December 17, 2004

Pakistan Sees Sharp Rise in Poultry Product Prices

The retail prices of various poultry products in Pakistan have increased sharply in the last 2 to 3 weeks.

The retail price of poultry surged to Rs 130 per kg from Rs 105 per kg, broiler (live) chicken rose to Rs 74 per kg from Rs 55 per kg, while per dozen prices of eggs were up from Rs 30 to Rs 42 during the period under review.

A decline in the production of chicken due to high prices of chicks is the main reason behind the sudden rise in the retail prices, according to dealers. They added that the prices are expected to remain on the higher side throughout December and possibly into the new year as well.

Production has declined because many small farmers left the field in the aftermath of bird flu virus, which resulted in heavy losses for the industry a year ago. Abdul Maroof Siddiqui, central convener of the Pakistan Poultry Association, said many small farmers wind up their business due to losses and owners of big poultry houses are still running in losses. The ban on wedding meals has also affected poultry sales.

According to Muhammad Rafiuddin, a central member of the association, the increase in retail prices of poultry products is due to high prices of chicks, which have risen to Rs 22 per chick from Rs 14 per chick.

"Mostly customers have shifted to beef mainly because of higher rate of poultry meat," Mr Rafi added. He said the winter season has also contributed to low consumption of poultry meat.

He said hotels and restaurants in the city have also slashed their poultry meat purchases by up to 35 percent. Muhammad Naeem, a poultry manager, said retail prices of poultry products would remain high in the near future. He said increased supply would help to ease prices gradually.

Raeesuddin Paracha, an official of the Karachi district government, stated that the poultry farm association is an independent body and regulate retail prices on daily basis. He said the city district government has nothing to do with the price mechanism set by the body, but the city administration only checks the quality of poultry on sale.