Poultry feed shortages loom as soybean shipments stuck at port: FPCCI

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) asked the government to release 600,000 million tonnes of soybean stuck at the port on Tuesday, saying holding the shipments would cause shortage of poultry feed across the country.

In a statement, FPCCI acting president Suleman Chawla said poultry and dairy products had starting showing some signs of price stability but the looming supply disruption on the back of the feed shortage would push the prices of chicken, eggs and other poultry products up significantly.

“Any further supply disruption will totally destroy price stability and drive food inflation even higher,” he said.

Chawla highlighted that soybean by-products are primarily used as feed in poultry and dairy sectors due to their high protein content and positive effects on milk production organically as its protein content is as high as 44 percent.

“How, at once, the authorities can decide to detain the soybean consignments and that too without any regard for the serious repercussions on the importers, manufacturers, poultry and dairy sectors, food inflation and, above all, the food security of the country,” he questioned.

“Poultry is the primary source of protein in the food basket of masses; and, their dependence has been further cemented by the internationally skyrocketing prices of pulses and staples for many years now.”

The shipments got stuck when the Plant Protection Department asked the importers to get the consignments tested for ascertaining seed type. However, a deadlock was created when the importers refused to get their consignments tested.

“Licensing and genetic modification have never been any issues with the soybean imports from the US as the importers have been importing from the same suppliers for many years on a recurrent basis,” Chawla said.

FPCCI acting president apprised that the importers were suffering heavy demurrages and terminal charges due to the detention. When coupled with unavailability of the dollars and the price volatility, it would result in unbearable financial losses to the importers, he feared.

Chawla further highlighted that on healthy profitability of the poultry sector, hundreds of new entrants had built thousands of new sheds across the country to raise their poultry and they had yet to recover their initial investments. “Lack of continuity in policies and practices has always discouraged private-sector investments in the country.”

FPCCI demanded the government waive off the undue demurrages and other charges on the stuck shipments and also make a swift call on the issue to avert a looming food crisis in the country.