Poultry farmers suffer Rs24.53bn loss in 6 months
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KARACHI: Consumers are paying higher prices for poultry in retail while poultry farmers claim to have suffered losses in recent months.
The rates announced by the City Government have proved ineffective so far, because there is a gap of Rs30-50 per kg in the official price and retail market price.
The government fixed Rs129 per kg for live bird and Rs190 for chicken meat on March 2, but retailers were found charging Rs140-150 per kg for live bird and Rs200-240 for meat.
Pakistan Poultry Association (PPA) claimed that the industry suffered a loss of Rs24.53bn in the last six months due to increasing cost of production.
The average price of live bird (broilers) during the last six months stood at Rs129.35 per kg against the production cost of Rs156.07. Hence, there was a per kg loss of Rs26.72 which translates into overall loss of Rs24.53bn, an official of PPA explained.
Retailers continue to mint money
Pakistan produces 1.02bn live birds (broilers) of 1.8kg each annually, making it the 11th largest producer in the world.
The last month proved worst for the industry when average national selling price stood at Rs114.32 per kg, and due to this, poultry farmers lost Rs6.39bn, the PPA official added.
Last two months’ average day-old broiler chick price was Rs21.49 against their production cost of Rs40.82, causing a loss of Rs19.33 per chick, he said.
Epidemic diseases also play havoc every year. Under New Castle (Ranikhet) disease, mortality rate has reached as high as 80pc while the minimum mortality rate is 20pc.
“Unfortunately, the government has no concrete policy to eradicate New Castle which is the biggest killer and results in a colossal loss to farmers every year, and also to consumers and the national economy,” the official said.
Since the selling price is governed purely by demand and supply, those farmers who cannot sustain losses and have been at the mercy of market forces, have no option, but to close down. However, those who can sustain losses, continue in the hope of recovering the losses, he added.
He said there was no justification to control prices to shield consumers when poultry farmers get no protection from the government.
The PPA official urged the government to compensate Rs28.39bn as the industry has suffered losses.
The government must declare a minimum floor price which should be at least 10pc above the cost of production, which would be Rs171.68 per kg.
In case the price goes above the cost plus 10pc, the government may control the price and if it is below, the government must pay the differential, he said.
Published in Dawn March 3rd , 2015
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