March 12, 2010

Pakistan's poultry prices likely to fall as industry enters recovery

Prices of chicken meat in Pakistan will start to decline in a couple of months as the industry enters the recovery phase amid reduction in raw materials cost.

These views were expressed by the Executive Director of K&N's Adil K Sattar while briefing to the members of the Lahore Economic Journalists Association (LEJA) at K&N's poultry processing plant near Lahore on Thursday (Mar 11).

Almost 40% of the industry was closed due to drop in sales of chicken after the bird flu and increase in prices of poultry feed, he said, adding that this slump had badly affected the poultry industry. All these factors forced the prices of chicken meat upwards, he said but noted that the poultry sector has now been recovering from the crisis, which will ultimately reduce the prices of chicken meat.

With reference to chicken exports, Adil pointed out that the EU provides subsidies to its poultry sector, which makes Pakistani raw chicken meat uncompetitive in those markets. However, he saw the potential in exports of value-added chicken products, especially to the Middle East.

He said in order to make Pakistani chicken products very competitive in the international market, the government needs to ensure agricultural productivity.

He was of the view that Pakistan can enter the global Halal food market, which has been growing at a rapid pace, even in non-Muslim countries. Pakistan must establish itself as a reliable supplier of Halal food products to the world, he said.

Adil emphasised that local poultry industry must continue to modernise for attaining efficiency, and thereafter should strongly consider adding value to poultry meat if it wants to compete effectively in the global arena.