November 13, 2024

Andhra Pradesh, India's poultry sector struggles amid rising costs and adverse weather

The poultry industry in Andhra Pradesh, India is grappling with rising production costs and adverse weather conditions, despite chicken prices reaching INR 240 (US$2.84) per kg in the market.

These challenges have led some broiler growers to consider leaving the sector.

While the retail price of chicken ranges between INR 230 (US$2.73) and INR 250 (US$2.96) per kg, poultry farmers earn only INR 200 (US$2.37) for every two kg of live birds, a return they describe as unviable.

T Appalaraju, a representative of the Broiler Chicken Association in north coastal Andhra Pradesh, explained that rising input costs, particularly for bird feed, are a key concern.

"The cost of bird feed, especially soya and corn, has increased sharply. It has risen from INR 2,100 (US$24.88) per 100 kg to more than INR 2,700 (US$31.99)," Appalaraju said. He added that the fluctuating nature of the poultry trade often leaves farmers struggling to turn a profit.

The situation is compounded by high mortality rates in broiler farms, caused by adverse weather conditions, and an increased cost of production. The price of day-old chicks has risen to INR 50 (US$0.59), while feed costs have jumped from INR 36 (US$0.43) to INR 42 (US$0.50) per kg.

K Srinu, also from the Broiler Chicken Association, noted that farmers would need to earn at least INR 120 (US$1.42) per kg of live bird to achieve marginal profits. However, the current price is far below this level.

"There is a mismatch between demand and supply due to reduced chicken production, but the price of live birds hasn't increased as expected," said G Ramu Naidu, a poultry farmer. "We are selling live chicken at INR 100 (US$1.18) per kg, while the production cost is around INR 105 (US$1.26)."

-      The Times of India