A hot summer, followed by flooding in many districts and the shutdown of many farms in recent times, has led to a decline in the production of eggs and broiler chickens, triggering a sudden rise in the prices of these products.
Industry leaders lament that allegations of a syndicate have obscured the actual issues facing the poultry sector. At present, the demand for chicken and eggs is higher than the supply, which is why prices are high. The supply of chicken and eggs must be increased for prices to fall.
Allegations of a syndicate are being made without any evidence. People accept that the supply of vegetables fell because vegetable fields were flooded, but they do not accept that the supply of eggs decreased because egg farms were flooded. They jump to the conclusion that egg prices increased because of a syndicate.
Mahbubur Rahman, President of the Breeders’ Association, stated that thousands of farms suffered losses and were shut down due to recent flooding, worsening the shortage of chicken and eggs, which began when chickens were affected by heat stroke during the hot summer days.
Mahbubur Rahman added that poultry sector entrepreneurs recently lowered their selling prices of poultry feed and eggs in response to requests from government agencies. He mentioned that poultry companies were recently selling eggs at around Tk 11 apiece, while the retail price was Tk 15 per piece. Therefore, poultry companies should not be blamed for the high retail prices.
“It needs to be investigated why and how prices have increased so much. We believe companies should not be blamed for the demand-supply gap and flaws in the supply chain,” he said, adding that allegations of a syndicate among companies are baseless.
Jahirul Islam, an egg trader at Kaptan Bazar in Dhaka, said that he is selling eggs at the ceiling price set by the government. He is currently able to buy some eggs from poultry companies like Kazi Farms, Nourish, and Paragon at the ceiling price declared by the Department of Agricultural Marketing. However, at least 80% of the eggs are produced by small farmers, who are no longer selling their eggs to Kaptan Bazar traders. Instead, they are selling their eggs in other towns, where prices are higher due to less government monitoring.
Kazi Zahin Hasan, Director of Kazi Farms, stated: “There cannot be a syndicate controlling the prices of eggs or chicken, as thousands of farms sell these products every day. It is not possible for thousands of farmers to form a syndicate. Likewise, there cannot be a syndicate controlling the prices of day-old chicks or feed, as there are about a hundred companies with feed mills and hatcheries that compete with each other for market share. Syndicates don’t exist in competitive markets. Feed costs are high because most feed materials are imported, and the Taka has depreciated by 40% over the last two years.”
Kazi Zahin Hasan added: “During the recent floods, chickens drowned on many farms, which reduced the egg supply. That’s why egg prices have increased. The same issue arose after the floods in 2023. After those floods, the competition commission accused us of artificially raising egg prices, but it was not an artificial increase. Floods are a natural occurrence in Bangladesh. After a flood, egg production will naturally fall, and egg prices will naturally increase.”
He also said: “There is no reliable data on the supply and demand for poultry products. The DLS has not conducted a poultry farm census in many years, so actual production levels are uncertain. Many farmers have stopped production over the last two years due to high feed costs. While the DLS has demand estimates, in reality, demand for chicken and eggs is not constant. When vegetable prices rise, people consume more chicken and eggs. Recent floods have damaged vegetable crops, increasing the demand for chicken and eggs.”
Stakeholders noted that baseless accusations of syndicate activity have tarnished the reputation of the industry and discouraged investment. Without investment, the industry will not grow, which may lead to severe shortages in the future.
It will take farmers months to raise new hens to replace those lost in the recent floods. Therefore, in the short term, it is necessary to import eggs.
