Internship Report on Poultry Industry of Bangladesh

Introduction Part

1.1 Origin of the Study

The report has been prepered for completing internship program to obtain EMBA degree frome JAGANNAT UNIVERSITY. The report is based on poultry industry of Bangladesh. Poultry industry is one of the emerging agricultural sectors in Bangladesh. And it is a study on marketing of poultry product of Nourish. Here it is tried to retrieve the production, marketing, and managing procedure of poultry firms in Bangladesh.                                                           
                                 

1.2 Objectives of the Report

The report’s broad objective is to provide sufficient information about the poultry industry in Bangladesh to develop the recent portrait about this emerging sector. For this reason it is attempted to find out some specific objectives which are mentioned:

To provide information about the history of the industry

To provide the current market situation

To develop a better marketing strategy for the companies

Product marketing Strategies of Nourish.

Providing information about the competitors

To provide information about export & import of poultry

To overcome the subsequent business obstacles

To provide information about research & development.

1.3 Scope of the study

In the title of the report it is mentioned that the report name is “Poultry Industry of Bangladesh”. But this report product mainly poultry feed and chicken related proceedings. And it is assumed that chickens are the main poultry product. It is observed that the ducks are used for eggs production mainly. And different types of birds are grown-up in domestic ownership. So it can expect that emphasis on chickens covers the most of the part of poultry industry of Bangladesh.

1.4 Limitations

To collect information on this topic faced some restrictions. For the lack of time it could not collect information properly. The provided time is about three months for preparing this report. It has experienced time limitations because, three months are not enough time for collecting all the information from the most farms that are scattered all over the country. And the information available on the website and in the other sources was not reliable. The competitor companies mostly provide insufficient information or refuse to provide any information. There is little information about the local companies in the website. To prepare this report I had depend on the company database. For preparing our report, clear; specific and accurate information is required but we can’t get sufficient cooperation from the authority to our expected level particularly from the hatchery owner.

1.5 Methodology

This study is an exploratory one. For the research purpose, a survey was conducted on a small sample of the owners and marketers of the poultry industry as well as consumers. Traders are selected purposively. Data have been presented in descriptive, tabulators, graphics for better and easy analysis simple average and percentage techniques are used to analyze the findings in view of their simplicity and easiness to understand. Report was conducted on the basis of secondary information and the market research done by third parties and the market visit. Information was collected from company database, relevant papers and documents provided by the Marketing and other divisions, publications of different organizations, daily newspaper provided by market research department, internet, and company websites. The following steps are taken to develop the research paper-

(i)  Identifying the required data category and relevant sources

(ii) Collecting the secondary data from the respective sources

(iii) Compiling the data and analyzing them by using necessary tools

(iv) Making recommendations and conclusions

1.6 Research design

Type of the research

The research is an exploratory research.

Data Type:

Both the primary and secondary data of Nourish were collected for the research.

Sources of Primary Data:

Nourish: The sources of primary data of the managers and other employees of different departments of Nourish. Observation and working with the clients’ database were other sources of collecting the primary data.

Sources of Secondary Data:

Nourish.: The secondary data were collected from the annual financial reports of the company. Also from the brochures, and Internet web site of Nourish.

Poultry Industry Analysis Part

2.1 Poultry Industry & Blend of Marketing Variables

The production of poultry, like any other production, cannot make any sense, until and unless they are made available to the target customers in the right time, at the right place, with the right price. Here comes the matter of marketing which makes all these possible. Among all other aspects of marketing, this present study concentrates on the distribution of poultry products in DhakaCity with particular importance on the marketing cost and profit of the channel members. The term “poultry” implies a wide variety of birds and species, but here, for the study purpose, its limit the term “poultry” to mean commercially- produced broilers and farm-produced eggs.

