March 27, 2025

 

Bangladesh poultry industry seeks support to protect farmers amid price fluctuations

 

The Bangladesh Poultry Industries Central Council (BPICC) has proposed six measures to safeguard marginal farmers and help them remain in poultry farming.

 

The proposals were presented during a discussion, organised by BPICC and the World's Poultry Science Association - Bangladesh Branch (WPSA-BB).

 

The proposals include ensuring farmers have access to low-interest loans, setting both minimum and maximum prices for eggs and poultry under government regulation, and removing restrictions on egg storage in cold storage facilities. Additionally, the industry leaders called for subsidies for marginal farmers during off-seasons, eliminating AIT, TDS, and VDS taxes on poultry feed to reduce costs, and developing a strategic policy on egg and poultry production, storage, and marketing.

 

Farmers face recurring financial challenges as egg and poultry prices fluctuate three to four times a year. Many are forced to sell their chickens at a loss when prices drop. This month's unusual decline in egg prices has placed additional pressure on farmers, with some selling eggs at BDT 7.30 (US$0.060) per piece due to storage restrictions and fines.

 

WPSA-BB President Masiur Rahman highlighted that while retail egg prices in Dhaka ranged between BDT 10 (US$0.082) and BDT 10.50 (US$0.086) per piece, farm gate prices averaged BDT 8.50 (US$0.070) in Dhaka and Mymensingh and BDT 8.00 (US$0.066) in Tangail and Narsingdi. The Department of Agricultural Marketing (DAM) had set the farm gate price at BDT 10.58 (US$0.087), wholesale price at BDT 11.01 (US$0.090), and retail price at BDT 11.87 (US$0.097)  per egg, against a production cost of BDT 10.19 (US$0.084).

 

According to Rahman, farmers are currently losing at least BDT 1.69 (US$0.014) to BDT 2.19 (US$0.018) per egg. With an estimated daily production of 45 million eggs, losses over the past 21 days have reached between BDT 1.59 billion (US$13 million) and BDT 2.06 billion (US$16.9 million). Unable to sustain these losses, many farmers are selling off their chickens, which could lead to supply shortages and price increases after Ramadan when demand rises as schools and offices reopen.

 

Rahman also pointed out that egg prices in Bangladesh are lower than in most countries. While neighbouring countries may claim to have cheaper eggs, their eggs are 13% lighter in weight, whereas Bangladesh's prices are only 10% lower.

 

WPSA-BB Secretary General Bipul Kumar Pramanik noted that poultry feed quality in Bangladesh is superior, as foreign feeds often contain antibiotic growth promoters and meat-and-bone meal, which are banned locally.

 

Feed Industries Association Bangladesh (FIAB) Secretary General Md. Nazrul Islam highlighted the significant price gap from farm to consumer. While neighbouring countries have a price difference of BDT 1.00 (US$0.0082), the gap in Bangladesh is BDT 3.00 (US$0.025)  to BDT 4.00 (US$0.033). Reducing the number of middlemen could help lower egg prices.

 

Animal Health Companies Association of Bangladesh (AHCAB) Secretary General Aftab Alam proposed exporting eggs to mitigate losses, given the minimal import levels due to low demand.

 

Diamond Eggs CEO Asaduzzaman Mezbah stated that many farmers are burdened by significant bank loans and operate at a loss for three to four months each year. He emphasised that encouraging farmers, rather than imposing restrictions, would help sustain their production

 

- The Financial Express