The ex-head of the Poultry Association of Pakistan on Sunday issued a warning that the year 2019 had proved to be the worst year for the poultry industry. It broke the record of the last 30 years’ losses majorly owing to the unprecedented rise in the cost of production.
The cost of the poultry feed has risen significantly, reaching the highest level of last ten years due to high depreciation of the Pakistani rupee against dollar, record high markup rate and the continual surge in the gas and power tariffs, leading to an increase in the feed rate up to Rs.3,000 per 50-kilogram bag from the previous price of nearly Rs.2,200, as per a statement issued by the former chairman Abdul Basit of PPA.
He indicated that the average sale price of the entire year of the poultry products should remain escalated than the cost of production by at least Rs.1 to Rs.2 which is necessary for the business survival. He also mentioned that the calendar year that has just elapsed that is 2019 proved to be unlucky one for the poultry industry in the last 30 years, resulting in the loss of billions.
He was of the opinion that the poultry sector was unable to pass on the ever surging production costs to the consumers. He said that rather the industry’s survival is dependent on enhancing its efficiency via the advancement in technology.
Abdul Basit further added that the poultry products were sold below the price of their production during the eight months of 2019. He also said that when the chicken prices start to rise during the rest of the 4 months, then the industry is able to make compensation to its losses which were incurred during the year.
He further said that the government instead of controlling the prices of fuel or controlling the hike in power tariff had launched the wrong propaganda against the poultry farmers, who had made the contribution for controlling the ever-rising the inflation in the nation.
He made the claim that the rates of poultry had not surged while other kitchen items had registered a surge in prices during the last 30 years.
Abdul Basit said that the farmers’ community, which includes the poultry farmers, was unable to keep the rate fixed of their products according to their cost of production and they were completely dependent on the market forces.
He also said that owing to the record surge in the production costs along with the unmanageable ventilation system at the controlled sheds even during the winter season, which might eliminate even the whole poultry stock, nearly 25 per cent of the farmers had closed their business on a temporary basis.
He added that they had also caused a sharp decrease in the stocks of poultry, lifting their rates automatically.
He also said that the factors like the import of soybean, currency devaluation and the import of medicines had surged the cost of the business excessively.