2.2 Poultry Production

S.No	Input & Output Name	Unit	Minimum Price	Maximum Price
01	Commercial broiler Chicks	Pcs	14 TK	32 TK
02	Commercial layer Chicks	pcs	18	32
03	Corn ( Standard )	Kg	18.2	20
04	Soybean Mil ( Standard )	Kg	36	38.5
05	White Egg ( Whole Sale )	pcs	4	4.4
06	Brown Egg (Whole sale )	pcs	5.20	5.4
07	White Egg ( Retail )	4 Pcs	18	26
08	Brown Egg ( Retail )	4 Pcs	20	28
09	Live Chicken ( Whole Sale )	Pcs	85	95
10	Live Chicken ( Retail )	Pcs	100	130

Table-1

2.3 Price of Eggs and Chicks

As the eggs and chickens are very much essential in our daily life, the price of these products is determined according to the market demand. The people of the country have enough purchasing power to buy chickens and eggs for their families.

Price of Chicken (Broiler):

Markets of Dhaka	Price/ kg
Karwan Bazar	120 tk
Jatrabari Bazar	122 tk
Badda Bazar	128 tk
Malibag Bazar	125 tk

Table-2

Average Retail Price of Chicken/ kg = (120+122+128+125)/ 4 = 124 tk

After analysis the chart we can see the retail price of chicken is higher in the Badda bazaar and lower in Karwan bazaar . Jatrabari bazaar and mailbag bazaar in mid level are retail chicken price .

Price of Eggs:

Markets of Dhaka	Price/ 100 Pieces
Karwan Bazar	580 tk
Jatrabari Bazar	600 tk
Badda Bazar	585 tk
Malibag Bazar	590 tk

Table-3

Average Retail Price of Eggs/ 100 Pieces = (580+600+585+590)/ 4

                                                                   = 588 tk

After analysis the chart we can see the retail price of egg is higher in the Jatrabari bazaar and lower in Karwan bazaar . Badda bazaar and mailbag bazaar in mid level are retail egg price .

2.4 All type feed production information of some leading feed mills .

Sl	Feed Production Company	Capacity	Broiler (MT)	Layer (MT)	Fish (MT)	Cattle (MT)	Total Production (MT)
01	Nourish Feed	102 MT/hour	32000	9000	9000	2500	52500
02	ACI-Godrej	40 MT/hour	6000	3700	6000	2000	17700
03	Aftab Feed	80 MT/hour	10000	5000	5000	-	20000
04	AG Agro	48 MT/hour	8500	2500	5000	-	16000
05	Aman Feed	40 MT/hour	8000	3500	4000	1500	17000
06	Bengal Feed	30 MT/hour	1500	1000	1600	-	4100
07	CP Bangladesh	80 MT/hour	12000	6000	6000	-	24000
08	City Feed	60 MT/hour	1000	500	1000	8000	10500
09	Kazi Feed	80 MT/hour	8000	4000	2000	-	14000
10	New Hope BD	40 MT/hour	5000	2000	3000	-	10000
11	Paragon Feed	80 MT/hour	6800	6000	2700	500	16000
12	Quality Feed	80 MT/hour	3700	1480	20000	1500	26680

Table-4

Information update on 30 September 2017

Feed production capacity MT/hour

Bangladesh feed production the higher feed production the nourish feed production. Which have the capacity of production 102 MT/ hour.

Feed production ( Broiler, Layer, Fish, Cattle ) MT

Most of the reed production of Bangladesh are broiler and layer feed production . Where broiler is 32000 MT and layer 9000 MT feed production monthly . Quality feed production the most fish feed , Whos production capacity 20000 MT monthly and Cattle feed production more in city feed. Whose production capacity is 8000 MT monthly .

Nourish feed maximum feed production in Bangladesh , Nourish feed total monthly production 52500 MT/hour . Nearest company production name Cp Bangladesh, kazi feed, Bengal feed etc .

2.5 Commercial DOC production information of some leading breeding farm

Sl	DOC  Production Company	Production Capacity Per Week	Total Production -DOC	Broiler-DOC	Layer-DOC
01	Nourish Poultry	1200000	840000	720000	120000
02	Index Agro	320000	207000	180000	27000
03	Aftab Farm	1200000	680000	620000	60000
04	AG Agro	300000	120000	120000	0
05	Aman	1000000	240000	180000	60000
06	Paragon Group	1200000	720000	600000	120000
07	CP Bangladesh	1000000	630000	540000	90000
08	Provita Hatcheries	680000	380000	320000	60000
09	Kazi	1200000	1620000	1500000	120000
10	Nahar Agro	150000	990000	720000	270000

