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Farms Close as Production Costs Rise

by 5m Editor
11 August 2008, at 8:54a.m.

PAKISTAN - The rising cost of poultry production has led to the closure of more than half of the poultry farms in Sindh this year.

The closures are having an adverse impact on chicken meat prices, reports Daily Times of Pakistan.

A poultry trader explained that the unfavourable conditions during the last few years had caused many small poultry farms to change to thoer businesses.

Abdul Maroof Siddiqui, central convener of the Pakistan Poultry Association (PPA) said that despite rising beef and mutton prices, chicken prices too have reached 140 to 180 rupees (PKR) per kilo - the same as two or three years ago.

The increase in chicken feed costs by 60-70% over the last 2 to 3 months has meant that farm owners are making no profit at all, he added.

Mr Siddiqui said a fall in chicken meat demand at city retail outlets as well as fast-food restaurants, hotels and roadside restaurants have forced farmers to keep their prices low.

Now, most of the remaining poultry farms are facing financial losses, especially over the last year. If the situation continues, more of them will leave the industry and chicken prices could rise to record levels.

There were increases in the cost of the major constituents of the poultry feed, including soybean, chouker and maize during the last two months.

"Owing to depreciation of local currency against the US dollar, rates of soybean, which is imported in large quantity from India, has sharply surged while the government has allowed export of maize which was locally produced is substantial quantity inside the country affecting its price to the detriment of poultry sector," said Mr Siddiqui

He added that chicken meat prices could surge close to PKR200 per kilo before the start of holy month of Ramadan if the sector continued to face sustained financial losses.

5m Editor