High feed prices take a toll on poultry sector
Arafat Ara | Friday, 25 February 2011
Arafat Ara
High feed prices have put the local poultry farm owners in dire straits, as they have to sell birds and eggs at prices 'considerably lower' than the cost of production, the sector insiders said. "The owners of poultry farms have been incurring sizeable losses due to the increase in poultry feed prices at domestic level since October last," central joint general secretary of Bangladesh Poultry Khamar Rakkha Jatiya Parishad Masum Khan told the FE. Currently, the country's poultry industry is now dependent on internal source for about 60 per cent of the total feed requirement, he said, adding that the prices of different poultry feeds have increased by about Tk 10 per kg. The prices of poultry birds and eggs have come down considerably in recent months despite the increase in feed prices. As a result, the poultry firm operators have been incurring losses to the tune of about Tk 20 per kg against the sale of poultry birds, the sector insiders said. "We could buy feed at Tk 20 per kg, but now we have to pay Tk 30 per kg," said Hasan Ali, a poultry farm owner. He said instead of making profit they are incurring losses. The production cost of an egg is above Tk five, but they cannot sell it more than Tk 4.40. Besides, production cost of chicken is Tk 120 per kg, and they are selling it at Tk 100 to Tk 110 per kg. "Nearly 40 per cent of the feeds are being imported. We have to spend a large amount of money for using those foreign feeds," said the secretary of Bangladesh Poultry Khamar Rakkha Jatiya Parishad. He said the main ingredient of poultry feed is maize, but the crop produced locally is not enough to meet the sector's demand. Around 1.8 to 2.0 million (18 to 20 lakh) tonnes of maize are being used as poultry feed per year, but only around 1.2 million (12 lakh) tonnes of maize are produced locally. "If the government takes measures to produce more maize to fulfil the sector's demand, the feed prices would be lower," added Mr. Khan. According to the Department of Agricultural Extension (DAE) the production target of maize is around 1.6 million tonnes in 2010-2011 fiscal year, where it was 1.37 million tonnes in 2009-10. "Presently the demand of maize is increasing due to rising number of poultry farms across the country. But we cannot produce it according to the poultry sector's requirement," said a senior official of DAE. "About five to six million people are engaged in this sector. But the government has no proper policy for the sector. Neither we get credit from the government nor we can purchase poultry feed at reasonable prices," said association leaders. They also claimed that the government had not yet taken proper initiatives to prevent the sector from bird-flu. Recently the chickens are getting infected by bird-flu in different parts of the country. But the government has not taken initiatives to produce or procure vaccines against the disease. The leaders said the local poultry producers are in a vulnerable position, as they have to fight to cope with high prices of feeds and outbreak of bird-flu. "The poultry farmers, who were hit hard by the epidemic in 2007-08, are now being forced to shut down their business," they added.
High feed prices have put the local poultry farm owners in dire straits, as they have to sell birds and eggs at prices 'considerably lower' than the cost of production, the sector insiders said. "The owners of poultry farms have been incurring sizeable losses due to the increase in poultry feed prices at domestic level since October last," central joint general secretary of Bangladesh Poultry Khamar Rakkha Jatiya Parishad Masum Khan told the FE. Currently, the country's poultry industry is now dependent on internal source for about 60 per cent of the total feed requirement, he said, adding that the prices of different poultry feeds have increased by about Tk 10 per kg. The prices of poultry birds and eggs have come down considerably in recent months despite the increase in feed prices. As a result, the poultry firm operators have been incurring losses to the tune of about Tk 20 per kg against the sale of poultry birds, the sector insiders said. "We could buy feed at Tk 20 per kg, but now we have to pay Tk 30 per kg," said Hasan Ali, a poultry farm owner. He said instead of making profit they are incurring losses. The production cost of an egg is above Tk five, but they cannot sell it more than Tk 4.40. Besides, production cost of chicken is Tk 120 per kg, and they are selling it at Tk 100 to Tk 110 per kg. "Nearly 40 per cent of the feeds are being imported. We have to spend a large amount of money for using those foreign feeds," said the secretary of Bangladesh Poultry Khamar Rakkha Jatiya Parishad. He said the main ingredient of poultry feed is maize, but the crop produced locally is not enough to meet the sector's demand. Around 1.8 to 2.0 million (18 to 20 lakh) tonnes of maize are being used as poultry feed per year, but only around 1.2 million (12 lakh) tonnes of maize are produced locally. "If the government takes measures to produce more maize to fulfil the sector's demand, the feed prices would be lower," added Mr. Khan. According to the Department of Agricultural Extension (DAE) the production target of maize is around 1.6 million tonnes in 2010-2011 fiscal year, where it was 1.37 million tonnes in 2009-10. "Presently the demand of maize is increasing due to rising number of poultry farms across the country. But we cannot produce it according to the poultry sector's requirement," said a senior official of DAE. "About five to six million people are engaged in this sector. But the government has no proper policy for the sector. Neither we get credit from the government nor we can purchase poultry feed at reasonable prices," said association leaders. They also claimed that the government had not yet taken proper initiatives to prevent the sector from bird-flu. Recently the chickens are getting infected by bird-flu in different parts of the country. But the government has not taken initiatives to produce or procure vaccines against the disease. The leaders said the local poultry producers are in a vulnerable position, as they have to fight to cope with high prices of feeds and outbreak of bird-flu. "The poultry farmers, who were hit hard by the epidemic in 2007-08, are now being forced to shut down their business," they added.