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December 9, 2008
 
India Poultry Weekly: Egg exports to Gulf hit by bird flu scare (week ended Dec 6, 2008)
 
An eFeedLink Exclusive
 
 
Price Summary
 
A downward trend was seen in all broiler markets in India except in Bangalore and Namakkal where broiler prices remained stable.

Mumbai, Pune, Nashik prices dipped by INR 11 per kg, followed by Surat (Gujarat) and Palladam (Kerala) prices which also dropped by INR 10 per kg.

The least affected markets were Namakkal, Paladam (Tamil Nadu) with INR 3 per kg and Hyderabad at INR 1 per kg.

A negative trend was also seen in egg prices in the last week in all stations in India.
 
Kolkata with Brown Egg variety witnessed a drop of INR 25 per 100 eggs followed by Kolkata (white) eggs and NECC (Namakkal) weakened by INR 24 per 100 eggs.

The Parent stock also suffered a setback and settled at INR 3,500 as compared to last week's price of INR 4,000 per 20 birds.
 
The price of layer bird also came down to INR 900 per 20 birds as compared to last week's price of INR 1,000 per 20 birds.
    
 
Chick prices in North India came down and traded at INR 15-16 per chick including Srinagar (Jammu & Kashmir) and Punjab and in Kolkata and it was traded between INR 10 to INR 11 per chick, with a loss of INR 5 - 6 per chick.
 

Market Analysis
 
The bird flu scare in the north-east has affected the table egg exports from Namakkal to a few Gulf nations once again.

During the past month, India's egg export industry recovered as countries such as Muscat lifted its ban after the World Animal Health Organization (OIE) declared India a bird flu-free country, according to a top official in National Egg Coordination Committee (NECC).

"As soon as the news of bird flu outbreak in India spread, Muscat rejected a consignment of eggs from Namakkal on Sunday," the offical said.
 
Namakkal exports around 1.5 to 2 million eggs to Muscat daily. Egg exporters in South India, mainly Namakkal - the poultry hub - who contribute nearly 90 percent of exports, fear that their business may be hit. During every outbreak of bird flu in other states, the poultry export industry in Tamil Nadu incurs a loss of over INR5,000 million.

"We are paying a heavy price every time avian flu outbreak is reported in far off States such as Maharashtra or Manipur. It is high time the central and state governments resorted to zoning and saved our businesses," the NECC official said.
 
The development comes at a time when a continuous rise in egg price has brought some relief to the 800 - odd poultry farmers in Namakkal who had gone through tough times for the last ten months. This includes fighting numerous issues including the ban on imports from India by West Asia in the wake of bird flu in Manipur and rising feed costs.
 
Bird flu spreads in Assam
 
A week after bird flu outbreak was confirmed in Thakuria Chuba of Rajabazar village in Kamrup (rural) district, the de has now spread to some other parts of the district and neighbouring Kamrup (Metro) district.

"Laboratory test confirmed bird flu virus in Sarapara village in Palasbari revenue circle. We will start the culling operation in 11 villages in and around Sarapara," Kamrup (Rural) deputy commissioner R.C. Jain said.

Bird flu also spread to Patgaon village in Kamrup (Metro) district, adjacent to Palasbari circle. A large number of poultry birds died in Patgaon and three neighbouring villages. Samples sent to the Bhopal-based High Security Animal Disease Laboratory (HSADL) tested positive.

As of now, 200,000 poultry birds have been culled in Kamrup (rural) and 100,000 in Kamrup (metro). There are several commercial poultry firms in Kamrup (rural), which supply 50 percent poultry products to Guwahati city.

Assam animal husbandry and veterinary director Aswini Kotoki said the source of the infection were local lakes, where a lot of migratory ducks fly in at the onset of winter. "Laboratory tests have confirmed the presence of H5N1 virus. Migratory birds are believed to be the source of this virus," Kotoki said. He didn't rule out the possibility of the virus spreading to other districts.

"The infection, first detected in the Hajo area, has now spread to Rampur and Rani on the outskirts of the state capital," Kotoki said.

"Culling operation in Hajo villages will be completed by December 5, as many as 51,546 birds have been culled in 48 villages. Around 0.2 million poultry birds will be culled in both Hajo and Palasbari revenue circles," Jain said.

Twenty-five member teams - including four veterinary department officials and a member of district administration - had been sent out for the job.

Culling has to be carried out in all villages within three kilometers radius of the epicenter, where outbreak is detected. Both the district administrations have imposed section 144 and prohibited sale and movement of poultry birds and products in areas within 10 kilometers of the affected villages.

Some bird owners are not happy with the compensation. The state government has sent a memorandum to the Central Government of India to increase the compensation amount. Culling is done under a scheme of the Union Government.
 

Market Forecast
   
In the week ahead, due to the arrival of winter season, demand in the market will be normal, broiler and eggs prices may be stable or increase slightly compared to this week's level. 

Prices for corn remain firm on higher demand despite increase in arrivals.  

Soy output is likely to be low due to poor weather in cultivating regions, which may strengthen prices in the future.
 

Weekly transacted prices of broilers in India for 2008

Cities

Prices as of Nov 29
(Rs./kg live weight)

Prices as of Dec 6
(Rs./kg live weight)

Price change
(Rs./kg live weight)

     1.  Mumbai                        54                        43                     -   11
     2.  Pune                        54                        43                    -    11
     3.  Nashik                        53                        42                    -    11
     4.  Surat (Gujarat)                        55                        45                    -    10
     5.  Delhi                        50                         48                    -    2 
     6.  Kolkata                        47                        40                    -    7 
     7.  Hyderabad                        46                        45                    -    1
     8.  Bangalore                        47                        47                    Stable 
     9.  PalladamT.Nadu                        53                        50                     -    3 
     10.  Palladam Kerla                        53                        43                    -    10
     11.  Namakkal                        46                         46                    Stable
     12.  Bhopal                        50                        44                     -    6 
Prices are representative and for reference only.
US $ 1 = Rs. 35.425 (Dec. 9, 2008)
 

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


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