August 4, 2011
Indian poultry prices drop, feed costs hike
The prices of India's poultry products went downward during the last few weeks for the first time in six months due to religious reasons leading to decline in demand.
During the ongoing 'Sawan' month many consumers in northern India shift to taking vegetarian food which has pulled down demand.
According to Poultry Federation of India (PFI), the wholesale live weight broiler prices have declined to INR58 (US$1.3) per kg from INR68 (US$) per kg. Similarly in the all major metros, the broiler prices have declined significantly during last four weeks.
This results in dressed broiler price declining to INR100â€“INR110 (US$2.25-$2.48) a kg in Delhi or NCR region from INR120â€“INR130 (US$2.7-$2.93) per kg. However, poultry farmers anticipate the demand to rise by middle of this month.
"The decline in demand for the poultry products is expected to reverse by middle of August after which we expect the demand to rise again," said Ricky Thapar, Member, Poultry Federation of India (PFI).
Even egg prices have declined during last month because of lesser demand. The wholesale price of one dozen eggs in Delhi has declined to INR25 (US$0.56) a dozen from INR30 (US$0.68) a dozen four weeks back. However, due to rise in poultry feed prices, the farmers' margins are being hit.
The feed cost has increased by more than 5% in last one month due to rise in price of soymeal.
The poultry feed mainly consisting of soyabean meal and corn has risen to INR19,500 (US$438.75) per tonne from INR18,500 (US$416.25) per tonne a month back. During the same period the soymeal price rose to INR17,100 (US$384.75) per tonne.
A poultry farmer from Gurgaon said the poultry feed prices constitute close to 70% of the cost of production. The poultry feed prices witness fluctuations periodically depending on the production of corn and soyabean.The poultry industry estimated to be R35,000 crore has been growing at a steady pace. While per capita broiler consumption has increased from 146 gm in 1970s to 2.4 kg by 2010, the National Institute of Nutrition said.
This indicates that growth in poultry industry will continue in the country for many more years. Average growth of poultry in India has been more than the economic growth of the country except in the year 2009. In 2010, growth is around 14%. Annual growth rate in eggs is 5-8 %, whereas it is faster in broiler segment.
Major constraints affecting growth of poultry industry in the country is the lack of basic infrastructure such as storage and transportation including cold chains besides volatility in the poultry feed prices.