January 10, 2008

Pakistan poultry industry blames feed price hikes on cartel

Poultry farmers in Pakistan believe that the astonishing chicken feed price hikes of 40 to 51 percent from the expected 18 percent was the doing of feed producers cartel.

The Society for the Advancement of Poultry Sciences (SAPS) general secretary, Shakaeb Ahmad said that it was surprising to note that all feed companies imposed a price hike at the same time and date, around June 2006 to October 2007, regardless of quality.

Ahmad suggested that a perfect understanding seem to exist among large feed producers, who filled their storage when the prices were low and released stock only when prices became advantageous to their end.

Pakistan industry players said that if the price hikes continue, chicken prices would no longer be available to average consumers while small farmers would be forced out of business.

Mohammad Azhar, a poultry farmer, opined that feed millers created an artificial shortage of feed ingredients while hoarding huge quantity of products to manipulate prices.

The Pakistan Poultry Association did not make any comment to the issue yet.