January 27, 2006

Chicken prices in South India surge on tight supplies
 

Chicken prices in South India jumped 25 percent following news of a sharp decline in production in the state of Tamil Nadu on Thursday, India's Financial Press reported. The state in southern India is the country's headquarters for chicken meat.

Production at the 3,000 poultry farms in Tamil Nadu declined by 5 to 10 percent this month. The region normally produces 4.5 million chickens a week.

Farm-gate prices of live birds rose from Rs29/kg (US$0.66/kg) to Rs41/kg (US$0.93/kg) a month ago, according to Broiler Co-ordination Committee (BCC), a forum which fixes prices for broilers.

Major companies in the region had not expected the sudden demand in the market and failed to increase production on time, said Singaraj, president of the All India Poultry Product Exporters Association.

There was a shortage of hatching eggs (eggs ready to hatch into chicks) during November and December 2005 as farms in Tamil Nadu had increased supply to North India during the winter. Poultry farmers in North India had increased broiler production in anticipation of increased consumption in an unusually cold winter.

The BCC said the prices would stabilise in February as producers have taken measures to meet market demand.