LAHORE: A former office-bearer of the Pakistan Poultry Association on Sunday warned that the year 2019 had proved to be the worst year for poultry industry, breaking record of last 30 years’ losses mainly due to unprecedented escalation in the cost of production.
The cost of poultry feed has flown upward, reaching the highest level of last 10 years owing to huge depreciation of Pakistani rupee against dollar, record high markup rate and continued hike in power and gas tariffs, leading to jump in feed rate up to Rs3,000 per 50kg bag from earlier price of about Rs2,200, PPA’s former chairman Abdul Basit said in a statement.
He revealed that average sale price of the whole year of poultry products should remain higher than the cost of production by at least Rs1-2 which is essential for the survival of business. However, the calendar year 2019 proved to be unfortunate for the poultry sector in the last 30 years, inflicting loss of billions, Basit maintained.
He was of the view that the poultry sector was unable to pass on ever soaring cost of production to the consumers. “Rather the industry survives by enhancing its efficiency through technology advancement.”
Basit said the poultry products were sold below the price of their original cost during eight months of the year, adding “when chicken prices start to go upward during the rest of four months, then industry is able to compensate its losses incurred throughout the year.”
He said that government, instead of controlling fuel price or seizing power tariff hike, had launched wrong propaganda against the poultry farmers, who had contributed a lot to control ever-soaring inflation in the country.
He claimed the poultry rates had not been increased while other kitchen items registered hike in prices during the last 30 years.
He said the farmer community, including poultry farmers, were unable to fix the rate of their produce according to their cost of production and they were totally dependent on market forces.
Basit further said due to record hike in the cost of production along with unmanageable ventilation system at controlled sheds even in winter- which might perish even the whole poultry stock- almost 25 per cent of farmers had shut their businesses temporarily.
“This also has caused a sharp reduction in poultry stocks, lifting their rates automatically.
He explained that the factors like currency devaluation and imported soyabean and medicines had raised the cost of business tremendously.