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40% poultry farms close down due to massive losses

By Khalid Iqbal
April 20, 2016

Islamabad

More than 40% poultry farms have been closed throughout the country, particularly in the Potohar region of Rawalpindi and Islamabad, as their owners faced huge losses worth Rs22 billion during last nine months.

Chicken meat has been considered an inexpensive source of protein, particularly for the poor, but high production cost, ever-increasing taxes on ‘feed’ and political instability has destroyed this industry depriving people of a cheaper source of protein.

At present, 1-kilogram chicken meat is being sold in retail shops for Rs320. It was available for Rs150 a few months ago.

According to data available from the Pakistan Poultry Association (PPA), in July 2015, the price of 1-kilogram chicken from farmhouse was at Rs150, in August at Rs118, in September at Rs85, in October at Rs83, in November at Rs104, in December at Rs119, in January 2016 at Rs110, in February at Rs88 and in March 2016 at Rs129. But in the month of April, chicken prices from farmhouses have shot up to an unaffordable level for common people.

According to health experts, consequently the declining per capita consumption of meat in Pakistan would further witness a plunge, bringing adverse impact on public health and physical strength of the working class.

Pakistan Poultry Association (PPA) Central Chairman Khalid Saleem Malik told ‘The News’ that chicken and eggs were selling at cheaper prices when 100 per cent farmhouses were operational. “We sold chicken on cheaper rates providing big relief to public despite facing huge losses worthy Rs22 billion during past nine months. Some of farmers faced losses therefore more than 40 per cent farmers have quit the business and closed their poultry farms, he added. 

He said: “We are continuously facing big fluctuation of demand and supply after closing down more than 40 per cent farmhouses. So, rates are going higher and higher in retail market.”

The PPA central chairman claimed that they are paying Rs123.41 cost for 1-kilogram chicken meat and Rs6.87 cost per egg. “Government behaved us cleverly by imposing taxes and duty on different feed items like Soya Bean Meal, Sunflower Seed Meal, Rapeseed Meal etc. As a result our farmers have left the field of chicken business,” he added. 

“We are meeting with farmers to come again in this business and are hopeful that prices of chicken will come down in month of June,” he hoped.

The number of poultry farms in the country, particularly in Potohar region of Rawalpindi and Islamabad, have dropped significantly to around 14,500 from 25,000 during last two years as a large number of stakeholders have taken out their investment due to multiple reasons. Chick farming has been suffering from the poor law and order situation, acute power shortages and high prices of poultry feed and scant resources to combat breakout of poultry diseases which killed thousands of birds in no time. 

Professor Dr. Akram, chairman of Department of Poultry Production, University of Veterinary and Animal Sciences and member of ASRB, UVAS, working as consultant in Action-Aid International UK and FAUP in a statement said: “It is fact that Pakistan’s poultry industry is facing a lot of problems and challenges. He said that poultry meat is an important protein source of our food. Its quality is pertinent to the quality of life of poultry birds.

He said that market analysts are anticipating that a large number of farms are likely to be close due to high cost of production rendering hundreds of workers jobless. It is because the production cost of chicken meat and eggs involves a 70-80 per cent share of poultry feed in total poultry business investment. “Poultry farmers consider the current disequilibrium as unbearable in terms of cost and see it as sheer injustice. Poultry feed, by its quality and price, is the major factor in determining the cost of poultry products like eggs and broilers and profitability of the poultry farm. It is considered as a building block of the poultry industry. Poultry contributes 40 per cent of the total meat consumption of the country and generates employment and income for about 1.5 million people. It is the cheapest available meat protein source for the masses that is acting as an effective check upon spiraling animal protein prices,” he added.