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High Feed Prices Hit Poultry Producers Hard

10 September 2012, at 9:45am

BANGLADESH - Poultry feed industry owners have sought a ban on export of maize, the key raw material of poultry feed, in a bid to stabilise the prices of poultry birds and eggs in the local markets.

Industry owners said if the government does not put a ban on maize exports at least for an interim period, poultry feed prices will go up, further affecting the local eggs and meat supply, reports The Financial Express of Bangladesh.

Prices of poultry feeds have recorded substantial rises in the international market in the backdrop of an increase in maize prices.

Feed Industry Association of Bangladesh (FIAB) President, Ihtehsham B. Shahjahan, said prices of poultry feeds swelled by nearly 80 to 100 per cent in the last month.

If the government does not impose ban on the export of locally produced maize, the poultry feed production costs will rise, further hampering chicken and egg production, he told the The Financial Express.

Managing Director of Aftab Bahumukhi Farms Fazle Rahim Khan Shahriar said since a major supplier like that of India has slowed down its maize export due to production shortfall, there is a possibility of further price hike of the poultry feed.

He alleged that some local businessmen were exporting maize to Nepal and other countries violating government orders.

The government now allows conditional maize export. Local businessmen can make shipment of maize to other countries if they get minimum price of US$325 or above per tonne.

"A Bangladeshi businessman is exporting local maize to Nepal at US$184 to $190 per tonne violating the government order," said Mr Shahriar, also the General Secretary of the FIAB.

He added that a good quantity of maize is being smuggled out to neighbouring countries due to its high price there.

Breeders' Association of Bangladesh (BAB) President Moshiur Rahman said that there is fresh price hike of corn, soya and other raw materials for poultry feed in the international market due to major fall in maize production caused by natural calamities.

"If the government does not impose ban on the export of the locally produced maize, poultry feeds will be costlier and the prices of poultry birds and eggs will rise further," he told the The Financial Express.

The price of egg and chicken in the domestic market has already gone up by nearly 40 per cent over the last one year.

Saidur Rahman Babu, General Secretary of BAB said that 60 per cent of poultry farms and 70 per cent hatcheries & breeding farms were closed due to bird flu attack in 2007-2008 period.

"Many of the farmers have been trying to revive their production. But the fresh price hike of maize and other feeds in the local and international markets has hit the struggling poultry farmers hard," he added.