January 15, 2021

Pakistan's poultry industry stuck in crisis, says poultry association official

 
The Pakistan Poultry Association (PPA) North Zone's vice-chairman Raja Attique-ur-Rehman Abbasi said the local poultry sector remains in crisis and the government's intervention to control prices may further worsen the current situation.

Abbasi highlighted at a press conference on January 11 that poultry was one of the most organised branches of the agri-based sector in Pakistan.

"Prices of chicken products are determined purely based on market supply and demand," Abbasi said. "This is why, at times, prices of chicken products are below the input cost borne by the farmers and they are compelled to sell their commodity at a price lower than the cost of production and hence, bear losses."

"The phenomenon of low and high prices helps farmers to achieve an average price (year-on-year) which is slightly better than the input cost, where a farmer can make some profit provided efficiency remains good," Abbasi added.

According to Abbasi, the poultry sector employed over 1.5 million people directly and indirectly with an annual turnover of over Rs800 billion (US$4,987,531,120).

"Pakistan produces 1,322 million kilogrammes of chicken meat and 17,500 million eggs annually," he said.

The production cost of chicken meat is Rs180 (US$1.12). When it reaches the market, it is sold around Rs265 (US$1.65). "It is noticed that 30% to 35% of farms have been closed due to losses faced by poultry farmers over the last few months," Abbasi said.

Furthermore, the demand for chicken meat fell from 30% to 35% last year.

Abbasi said PPA had cautioned the Pakistani government not to intervene in fixing prices as it would result in a shortage of chicken meat and farm closure.

 - Tribune