October 10, 2023

 

More increase in Pakistan's chicken prices expected

 

 

Chicken prices in Pakistan are anticipated to increase further in the coming months as a result of the federal government's ban on the import of genetically modified (GM) soybeans in October 2022.

 

Since the ban, domestic chicken prices have surged by more than 35%. This significant price hike has left consumers grappling with higher food costs.

 

Industry experts are warning that the situation may worsen in the coming months, with Khalil Sattar, owner of K&N's, predicting a substantial surge in chicken prices in 2024.

 

GM soybeans are key components of poultry feed in Pakistan

 

Another critical factor contributing to the Pakistani poultry industry's woes is the drastic reduction in annual imports of grandparent stock (GPs). GPs are essential for producing parent stock, which, in turn, leads to the production of broilers for consumption.

 

This year, Pakistan's annual GP imports have plummeted from 267,000 birds to 65,000. Hence, the country is facing a potential 76% reduction in broilers available for consumption compared to the previous year.

 

The ban on GM soybean imports has caused soybean prices to skyrocket in Pakistan. A steep price increase has forced approximately 40-50% of farmers and mill owners to shut down their operations due to the unaffordability of essential feed ingredients.

 

Consequently, poultry growth rates have been severely impacted, with birds now taking at least 18 days longer to reach maturity.

 

Ghulam Khaliq, senior vice xhairman of the Pakistan Poultry Association, emphasised the importance of importing soybean meal rather than soybean seed. He predicted that chicken prices could potentially drop by 40% once the Ministry of Food Security and Research allows the importation of soybean meal.

 

As consumers continue to grapple with rising food costs and uncertainties in the poultry industry, the government's approach to managing the soybean import ban and addressing the challenges faced by farmers and mill owners remains a significant concern.

 

- Samaa