May 11, 2011

 

Indian record corn crop affects poultry feed prices

 

 

Poultry feed prices have decreased drastically over the last two weeks due to the record corn crop in one of the growing states, Bihar, India.

 

This would bring about stability in the prices of poultry products in the ongoing summer seasons.

 

According to the Poultry Federation of India (PFI), the price of corn in Delhi, a key ingredient in poultry feed, declined to INR12,600/tonne (US$283) on Tuesday (May 10) from INR14,000/tonne (US$314) that prevailed two weeks ago.

 

Besides corn, the price of soymeal, another poultry feed input, also declined to INR17,400/tonne (US$390) on Tuesday (May 10), from INR18,200/tonne (US$408) a few weeks ago.

 

"Correspondingly, the poultry feed prices which constitute close to 70% of the cost of production is expected to come down shortly," said Ricky Thaper, treasurer of the PFI.

 

Thaper said things should improve for poultry farmers, who had been making losses because of the high cost of production over the last few months. "Due to the fall in the feed cost, poultry farmers are expected to cover their losses," Thaper said.

 

Corn is grown in Bihar during both rabi and kharif seasons. With the country expected to produce 20.23 million tonnes of corn during 2010-11 as per the third advance estimates against 16.72 million tonnes in 2009-10, prices are expected to stable during the next few months.

 

The country accounts for about 3% of the world corn production and Bihar accounts for 10% of country's production.

 

Andhra Pradesh is the highest producer, accounting for 17%, with Rajasthan producing 14% and Madhya Pradesh accounting 12%. Fluctuations in feed prices have been adversely impacting the growth of poultry sector in recent months.

 

Demand for eggs and chicken declines in summer, but the lower feed prices are expected to help the poultry industry tide over the dip. However, Thaper said that keeping the interests of the poultry and livestock industry, the government should first secure the feed ingredients before considering exports of soymeal and corn.

 

Poultry is one of the fastest growing segments of the agricultural sector in the country, growing at 8-10% a year.

 

As a result, the country is now the world's fifth largest egg and broiler producer. However, there is still huge scope for the growth of poultry industry as the country's per capita consumption is only 2.4 kg per person per annum.