Prices of different raw materials used in poultry feed recently increased by 9% to 40%. In response, feed manufacturers have raised the prices of their products by a meagre 7%. Many are not recovering the cost of production. Rising global prices of raw materials have resulted in margins being squeezed.
However, some critics have been quick to allege that the increase in feed price has no rationale other than profit maximisation. They claim that the price increase has harmed farmers, and increased the prices of chicken and eggs.
Poultry feed manufacturers argue that the price increases are not enough to conver their increased costs. As the industry is very competitive, each feed company is afraid that increasing its price will lead to a loss of market share. Because competition is intense, the feed industry operates with a very thin profit margin.
According to the late September 2026 data, the price of maize increased from Tk31.3 to Tk38.8 (per kg), soya bean meal from Tk58 to Tk66 (per kg). Maize and soya bean meal are the major ingredients of poultry feed. Though the price of maize increased by 24% and the price of soya bean meal increased by 14%, the price of poultry feed was raised only 7%, from Tk68 per kg to Tk72.50 per kg.
Other feed materials have also become more expensive. De-oiled rice bran from Tk26 to Tk33 (per kg), rice bran from Tk33 to Tk39 (per kg), and mustard oil cake from Tk36.50 to Tk39.70 (per kg).
The increasing cost of poultry feed inevitably increases the prices of chicken and eggs. Poultry industry stakeholders suggest reducing taxes on the industry to arrest the upward price spiral.
Mosharaf Hossain Chowdhury, president of Bangladesh Poultry Industries Association (BPIA) and managing director of Asta Feed Mill, mentioned that the price of soya bean meal rose 20% or $100 to $530 (per ton) in the international market in August. “The price of feed was increased by Tk2 per kg in late August and Tk2.50 per kg in September. Yet, feed mill owners are making losses,” he argued.
The first increase in raw material prices came when the maize price increased in Brazil and the shipping cost also went up. Moshiur Rahman, managing director of Paragon Agro Industries, said: “Raw material price increase elsewhere or supply disruption immediately affects the Bangladesh market.”
Ihtesham B Shahjahan, managing director of Quality Feeds Limited explained that it requires almost 80 ingredients to prepare poultry feeds and their prices increased by up to 40%.
BPIA leaders told this author that in the budget for fiscal year 2025-26, the rate of corporate income tax for the poultry sector increased from 15% to 27.5%. As a result, the net profit has already become very low, and feed mills must pass cost increases on to farmers.
ATM Habibur Rahman, chief commercial officer of Akij Feed Mill, said that the price of maize recently increased from $235 to $290 per ton. “If prices of all ingredients increase, how can we sell the poultry feed at same price?” he questioned.
Md Anwarul Haque, general secretary of Feed Industries Association of Bangladesh and managing director of Padma Feed Mill, pointed out that the poultry feed industry is imports 65% of its raw materials. “The prices of feeds have been raised only slightly, in comparison to the increases in prices of raw materials. We are in a survival mode now,” he added.
A recent Bangladesh Bank report reviewed the cost structure of a few companies, and calculated the cost of production of broiler grower feed at Tk61.77 per kg, and sales price at Tk69.75 per kg.
Around 150 companies produce 7.5 million tons of animal feeds, 70% of which is consumed by the poultry sector. A large number of informal feed mills also produce an additional volume of feed.
A study by Bangladesh Agriculture University predicted that the demand for animal feed will increase to 10 million tons by 2030 and that the poultry sector will account for 65% of it.
