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Poultry Market in Pakistan Seeing Declining Profits

29 October 2014

PAKISTAN - The Pakistan Poultry Association (PPA) has long been faced with declining profits and recent losses are now forcing farmers to wrap up their businesses.

This was stated by PPA Chairman Mustafa Kamal in a press briefing on Monday, 27 October, reports TheExpressTribute

“The poultry sector is one of the most organised branches of the agro-based sector of Pakistan,” said PPA Chairman Mohammad Mustafa Kamal.

“The sector has been serving the nation since 1962 and provides affordable poultry products to the masses to fulfil their requirement of protein.”

He said in Pakistan, poultry farmers are already selling off their stocks at huge losses due to political instability, load shedding and recent floods.

“We are afraid that if the situation persists, the farmers would soon start shutting their businesses and consumers will have to suffer by paying more,” said Kamal.

The poultry sector contributes 40 per cent to the total meat consumption and generates employment and income for 1.8 million people.

Currently, the cost of production of a broiler is about Rs135 per kg, whereas it is being sold at Rs95-100 per kg. A loss of Rs40-45 is huge and not bearable by the producer, lamented the PPA.

Requesting the government to take urgent notice of the present scenario and support farmers, the chairman said, “The local government must not interfere if the prices of chicken meat or eggs are increased."

He further said that a 25 per cent subsidy on freight should be awarded. Poultry sector should be provided with mark-up free loans to farmers by scheduled banks, so that farmers, who have shut down their business, can resume operations.

“And those who have already availed loans, the recovery should be deferred for them for at least a year.”

The Federal Board of Revenue was approached last year to grant Sales Tax exemption on import of machinery and equipment to be used in the poultry industry. The FBR agreed and clarified that Sales Tax exemption will be provided but could not be availed by the poultry farmers.

ThePoultrySite News Desk

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