December 26, 2007

India's Andhra Pradesh poultry farmers face declining fortunes

After making good profits in 2006-07, broiler farmers in Andhra Pradesh are confronting fluctuating fortunes after an excess of supply in the market.

Last year saw a 25 percent rise in production while consumption increased by the usual 10-12 percent. 

While hatcheries are grappling with excess production, farmers are receiving only INR32 -33 (US$0.81 - 0.84) for a kilogramme against the production cost of INR35 (US$0.89). 

According to G Butcha Rao, secretary of Andhra Pradesh Broiler Farmers Association, if the present market conditions continue for three more months, Indian farmers will lose half of their earnings and profits.

Meanwhile, broilers contract farming has made inroads into Nalgonda and Rangareddy districts of Telangana and Godavari districts and part of the Visakhapatnam district of coastal Andhra.