Table-5

Information update on 30 September 2017

Commercial DOC production information chart

2.6 Contribution of GDP

The paper examines distribution, availability, output growth and planning performance of the livestock sector in Bangladesh over the past sixty years. The livestock resources are relatively well distributed. Although availability per hectare increased for all types of livestock, a count of 1.55 bovine per hectare is seriously inadequate to support draught power requirements. Despite remarkable livestock product growth of 5.4% (dominated by poultry sector) and a stable Gross Domestic Production (GDP) contribution of 2.1–3.6%, budget allocations remained <1% of total outlay in subsequent plan periods. A host of interrelated factors such as technical, institutional, and social, are affecting the development of the livestock sector. A comprehensive policy for the livestock sector was launched only in 2015 whose effective implementation and success remains to be seen. Government should encourage private investment in livestock sector but quality assurance of day old chicks, drugs, vaccines, feeds, and breeding materials through legal and regulatory framework is necessary for sustainable development of the livestock sector.

2.7 Favorable environment for foreign investment:

In Bangladesh, the government has created favorable environment for foreign investors in poultry sector. Presently, there are few foreign companies like CP, New Hope, Sokuna, Godrej etc. are working in Bangladesh. Now it is a scope for other foreign investors to invest poultry production in Bangladesh.

2.8 Export opportunity

Bangladesh started export of day old chicks and feed to other countries during 2002-2007 and it is temporarily stopped due to AI. However if we control the AI, we will be in position to export not only the chicks and feed but also poultry meat.

2.9 Supportive government policy

Government has also liberalized its policies to encourage the growth of commercial poultry sector in Bangladesh by introducing tax holiday, subsidy in electricity and also incentives for export.

Company Profile

3.1 Industry Profile

Poultry is considered as an important source of animal protein all over the world. In Bangladesh, poultry contributes a major share of animal protein simply because of the limitations and religious taboos in case of pork and beef. Bangladesh is a country the people of which consume the lowest percentage of protein than the minimum requirements because of inadequate supply of protein-generating food products. Poultry meat and egg can effectively fulfill the shortage of protein requirement, since it can be produced at the least cost, lowest time and efforts than the other protein producing animals.

3.2 Importance of Poultry Production in Bangladesh

Poultry industry adds more values than any other industries. In our daily life we need to take meat for getting animal protein. So the poultry producers produce a big quantity of eggs and meat which play a great role to the national economy. Poultry contributes a large part of our GDP. Government declared poultry as a thrust sector & classified as agro based industry. Both feed , eggs and chicken meat have huge domestic demand. And poultry is the sector for obvious profit. Government liberalized its policies by introducing easier loan procedure, lower interest rate, tax holiday etc. Free training with payment is provided to the interested from mass people to encourage the willingness. Some small amount loan is given among the people to grow the poultry production. Egg production has been increased during last 10 years; Poultry meat production has been doubled. It contributes- poverty reduction, new employment generation, and nutritional status. There are many people shifted from serial to non-crop about 5 million people.

3.3 Present Management System & Credit Facilities

Most of the farmers are technically unsound. And small farmers are not aware about quality of chicks, quality of feed, disease prevention and control techniques, bio-security of farms, etc. Credit facilities are available from bank, some reputed NGOs s well as the feed sellers. Most of the farmer markets their products with their feed sellers and the whole sellers. The distributors play a vital role in the supply of capital to the farmers as credit facilities. Most of the farmers arrange capital to prepare the farm and purchase day old chicks. But they depend on the distributors for feed. The distributors provide credit facilities to purchase feed for the day old chicks.    

3.4 Business Growth

NOURISH ranks the first position in producing Broiler Feed and third position in Layer Feed in the country. By 2015, the Group expects to produce 40 Thousand tons of feeds per month to establish its leadership in the market. Top management of NOURISH expects four Thousand tons of Aqua Feed production per month in year 2013.
In the right side, monthly broiler, layer and fish feed production chart of Nourish shows consistent growth pattern from its commencement.

Top management of Nourish expects to produce 1.25 Million DOC Nourish week, 32 thousand Parent Stocks per week and 2 Million Broiler Chicken per month by the end of year 2015.

