Bangladesh egg industry Long way to go

Md. Morshed Alam

President,
Bangladesh Animal Agriculture Society (BAAS)
info@baas.com.bd

Introduction
Like the global scenario, the biggest challenge of Bangladesh is to fed 160 million people
with 1,64,000 sq. kilometer of area of which little is arable. Least grazing field and fodders
cultivating land are the constraints for the livestock farming. Environmental constraints are
preventing the livestock industry to grow as per its potential. The burning issue to the policy
maker is how to fed the people with food which is not just to fill the stomach rather it provide
nutrition as well.

Poultry Industry of Bangladesh

Poultry industry played its effective role to support the country with food of nutrition and
choice. Beginning of 80s the poultry rearing started as hobby which later turned as
commercial farming and the commercial farms started near the capital Dhaka and
commercial city Chittagong, where the major consumers resided. In 90s the investors
entered into the bigger commercial farming and hatchery business considering their social
commitment to produce for the people of the country. Till 2000 it was growing as a rate of
about 10%-15% per year in turnover. Two separate areas developed where one area
worked with the private sector mostly with commercial poultry and another area the backyard
and semi-scavenging poultry fostered by the Government and the NGOs. The rapid growth
of the commercial industry was not supported by adequate Research & Development and as
a result they failed to overcome the disaster due to lack of preparedness. On 2004, the bird
flu panic was a real blow to the industry though avian influenza yet to affect the poultry
industry of Bangladesh. It lost its confidence and spirit overnight and when the avian
influenza really hit the industry in 2007, they are already sick. Now in 2014, it became a
business of loss! Total investment of Taka 25000 crore in 100,000 farms, 130 poultry
hatcheries, 70-80 commercial feedmills, more than 200 animal health products
manufacturing/supplying companies are in deep sea. About 6-7 million people, are directly or
indirectly depending on the poultry industries of Bangladesh. More coordinated efforts from
all concern, like the industry, government policy makers, consumers, media, etc., require
making the industry sustainable.

Egg Industry of Bangladesh

The commercial eggs replaced the eggs from backyard poultry in 90s and slowly but
steadily grown at a stage where farmers can produce quality egg efficiently. Egg industry
occupies about 20% of the total poultry industry of Bangladesh. The per capita consumption
of the commercial egg is about 24 and local egg is about 10 make a total of 35 eggs. The
consumption is less than one egg per week which is the lowest in the world atlas. Egg is an
affordable animal food and packed in full of goodness. Egg is the source of natural protein,
vitamin, minerals, antioxidants for the healthy development of the bodys cells, helping to
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maintain healthy skin and eye tissues and assisting in night vision, necessary for the
formation of red blood cells, important for the immune system to function properly. Heath
organizations like Australian Heart Foundation, Irish Heart Foundation, are actively
encouraging people to eat more eggs to ensure that they benefit from the egg. They are
promoting One egg per day is ok. In Bangladesh we need awareness among the
consumers to take eggs atleast two eggs per week, i.e., 104 eggs per year/per capita
consumption, as recommended by the Food and Agriculture Organization of the United
Nations (FAO). This will contribute to the nutrition to the consumers and also this will support
the egg industry to sustain.
Consumers behavior and price constraints are the major constraints in the road of flourish
the egg industry of Bangladesh. Many of the people believe that egg is a risky for the people
after 40 years of old since it contains cholesterol which is a cause of heart disease. This
proved as wrong concept by many scientists around the globe. It is identified that cholesterol
in egg is not responsible for heart disease rather egg nutrition helps people to overcome the
risk of heart disease. Some people think that egg is the cause of overweight which is wrong
also. It is found that the eggs in breakfast help to reduce weight and provide energy to work.
The price looks expensive when someone looks into it at a glance, but if the inflation rate,
increase of per capita disposable income, devaluation rate of taka to other foreign
currencies, etc., are calculated and considered, egg is the cheapest food in Bangladesh
even at Tk. 10/- (Taka Ten) per piece. To produce an egg about 175 grams of feed requires
which at current price is almost Tk. 7/- and adding other input cost and minimum profit for
the farmers/producers, Tk. 10/- (Taka ten) per of egg is logical. Egg is a complete food which
alone can be consumed unlike other food or food ingredients. Also it can be adopted in the
recipe in various ways like omelets in noodles, curries.

Marketing of Eggs
Eggs come on the table through changing of different hands and adding profit at every hand.
The wholesalers provide fund to the farmers in form of advance with promise that the farmer
will sell the eggs to the wholesalers to ensure the continuous supply of the eggs.
Wholesalers fix the price at every evening for the retailers as per the supply of the eggs and
their profit margin. The retailers sell the eggs in different corners of the city and village. Since
the retailers need more logistics and efforts in marketing they put more margin than
producers and wholesalers. So, the difference between the Farmgate price and retail price is
quiet noticeable. Lack of access to the public fund, the cost of production and the end price
both are high enough to put the low income consumer away eggs. Recently, some
producers/integrators like Kazi Farms, BRAC, Golden Harvest, C.P. Bangladesh, introduced
direct marketing of eggs to make it affordable, safe and healthy to the consumers. Branding
of the eggs started couple of years back and many others to come in the market.

Future of Egg Industry

Egg production is a continuous process, when starts laying it will continue throughout the
production period. It cannot be manipulated artificially. For value addition, processed egg
will come in scene in near future. Powdered egg and liquid egg will add value to the industry.
Neighboring countries like India is one of the biggest powdered egg exporting country. Since
the animal welfare is an issue in EU countries, export of egg products will be an opportunity.
As a Muslim country export of egg products to Arabian countries can be an opportunities in
coming days. The emerging fast food chains and changing habits of the young generation
will enhance the growth of the industry.
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SWOT Analysis of the Egg Industry of Bangladesh

STRENGTH

WEAKNESS

160 million population

Less variations in raw materials

Low cost labor

Inadequate mid-rage technicians for

the poultry farm

Availability of the workers

Least access to fund

Abundance of Rice by-products like

rice polish & rice husk

Higher cost of fund

Availability of technical expertise

Disperse poultry farming to provide

services

Majority of the people are nonvegetarian

Least knowledge of the farmers

about poultry health

Fertile land to produce maize

attracting farmers to maize farming

Lack of efficient communication

system

Eggs are acceptable to all people

irrespective race, religion and cast.

OPPORTUNITIES

THREAT

Decreasing arable land for crop

Dense farming for easy

transmission of diseases

Decreasing animal protein like fish

for human consumption

Lack of coordination at any unusual

situation or threat

Increasing Disposable Personal

Income

Political instability

Rapid urbanization

Frequent changes of the

government policies

High price of animal proteins like

fish

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Conclusions
Egg industry of Bangladesh got the potentiality to go long way with support of the
consumers, producers and policy makers. To develop a sustainable egg industry,
consumers awareness to the goodness of egg is required. A combined and co-ordinated
campaign by private, government and media is essential for a successful and long-term
awareness program.

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