Value Chain Analysis and Marketing Efficiency of Commercial Broiler Farms

Abstract

The present study was conducted to examine the value chain structure, marketing system, and price spread of commercial broiler farms in Udgir tahsil of Latur district, Maharashtra. The study analyzed the flow of broilers from input suppliers to producers, wholesalers, retailers, and consumers, and assessed the role of different market intermediaries in value addition and price realization. It further identified major marketing channels, estimated the producer's share in the consumer's rupee, and evaluated marketing efficiency under different farm-size categories (small, medium, and large). Three marketing channels were identified: Channel I (Producer–Wholesaler–Retailer–Consumer), Channel II (Producer–Retailer–Consumer), and Channel III (Producer–Consumer). The findings revealed that the producer's share in the consumer's rupee increased with farm size across all marketing channels. In Channel I, the producer's share ranged from 76.23 to 80.08 per cent, whereas in Channel II it varied from 79.47 to 83.98 per cent. The highest producer's share was recorded in Channel III, ranging from 94.39 to 95.16 per cent, indicating the superior marketing efficiency of direct marketing. Transportation, shrinkage and mortality, loading and unloading, slaughtering and dressing, storage, and packaging constituted the major components of marketing costs across the value chain. Small farms incurred comparatively higher marketing expenses due to lower economies of scale, while large farms achieved greater marketing efficiency through reduced price spread and higher net returns. The study highlights that shortening the value chain by reducing intermediaries improves value capture by producers, enhances marketing efficiency, and strengthens farm profitability. Promoting direct marketing, efficient value chain integration, and stronger farmer–consumer linkages can significantly improve the competitiveness and sustainability of commercial broiler farming in the study area.