Feed price hike: chick production down 35 percent in three months

With simmering price hike of feed by about Rs 550 per 50-kg bag, some 70 percent poultry farms in parts of NWFP have closed down while chick production across the country has slumped by 35 percent during the last three months.
Poultry production is still declining which began with the onset of bird flu last year. However, shrinking purchasing power of masses and a soaring cost of production are the two major factors worsening the situation, said Khalil Sattar, founding chairman of Pakistan Poultry Association (PPA).
"Poultry farms are closing down in Mansehra and it seems that further closure may occur in days to come. Either farmers will cut production or lay off labour to meet high cost," he said.
He pointed out that during the last one year, the price of poultry feed has skyrocketed by around Rs 550 per 50-kg bag to Rs 1,100. "Increasing oil prices and soaring food inflation globally have spurred the prices of poultry feed as a result cost of production rose to an unbearable level in the face of shrinking demand," he maintained.
Some times, the feed producing companies cut the nutrition in the feed for financial reasons making the poultry farmers acquire additional ingredients to equalise the required level of feed to chick, he said. This is a lean-season, Khalil regretted, saying that there is a ray of hope that industry will regain its level of best production, however, prices will not come down to the previous levels again.
Maroof Siddiqui spokesman of PPA said that average feed price for broiler chick is Rs 1,150 per 50-kg bag and nearly at the same rate feed for layer chick is available in the market, up by around Rs 550 since January last year. There are about 100 domestic companies producing feed in the country, he pointed out and said that entire poultry industry is undergoing regression. "The small farmers are the major victims of the price rise of feed," he said.
Earlier, political turmoil and bird flu reports had pulled down the production and inflicted huge losses of Rs 25 to Rs 30 billion on farmers, while now chicks are sold at markets before eight weeks of age, he added. Feed is short in the market, however, recent arrival of corn grains from India helped fulfil the shortage of feed to a moderate extent, he said.
To a question, he said that people are more concerned to acquire wheat flour and get rid of electricity load shedding which primarily reduce the demand for poultry. Price of a live bird (broiler) rose to Rs 86 per kg from Rs 80 per kg. While chicken meat is available at Rs 154 per kg and eggs are available at Rs 43 per dozen. Local demand of poultry is some Rs 0.4 million in the city alone, he said.