June 23, 2004

 

 

Pakistani Chicken Prices Rise On Stock Shortage

 

The price of broiler chicken in Pakistan has increased Rs 14 in the past one week. This is due to shortage of stocks as farmers faced heavy mortality amid extreme weather conditions.

 

Kamal Akhter, secretary of Poultry Association of Pakistan (PAP), said that farmers faced serious mortality problems during the past days due to hot and humid weather conditions in the country.

 

"The birds start losing weight in such conditions, which not only increases the chances of mortality but delays the supply to market if the flock survives," he said.

 

Poultry prices increased by 18 percent from Rs 64 last week to Rs 78 per kg in the retail market Tuesday.

 

Mr Akhter said that the price of Rs 78 per kg is a good margin to the farmers, but the industry is still suffering losses as many farmers are hit with dying flocks. According to PAP, the daily poultry consumption in Karachi is between 2.5 million to 3 million birds. However the consumption also declines slightly during summer months as less catered functions are held.

 

The PAP has criticised the federal budget for not providing the any incentives to the industry.

 

Fida Hussain, president PAP said they had highlighted the sufferings faced by the industry after the bird-flu scare, which caused a loss of about Rs 5 billion.

 

In the association's budget proposals, it had demanded the government ensure that small interest-free loans are provided to poultry farmers, all imports are exempted from the import duty, and that the research laboratories are established in the three major cities to keep a vigil on threats from disease.

 

"None of our demands have been addressed in the current federal budget," Mr Hussain said. "The authorities are only interested in eating chicken."

 

According to the economic survey for the year 2003-04 released by the Ministry of Finance, the government is providing all possible incentives to develop the poultry industry at an accelerated pace. It also highlights the incentives given to the livestock and poultry sector.

 

However, the PAP has criticised the government for ignoring the poultry sector by not recognising its status at par with the livestock sector.

 

According to Mr Akhtar, the government policy of providing capital structure of projects in the agro-food industry in the debt-equity ratio of 70:30 is not being applicable to poultry. There is also no insurance policy for the flocks. Moreover, poultry exports to the Middle East continue to suffer as the ban imposed after the bird flu outbreak is still in place.

 

"One major reason for this continued ban is the absence of any quality standard laboratory in the country," said Mr Akhter "The average poultry exports used to be around $300 million for the last three years. But now we export live and frozen chicken only to Afghanistan."