Blame Soymeal for Rise on Cost of Chicken

by 5m Editor
14 December 2007, at 9:45am

INDIA - Chicken prices in India are set to increase due to the rising cost of soymeal, the second key ingredient in poultry feed after maize.

The rising cost of soymeal has affected production margins because 75 per cent of the cost is from the feed alone, according to a report from the USDA Foreign Agricultural Service.

The USDA report says that soymeal prices have risen significantly in the past one year from Rs 10/kg (rupees per kilo) to Rs 18/kg.

Analysts say that chicken prices will be determined by the market trends of soya and could see a surge of Rs 8/kg and may soar even further, depending upon the volatility of soymeal futures in the overseas market.

Figures from the Poultry Federation of India show that the per capita consumption of chicken in the country is about 2.1 kg and is growing by 0.5 per cent every year.

5m Editor