The poultry industry has criticised Coles' decision to cut the price of its own brand chicken meat, according to ABC.

Andreas Dubbs, the executive director of the Chicken Meat Federation, says the cost of grain is rising and producers will be unable to pass those costs on to consumers.

He says chicken production has become much more efficient and the retail price has fallen in response.

Mr Dubs said: "But it does leave us with an industry which really doesn't have any fat on, no large margins. So therefore, if there's price pressure brought on it of that kind, then it's going to hurt people."

Chicken meat consumption has risen exponentially in Australia. In 1970, 83 million birds were slaughtered. In 2011, it will be about 500 million birds, reports ABC.

Prices over that time have tumbled. In 1970, the retail price was A$9.30 per kilogram; in 2010-11, the retail price is $5 per kilogram.