Marketing issues in today’s livestock sector

Livestock sector is economically vital due to the various contributions. This sector generates employment, provide income and a source of livelihood for many rural and urban inhabitants. The poultry sector in China provides many opportunities in the form of jobs creation, source of animal protein for many household. Poultry meat is one of the mostly accepted sources of protein due to high biological value which containing relatively higher amount of essential amino acids, minerals and vitamins.

This sector in China has experienced rapid growth over the past two decades. The demand for livestock products especially poultry products is increasing in both domestic and international markets due to population growth, change in lifestyle, rise income. Livestock products have very high income elasticity’s, and demand increases rapidly with rising income as countries shift from lower-middle to high income economies. Increases in poultry consumption have been particularly dramatic and widespread, while changes in beef, pork, and dairy demand vary with cultural differences between countries.

Efficient marketing of livestock product particular poultry product is considered to be more complex than crop. This is due to high production cost for improving animal welfare, low communication among the actors involved in the value chain, modern livestock rearing practices and to meet consumer preference. Also poultry producers have spent a lot of time to increase efficiencies in the production. Yet there is a major constrained, and even criticized by consumers who are inexperienced with the realities of the current livestock production trend. Consumers are not only focused on the quantity of food produced but they have growing interest on the quality, production and processing attributes and product attributes as well. Also consumers are particular concerned on the practices surrounding for handling techniques, housing and rearing of livestock for egg, milk and meat products.

According to Nayga (1996) consumer paid key attention, using the following irradiation, antibiotic, hormone, and pesticide for livestock production. Preference is not only limited at household level but it extend as well as restaurants, supermarkets and grocery stores. Presently consumers show greater concern in production process attributes, and as well as food attributes itself. Frewer et al. (2005) livestock products provoke consumer emotion in term of regarding animal welfare, the manner in which those animals are handled and treated in the production system.

Livestock rearing is becoming so complex because consumers need information about the lifetime of the animals. Sometime, animals are raised by different owners and locations

many times before the meet the final consumer. Sourcing that information becomes difficult task in production system. Nowadays farmers are amazingly proficient in producing food for the growing population, by adapting the updated technological advancements, and incorporating cutting-edge practices to increase productivity. New products are accepted in a competitive market if the consumer expectation are met (Danaher, 1997).

Consumer preference serves as a proxy for developing a new product and formulating pricing strategies. Also, consumer choice is used as a proxy for interpreting both income and price elasticities of specific product and service. Therefore knowing the consumer preference is important step in introducing new products at right market and help in product matching. In economic discipline, identifying consumer preference is desirable in assessing the substitution possibilities of a product.

Brassington and Pettitt (2003) reported that if traders understand consumers’ need properly, it aids in anticipate the product attributes for target customer. Globally, consumers are growing interest in sustainable food quality as an important component observed (Grunert et al., 2018). Quality food production faces tremendous challenges for the growing human population. In term of livestock production consumers assumed that farmers and processors take into account animal welfare, other social and ethical attributes in the production and processing system (Tonsor et al., 2009 and Van Loo et al., 2014). Again consumers are so particular about their health, clean resources and environmental risks which was triggered in meat production due to food scandals in last ten years.

These issues have reflected the desire of consumers for organic and naturally raised food products. To achieve quality food sustainability production for the growing population, it’s involved the collaboration of both private and government sectors developing appropriate technology such as biosensor. Numerous efforts have been inspired in addressing issue and strengthening the drivers of food production. Livestock sectors faced numerous challenges in term of diseases control mechanism due to limited knowledge, lack of reliable diagnostic test equipment for early detection of diseases in farm animals, and high cost for the equipment.

Currently there several emerge diseases outbreak that threaten animals’ health every year. For instance, the United States Department of Agriculture (USDA) reported that about $2.9 to $6.7 billion is lost yearly due to decrease in productivity and medical costs caused by major food pathogens (Buzby et al., 1996). In United States 76 million foodborne sicknesses incidence each year and account for 325 000 hospitalizations and 5000 deaths (Mead et al., 2000).