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November 4, 2008
  
India Poultry Weekly: Broiler prices hit brakes after festival season (week ended Nov 1, 2008)
 
An eFeedLink Exclusive
 
 
Price Summary

After a three-week period of positive price trend, broiler prices hit the brakes after India's festival season - except in New Delhi, where prices settled at Rs 82 per kg last week, breaking all previous records.
 
All Broiler markets in India were seen with a downward trend by the end of this week with a price range of Rs. 1 to Rs. 9 per kg.  
 
Positive trend for egg prices was seen in all markets with price range between Rs 1 to Rs. 14 per 100.
 
The parent stock touched an all time high of Rs. 6, 500 per 20 birds up until festival dates but came down Rs. 50 per bird on Saturday (November 1) and settled at Rs. 5,500 per 20 birds.
 
Price of layer bird remained and traded at Rs. 55 each.    
 
Prices of chicks took a little jump in northern area of India and traded around Rs 16 to Rs. 18.
 
 
Market Analysis
 
"Replacement of broiler will take another 25 days and by then its hiked price will come down to normal," according to the managing director of Skylark Hatcheries and president of Poultry Federation of India, Jagbir Singh Dhull.
 
Dhull further said that for the last three to four months, poultry farmers were acquiring losses.
 
Farmers were forced to sell their produce at throwaway prices of around Rs. 35 - 36 per kg, much below the production cost at Rs. 50 + at that time.
 
Due to rise in feed cost, high mortality during summer heat, adverse policies of the Indian government on the export of soy resulting in increased feed prices and increase of soymeal prices led to closure of poultry farms, he said and added that these were the primary reasons for the escalation of prices.
 
Despite the decrease in production cost from more that Rs. 50 to Rs. 44 - 45, poultry farmers' confidence is shaky. However, some poultry farmers have initiated breeding chicks but it will take another 30 days to bring that produce in the market. Then only the prices of Rs. 55 to 60 per kg will come down to a normal level, he confirmed.
 
Corn Output growth may outstrip demand expansion
 
Growth in corn production may outstrip growth in demand in 12 years but to maintain the current level of surplus, productivity has to be raised, a study by Assocham, Corn Report 2008 indicated.
 
The growth projection for consumption has made on assumptions that it will grow 4.7 percent every year, same as it had been rising during the last two decades.
 
According to the study made available to media, production would increase to 26.2 million tonnes from the current 15.1 million tonnes. While consumption is likely to be also 26.2 million tonnes, the country would require a production of 29.6 million tons, it said.
 
 
Market forecast
 
Increased arrivals after harvesting has picked up in majority belts and increased arrivals continue to pressure corn prices.
 
Corn crop is mostly in cob development to maturity stages in parts of Maharashtra, Gujarat, Andhra Pradesh and Karnataka.
 
However, crop in parts of Andhra Pradesh and Karnataka was affected due to heavy rains.
 
Soy prices may ease due to increase in fresh arrivals amidst steady demand.
 
Good rain this season and optimum sunshine has helped to boost output and acreage. 
 
In the week ahead, due to arrival of winter season, demand in the market will increase, broiler price may increase slightly and egg prices may remain stable at this week's level.
 

Weekly transacted prices of broilers in India for 2008

Cities

Prices as of Oct 25
(Rs./kg live weight)

Prices as of Nov 1
(Rs./kg live weight)

Price change
(Rs./kg live weight)

     1.  Mumbai

58

55

-3

     2.  Pune

58

55

-3

     3.  Nashik

57

54

-3

     4.  Surat (Gujarat)

58

57

-1

     5.  Delhi

78

82

4

     6.  Kolkata

58

57

-1

     7.  Hyderabad

58

49

-9

     8.  Bangalore

60

55

-5

     9.  PalladamT.Nadu

55

55

       Stable

     10.  Palladam Kerla

52

52

       Stable

     11.  Namakkal

51

50

-1

     12.  Bhopal

56

56

       Stable

Prices are representative and for reference only.
US $ 1 = Rs. 48.575 (Nov 4, 2008)

Note: The 12-city average includes Mumbai, Pune, Nashik, Surat, Delhi, Kolkata, Hyderabad, Banglalore, Palladam (Kerala & Tamilnadu), Namakkal, & Bhopal.

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