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High Prices for Chicken to Fall Soon

by 5m Editor
20 February 2009, at 8:41am

PAKISTAN - Poultry prices have risen sharply as producers were forced out of business while demand remained strong. However, farmers have now started production again and prices are set to return to normal in March.

The prices of poultry products have touched their highest level yet because of reduced production and increased demand, poultry industry stakeholders say, according to Daily Times of Pakistan.

They explained that the prices of chicken had remained quite low during December and January due to the reduced consumption during the months of Muharram and Safar. It resulted in losses to farmers and closure of a number of poultry farms, they said, adding that the prices of chicken started rising in the first week of February and touched the 178 rupees (PKR) per kilo mark. The price of chicken meat on Thursday was PKR 174 per kilo, while chicken was sold for PKR 110 per kilo.

However, prices are expected to fall again soon.

"The prices of chicken will start to decline in the coming two weeks," said Syed Javed Hussain Bukhari, the Pakistan Poultry Association (PPA) North Zone secretary.

He said that almost 40 per cent of farms had closed when the prices dropped. "The chicken prices touched the PKR 90 per kilo level, and many farmers went out of business," he said, adding that it resulted in a drop in production. He said that no marriages usually took place in the months of Muharram and Safar, and the demand for chicken dropped.

"Now the situation will improve in the coming two weeks, as farmers have started breeding fresh stocks," Mr Bukhari said. He said the price of chicken would return to the PKR 125 per kilo in March because there would be enough supply.

Retailers said their average sale had dropped by at least 40 per cent due to soaring prices, and their margin had also declined. "I used to sell 100 kilogrammes of chicken meat daily with a margin of PKR 5 to 8 per kilo, but now I am selling around 60 kg with the same margin. My daily profit has reduced from PKR 500-800 to PKR 300-450," Abid Ali, a chicken retailer in Township, told Daily Times.