Abstract
The study was conducted in and around three municipal towns of Pabna, Mymensingh and Sylhet
to measure the profitability and resource use efficiency of peri-urban livestock production,
characterise and measure the efficiency of marketing systems of livestock and livestock products,
and assess the nature of production and marketing constraints. Data were collected from livestock
farmers, traders and consumers using structured questionnaire during July to October, 1997. A oneyear case study was also done on the marketing of livestock and livestock products in peri-urban
areas. The case studies carried out from June 1998 to May 1999 revealed that the peri-urban
production of livestock and livestock products under commercial farming was more profitable than
traditional farming. The smallholder dairy and non-dairy cattle production was profitable when
only variable cost or cash cost was considered. This production was less profitable mainly due to
small herd size and low productivity of animal. The production of goat and chicken under
traditional farming was profitable due to low cash cost and use of family supplied inputs. The
returns to scale and production elasticity revealed that livestock farmers could not use inputs
efficiently in the production of livestock and livestock products. Both traditional and commercial
farmers had ample opportunities to increase output and income by using more productive
technologies and efficient use of inputs. Although commercial farmers mostly met the urban
demand for eggs, the smallholder livestock farmers in rural and peri-urban areas were the major
suppliers of milk, chicken and goat for the urban consumers. The marketed surpluses of milk and
eggs were respectively higher in urban and rural areas, compared to other areas. Both direct and
indirect channels were found in marketing of livestock and livestock products. The supply and
prices of livestock and livestock products in the markets varied throughout the year. Winter season
(November to February) and summer season (June to October) were reported to be peak and lean
period, respectively. The prices of milk, beef, and goat meat varied every day, month, and even
season due to fluctuation in consumer's demand. Except egg, the prices of milk, meat and chicken
remained high during peak period and low during lean period. Volume of working capital,
availability or scarcity of product, previous business experience, need for draft power for
cultivation, and various social and religious events influenced the supply of livestock and livestock
products in the markets. The milk marketing channel (Commercial farmer→ Goala→ Consumer)
in Sylhet proved to be more efficient than in other areas. Similarly, the efficient channel for beef
and goat meat marketing was Farmer→ Butcher→ Consumer. Although the producers' shares
were comparatively low, the overall chicken and egg marketing system was found to be more
efficient in Mymensingh than in Sylhet. The most efficient channel was Farmer→ Retailer→
Consumer for chicken marketing. On the other hand, the egg marketing channels in Mymensingh
and Sylhet were Commercial farmer→ Wholesaler cum retailer→ Grocery trader→ Consumer
and Farmer→ Bepari→ Consumer. The major constraints to higher production of livestock and
livestock products included scarcity of feed and fodder, quality breed, chicks, veterinary cares and
services, working capital, and lower price of produces. The most important problems of the
marketers included scarcity of products, payment made on advance for the products, fluctuations in
demand and prices, inadequate marketing facilities, lack of working capital, product loss/weight
loss of animals and birds, and harassment of police.