June 26, 2023

 

Poultry and egg prices surge in India due to production shortfall and rising feed costs

 

Poultry and egg prices in India have witnessed a significant increase of around 20% attributed to a shortage in production, an extended summer season, and escalating feed expenses, Money Control reported.

 

While consumers are facing higher prices for chicken and eggs, poultry farmers are now experiencing profitable returns after enduring substantial losses during the pandemic. Despite the soaring egg prices, demand remains robust.

 

The costs of feed have started to stabilise, with a decline in maize prices. Typically, as the summer transitions into the rainy season, poultry consumption tends to rise. The industry anticipates that poultry prices will not decline significantly.

 

K Anand, general manager at Venkateshwara Hatcheries, said that with summer getting extended with inadequate rains, there is high mortality in the poultry farms, leading to a shortage. Besides, the feed cost remained high in the past few months, raising production costs.

 

Wholesale chicken prices have reached approximately INR 110 (~US$1.34; INR 1 = US$0.012) per kg, while eggs are priced between INR 5 (~US$0.061) and INR 5.50 (~US$0.067) each. Egg prices have hit a new high, with major markets selling them at INR 7 (~US$0.085) per egg.

 

Due to favourable prices for chicken, there has been a shift in some regions from raising layer birds, which are primarily used for egg-laying purposes, to broiler birds, raised for meat production. Dressed chicken, ready for sale or consumption, is being sold at around INR 300 (~US$3.66) per kg in cities and towns.

 

Sasti Kumar, firector at Ponni Group of Companies, an egg producer in Namakkal, Tamil Nadu, said that there is around a 20% shortage of layer birds in the farms, which, along with excess heat, has led to lower egg production.

 

Egg production in Namakkal, the country's hub for eggs, has declined from 50 million eggs per day to 40-45 million eggs per day.

 

In the previous year, India experienced a surge in egg exports due to increased demand from Gulf countries, particularly during the FIFA World Cup in Qatar, as Ukraine's supplies decreased following the conflict with Russia. Oman and the United Arab Emirates were already major importers of Indian eggs, and Qatar joined the list.

 

But this year, egg exports have fallen to approximately 1 million eggs per day from 2.5 million eggs per day.

 

PV Senthil, secretary of the Livestock and Agri-Farmers Trade Associations, said that eggs from Turkey have become cheaper, and consumption has decreased as summer sets in the Gulf countries.

 

Senthil said there has been a delay in the arrival of new batches of chicks in the farms. This has affected prices, which are likely to remain high in the next couple of months due to demand.

 

-      Money Control