March 10, 2009

Poultry meat prices in Pakistan have surged due to high production costs, lack of incentives and depreciation of the rupee.

Chicken meat prices have increased to Rs195 per kg in Multan, Rs220 per kg in Karachi and Rs180 in Lahore; prices had averaged Rs100 per kg during the past eight months in Lahore. Market analysts said these are realistic prices as production costs have increased sharply in the past one year.

Prices of poultry feed had increased about 90 percent in the past one year, according to Pakistan Poultry Association former chairman Tahir Ali Zaidi.

A bag of poultry feed is currently sold at Rs1,200, up from Rs650 a year ago, Zaidi said.

Zaidi said feed prices surged because the government allowed corn exports and the high cost of soymeal which was imported from India. He said a 29-percent fall in rupees against the dollar had increased the cost of soymeal imports.

Pakistan Poultry Association Chairman Khaliq Arshad said poultry farmers had been selling their produce below cost for over a year, and the high production costs have forced nearly 40 percent of Pakistan's poultry farms to close down.

The extra expenses in electricity and labour costs, of which the latter had been increased, also pushed up production costs, said Arshad.

The cost of imported vaccines and medicines had also increased, said a poultry expert.

Zaidi said the government should ensure available working capital to poultry farmers at low interest rates, and that soymeal imports from India should be permitted through trucks via the Wagah border.

Soymeal is currently imported through train and each consignment costs Rs90 million, which discourages import by small parties, Zaidi said.

US$1 = Rs80.6927 (Mar 10)