Poultry farms closure in Pakistan jacks up chick prices

Poultry prices in Pakistan are high because many grandparent poultry farms had closed down, tightening the supply of day-old chicks in the market, according to an industry expert.

Only two out of five grand parent stock producing units were operational, and the two units had to reduce production due to very low demand in 2008, said Khalil Sattar, former chairman of the Pakistan Poultry Association.

He said the rates of one-day-old chicks had dipped to PKR1 during the recession in the poultry sector in 2008.

During the same period, 40 percent of parent stock producing units also closed down, and producers culled parent birds due to costly feed prices, he said.

Chicken rates had not increased to cover the rate of food inflation in Pakistan, but poultry farmers were also concerned about high chicken rates which could drive consumers away, said Sattar.