January 30, 2007	Tuesday	Muharram 10, 1428

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ISLAMABAD, Jan 29: An artificial decrease in production has jacked up chicken prices by Rs14 to Rs16 per kg in Rawalpindi and Islamabad within less than 48 hours, as farm owners have warned of further rise in the prices to recover, what they claim, massive financial losses the poultry industry suffered in the last few months due to sinking prices.

Chicken is now available at Rs66 per kg in Rawalpindi and Rs68 in Islamabad compared to Rs52-Rs54 on Friday.

Last week, the poultry industry had warned that it would increase the prices within 10 days, through an artificial decrease in production aimed to recover what they claimed Rs1 billion losses during the last three months - when prices dropped to Rs50 per kg from Rs80-Rs90. They had, however, not specified the amount of reduction in production.

Chicken sellers said this sudden increase in prices would also make the prices of vegetables and pulses soar, as consumers may divert to the somewhat less expensive food options than the white meat.

They said the market was always run by supply and demand factors. Whenever, there was an in increase in meat or chicken prices, the consumption decreased as people shifted to vegetables and pulses.

Already, prices of some vegetables have increased by Rs2-Rs3 per kg, said Ali Hussain, the owner of a vegetable shop in the busy vegetable/fruit market of Rawalpindi’s Sadiqabad area.

Sources in the Pakistan Poultry Association told Dawn that farm owners were bearing Rs5-Rs6 per kg losses because production had surpassed consumption by almost 25 per cent in the recent months.

Some 650 million birds are produced every year in Pakistan. And, a Rs5-Rs6 loss to producers in every kg chicken meant over Rs1 billion loss to the industry during the last three months, said Dr Aslam, former president of the poultry association.