Poultry Farmers Face Losses

INDIA - Poultry farmers are facing losses in the coming months as the result of the increase in production costs and a drop in demand.
calendar icon 13 June 2011
clock icon 3 minute read

Poultry farmers are unhappy this summer as the rise in input costs and lower consumption during the season have made it hard for them to even recover the cost of production, amid a drop in retail prices in the last few weeks.

The cost of production of a bird has increased by around five to six rupees (INR) during the last few weeks, Ricky Thaper, Treasurer for Poultry Federation of India (PFI) told Press Trust of India.

The average cost of producing a bird is curently INR60. It ranged in between INR50 and INR52 a bird a month back, traders said.

This has been pinching more to the poultry farmers because of slump in the prices.

Wholesale live weight broiler prices in Delhi and adjoining areas have decreased to INR56 to INR60 per kilo from INR65 to INR70 that prevailed a few weeks back.

This has led to a drop in retail prices of dressed broiler to INR90 to INR100 a kilo from INR120 to INR130 a month ago.

Sprinkler pipes and water coolers have been used in the scorching summer to keep birds cool have increased the input cost of the broilers, Mr Thaper added.

Rearing birds in the summer not only requires additional expenditures but also extra space because of which production comes down leading to drop in supplies.

Mr Thaper said: "We are barely able to survive despite decline in the feed prices."

He explained that soybean meal, a key component in the poultry feed, prices have declined to INR17,100 per tonne at present from INR17,800 a month back. This is attributed to decline in exports of soybean meal because of global sluggish demand.

Similarly, because of bumper maize crop in Bihar, the prices of corn, another important constituent of feed, have also declined to INR12,500 per tonne from INR13,400 per tonne last month.

Poultry feed is currently quoted at INR19,000 per tonne from INR20,000 a week ago. However, farmers have been hit because summer months have also brought down the demand for the broiler.

Industry sources said poultry demand dropped this summer season as vegetables prices have been stable unlike usual high during the hot seasons.

India is the world's fifth largest broiler producer with an estimated production of 2.3 million tonne per annum.

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