February 27, 2023

Chicken demand in Sri Lanka declines due to inflation

Ceylon Grain Elevators, a top poultry group in Sri Lanka, said chicken demand in the country has declined in the fourth quarter of 2022 due to high inflation, which reduced disposable incomes, EconomyNext reported.

Revenue for Ceylon Grain Elevators, which includes sales of chicken, hatcheries, and feed milling, decreased by 36% to LKR 3.1 billion (~US$8.4 million; LKR 100 = US$0.27) in the December quarter from the same period in 2017.

The first nine months of 2022 saw an increase in chicken revenue due to rising prices and demand. Sri Lanka's fish prices also increased last year as a result of local fishermen finding it difficult to attain diesel.

Cheng Chih Kwong, chief executive of Singapore-based food company Primus, said demand for chicken in Sri Lanka decreased in the final quarter, due to  bad weather and the impact of rising inflation levels that put pressure on consumers' disposable income.

Cheng said this was made worse by the VAT increase, which affected the affordability of goods and resulted in a decline in demand.

-      EconomyNext