From the inception of Nourish, DOC Nourish production per week and broiler feed production chart also shows consistent growth pattern which can be easily visible from the right side of the chart.

3.5 Present Status of Poultry Enterprise

In Bangladesh and a gradual improvement and increasing the number of poultry farm have been observed from 1980s. It is very much dreadful if the commercial poultry farm is not created. There hatcheries in the country are increasing their production day by day, so there should be a less crisis for day old chicks for farmers. Government has taken many initiatives to take care for the industry.

Numbers of farms have been established in 1990 with bank support.

There are 130 hatcheries of which 109 are in operation.

Only 18 breeding farms are fully environment controlled.

85% hatchery produces only broiler and rest produce layer.

Most of the Companies now have both hatchery and feed mill.

3.6 Poultry farm & Poverty Alleviation in Bangladesh

Bangladesh has developed a model in which poultry is used as a tool of poverty reduction, fostering the idea of community group formation and skill development training regarding improved poultry husbandry practices rolled with micro-credit, for the rural poor especially the women to improve their livelihood, income generation and empowerment. The model comprises a set of mutually supported activities as a framework concept with the aim of poverty reduction, continual improvement and dissemination of husbandry knowledge and modalities. A group of entrepreneurs (enterprises) are established in the model as an integrated chain of production. But rigorous modality and ambitious assumptions leads to uncertain ability, in spite of its long term practice in the country. Lesson learnt over the period of time during the course of implementation of the model in different projects pinpoints the need of adoption of a simplified version.

3.7 State of the Poultry Farms in Bangladesh

Poultry Industry has become a destination for livelihood of 5.2 million people and its size may increase by five-fold. There are about 112,000 farms, 136 hatcheries and breeder farms, 32 automatic mechanized feed mills, 45 small and medium feed mills and more than 100 medicine companies in operation in Bangladesh. Having started in 1969 commercially, poultry farms have grown many folds over the past years. At the beginning mortality rate of chickens was more than 60 per cent as import of vaccine was not allowed.  The growth has been fastest since 1990s though this industry was absolutely commercialized in 1980s. Now 100 per cent domestic demand of poultry is met by this industry. Poultry industry was declared an agro-based industry in 1994 and tax on land used for production was reduced to the rate enjoyed by agro-based industries. To boost this industry the government banned the import of one day chicks for commercial purpose and hatching eggs and eggs for eating from India. Poultry farms were exempted from income tax until the year. Letter of credit (L/C) margin was reduced and made flexible for this industry along with 20 per cent rebate on electricity but the government’s initiative to prepare poultry policy was still under process which needed to be finalized immediately.

3.8 Company History

Nourish is an agro-based company belongs to Nourish Poultry Group, subsidiary of  Khaled Group of Companies, engage in producing poultry products like Day Old Chicks (DOC), broiler, layer and fish feed etc. Since its inception in 1999, Nourish Poultry and Hatchery Ltd has ensured customer satisfaction by providing high quality DOC.High demand for the quality poultry feed has encouraged Nourish to step further into the poultry feed operations in 2001. Nourish feed has made a tremendous impact on poultry farmers since its inception. Its high and consistent FCR has influenced a wide segment of rural people to take part in the poultry businesses.Now Nourish appears as a brand name to its customers by steady and consistent market growth and for its premium quality. Other group associates like Nourish Feeds Ltd, producing poultry and aqua feeds; Nourish Agro Ltd primarily a Breeder DOC and Breeder feed manufacturing unit with integration farms, Research and Development unit as well as large scale commercial broiler farming; Nourish Grand Parents Ltd. a parent stock producer of world famous Cobb-500 were established in the year 2001, 2007 and 2011 with the aforementioned sequences.

3.8.1 History of Nourish

The power of mitigating the socio economic stress coupled with high growth potentiality of poultry & fishery sector encouraged Nourish Management to open a diversified business challenge in this new avenue.

In 1999, the founders of Khaled Group of Companies have introduced Nourish Poultry and Hatchery Ltd. with a dream for a society free from undernourished & underprivileged people. The major products of Nourish Poultry and Hatchery Ltd were Day Old Chicks (DOC) and poultry feeds. The initial motto of Nourish was "We Breed, We Feed, We Nourish",which was focusing on the nourishment of individuals, households & the society.

