Poultry price recovers on supply shortage
Poultry prices have recovered in the past three to four weeks, largely due to a supply deficit after the death of many birds in scorching heat on ill-maintained farms.
Prices of broiler chicken are now ~81 a kg in Gujarat, after plunging to ~61 a kg on April 11 from ~72 a kg in early March. In Mumbai, these had slipped to ~49 a kg towards end-March, from ~59 a kg earlier that month; it is now ~82 a kg. Elsewhere across the country, too, it shows similar movement.
And, has pulled along egg prices.
“Normally, poultry demand goes down during the peak (school) examination season of March, resulting in price declines. Demand gradually resumes by the first to second week of April, when the examination season gets over. With the onset of scorching heat, the mortality rate in chicken also goes up, resulting in a sharp reduction in its supply. All factors worked together for this sudden price increase in poultry,” said Balram Yadav, managing director at Godrej Agrovet, one of the country's largest poultry farmers.
With feed prices still subdued, poultry farmers see a sharp increase in their margins this season. Prices of soybean extraction (bulk) for export quality rose a marginal 3.9 per cent to ~33,550 a tonne over a month to April 20 (latest data available). In the same period, soybean rose 4.1 per cent to ~38,000 a tonne. Maize prices have risen a marginal one per cent since March 1 to ~12,040 a tonne at present in the benchmark Gulab Bagh (Bihar) wholesale market (though these had peaked at ~13,400 a tonne on April 14).
“Apart from the usual consumer demand, the ongoing wedding season in Hindus and Muslims has elevated demand of poultry products all across the country. Normally, the peak demand season for the industry is between April 10 and June 1. During this period, therefore, we estimate poultry prices to go further up,” said K G Anand, general manager, Venkateshwara Hatcheries.
The mortality rate in chicken goes up sharply to eight or nine per cent with the onset of heat wave in April and May, as against five per cent during the winter season of November and December, also due to less water on farms. Experts say a 25-30 per cent price rise is possible in the next two to three weeks.