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AyRojgar
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Mixed experienceA meat-shop owner in Dhaka, in a Prothom Alo report

Beef at 595 taka brought 50 lakh on day one, and 695 ten days later

With the market at 700-750 taka a kg, this shop opened Ramadan selling beef at 595 — more than 50 lakh taka of sales on the first day and 50 cattle slaughtered on one Friday. Ten days in, the price had to go up 100 taka to 695.

This meat seller at North Shahjahanpur in Dhaka opened Ramadan selling beef at 595 taka a kg when the prevailing market rate was 700-750. The low price drew queues: more than 50 lakh taka of sales on the first day, and 50 cattle slaughtered on one Friday. Ten days into Ramadan he raised the price by 100 taka to 695, saying he could not make 595 work against what he was having to pay for cattle at the farms. He said he hoped the border would open so cheaper livestock could come in, and when asked about pressure from other traders he said he was not in a position to say more. The low price bought the volume but not a margin that could hold. What he actually paid per animal, and what the shop earned, the report does not say.

Lessons

  1. 1.Volume bought with a below-market price is rented, not owned: when the input cost moves, the price has to move back
  2. 2.In meat retail the buying price at the farm sets what is possible; no discount gets you past it

Published with the person's permission, without revealing who they are.

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