Poultry industry faces 40pc decline amid multiple challenges

The fluctuation in chicken meat prices, from Rs550 to Rs250 per kilogram, underscores the sector's volatility

The poultry industry has experienced a significant decline, with a 40 percent reduction attributed to several factors, including volatility in pricing and challenges in feed mills across the country. 

This downturn marks a departure from the previously expected growth, with industry experts pointing to issues in broiler breeding, inadequate husbandry practices, and unhygienic conditions among the primary causes, as reported by Express Tribune. 

Additionally, poor bio-security measures, ineffective quarantines, and the financial instability of feed transactions, often conducted on credit, have further exacerbated the situation.

According to reports, the industry has been struggling for over six years, witnessing a steep fall from an annual growth rate of 7 percent to 8 percent to a substantial decline.

The feed industry, in particular, has seen its output decrease from 9 or 9.5 million tonnes to between 5.5 and 6.5 million tonnes per year.

Dr. Muhammad Arshad, CEO of Hi-Tech Group of Companies, emphasized the impact of non-viable feed prices, which have rendered the poultry sector more capital-intensive.

He noted that the feed mills, operating on a credit basis, face frequent defaults, limiting their ability to extend further credit and hence reducing the industry’s overall volume.

Dr. Arshad advocates for a reassessment of return on investment strategies to encourage reinvestment and revitalize the industry’s growth.

The fluctuation in chicken meat prices, from Rs550 to Rs250 per kilogram, underscores the sector’s volatility, often influenced by demand and supply imbalances and governmental price manipulations. 

Industry representatives have voiced concerns over the government’s role in setting poultry rates, particularly during Ramazan, and the adverse effects on small shed farmers.

Mohammad Usman Ghani, Director of Salva Feed Mills Private Limited Okara, highlighted the sector’s vulnerability, noting a significant drop in poultry demand preceding Eidul Azha due to preferences for mutton and beef. 

He called for government support, including export incentives, facilitation of chicken feed ingredient imports, and stabilization of broiler market rates, to mitigate the challenges faced by the industry.

 

Monitoring Desk
Monitoring Desk
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