Poultry industry faces massive loss due to rising production cost
The outgoing year 2019 has proved to be the worst year for poultry industry, breaking record of last 30 years’ losses mainly due to unprecedented escalation in cost of production.
The cost of poultry feed has flown upward, reaching the highest level of last 10 years owing to huge depreciation of rupee against dollar, record high markup rate and continued hike in power and gas tariffs, leading to jump in feed rate up to Rs3000 per 50kg bag from earlier price of about Rs2200.
These views were expressed by the Pakistan Poultry Association former chairman Abdul Basit, who is also ex-president of Lahore Chamber of Commerce and Industry (LCCI), in a statement issued in Lahore on Sunday.
He revealed that average sale price of the whole year of poultry products should remain higher than the cost of production by at least Rs1-2 which is essential for the survival of business. However, the calendar year 2019 proved to be unfortunate for the poultry sector in the last 30 years, inflicting losses of billions.
Abdul Basit said that poultry sector is unable to pass on ever soaring cost of production to the consumers. Rather the industry survives by enhancing its efficiency through technology advancement.
He said that poultry products are sold below price of their original cost during eight months of the year. When chicken prices start to go upward during the rest of four moths, then industry is able to compensate its losses incurred throughout the year.
He said that government, instead of controlling fuel price or seizing power tariff hike, makes wrong propaganda against poultry farmers, who have contributed a lot to control ever-soaring inflation in the country.
Replying to a question regarding present trend of poultry rates, he said that poultry rates have not been increased as other kitchen items registered hike in prices during the last 30 years. Poultry products have been resisting inflationary trend, as they never go up as other products register hike in their rates due to high inflation.