Indian poultry industry heading towards crisis, experts warn

//13 Jan 2012
The poultry industry in the Indian sate of Andhra Pradesh is heading for a major slump with thousands of marginal and big farmers incurring huge losses, The Times of India is reporting.
The rise in feed costs, particularly soyabean and maize, along with production costs in the last three months, have led experts to suggest there may be negative growth for the poultry industry in the coming months.

The production cost for broiler chicken has gone up from Rs 30 to Rs 50 per kg but the market rate has decreased from Rs 100 to Rs 70 a kg. "Skinless chicken is available at Rs 102 a kg, the dressed chicken at Rs 86 and live bird for Rs 50," A Gopal Reddy, executive director of a private hatchery, pointed out. The production cost was Rs 42 per kg a few months ago and the market rate of Rs 100 per kg was economically viable for the breeders.

One tonne of soyabean now costs Rs 16,000 as against Rs 12,000 in October/November last year. Similarly, a tonne of maize costs Rs 12,000 as against Rs 9,000 a year ago. The poultry farm owners also have another worry with the rates of 50 types of imported varieties of feed like amino acids and vitamins to breed chicken going up. Frequent power cuts have also plagued the industry.

Industry sources say as a result of increase in production costs, 14,000 poultry breeders and 95 hatcheries across the state are facing desparate times. Andhra Pradesh produces about three crore broiler chicken every month but with the industry facing a rough patch, the production could decline. Telangana is the worst-hit with 60% of the breeders belonging to the region.

Industry observers said the situation is grim in Medak (with 1,387 breeders), Ranga Reddy (826), Nalgonda (1,140), Mahbubnagar (1,140) along with Chittoor (1,191), West Godavari (658) and Krishna (772) districts which account for the majority poultry breeders in the state. As a solution to tide over the crisis, breeders want the government to ban forward trading in maize and soyabean immediately.

Source: The Times of India