May 8, 2014

In March 2014 quarter, Sri Lanka's Ceylon Grain Elevators group, which has interests in feed milling and poultry lost LKR7.8 million (US$60,000) as demand for feed fell, though day old chick demand was recovering.

The group reported losses of LKR0.13 (US$0.001) per share for the quarter. At core company level, it lost LKR52 million (US$398,000).

In the quarter, Group revenues fell 20% to LKR2.58 billion (US$20 million) and expenses fell 21% to LKR2.4 billion (US$18.4 million) shrinking gross profits 3% to LKR150 million (US$1.15 million) in the quarter.

Cheng Chih Kwong, Primus said average selling price of chicken fell amid a glut in the market and feed sales also dropped due to intense competition. Meanwhile the cost of local raw materials such as corn and rice polish had risen.

Sri Lanka is one of the few remaining countries in the world that practices autarky and grain and cereal prices can go up when world prices fall, either due to weather or state controls.

But subsidiary Three Acre Farms which sells day old chicks said profits rose 210% to LKR67 million (US$513,000), with a recovery in demand for day old chicks, helping reduce group losses.