Consumption of maize in poultry feed industry - A value chain study in Mahbubnagar district of Andhra Pradesh

The study attempted to analyse that part of maize-poultry value chain in Mahbubnagar district, manufacturing powder and pellet poultry feed. The study was conducted in two major agricultural marketing committees Badepally, Shadnagar and surrounding villages where maize is grown. The farm harvest price of maize at farmer's level ranged from Rs. 970 to 1150 per quintal. There is a single predominant value chain in the study area, in which maize is used for poultry feed (powdered) and pellet feed manufacturing. The study found that the poultry farmers who procure feed from poultry feed manufacturers who in turn obtain the raw maize from the traders/commission agents, are at loss as the feed cost is high due to long marketing chain and high marketing costs Rs. 1188.5 to Rs. 1308.5 per quintal. On the other side maize farmers received only 41.53 per cent in powdered poultry feed manufacturing channel and only 39.04 per cent in pellet feed manufacturing channel as producer's share in consumer's rupee. The poultry feed (powdered) cost was Rs. 2350 of which less than pellet feed cost Rs. 2500 per quintal. Feed manufacturers’ margin was highest i.e., Rs. 161.5 and Rs. 191.5 per quintal for powdered poultry feed and pellet feed respectively among all stakeholders of value chain. Total marketing costs for granular/powdered poultry feed was Rs.1188.5 and for pellet feed was Rs. 1308.50 per quintal. The producer's share declined with increased costs of value addition while the ultimate end user paid high price, necessitating the need for direct linkages and low cost feed mixers easy to be operated by poultry farmers. Encouraging direct marketing that can bring down cost of value addition. The suggested that the poultry manufacturers can have contractual agreements with maize farmers to buy the raw maize (with assured quality and quantity) by paying a predetermined price to be beneficial to maize farmers as well as end users i.e., poultry farmers. For better energy conversion bio-fortified maize can be tried. Reduced processors marketing costs may reduce the final price of feed by at least Rs. 150 per quintal.