesalers (more than90%), followed by retailers and consumers. Study has suggested that efficiencyof the prevailing marketing channels could be improved by integrating with theorganized retail chains and modernizing vegetable marketing system.
The studyhas also analyzed market integration and has found that markets of Pune,Ludhiana and Patiala for onion; and of Shimla, Ludhiana and Patiala forcauliflower were integrated. The highest elasticity of price transmission wasfound between Ludhiana and Patiala markets with about 90 per cent price changein Ludhiana market getting transmitted to Patiala market. It was 100 per centfor the cauliflower between Shimla and Patiala markets. Also, pricetransmission was faster in cauliflower than in onion.Salami,Kamara and Brixiova (2010) in their study on smallholder agriculture in EastAfrica found that weak institutions, restricted access to markets and credit,including inadequate infrastructure, have constrained productivity growth ofsmallholder farming. Measures needed to improve productivity of smallholderfarmers include ease of access to land, training to enhance skills andencourage technology adoption and innovation, and removal of obstacles totrade.Kumaret al.
(2011) found that in spite of growing presence of modern milk supplychains in the Indian milk market, the traditional milk supply chain is stilldominant. Its dominance is even more pronounced in less-developed states.However, it is apparent that the traditional chain is being replaced, albeitslowly, with the commercialization of dairying.Thestudy conducted by Shah et al. (2011) revealed that due to comparatively verylow net returns, farmer have least preference for growing fodder crops.Further, fodder markets in Gujarat is highly unorganized and unregulated andfodder production is a low priority enterprise. Further, fodder being low valuehigh volume produce is costly to transport and hence normally consumed locally.There exists a severe deficit of fodder and particularly of green fodder.
Thequality and quantity of feed and fodder fed to animal found much lower than itrecommended by department of Animal Husbandry.Sharmaand Tungoe (2011) studied price spread and marketing efficiency in marketing ofpotato in Wokha district of Nagaland and found that the channel comprising ofdirect selling to consumers was the most effective channel with highestproducer’s share in consumer’s rupee and concluded that producer’s share inconsumer’s rupee decreases with increase in market intermediary.Sahaet al. (2012) have examined the supply chain system prevailing in vegetablesmarketing in the Ranchi district of Jharkhand.
Analysis has shown that acrossfarm-size, farmers preferred a short marketing channel (producer––consumer/orproducer––retailer– –consumer) for disposing perishable vegetables like okra,cauliflower and tomato; and a relatively long marketing chain(producer––wholesaler/commission agents––retailer––consumer) forsemi-perishable vegetables like potato and onion. The producer’s share inconsumer’s rupees was higher in the short marketing channels. The persistenceof large yield gap II (50– 60%) in production of vegetables at farmers’ fieldsuggested the need for higher adoption of quality hybrid seeds to bridge theyield gap and increase income of vegetable growers.Babuand Verma (2012) reported a comparative analysis of costs on milk procurement,processing, manufacturing and marketing of dairy products in the co-operativeand private dairy plants in Tamil Nadu. It has revealed that procurement costof the co-operative dairy societies was higher than of the private milkcollection centres. However, the cooperative dairy plant was more efficient inthe manufacturing of toned milk, standardized milk, full cream milk and ghee,whereas the private dairy plant had an edge in manufacturing of butter andskimmed milk powder.Astudy by Brithal and Negi (2012) in 1998 showed that the common resource landshave been on the decline in both quality and area – declining by an estimated14% between 1980/1-2008/9 and now account for a mere 3% of geographical area(Birthal and Negi 2012).
Addisu,et al. (2012) studied beef and feed value chain in Adama district of Ethiopiaand concluded that small holder beef and feed value chain practices andlinkages remained weak as compared to anticipated potential, because most ofthe factors necessary for a successful feedlot business were in their infancy.These included inadequate input provision, procurement of older animals forfeedlot, very loose attachment between actors, very old level of technology andfacilities used, inadequate training, lack of investment funding, very littlevalue addition and inadequate market development.Pastakia(2012) examined the strategies in selected pro poor value chain interventionsin India and developed a typology of strategies. The typology includesstrategies for workingwith existing value chains (reviving, reconstructing,leveraging) as well as for creating new value chains (linking distant consumersand marginal producers through fair-trade channels, creating networks ofdecentralized value chains).
Kannan(2012) reported that large percentage of small fodder growing farmers inKarnataka have problems with respect to access to credit, labour availability,high cost of production, seed quality and access to technical knowledge.Astudy by Jha et al. (2012) based on rapid appraisal has highlighted the marketof fodder and the actors involved in the fodder trade in Bihar. The producer’sshare in end-users’ price has been estimated for different fodder marketingchains. The constraints of fodder marketing and suggestions for theirmanagement have also been indicated by the authors.
It was found that paddystraw and wheat bhusa are the major fodders that account for about 95 percentof the total marketed fodder in Bihar. Transportation is the major activitythat accounts for about 36 percent in total cost addition.Ayeleet al. (2012) in their study highlighted the importance of policy forinnovation in value chains. Governments need to support innovations andlivestock-based businesses by facilitating the provision of credit, improvedbreeds etc.
Governments and other stakeholders need to step-in in situationswhere manipulation is done by traders and prevent such destructive behaviour.Public investment is required to support local NGOs and public organizations todevelop facilitation capacity. Governments should nurture the private sector sothat it plays its due roles, particularly in disseminating agriculturalknowledge and technologies.Andre,et al.
(2013) studied the degree of importance of the feed industry in SouthAfrica and made suggestion to focus on the level of integration in the poultryand pork industries. They found that this industry was all exposed to very weakinfrastructural support and maintenance from Government. Roads (secondary andtertiary) and railways account for almost all grain transportation and deliverysystems in and around South Africa.
Transporting feed ingredients was becomingalarmingly expensive.Singhet al. (2013) in their study in Bihar reported that there is no dedicatedmarket place for fodder market so, trading takes place along roadsides andwithout legal credentials. Fodder being a bulky item, makes its trading andhandling difficult.
Some traders use compressing machines to make fodderblocks. Development of technology for cost-effective and nutritive feedrequires urgent attention and here public sector R&D can play an effectiverole which can also be done in public-private partnership mode.Kasishet al. (2014) in their study in Punjab found that costly feed and fodder is thebiggest constraint in case of smallholder dairy farmers.
For marginal and smallfarmers low availability of dry fodder is also found to be one of theconstraints. Large farmers are able to make silage or hay and hence they don’tface fodder shortage cost.