KARACHI: After enduring an unprecedented soaring food inflation and high utility charges in 2023, the retail prices of live poultry birds have shot up to Rs520 per kg at the start of the new year.

Retailers gave a simple reply to justify price hikes, citing thin supply against high demand triggered by the ongoing marriage season which will conclude in the second week of March after the start of Ramazan.

There is no yardstick or any fortnightly and monthly data maintained by the government which can help check the demand and supply gap and poultry production in the country. Only the Economic Survey releases the production data ahead of the new budget, revealing growth in the production of live birds and their meat every year.

As a result, the poultry stakeholders enjoy a free hand to fleece the consumers especially when demand outstrips supplies.

Some retailers on Saturday were seen charging Rs480-500 per kg for the live bird by claiming to offer a discount of Rs20 per kg. However, they did not show any elasticity in the meat rates by keeping in the range of Rs700-800 per kg (with and without giblets). Boneless rates hovered between Rs900-1,000 per kg.

Some 13 days back, they said the live bird was available at Rs330-350 per kg.

The Sensitive Price Index (SPI) ending January 4, 2024 quoted the rate of Rs430-470 per kg while the rate ending on December 21, 2023, was Rs 330-370 per kg.

Egg prices had also shot up to Rs380-390 per dozen from Rs350-360 prevailing in the third week of December 2023. Egg demand usually remains high during the winter while it further surges after the reopening of schools.

Poultry prices have almost come on par with beef. Veal meat (Bachia) with and without bones sells at Rs1,000 and Rs1,200 per kg, respectively.

Sources said that small and medium-sized poultry farmers have closed down their businesses as big investors have taken over the poultry sector and played havoc with the rates. Big feed millers are also engaged in poultry farming.

A retailer expressed surprise that poultry prices from the farms are crawling up despite no shortage of soybean meal followed by a decline in poultry feed prices after rupee-dollar stability.

On Saturday, the farm rate of broiler birds was Rs428 per kg in which Rs20-30 per kg is added in terms of transporting birds in bulk volumes from the outskirts of Karachi and also from Thatta, Hyderabad, Mirpurkhas etc.

The trend of ordering online till late at night and outdoor dining especially from Friday to Sunday has increased in the last few years, thus giving another boost to the demand for chicken.

Published in Dawn, January 7th, 2024