Dissecting the Poultry Supply Chain: The Economic Influence of Middlemen on Distribution and Pricing

Abstract

The poultry industry is a cornerstone of the global agricultural sector, contributing substantially to food security and economic growth, especially in developing countries. Despite its importance, the poultry supply chain is fraught with challenges, particularly due to the presence of intermediaries or middlemen who play a pivotal role in the distribution and pricing mechanisms. This research undertakes a thorough examination of the poultry supply chain, with a primary focus on dissecting the economic influence exerted by middlemen on both distribution channels and pricing strategies.

Utilizing a mixed-methods research design, the study integrates quantitative data from industry reports, price indices, and market analyses with qualitative insights obtained through in-depth interviews and surveys with key stakeholders—ranging from poultry farmers to middlemen, distributors, and consumers. The analysis reveals that while middlemen provide indispensable services such as transportation, financing, and market linkages, their involvement often results in significant price escalations, reduced profit margins for producers, and uneven access to markets. These effects are particularly pronounced in rural areas where producers have limited alternatives to middlemen, leading to a dependency that further exacerbates economic disparities.

Moreover, the study identifies critical points in the supply chain where the influence of middlemen is most pronounced, particularly during the distribution phase, where they hold substantial control over market access and pricing. The research also highlights the variation in middlemen’s impact based on regional and market-specific factors, offering a comparative perspective across different contexts.

In conclusion, the paper suggests several policy recommendations aimed at mitigating the adverse economic impacts of middlemen. These include the promotion of direct-to-market initiatives, the establishment of cooperative models among producers, and the implementation of regulatory frameworks to prevent excessive price markups and monopolistic practices. By addressing these issues, the u supply chain can be made more efficient, transparent, and equitable, ultimately benefiting producers, consumers, and the broader economy.