Poultry
xClose

Loading ...
Swine
xClose

Loading ...
Dairy & Ruminant
xClose

Loading ...
Aquaculture
xClose

Loading ...
Feed
xClose

Loading ...
Animal Health
xClose

Loading ...
RSS

November 25, 2008
 
India Poultry Weekly: Egg prices hit a record high (week ended Nov 23, 2008)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Except for a small downward trend in Bhopal broiler market with a price range of Rs. 4 per kg, all other markets in India showed a positive response, between Rs. 1 to 7 as compared to last week's prices.
  
Positive trend in egg prices was also seen, with prices ranging between Rs. 01 to Rs. 08 per 100. Kolkata (white color variety) witnessed the maximum escalation by Rs. 08, followed by Kolkata (brown color) with Rs. 05 each per 100 eggs.
 
The parent stock price dipped a bit and settled at Rs. 4,200 per 20 birds on Saturday (November 21), with a loss of Rs. 30 per bird, as compared to the last week's data.
 
The price of layer bird remained stable this week as compared to last week's figures.    
 
Chick prices in North India were almost stable and traded at same price as last week's which is around Rs. 19 per chick in Srinagar (Jammu & Kashmir). In Punjab and in Kolkata, trading price was between Rs. 17 to Rs. 18 per chick.
 
 
Market Analysis
 
For the first time in 25 years, the floor price of a single egg has touched Rs. 2.45 each. In Delhi, it is available at Rs. 3 per piece. Industry sources claim that this is the first time the price of egg does not chart a downward swing despite healthy production.
 
"The price of eggs during earlier occasions has fallen due to excess production. The present price tag, hopefully, will remain stable for quite some time now," said an official in the National Egg Coordination Committee, Namakkal Zone, the poultry hub of India. 
 
Meanwhile, Palladam based Broiler Coordination Committee has also increased the price of live birds by Rs. 4 per kg from last week's Rs. 46-47 to Rs. 50 a kg.
 
Sources confirmed that prices will rule firm till the onset of Sabrimala season, which started from mid of this month.
 
The zone has a daily production of 25 million eggs, of which Kerala buys about 5 million eggs while another 5 million eggs are exported to West Asian and a few African countries. The rest is meant for local markets, besides supplying nearly 20 million eggs a week in the noon meal centers.
 
Corn exports set to crash in 2009
 
As part of the steps taken to counter rising food prices, the government had banned corn exports in July this year, resulting to a fall of 200,000 tonnes of corn exports from 3 million tonnes in 2008.
 
"All Asian buyers, except China and Thailand, which were buying from us have now turned to Brazil, Argentina and even the US due to falling freight costs," Amit Takkar, assistant vice president of Adani Enterprises Limited, said.
 
Exports to Malaysia, Indonesia, Vietnam, Japan and South Korea had risen sharply, as high freight costs made purchases from the US and South America costly, he added.
 
Capitalizing on an earlier sharp upturn in freight rates, India captured three percent of the global corn trade of 100 million tonnes in 2007-08. But Takkar said the availability of cheaper transport had reduced the South Asian nation's cost advantage.
 
Along with substantially lower exports, falling prices and slowing demand from poultry owners in India would hurt farmers unless government agencies bought large quantities, he added.
 
"When buyers can get corn US$190-195 per tonne, why will they come to India, which will not be able to sell below US$200 free-on-board," Takkar pointed out.
 
Further, analysts say a 33-percent rise in the price the government is paying farmers for this season's corn has pushed up spot prices, making purchases by poultry firms unviable.  "Industry is not able to absorb that. I see market turning very, very bearish," Takkar added.
 
Traders in Nizamabad, the hub of the domestic corn trade, in Andhra Pradesh said the export ban can hurt India's image.
 
 
Market forecast
 
In the week ahead, due to arrival of winter season, demand in the market will increase, broiler and eggs prices may increase slightly compared to this week's level.
 
Prices of corn are likely to remain firm due to high demand despite increase in arrivals. Good export demand is also supporting the prices.
 
Soy prices are likely to trade weak on sluggish demand and rising arrivals.
  

Weekly transacted prices of broilers in India for 2008

Cities

Prices as of Nov 15
(Rs./kg live weight)

Prices as of Nov 22
(Rs./kg live weight)

Price change
(Rs./kg live weight)

     1.  Mumbai

55

59

4

     2.  Pune

55

59

4

     3.  Nashik

54

58

4

     4.  Surat (Gujarat)

58

60

2

     5.  Delhi

55

62

7

     6.  Kolkata

50

53

3

     7.  Hyderabad

46

50

4

     8.  Bangalore

50

51

1

     9.  PalladamT.Nadu

47

50

3

     10.  Palladam Kerla

47

50

3

     11.  Namakkal

44

46

2

     12.  Bhopal

56

52

-4

Prices are representative and for reference only.
US $ 1 = Rs. 49.985 (Nov 25, 2008)

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


All rights reserved. No part of the report may be reproduced without permission from eFeedLink.

Share this article on FacebookShare this article on TwitterPrint this articleForward this article
Previous
My eFeedLink last read