Pricing of Red Meat in Rajshahi

Topics: Meat, Cattle, Pricing Pages: 6 (1668 words) Published: April 9, 2013

The purpose of this project is to understand the pricing mechanism of red meat in the perspective of Rajshahi, Bangladesh. There are some factors that influence the meat price. Two parties are directly involved with pricing mechanism of meat in general though some uncontrollable variables intervene. Regarding these factors what the consumers perception is about the pricing of red meat.

Key words: Meat price, factors influence the meat price, uncontrollable variables, consumer perception

Table of contents

Serial|Subject|Page No.|
2.|Research objective|3|
3.|Main text|3|
4.|Different types of cost involvement with red meat|4|
5.|Factors that influence price|4|
6.|A hypothetical pricing method of red meat|4-5|
7.|Consumer perception about to price of red meat|5-6|
8.|Conclusion |6-7|


Pricing is something which sellers charge, buyer is willing to pay and competitors allow charging it. Actually red meat pricing is cost based pricing in our country. The wholesaler/retailer prefers to determine price of red meat on their cost. Because setting prices on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.

Research objective

Our research objective is to understand the price mechanism of red meat and the determining factors which influence red meat price. We also try to find out the real picture of the meat production in Bangladesh.

Main text

Around 3.5 million cattle are slaughtered annually in the country of which 40 percent are imported through cross-border trade. Around 15 million goats are slaughtered annually mostly of local origin. Of the total slaughter of cattle and goats, around 40 percent is performed during Eid-ul-Azha. Increased demand for quality meat, beef production has become an important income generating activity for small fanners, and a potentially important tool for reducing poverty. Beef production is considered to have high income generating potential, but faces constraints such as lack of appropriate breeds, knowledge gaps of farmers, lack of proper veterinary services and quality feeds. Most meat is handled under unsatisfactory sanitary conditions in both rural and urban areas. Enforcement of legislation relating to slaughtering or meat inspection is weak. There is generally poor pre-slaughter conditions, sanitation, removal of waste materials, and disposal of offal. The Black Bengal goat is a highly prolific native breed that can be easily raised on low quality feed and with little investments. Rearing of Black Bengal goat is an appropriate option for many subsistence farmers. Its demand is growing in both domestic meat markets and internationally for its skins and high quality leather goods.

Different types of costs involvement with red meat:

Since meat is an agro based product, there are different costs involved directly to the product. Two ways the costs can be divided. They are,

1.Producers cost: Basically costs of raising the animals and selling it are considered the producers costs. Such costs involvement of the producers are buying the animal, building the animal shed, food expenses, salary of cowboy, medical expenses relating to the animal if needed and cost of selling it to the market.

2.Retailer/Butcher cost: In the case of retailer/ butcher, they consider the cost buying the animal from the market, rent of the shop, slaughtering and seal of city corporation cost, cost of the personnel, periodic cost of keeping the animal for few days, fees to the meat trade association.

A hypothetical pricing method of red meat:

Generally agro based product pricing is set according to the production cost of this product with limited profit. We talked to the retailer about the pricing a method. Based on the conversation with producers and retailers, the pricing...
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