Entrepreneur and Livestock Based Enterprises

Udiyoginah Singh Mupait Lakshi Takee Cheri means wealth is the maid of entrepreneur. This has been emphasized in ancient literature of India thousands of years ago. Similar expression has been put forward in a Latin phrase Audaces fortuna Juvat means fortune favours entrepreneur.

Entrepreneur is a French word, which means to undertake, but in today’s context of entrepreneur this meaning does not provide complete information about the main characteristics of an entrepreneur. The meaning of an entrepreneur given in the new Encyclopaedia Britannica defines entrepreneur as a person capable of bearing the risk of undertaking a business without taking the note of performance and future condition.

Characteristics of an Entrepreneur:

1. A person with confidence.

2. Capable to take initiative without hesitation.

3. Possesses skill of managing available resources in hand and also capable of mobilizing resources from potential sources.

4. Have courage to take risk in utilizing the invention or newer technologies for commercial exploitation.

Characteristics of an Entrepreneur in Livestock Business:

Most of the graduates even with rural background are not exposed to the risk involved in livestock enterprises. Despite high level of scientific advancement it is very difficult to forecast the performance of a particular animal because production performance of livestock is influenced by several socio-environmental factors.

Therefore, it is important to acquire adequate knowledge about the production and marketing which are highly variable due to high variation in the types of products, their self-life, class of consumers and economic status.

Under such situation, an entrepreneur venturing for livestock enterprise should have the following characteristics:

1. Should have well-defined objective for the production (qualitative and quantitative) of livestock and livestock products.

2. Determination of dimension of production units.

This will depend on the objective, i.e.:

(i) Small scale for supplementing family income,

(ii) A larger unit for earning livelihood, and

(iii) Commercial enterprise of various sizes.

3. Management of resources for development of infrastructure, purchase of livestock, feeds, utensils and appliances, processing of products and marketing of products.

4. Should be prepared to take risk because most of the livestock products are highly perishable items.

5. Should develop skill for the alternate method of disposal viz. excess or surplus milk left unsold should be utilized for the production of khoa, paneer, etc.

Prerequisites for Livestock Farming Enterprise:

Before proceeding for the establishment of any enterprise of livestock production, it will be very useful to acquire the followings:

1. The entrepreneur should have basic knowledge of selected animal husbandly.

2. Availability of market within the approachable limits.

3. Seasonal fluctuations for the demand of products.

4. Scope of sale of value added products.

5. Availability of unskilled and skilled manpower.

6. Availability of land and natural water sources.

7. Scope of seasonal purchase and storage of feedstuffs.

8. Cycle of occurrence of natural calamities, if any.

9. Insurance facility for farm commodities and livestock will provide protection against unforeseen mishaps.

Selection of Livestock for Farming:

In Indian society, there are inherited limitations for the selection of animal species for rearing.

This is significantly influenced by:

i. Religion,

ii. Region,

iii. Economic status,

iv. Educational background and

v .Availability of markets.

i. Effect of Religion:

Rearing of certain specific species of farm animal is strictly prohibited in some of the religions like even sight of pigs is prohibited in the followers of Islam, cattle for beef in Hindu and protection of all kind of living mammals, birds, other animals and even some species of vegetation is strictly observed by Bishnoi community of Hindu. Therefore, this aspect is kept in mind for the selection of livestock species and products.

ii. Effect of Region:

Some of the Indian societies are still highly orthodox and do not accept families opting for non-acceptable animal husbandly like swine farming by Brahmins, Agravanshi and Jain, etc. These groups also do not associate themselves with any kind of animal rearing for slaughter in most part of the country. Consumption of meat and meat products is negligible in these communities. Therefore, animal husbandry practice for meat production should be avoided in areas populated by these families.

iii. Economic Status of the Population:

Although families of highly diversified economic groups live in almost all parts of the country but in certain large areas in some of the states of India, proportion of economically weaker class is quite high. In such areas, demand of food of animal origin like milk, meat and their processed products is very low and establishment of a small scale livestock production for local population may not be even sustainable.

However, livestock production for marketing in areas of demand and export may be taken up in such areas, if resources like land, feeds and fodders are available at reasonable rates, because man power will be easily available on the payment of low wages. Establishment of large scale livestock production projects in such area may be in the interest of both the entrepreneur and the local economically weaker class of people. The cost of production of former will be less and later will get remunerative employment needed for their livelihood.

iv. Educational Background:

Proliferation of higher and technical education particularly the education of veterinary sciences and agriculture during the past over half century has brought significant changes in the outlook of even many orthodox classes of Hindu community in India. These changes are now reflected in the acceptance of restricted animal husbandry enterprises of older years.

Educated unemployed youth of many upper strata of society is now adopting swine rearing, rabbit farming, poultry farming, goat farming and fisheries in addition to dairy farming. In some areas, fattening of male buffalo calves for meat production has been accepted by the livestock owners irrespective of social inhibitions.

v. Availability of Markets:

Dimension of exploration of marketing of livestock and livestock products has shown a rising trend. This is mostly the effect of increased communication facilities. Now pigs fattened in Uttar Pradesh are marketed in the remunerative markets of north-eastern states, and male buffaloes fattened in some parts of northern states are marketed in Mumbai.

