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December 22, 2008

India Poultry Weekly: Egg council asks to halt backyard poultry projects on bird flu woes (week ended Dec 21, 2008)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Due to bird flu, there was a downward trend in all the broiler markets in India.
 
Kolkata broiler lost Rs. 25 per kg, Palladam (Tamil Nadu) and Pallladam (Kerala) lost Rs. 13 per kg each, followed by Surat (Gujarat) which lost Rs. 11 per kg.
 
Hyderabad, Delhi and Namakkal also lost Rs. 9 and Rs. 5 each per kg followed by Mumbai, Pune and Nashik losing Rs. 4 each per kg.
 
A major fall in prices in eggs sector was also seen in the last week in all stations in India.  The maximum loser in the egg section was Barwala with a loss of Rs. 41 followed by Delhi with Rs. 39 and Hyderabad with Rs. 34 per 100 eggs.
 
The worst affected bird flu station Kolkata incurred a loss of Rs. 30 in brown eggs and Rs. 15 in white eggs per 100 eggs as compared to last week's prices. 
 
The parent stock also got a setback and settled at Rs. 2,200 as compared to last week's price of Rs. 3,000 per 20 birds.
 
The price of layer bird also tumbled down to Rs. 500 per 20 birds as compared to last week's price of Rs. 700 per 20 birds.    
 
Chick prices in North India came down and traded without any buyers at Rs. 5 to Rs. 7 per chick including Srinagar (Jammu & Kashmir) and Punjab. In Kolkata, it was traded between Rs. 3 to Rs. 4 per chick.
 
 
Market Analysis
 
India's National Egg Coordination Committee (NECC) plans to suspend backyard poultry projects due to bird flu worries now gripping the country.
 
The poultry industry of Maharashtra still suffers from the aftermath of bird flu in 2006; which caused a loss of Rs. 110,000. The industry is struggling to rise and any news of bird flu in other parts of India, even from unorganized sector especially from Eastern part, creates panic on the organized sectors of poultry industry in Maharashtra.
 
With an annual production of 53,000 million eggs and 3.2 million tonnes of poultry meat, India is the second largest egg producer and the third largest broiler producer in the world. At the current level of production, the poultry sector contributes Rs. 450,000 million to the gross national product (GNP) and provides direct and indirect employment to over 3.2 million persons.
 
In addition to this, over 20 million corn farmers and half a million soy farmers are also directly dependent on the poultry sector, as more than 80 percent of the corn and a substantial share of soymeal produced in the country are consumed by the poultry industry.  
 
The NECC has appealed to the government of India to suspend all projects and programmes aimed at promoting backyard poultry farming especially in the eastern sector, where India shares border with Bangladesh.
 
Chairperson, Anuradha J. Desai of the Venkateshwara Hatcheries Group, said that of the Rs.450,000-million Indian Poultry industry, the unorganized sector has only two percent share.
 
According to an official release, it noted that recurring declarations of bird flu in a few backyard poultry farms in some remote corners of the country were causing damage to the entire poultry industry in the organized sector, jeopardizing livelihood of millions of people.
 
She further said that majority of unorganized poultry units are operating in West Bengal and are being fed by North and South India's Broiler farms. West Bengal does not have broiler farms and that's why around 30 million layer eggs were supplied per month from the rest of India, she added.
 
Desai also confirmed that West Bengal is a big consumer of 25 million eggs daily and any sort of incidence in this area creates panic and affects in other parts of the country. Moreover, a large area of West Bengal is well connected with Bangladesh border and it creates adverse effect on the poultry market.
 
Chicken prices slashed in Kolkata
 
Prices of chicken have dropped by Rs. 10 to 15 per kg. "I am expecting orders during the festival season. I do not know what will happen if bird flu spreads like it did in January this year," said Sujon Pahari, a retail chicken dealer in the city.
 
Manoranjan Naskar, a member of the West Bengal Poultry Association said, "things would change drastically if the disease spreads to other districts."
 
The Kolkata Municipal Corporation is keeping a close watch on the situation in the state capital. "The city is safe so far. We are however keeping a close watch on the markets and the entry and exit points of the city," said Mayor Bikas Bhattacharya. 
 
Bengal delays action, panic spreads
 
As the West Bengal government machinery took more than 24 hours to start its culling in Malda district, 340 kilometers north of Kolkata, the bird flu panic spread in the state capital.
 
Satgheria village in Malda district, the epicenter of bird flu this time, had been waiting for culling teams to turn up since Tuesday (December 16) morning. But the teams got into act only by Tuesday evening.
 
Malda district magistrate Sridhar Ghosh admitted there was a lack of coordination between various departments of the district administration. "The compensation money for the livestock to be culled did not reach the spot on time. Gathering entire teams for the culling operation was also tough," Ghosh said.
 
Meanwhile, even as the north-eastern states are grapping with the bird flu outbreak, major egg producer Namakkal remains unruffled.
 
 
Market Forecast
 
In the week ahead, due to the arrival of winter season and with bird flu on high alert, demand for poultry would dip in the coming days. Broiler and eggs prices may also be in decreasing compared to present week's level. 
 
Delay in fresh arrivals of corn due to bad weather is likely to raise the prices amidst strong domestic and export demand.
 
Soy prices continue to be firm on good domestic demand from millers and crushers as well as export demand. The situation has been aided by declining arrivals.
 

Weekly transacted prices of broilers in India for 2008

Cities

Prices as of Dec 13
(Rs./kg live weight)

Prices as of Dec 20
(Rs./kg live weight)

Price change
(Rs./kg live weight)

     1.  Mumbai                       44                       40                    -  04
     2.  Pune                       44                       40                    -  04
     3.  Nashik                       43                       39                    -  04
     4.  Surat (Gujarat)                       47                       36                    -  11
     5.  Delhi                       45                        40                    -  05 
     6.  Kolkata                       51                       26                    -  25 
     7.  Hyderabad                       46                       37                    -  09
     8.  Bangalore                       53                       50                    -  03
     9.  PalladamT.Nadu                       53                       40                     -  13 
     10.  Palladam Kerla                       53                       40                    -  13
     11.  Namakkal                       47                        42                    -  05
     12.  Bhopal                       42                       40                     -  02 
Prices are representative and for reference only.
US$1 = Rs. 47.465 (Dec 22, 2008)

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


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