India poultry prices soar on higher feed costs, AH1N1 fears

Poultry prices in India have been on the rise in the last two weeks over increasing feed costs, particularly soymeal and corn, along with fear of AH1N1virus.

 

Despite the onset of summer when poultry prices usually soften owing to decline in demand, prices of chicken have jumped from Rs 52 (US$1.05) live weight per kg in the wholesale market in Delhi to Rs 64 (US$1.29) per kg at present, an increase of more than 23 percent.

 

Subsequently, retail prices have soared from Rs 75 per kg to Rs 90 per kg for live weight chicken.

 

According to industry sources, soymeal prices have risen from Rs 13, 000 per tonne in October 2008, when fresh soy crop entered the market, to Rs 23, 800 per tonne at present, an increase of more than 80 percent.

Similarly, prices of corn in Bihar are showing northward trends. It is being sold at Rs 9000 per tonne as against Rs 7000 during the year-ago period.

 

Consequently, according to the Poultry Federation of India (PFI), prices of poultry feed consisting mainly of soymeal and corn, is priced at Rs 18,000 per tonne at present compared with Rs 16,000 during the corresponding period of the previous fiscal.

 

However, poultry farmers are wary of the decline in corn crop in Bihar as a result of the last year's flood, large-scale hoarding is taking place in the state.

 

According to Amit Sarogi, executive member of the Poultry Federation of India (east zone), there is an acute artificial shortage of corn for the poultry industry in the state and prices are expected to rise further over the next few months.

 

According to the Bihar government estimates, corn production in the state is expected to go down from 2.8 million tonnes last year to around 1.8 million tonne this year. Bihar produces around 15 percent of the total production estimated to be around 15 million tonne.

 

According to Ricky Thaper, treasurer, PFI, there are possibilities that those who consume pork may shift to chicken in the short run.

 

However, there is a possibility of feed prices softening over the next few months in expectation of better soy crop. Meanwhile, the data released by Indore-based Soybean Processors Association of India (SOPA), the country's soymeal exports during April 2009 went down by more than 84 percent.

 

Exports of soymeal used mostly for poultry feed went down to 83,894 tonnes in April as against 5.5 lakh tonne during the same month last year.

 

The decline in exports is primarily attributed to lesser arrival of soy in the market and lower crushing of the commodity. This is encouraging news for the domestic poultry industry as it has been demanding that exports of soymeal be curbed for halting the rising trend in soymeal prices.

 

India is the fifth largest broiler producer in the world with an estimated production of 2.3 million tonne of broiler meat per annum.

 

However, there is a huge scope for the growth of poultry industry as the country's per capita consumption is only 2.4 kilogram per person per annum. Per capita consumption of broiler meat has grown at 10 percent in last 15 years and the growth is likely to continue.

 

US$1 = INR49.29 (as of May 12)