Similarly, producers of milk products like khoa and paneer have extended marketing covering up to 200-300 km in many parts of the country. For example, khoa produced in Ghazipur district is marketed mostly in Varanasi and Allahabad, whereas ghee produced in Chandausi, Aligarh, Hathras, Bulandshahar and Meerut is famous in north India.

Developments of information systems, availability of fast transport facilities and availability of cold tankers have enlarged the marketing facilities.

Seasonal Fluctuations in the Demand of Livestock Products:

Although some milk, meat and egg products are being marketed round the year, indeed there is distinct seasonal influence on the demand of certain products. Consumption of milk and milk products like khoa, chhenna, paneer and curd is increased many fold during the marriage season. This increase is quite high in the northern states. On the other side, such increase is more in the demand of meat, fish and poultry in the eastern and north-eastern regions.

Similarly demand of milk products, poultry products and fish increases in hotels and restaurants of all ranges during the tourism season and festivals in all parts of country. Therefore, it would be beneficial for the entrepreneurs to develop facilities for the safe conservation of perishable products, maintaining their quality, for marketing during the remunerative period of higher demand.

Need of Information Supply in Remote Areas for the Availability of Markets:

Despite great increase in information systems, entrepreneurs engaged in production and sale of milk products are not aware of the great difference in the cost of products even within the radius of less than 50 km. For example, some sweets of chhenna marketed at the rate of Rs. 40 to 50 per kg in Mahaban town of Mathura district are sold at Rs. 80 to 150 per kg at Mathura, Agra, Vrindavan and Bharatpur towns.

Although, consumers sometimes mention difference in the quality of products, but main effect appears to be that of brand name, decorated shop and good packaging in attractive containers. The economic status of such entrepreneurs can be improved significantly by providing them short duration training on manufacture of products of desired quality and their good packaging along with increased hygienic conditions.

Nomenclature of Value-Added Products:

In modern society, a craze has been developed for show-off and presenting oneself elevated in the society. Persons of this newer class of society prefer things different from commonly available in the market. In this direction, the good examples are the sweets of khoa and chhenna.

All types of sweets available in the market are prepared from the use of khoa and sugar or chhenna and sugar, but the altering ratio of the khoa or chhenna and sugar, form and saturation of syrup, altering the shape and size of the products, use of some dry fruits in different forms, use of edible colours in different concentrations and decoration with silver leaves, etc. have increased the apparent number of several products. Similar technologies are being applied for the value addition of other products.

There is also a trend of naming these products with link of ancient and medieval royals. These approaches are successfully used for attracting the consumers and increasing the margin of profit. Some examples are Shahi paneer, Nawabi makhan, Lal dahi or Misti dahi, Gulab jamun and Kalajam, etc.

Revival and Introduction of Old and Forgotten Recipe:

With the emergence of newer economically sound families, a large number of young persons are developing fancy for show and craze for presenting themselves more elite in their circle, the possession of costly watches, latest model of motor vehicles and regular visit to hotels, restaurants, cafe and even modern dhabas on highways. A good number of such persons feel elevated by discovering newer food items of past. A good restaurant manager now use prefixes like Shahi, Muglai, Continental, Chinese and so on.

On similar line there is great scope of reviving pauranik and ancient names of milk products like Jayur, haviya, payasm, sajaw dahi, sweet dahi bada and many others. While bringing such products in the market it is important to standardize the recipe for quality control, prepare a nutritional chart depicting content of important nutrients per unit of product, a good advertisement pamphlet and attractive shape and packing, etc.

Development of Demand in Consumers:

Once a revived product of olden days has become popular among the consumers there will be need of modification in marketing strategies. This can be achieved by several ways but more effective will be creation of artificial shortage of product at a time when there is great demand for that product at a particular time.

This approach may not be considered ethical, but such practice for a short time after intervals may be helpful in increasing the craze for the products in consumers. Such artificial shortage in market often indicates the higher liking and consumption of the product. In this regard, an example of sale of dahi bada at Gautam Budh Marg opposite the dairy about half century ago had shown the effective impact of limited supply.

Panditji used to prepare only 100 pieces of dahi bada with high quality dough, good curd, sonth (sweet chatani of tamarind pulp) and greens chatani of coriander, etc. He was a good sales manager as he was able to maintain the quality of his single product and desire of eating in consumer by limiting the supply of his product for a short duration of 2-3 hours in evening.

Present Status of Supply of Foods of Animal Origin and Future Scope:

The average availability of milk and milk products in India is only 214 g against the minimum daily requirement of about 250 g. Similarly availability of meat and meat products, eggs, chicken and fishes is much less than the requirement. Numbers of newer products as well as consumers are increasing, and for many products demand is much more than the production, therefore, there is tremendous scope of opting livestock enterprises. Selection aspect of production of a raw material and value-added product will depend on the skill and interest of an entrepreneur.