·         To attain that, Nourish has incorporated a comprehensive plan, which was designed

·         To eliminate the malnutrition problem of the country through enhanced productivity & accessibility of assured quality animal protein source

·         To create vast employment facilities for the underprivileged people with minimum or no academic background

·         To ensure sustainable poultry & fishery rearing systems with minimal environmental hazards & highest safety standards

To contribute the nation in achieving to a new preference in food habit that exists globally

3.8.2 To implement that plan Nourish has

Utilized resources to provide quality chicks, feeds, and technical services at the grass-root level.

Initiated an innovative approach backed by technology, social values and mutual respects that has revolutionized this industry transforming underprivileged rural people into human capital.

Adopted technologies less harmful to the environment and strives to improve the attitude of its farmers towards a better execution of bio- security.

Since its inception in 1999, Nourish Poultry and Hatchery Ltd has ensured customer satisfaction by providing high quality DOC. High demand for the quality poultry feed has encouraged Nourish to step further into the poultry feed operations in 2001. Nourish feed has made a tremendous impact on poultry farmers since its inception. Its high and consistent FCR has influenced a wide segment of rural people to take part in the poultry businesses. Now Nourish appears as a brand name to its customers by steady and consistent market growth and for its premium quality.

Other group associates like Nourish Feeds Ltd, producing poultry and aqua feeds; Nourish Agro Ltd primarily a Breeder DOC and Breeder feed manufacturing unit with integration farms, Research and Development unit as well as large scale commercial farming; Nourish Grand Parents Ltd. a parent stock producer of world famous Cobb-500 were established in the year 2001, 2007 and 2011 with the aforementioned sequences. Currently two new companies, Nourish Fisheries Ltd. & Nourish Foods Ltd. have been introduced to provide quality tilapia fry and pre-cooked & cooked poultry products respectively in order to attain utmost customer satisfaction.

Nourish Grand Parents Limited has started its production in June 2011 as a distributor Cobb- 500 PS in Bangladesh. Since its commencement, Nourish GP has focused on ensuring the reputation of Cobb-500 broilers as the world's most efficient bird with the lowest feed conversion ratio.

Focusing on the best management practice, Nourish utilized a significant amount of its resources in order to introduce best working environment for the staffs & outstanding facilities for its birds. Today, Nourish has succeeded to establish one of the strongest brand equity through prolonged customer satisfaction by focusing on the following success parameters:

3.8.3 Best & consistent FCR

Lowest cost of live weight produced

Excellent growth rate

Best broiler uniformity

Competitive breeders

Sincere field staffs

Hazard free distribution system

3.8.4 Corporate Culture       

How the company work sets it apart from its competitors. Adhering to six guiding principles, its working environment constantly involves:

Professionalism

Product innovation

Customer satisfaction

Versatility and adaptability

Quality products at lowest prices

Dedication and loyalty of the workforce

3.9 Nourish business  activities :

3.9.1 Broiler, Layer & Fish Feed

Nourish Feed has made a tremendous impact on poultry farmers since its inception.  Its high & consistent FCR has influenced a wide segment of rural people to take part in the poultry businesses. Now NOURISH appears as a brand name to its customers by a steady and consistent market growth and for its premium quality. NOURISH identifies the best starting material to be handled by the most competent professionals with the most suitable and efficient device in proper scientific method to produce all products in its premise.

The Group made a huge investment for a technologically advanced & automated machinery to enhance productivity & consistent quality. It uses the additives & micro ingredients of the highest quality, primarily from organic sources from world renowned brands to ensure faster digestion & complete absorption to attain the maximum animal performance and an increased food safety. This technique is an indirect safeguard to feed wastage & environmental hazards.

3.9.2 Broiler & Layer Day Old Chicks

From the beginning, Nourish worked on those breeds which suits most effectively to our environment. Our primary breed is Cobb-500 which is renowned as the world's best broiler breed. Most importantly, 

we always try to offer our farmers the best possible product like DOC that copes most suitably to our environment and farmers competency. Almost all of our breeder sheds are Environmentally Controlled (EC) & incubators are designed & built to maximize hatchery performances, both technically and economically.

