High feed costs: Appetite for poultry farming wanes
In the wake of surging production costs resulting from high feed prices, the appetite for farming to produce chicken meat is waning among farmers as the demand for chicks declined, poultry industry operators said yesterday.
Operators said the prices of major ingredients of feed – maize, soybean meal and soybean oil -- has shot up to exorbitant levels, requiring higher investment.
At the same time, many have become uncertain over whether they would be able to recover their investments.
Industry operators said a decline in farming would affect the supply of chicken in coming months, forcing consumers to pay more to buy the meat, one of the cheapest protein sources, which would further affect their buying capacity.
Consumers have already been paying increased prices to buy eggs as production declined in the face of higher production costs.
"I am just at the break-even point now. Making profit has become very tough against the backdrop of spiralling feed prices," said Abu Taher, a small farmer in Gazipur, a poultry farming district near the capital.
Yet, the 46-year-old farmer who has been engaged with poultry farming for 20 years now buys a 50-kilogramme bag of feed at Tk 3,165, up 49 per cent from a year ago.
Because of the high feed cost, three farmers from his locality have already suspended operations and kept their sheds empty ever since Eid-ul-Fitr was celebrated in early May, he said.
On the other hand, Taher took the risk of keeping his business going.
He began rearing a flock of 2,000 birds couple of days ago by buying day-old chicks for about Tk 6 each.
"I am not sure what is going to happen next," he said adding, that his production cost would be Tk 140 per kilogramme at the current prices.
Md Rakibur Rahman, managing director of one of the leading breeders Nahar Agro, said farmers have to spend Tk 130 to Tk 135 to produce one kilogramme of chicken meat because of the high cost of feed. A year ago, the cost of production was around Tk 100 per kilogramme.
Problems in the supply chain, lack of availability of grains in markets abroad and increased import costs for weakening of the Taka against US dollars has fuelled feed prices.
"As prices soar, risk of losses is keeping many farmers away from rearing," he added.
Md Moshiur Rahman, president of the Bangladesh Poultry Industries Central Council (BPICC), said feed millers could buy each kilogram of maize for less than Tk 20 at this time in the past.
The price of the grain, which account for 55 per cent of poultry feed, is now Tk 36.
"Many farmers are closing down as they are struggling to contain losses," said Rahman, also managing director of Paragon Group, one of the leading poultry producers.
As a result, the demand for day-old chicks has fallen, sending the prices to about Tk 10 each, he said, adding that chicks cost Tk 17-18 in May.
Breeders produce between 1.80 crore and 1.90 crore day-old chicks each week against the demand for 1.70 crore to 1.75 crore, according to industry insiders.
On the other hand, the demand for chicken meat has not grown as many consumers are seeing their budgets curtailed by the high price of other essentials.
Sayed Sultan Ahmed, general manager of Kazi Farms, said farmers do not have control on the price of poultry feed and medicine. What they do have power over is their choice to continue farming.
"Now even though the prices of chicks are low, farmers are doubtful if they will be able to recover production costs due to higher input charges," Ahmed added.
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