i ECONOMY

High rates of feed expose poultry sector to crisisBreaking

May 13, 2024

High feed rates have exposed the poultry sector to a crisis, particularly the chicken and egg producers, who demand that the government pay attention to the issue to avoid potential disruptions, reports WealthPK. Noor Khan, a poultry farmer, told WealthPK that owing to feed shortage, it had become incredibly difficult for the people attached to this business to stay afloat. He said the profit margins were shrinking significantly each day, as the government was doing nothing to bridle the surging feed prices. The poultry sector is being criticized by the media on account of surging prices of chicken; however, the reason behind the surge – feed shortage – is not being highlighted, he said. Like the general public, the poultry farmers are also facing a financial crunch owing to the high feed rates, he added. Mohsin Ali, a feed mill distributor, told WealthPK that several factors contributed to the surge in the feed prices. The situation emerged due to the shortage of soybean, which is an important ingredient of poultry feed. He further said the fuel, gas and electricity costs had also jumped up recently, forcing the millers to revise the feed rates. The chain has had a domino effect and the millers are also bearing the brunt of inflation, he said, adding that the feed producers were trying to facilitate the farmers.

The millers know that the thriving poultry sector benefits everyone and facilitation of poultry farmers was crucial, he said. Khadim Hussain, a chicken shop owner, expects the chicken prices to go up due to the shortage of feed. The feed suppliers have informed the shop owners about this. He said the soybean shortage had been hitting the poultry sector for a couple of years, and the rulers were well aware of the situation. He claimed that the hatchery owners were reluctant to invest money due to the feed crisis, potentially leading to low supplies. Ultimately, the people have to pay high chicken prices amid supply disruptions, he added. Talking to WealthPK, Dr Muhammad from the University of Agriculture, Faisalabad, said the experts had warned the government of feed crisis when soybean import had been banned. However, nobody heeded their voices and now the feed crisis was hitting the poultry sector hard, he said. “Pakistan is an agricultural country, but we are unable to fulfill the soybean requirement locally. Owing to our inability, we have to invest a huge amount of money on the import of soybean and the situation will go from bad to worse in future.

“We have to focus on soybean cultivation in Pakistan, and the University of Agriculture Faisalabad is striving for this. The government has to announce special concessions for the growers wishing to cultivate soybean,” he said. Nadeem Ahmed, another faculty member of the University of Agriculture, Faisalabad, said agriculture, livestock, and textile sectors had the potential to revive the economy, but it was ironic that all these sectors were complaining against the ill-conceived policies and demanding immediate attention of the government. He said since the ban on soybean imports, the poultry sector had been facing the feed crisis. People at the helm did nothing to save the poultry sector from the situation which will worsen in the days to come, he apprehended. Ahmed urged the government to announce subsidies for the poultry sector immediately to ensure its protection and keep the chicken prices under control. Besides, the government should also ensure the availability of soybean, a crucial component of the chicken feed, he suggested.

Credit: Independent News Pakistan