3.9.3 Grand Parent Stocks

Since its commencement, Nourish GP has focused on ensuring the reputation of Cobb-500 broilers as the world's most efficient bird with the lowest feed conversion. Among all poultry operations, GP farming is the most complicated and sophisticated techniques that require the highest degree of bio- security and optimum managerial efficiency.

According to its prerequisite, the farm is located in an isolated and remote place. Sheds as well as workers place provided with modern bio-security facilities.

3.9.4 Commercial Broilers

There is large commercial broiler farm established in 2004 at Ujilabo, Sreepur of Gazipur district. Total shed capacity is 55000. Total 18 sheds are there, of which 8 large sheds are used for commercial broiler production and other 10 sheds are separated as

Research and Development Unit. Recently, NPHL started small-scale commercial broiler integration at different regions of Gazipur, Mymensingh and Tangail district as pilot projects. The initial replacement is 100000 per month. Extensive work is going on to develop sustainable integration model for the farmers.

3.9.5 Food Items

To make the brand familiar up to the retail end, Nourish is gradually concentrating on the consumer items like edible eggs & precooked poultry products. The idea is to incorporate a strategic forward integration into retail and food through value added products that reach the consumer’s table with the added convenience of easy preparation and less cooking time. Poultry processing operations of Nourish continue to be an important means of supporting rural farmers in their production, which in near future will come directly from farmers. In response to the fluctuations in the market, Nourish believes that, these processed products have the potential to create a greater control over the selling price of products.

Currently, Nourish working on the shelf-life of chilled, precooked and processed chicken products stored in room temperature and under modified atmosphere in order to find out the microbiological, chemical and sensory attributes.

3.10 Product of Nourish

Feed

Poultry feed

Broiler feed

Layer feed

Breeder feed

Pellet and Mash feed

Fish feed

D.O.C (Day old chicks)

Broiler chicks

Layer chicks

Cooked food

Chicken fry

Fresh egg.

3.11 SWOT Analysis  Nourish

This farm is one of the biggest farms of Bangladesh. They want to maintain a good quality product and to be in a competitive position in the industry. They always try to offer a competitive good quality product in comparison with the market leaders. As well as maintains the competitive quality breed and technology with response to its market leaders. DOC Broiler, DOC Layer, Feed mill for self-consumption and sales. DOC Broiler, DOC Layer, Feed mill for self-consumption and sales. Nourish started its business with a hatchery and soon they establish the feed mill. Due to their good will for chicks quality, they capture a good share of feed market very fast. Nourish is one of the fasted growing company in the poultry sector. But its growth is now stalled in position due new investment and less effort in the marketing.

Strength: Good brand image Good quality. Minimum fluctuation of rate Good demand for distributorship Big capacity feed mill Parent stock Sufficient number of employees. Good quality breed	Weakness: Production is poor Maintaining chicks quality Less number of distributors Lack good marketing Less number of chicks
Opportunity: To sell more chicks. To increase feed market share. Go for egg marketing. Feed for large animal Fish feed	Threat: Bird flu Entrance of multinational companies in the poultry industry Strong competition from local companies.

Inventory Management Part

4.1 Inventory Management of Nourish

An inventory system provides the organizational structure and the operating policies for maintaining and controlling goods to be stocked. The system is responsible for ordering and receipt of goods: timing the order placement and keeping track of what has been ordered, how much, and from whom.

4.1.1 Inventory management system has two main concerns

1. One relates to the level of customer service, and at the right goods, in sufficient quantities, in the        right place, and at the right time.

2. The other relates to the cost of ordering and carrying inventories.

As a hundred percent manufacturing company,  Nourish poultry & Hatchery Ltd  places a great

importance in valuation and management of inventories.

Inventory is the stock of any item or resource used in an organization. An inventory system is

the set of policies and control that monitors levels of inventory and determines what levels

should be maintained, when stock should be replenished, and how large orders should be.

As such, there is a broad and deep volume of literature in the management of this asset in

various situations the interaction of this asset with other asset and similar issue. A complete

and comprehensive discussion of the issues in inventory management is beyond the scope of

this report. I limit my coverage to only the most basic inventory.

