October 29, 2014

Pakistan poultry industry faces collapse on mounting losses

Mustafa Kamal, chairman of the Pakistan Poultry Association, said poultry growers had been selling off their stocks at huge losses due to political instability, power interruptions and the recent floods.

At a press briefing on Monday, he warned that "if the situation persists, farmers would soon start shutting down their operations."

The poultry sector contributes 40% to the country's total meat consumption and generates employment and income for 1.8 million people.

 "The poultry sector is one of the most organised branches of the agro-based sector of Pakistan," Kamal said. "The sector has been serving the nation since 1962 and provides affordable poultry products" for the people's protein requirements, he added.

The current cost of production of a broiler is about PKR135/kg (US$1.30/kg), but it is being sold at PKR95-100/kg (US$0.92-US$0.97/kg).

A loss of PKR40-45/kg (US$0.39-0.44/kg) is huge and producers can't bear it any longer, Kamal said.

Appealing to the government for urgent help, he said prices of chicken and eggs should be allowed to increase without any intervention from both the national and local governments.

Kamal said the government should also provide a 25% subsidy on transport costs for the poultry industry.

It should also provide interest-free loans so that farmers who have shut down their businesses can resume operations.

Those with existing loans, he added, should be given a moratorium of at least one year in their monthly loan payments.