Cattle prices may rise 30% ahead of Eid-ul-Azha

As the prices of cattle feed continues to rise, that of sacrificial cattle may rise by up to 30 per cent ahead of the upcoming Eid-ul-Azha, say farmers and market analysts.

This means that the cow that cost Tk 1 lakh last year will now cost Tk 1.3 lakh. Already, the price of cattle has risen by up to 16 per cent.

Meat traders said that they were now buying cows for a little less than what the price at cattle markets was expected to be ahead of Eid. The increase in feed prices over the last 15 days has not yet been reflected in cattle prices.

If the price of cattle is adjusted before Eid, farmers will have to increase it by at least 30 per cent. Small farms and marginal farmers will lose a lot of money if this does not happen.

While speaking to The Business Post, farmers said small farms fed their cattle ready-made feed mixed with bran, mustard cake, straw, and raw grass. And, large farms bought the ingredients and prepared the feed by themselves.

Meanwhile, since last year, the cost of ready-made feed and feed ingredients has risen by more than 40 per cent.

As per the Bangladesh Dairy Farmers’ Association (BDFA), animal feed accounts for approximately 65.7 per cent of the total cost of livestock and dairy production. The remaining 34 per cent of the cost is made up of labour, medicine, and utility bills.

The main ingredients in commercial feed preparation are soybean meal, soybean extraction, maize, rice powder, wheat bran, and pulse bran.

Meanwhile, such feed and feed ingredient prices have risen by an average of 46 per cent since last year.

As things stand, if farmers can adjust the extra cost to the price of their cattle, they can expect to profit.

When asked, Imran Hasan, general secretary of the Bangladesh Dairy Farmers’ Association, said, “Both large farms and marginal breeders will log profits if cattle prices rise by 40 per cent compared to last year.”

“If farmers lose money, the country’s cattle market will once again become reliant on foreign suppliers.”

So, either the price of cattle must rise, or the government must take steps to lower the cost of animal feed, he added.

Beef prices up

A year ago, the highest price of beef in Bangladesh was Tk 600 per kg. Beef is now sold for Tk 700 per kilogram, an increase of Tk 100 per kilogram or 16 per cent.

Meanwhile, according to the Trading Corporation of Bangladesh (TCB), the price of beef has increased by 13 per cent and the price of mutton has increased by 7 per cent compared to the previous year.

When asked, Abdus Salam, vice-president of the Bangladesh Meat Traders Association, said the cost of buying cattle has increased by 20 per cent.

Cows that used to cost Tk 1 lakh can no longer be purchased for less than Tk 1.2 lakh. The price of sacrificial cattle is a little higher.

Furthermore, with rising food prices, it is difficult to predict where the price of the sacrificed animal will end up.

Small cows expected to be in demand

The country’s inflation rate has risen, but people’s income has not.

This year, prices of essential commodities, such as rice and pulses, have increased by more than 50 per cent compared to last year. People’s purchasing power has decreased as a result.

As such, traders predict that people will opt for cheaper sacrificial animals for Eid-ul-Azha, driving up demand for smaller cows. They also believe that the overall number of sacrifices in the country will decline.

Traders consider small cows to weigh 120kg, while farmers consider cows costing Tk1.2-1.5 lakh to be small.

According to farmers, small cows make up no more than 30 per cent of the total number of cows in the country.