4.2 Process of inventory management in Nourish

"Common Procurement Processes"ensures that all Nourish companies adopt the best practices in procurement and all procurement goes through a standard, rigorous process. For example, one of the procurement processes is the Profile and Select Vendor process. A regular review / analysis of the ability and reliability of a vendor are critical and must not simply be done forthe initial vendor selection process.

Strategic and tactical sourcing" for all spends is another key factor as this puts the focus on analyzing and identifying our internal requirements, studying supply market characteristics, matching their needs with that of suppliers in order to achieve the best results in terms of availability, reliability, quality and price. Strategic/tactical sourcing is a role, not a job title!

"Empowerment of employees" in their purchasing functions/roles can only be ensured in an environment/organization where appropriate guidelines and rules exist. For example, employees can buy pre-agreed items within the guidelines without the need for approval. This is a much speedier and efficient process and also enhances the morale of the employees.

Last but not least, using "Better information to achieve lowest total cost" available through our daily operations will allow us to take better sourcing decisions and give us a competitive edge. The Group's Purchasing Intranet is one of the buyer's critical day-to-day tools.

4.3  Five Process follow for materials in Nourish

4.4.1 Determination of requirement

Our purchase department has its own software . It has set up minimum to maximum quantity of every product . When the product moves closer to the minimum quantity then the red signal shows near the product . By doing this we realize that the product has come to the minimum. Then we make a purchase requisition and factory in charge approve that the purchase requisition is confirmed  an input that on our software . In this way all the product requisition is given .

Example : Our software shows the flour minimum quantity is 500 kg and maximum quantity 2500 kg. Here we can see the stock in hand only 92 kg flour. Now we will make its purchase requisition .

4.4.2 Source determination

Sources of Raw and Packing Materials are classified into two categories:-

·         Local Purchase

·         Import Purchase

When any specific material need for production then purchase department purchase the material from locally.

For local purchase

When we get 840 kg flour requisition that we search for vendor. Then we collected a price quotation from some  vendor . Such as City group , Bashundhara Group , Meghna group , ACI Group, Ifad Group, etc.  We see the product quality good and price is minimum we select that vendor . Some time we collect the product sample and send it to the our own lab to check the quality.

In local purchase few condition are considered such as-

Ø  Quality of the Material

Ø  Rate of the Material

Ø  Lead time

Ø  Previous record of the supplier and etc.

4.4.3 Order processing

The procedure begins with need recognition. The respective department identifies its need, gets approval of the departmental head and with the approval an authorized person sends purchase requisition to purchase department to initiate purchase. In case of property, plant and equipment acquisition, before sending purchase requisition .a budget has to be prepared by the user department. If the departmental head or higher authorities, whichever is required ,approve the proposed budget a purchase  requisition is sent to purchase department, and incase of raw or packing materials, the planning department determines the quantity and timing of raw materials. This department informs the purchase department when to buy materials.

When purchase department got the requisition, it calls for quotation or tender. After receiving the quotation or tender, supplier has been selected. The supplier may be local or international. If the terms and conditions are in favour of both Nourish and the selected supplier, an order for the purchase is than issued by the purchase department. In case of raw or packing material, the purchase order is issued by the factory. A purchase register is maintained by the purchase department in which they maintain all the information relating to a consignment.

We have some term and condition for each vendor. Such As :

Ø  Supplier shall completed delivery as specified in PO within 3 calendar days from the date of PO.

Ø  Payment shall me made based on after successful delivery on site as well as submission of correct invoice

Ø  Mode of payment will be A/C payee cheque only.

Ø  Supplier must mentioned PO Reference No in Bill copy/Invoice copy and Challan copy

Ø  Supplier will provide warranty/after sales service of above mentioned purchased items from the date of delivery as per approved Final Commercial offer.

Ø  Prices are in local currency of BDT which is inclusive of VAT and AIT.

Ø  Nourish reserves the right to cancel this Purchase Order in any case where supplier fail to perform your obligations under this Purchase Order..

4.4.4 Receipt of materials or service

Generally the goods and services are received by the user department who has issued the purchase requisition or in some cases by the authorized department. Materials are received by Quality Assurance Department (QAD) in the factory. After receiving materials, goods and services an MRR is issued for materials and other than material a GRN is issued by receiving department to purchase department. In the meantime the invoice or bill is received by the purchase department.

