Volatility in the price of broilers has been causing distress to low- and middle-income people recently, and poultry farmers have identified three reasons behind it, addressing which could help bring the price down.
Poultry farms are closing down one after the other due to a shortage of broiler chicks as well as lack of market supervision and price fixing.
In the last two years, about 8,500 poultry farms have closed down in six districts of Barisal division, with about 25,000 people losing their jobs along with the farmers.
If this situation continues, entrepreneurs could move away from this sector.
In this situation, to save the poultry sector, there is a growing demand for the price to be fixed as soon as possible by the government, ensure market supervision and address the shortage of chicks.
At the same time, the concerned people have urged increasing production.
Reasons for chicken price hike in market
Poultry farmers said the price of chicken has increased mainly due to three reasons.
The first reason is the shortage of broiler chicks; the second reason is hikes in the prices of poultry feed and medicine, and a rise in production costs; and the third is the presence of a syndicate.
They said that various raw materials including maize and soybean are required for making poultry feed.
About 70-80% of the poultry industry is dependent on imports of raw materials.
The prices of poultry feed and fuel have gone up due to increases in the cost of production. Because of this, the prices of eggs and chickens have shot up.
Poultry industry stakeholders said hatchery owners in various parts of the country killed broiler parents due to losses resulting in reduced chick production.
Where Barisal city needs 100,000 broiler chicks per day, only 15,000-16,000 are coming there.
Due to the high demand for chicks, their price has increased.
Farmers said they invested crores in their poultry farms. They are rearing layers, broilers and Sonali chickens by renting homes.
But due to a lack of government supervision and not fixing prices, small and large farmers are suffering losses.
In this situation, big farmers are somehow keeping their businesses afloat by buying a few chicks.
However, small farmers have stopped poultry farming and sold their farms.
Some are still trying to sell farms.
A hatchery owner said on condition of anonymity that the price of poultry feed has increased several times. Along with this, the production cost has increased. But the price of chicks has not increased much. Hatchery owners became indebted due to losses.
Many farmers have killed broiler parents over the years. They are no longer producing broiler chicks. Because of this, there is a crisis of broilers. Now the number of chicks coming into the market is much lower than the demand.
He also said that there is a demand for 100,000 chicks in Barisal city alone but only 15,000 are coming there.
Many farmers have closed their farms because of this. The price of chick has increased due to low production, he added.
Fear of further price hikes
In this situation, chicken sellers fear that the price of chicken will increase further.
A seller named Md Arman of Banglabazar said: "Farmers are suffering due to the shortage of broiler chicks, and rising poultry feed, medicine and production costs. That is why the price of chicken has suddenly increased. If this crisis continues, customers might have to buy chicken at the rate of Tk300 per kg next Eid. It is even doubtful whether they will find chickens in the markets.”
Necessary steps
Bangladesh Poultry Association Barisal Divisional General Secretary Enayet Hossain Shubo said that three steps should be taken to resolve the crisis.
They are - government pricing, ensuring market supervision to control the price of poultry feed and increasing the production of chicks.
Shubo said that he has been involved in the poultry business since 2018. He reared layer and broiler chickens in a three-storey building built on his own land in Barisal city. He kept six employees for that. Already he suffered a Tk40 lakh loss.
Due to losses, he has stopped farming layer chickens.
Mentioning that the poultry industry has been created by private initiative, Enayet Hossain said that the government has not given any kind of support to those involved in this industry till now.
Gradually, there were 14,500 small farmers in the six districts of the division, and around 43,000 employees were involved with poultry farming.
In the last two years, 8,500 farms have closed down due to the Covid-19 pandemic as well as the crisis of broiler chicks, and rising prices of poultry feed, he said, adding that a large part involved in this industry has become unemployed.
Shubo said that to keep this industry alive, there is no alternative to fixing the price by the government.
He continued: “Government supervision should be increased also. The closed farm will be operational again. New farms will be developed. There will be employment opportunities for the unemployed. Highly educated unemployed people will also be involved with this industry as a profession.”
Chicken and egg sellers are in a good position
Enayet Hossain Shubo also said that poultry food producers are supplying food to traders with a reduction of 12%. That burden is finally falling on the buyer.
“Similarly, the price of medicine has also increased. Farmers are in trouble. Apart from this, if anyone wants to sell chicken in Dhaka, he has to pay a surcharge of Tk5 per kg. But there are broilers being sold in vehicles on roads. The profit of warehousing is collected from the buyer.”
But even in this situation, chicken and egg sellers are in a good position. They make big profits, unlike farmers and middlemen.
His manager Md Shahin said that since 2018, he has been rearing and looking after the chickens on the farm. There were 20,000 layer chickens on the farm at that time. Because of the loss, there are now 7,000 chickens.
Besides, medicine prices also have more than doubled now, he said.
But the prices of eggs and chickens did not increase in that way, but the current market prices are unusual, said Md Shahin.
Poultry Association Barisal Divisional President Abdur Rahim Gazi said: "I am rearing 12,000 layer chickens in two flats of my four-storey building. I have invested Tk3 crore in the business. But while doing the calculations, I see that I am struggling to recoup my investment, let alone see a profit.”
He also said that they held several press conferences and demanded the government fix the price. A committee for fixing prices was also formed by the government. But, there is no progress.
“In this situation, the poultry sector has become unstable. It has to be controlled quickly,” demanded the poultry association leader.
