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Re: BANGLADESH: Return of the bird flu threat
Re: BANGLADESH: Return of the bird flu threat
High production cost hamstrings
poultry industry
Obaidul Ghani
Around fifty per cent poultry farms across the country were closed during the last six months because of price hike of poultry feed and low price of poultry products, leading the industry to vulnerable situation, said the industry insiders.
Roughly, one lakh small and large scale poultry farms out of over 2 lakhs have stopped their production since July last year as the producers were unable to made any profit from the business, they said.
In the current market situation, producers are facing about 20 to 25 per cent operation losses in producing and marketing eggs, poultry birds and day-old chickens.
?Around half of our farms, from hatchery to egg producing ones, were closed as the poultry feed prices almost doubled in the period,? Moshiur Rahman, coordinator of the Bangladesh Poultry Industries Association, said.
Maize and Soybean, the two major components of poultry feeds, was sold at Tk 17 and Tk 33 per kilogram respectively on local market while the price was Tk 12 and Tk 18 per kg during the June -July period in the year of 2007.
Along with sharp rise in the production cost, prices of poultry products reduced significantly as the average consumers spend most of their budget
for the kitchen market in
buying essential commodities like rice and oil which are sky rocketing.
Currently around Tk 95 is required to produce a kilogarm of poultry bird against the current market price of Tk 65. The producers are selling per piece of egg at Tk 3 against the production cost of Tk 4.3 on an average. Again, a day-old chicken is selling at about Tk 5 to Tk 7 against the production price of Tk 23.
Poultry industry that started its journey in Bangladesh in the nineties now has Tk 13,000 crore as the total outlay with 40 lakh people involved, directly or indirectly.
The industry struggled many times with problems such as epidemic of avian influenza last year in the country and bird flu in Thailand in 2003-04 and India in 2004-05, that hampered import of poultry products from the two neighbouring countries. But the present price rally forced many producers to close their industry.
The industry contributed to save around $22 million foreign currency annually as locally developed parent stock is fulfilling the local demand of the day-old chicken which was previously imported from India.
The present price situation of poultry feed and poultry products also forced some of the parent stock company to cut their products significantly, said Khondoker Mohsin, joint secretary of the Bangladesh Poultry Association.
The sector experts apprehend that if the situation persists, the self-sufficient industry will again be turned into an import oriented one in the near future.
The industry can be saved from the impending debacle if the government provides the producers with subsidised poultry feeds.
The government also should allow poultry entrepreneurs to reschedule their banks loans and cut interest for the interim period.
Majority of the owners are now unable to pay loan instalments at the present market situation and if the government do not order the banks to write off the interest, they (poultry producers) will not be able to continue production further, the industry apprehend. :tiphat: http://www.newagebd.com/met.html#2
Re: BANGLADESH: Return of the bird flu threat
High production cost hamstrings
poultry industry
Obaidul Ghani
Around fifty per cent poultry farms across the country were closed during the last six months because of price hike of poultry feed and low price of poultry products, leading the industry to vulnerable situation, said the industry insiders.
Roughly, one lakh small and large scale poultry farms out of over 2 lakhs have stopped their production since July last year as the producers were unable to made any profit from the business, they said.
In the current market situation, producers are facing about 20 to 25 per cent operation losses in producing and marketing eggs, poultry birds and day-old chickens.
?Around half of our farms, from hatchery to egg producing ones, were closed as the poultry feed prices almost doubled in the period,? Moshiur Rahman, coordinator of the Bangladesh Poultry Industries Association, said.
Maize and Soybean, the two major components of poultry feeds, was sold at Tk 17 and Tk 33 per kilogram respectively on local market while the price was Tk 12 and Tk 18 per kg during the June -July period in the year of 2007.
Along with sharp rise in the production cost, prices of poultry products reduced significantly as the average consumers spend most of their budget
for the kitchen market in
buying essential commodities like rice and oil which are sky rocketing.
Currently around Tk 95 is required to produce a kilogarm of poultry bird against the current market price of Tk 65. The producers are selling per piece of egg at Tk 3 against the production cost of Tk 4.3 on an average. Again, a day-old chicken is selling at about Tk 5 to Tk 7 against the production price of Tk 23.
Poultry industry that started its journey in Bangladesh in the nineties now has Tk 13,000 crore as the total outlay with 40 lakh people involved, directly or indirectly.
The industry struggled many times with problems such as epidemic of avian influenza last year in the country and bird flu in Thailand in 2003-04 and India in 2004-05, that hampered import of poultry products from the two neighbouring countries. But the present price rally forced many producers to close their industry.
The industry contributed to save around $22 million foreign currency annually as locally developed parent stock is fulfilling the local demand of the day-old chicken which was previously imported from India.
The present price situation of poultry feed and poultry products also forced some of the parent stock company to cut their products significantly, said Khondoker Mohsin, joint secretary of the Bangladesh Poultry Association.
The sector experts apprehend that if the situation persists, the self-sufficient industry will again be turned into an import oriented one in the near future.
The industry can be saved from the impending debacle if the government provides the producers with subsidised poultry feeds.
The government also should allow poultry entrepreneurs to reschedule their banks loans and cut interest for the interim period.
Majority of the owners are now unable to pay loan instalments at the present market situation and if the government do not order the banks to write off the interest, they (poultry producers) will not be able to continue production further, the industry apprehend. :tiphat: http://www.newagebd.com/met.html#2
