Poultry prices may soften by 20%
Poultry prices are likely to decline by 20 per cent over the next six weeks, owing to expectations of weak consumer demand during the ongoing festival season.
After recent highs, prices have dropped up to 14 per cent in the past two weeks, following the restoration of supply from major producers and a sharp increase in breeding activity across the country.
Data compiled by Poultry Bazaar, an online junction of poultry rates and updates, show broiler chicken prices have declined by 13 per cent in Punjab to ~76 a kg. A simi- lar fall was witnessed in broil- er prices in Nashik, where farm chicken meat was sell- ing at ~78 a kg. Prices have fallen in other parts of the country as well, albeit marginally.
“Chicken prices have softened by 10-14 per cent in July on restoration of supply of meat. About a month ago, poultry production in India was suffering because of adverse weather, resulting in short supply. During the hot weather, the mortality rate trebled to seven-eight per cent from the normal rate of two-three per cent,” said Balram Yadav, managing director, Godrej Agrovet, one of the largest poultry producers in the country.
“Now, with the onset of monsoon, the temperature has become normal, and farmers have started increasing production, which boosted supply,” added Yadav.
Broiler prices had hit a record high in June on short supply, after the government’s decision to cull thousands of birds in the states with Avian Influenza outbreak, including Bihar, Jharkhand and Odisha. In Gujarat, the prices had shot up to hit the highest in recent months to ~106 a kg. The government declared India free from bird flu on July 6.
Supply has started increasing in terms of new breeding and average weight of the bird. According to Yadav, average weight of the bird has started rising to 2.1-2.2 kg, which had declined to 1.51.6 kg in June because of the heat wave. “About a month ago, less meat was coming into the market due to high temperature. Now, as weather has cooled down and the bird is gaining weight, more meat is coming,” he said.
Yadav said the month of Shrawan, considered holy by Hindus, was normally a low-consumption month. “Chicken demand is going to decline further, resulting in its prices coming down by 20 per cent by the end of August,” he said.
Broiler chicken prices had hit a record high in June on short supply, after the government’s decision to cull thousands of birds in the states with Avian Influenza outbreak
Indicating robust price of the last month, the share price of two stock exchange-listed companies — Venky’s and Simran Farms — had been hovering around 52-week high for the past few days. On Thursday, however, the Venky’s stock fell by 2.5 per cent to close at ~2,296.45 apiece. By contrast, the stock of Simran Farms jumped by five per cent to close at ~82.55 apiece following the broad indices.
“The price of eggs at ~2.25 apiece is much lower than the prevailing prices last year and also below its cost of production at ~2.75-3.25. Falling below the current price would prompt farmers to reduce their production. The current price fall is a seasonal thing which we have to live with,” said a senior official at Venky’s, one of India’s largest producers of poultry products in the western India.
Ramesh Khatri, president, Poultry Federation of India, said, “The government revises feed minimum support price (MSP) upwards every year which raises the cost of eggs and broiler chicken production. The current price is not viable for farmers to fetch even the cost. Farmers would be discouraged to expand production significantly.”
Meanwhile, maize was trading high on increase in MSP, and oilmeal price firmed up on lower availability. But, considering the demand is expected to remain weak during the ongoing festival season, prices of poultry products may remain subdued, he added.