Before using the products by user department that is at the time of delivery, it has been inspected by the inspection or QAD, by user department or by authorized department.  QAD examined the materials on a sample testing basis and provide a certificate. Generally-

QAD inspects standardized items like raw material, packing material etc.

User department inspects non standardized items like services, stationeries etc.

Inspection department inspects machineries, plants etc.

Again at NOURISH there are some authorized departments for inspection. For example, computer or IT related products are inspected by IT department, furniture are by HR department. If the received goods, materials and services are not according to purchase requisition NOURISH may-

Ø  Refuse the order

Ø  Recorder the item

Ø  Received on condition

Factory sends MRR (Material Receiving Report)

After receiving material factory send MRR to accounts department for reconciliation. In this MRR amount of quantity, receiving date, amount to use quality testing are mention. Respective department entry this MRR in excel sheet for reconciliation.

4.4.5 Invoice Verification

Supplier Bill Submit:

In this mean time of sending MRR supplier submit their bills in to purchase department. They approve the figure and send this bill to accounts department. Then accounts department check the approve amount, rate from purchase order, amount from MRR. If any discrepancy identify at this stage then it's reported to purchase department.

Voucher Entry:

After checking purchase order and MRR, respective person entry this information in to journal vouchers. Where supplier name, description of product, approve amount are mentioned. Every journal voucher stapling with photocopy of bill and original bill. Then these journal vouchers approve with proper authority and main bill send for payment.

Necessary Documents for Payment of Bill:

There have some necessary documents that is mandatory for payments and its supply correctly by supplier:

a. Original Bill

b. Photocopy of bill (Copy not negotiable)

c. Vat Challan

4.5 FIFO

This is the price paid for the material first taken into stock from which the material to be priced could have been drawn. Under this method stocks of materials may not be used up in chronological order but for pricing purpose it is assumed that items longest in stocks are used up first. The method is most suitable for use where in material is slow - moving and comparatively high unit cost.

Advantages:

·         Price is based on actual cost and not on basis of approximations such as no profits or losses arises by reasons of adopting this method

·         The resulting stock balance generally represents fair commercial valuation of stock

·         It is based on traditional principles

Recommendation & Conclusion Part

Recommendation

Nourish inventory management software is our own software.  It is very easy to work through it. But sometimes there is problem in working. We have insufficiency of admin .We need to solve the problem by haired some admin. So that if there is any problem we can solve the problem immediately.. Our every project is out of Dhaka..  when they work through it they face problems and unable to solve the problem. So we have to build up this department more strong and self contained  for their betterment..

Poultry industry is rising but not a satisfactory way. There are many problems exist in the industry. We have to solve all of the problems to raise the sector which contributes a lot to our GDP. In this study, it is tried to find out the problems face farmers and give the possible suggestion of the problems. The unethical alliance of dealers, distributors and hatchery owners make the poultry farmer affected by the profit. The alliance makes the high initial cost of production. And about 15% to 20 % reduced price is provided for the farmer. Despite having tremendous potentials, country’s poultry industry has hardly flourished yet as a lucrative sector due to lack of institutional loan facility under easy conditions. Due to collateral provision for getting institutional loans the growth of the sector is thwarted. amount of loan is insufficient and interest rate in high.

Conclusion

Nourish Poultry& Hatchery Limited is an agro-based company belongs to Nourish Group, subsidiary of  Khaled Group of Companies, engage in producing poultry products like Day Old Chicks (DOC), broiler, layer and fish feed etc.

We have a self-contained software. Through which we control our inventory management.  In this we do all the work such as purchase requisition,  Purchase order goods received bill entry etc. All of our reports are automatically generated .we don't  have to reports manually.

Nourish has started its business with a very limited resource but with lots of experience. By 2018 it has establish larges feed mills in Bangladesh at Bogura this feed mills production capacity per day 10,000 MT. It has the vision to be the leader of agro-business of Bangladesh. If the bird flu may have not attacked it would invest a lot more in the industry. But Nourish still believes that there is a great opportunity in the poultry in Bangladesh as there is demand for poultry product and Bangladesh’s economy is growing confidently.