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Chicken Prices Rise in Nepal

by 5m Editor
3 August 2009, at 8:39am

NEPAL - Poultry producers raised their prices from 2 August to cover increased feed costs and reduced output during the monsoon season.

My Republica reports that poultry entrepreneurs have increased price of chicken from 2 August as the result of the rising cost of inputs and dipping production during the monsoon. A joint meeting of poultry farmers, poultry entrepreneurs and retailers held in Kathmandu the previous day resolved to increase the prices of live chicken and dressed chicken by five and seven rupees (NPR) per kilo, respectively.

With this hike, the price of live broiler chicken went up to NPR 165 per kg whereas the price of dressed chicken shot to NPR 235 per kilo. Farmers will get NPR 155 per kg for live chicken.

Chicken prices had touched an all time high of NPR 250 per kg in June, due to sharp decline in poultry farming after the first case of bird-flu was confirmed in the country in January. Chicken price had dipped to Rs 170 per kg immediately after government confirmed the first case of avian influenza in Nepal.

The poultry farmers lowered chicken prices on June 10, following the decline in demands.

"We are compelled to increase the price of chicken as the prices of almost all the inputs, including chicks and feeds, have gone up sharply over the past few months. Moreover, poultry production has also declined, leading to supply deficit in the market," said Janga Bahadur BC, general secretary of the National Chicken Sellers' Association told My Republica.

Poultry entrepreneurs said the production of chicken had nose-dived by around 30 per cent as compared to normal period. Soaring demands for chicken have also driven up the price. The supply of live broiler chicken dropped to 160 tonnes per day against the demand of around 205 tonnes, as farmers raised lower number of chicken during the past months.

The other factor that led to the increase in chicken price is the rise in the price of chicks. According to poultry farmers, the price of layers chicks increased to NPR 42 each from NPR 38.

According to Nepal Poultry Entrepreneurs' Forum – an umbrella organisation of poultry producers – around 56.1 million broiler live chickens are produced every year. Likewise, the annual egg production stands at around 714.6 million. Poultry farmers produce around 58,000 tons of chicken every year.

There are over 2,500 poultry farms (small and big) throughout the country. More than NPR 16 billion has been invested in poultry business.