Although prices of animal feed ingredients witnessed drop in the global markets, the local market in Bangladesh is failing to mirror the same decline.
Over the past three-four months, numerous feed items have witnessed significant price reductions, ranging from 12 to 19 per cent, in the international market.
Farmers have claimed discrepancy in domestic animal feed prices compared to international rates and accused feed producers of artificially inflating costs amid dollar shortages and slow imports.
According to millers and farmers, 50-55 per cent maize and 30-35 per cent soybean meal are required for feed production. Besides, most of the small-scale farmers regularly feed the animals with wheat bran.
Specifically, soybean meal has witnessed a reduction of 12-15 per cent, currently being sold at Tk 68-72 per kg, down from Tk 80-82 per kg four months ago.
Similarly, wheat bran has experienced a decrease of 14 per cent, with the current price ranging between Tk 45-49 per kg, compared to Tk 57-61 per kg four months ago.
The price of maize has also seen a decline of 6-9 per cent, with current rates at Tk 28-30 per kg, as opposed to Tk 31-32 per kg three to four months ago.
Moreover, poultry feed prices have decreased by 10 per cent, currently being sold at Tk 44-49 per kg, down from Tk 51-55 per kg four months ago. These price adjustments in the local market reflect the changes in the overall food commodity landscape.
Speaking to The Business Post, Bangladesh Dairy Farmers Association President Imran Hosain said, “Despite the significant decrease in price of soybeans in the international market over the past year, the corresponding reduction in the soymeal rates in the domestic market should have resulted in a cost of Tk 40-42 per kg.
“However, it is concerning that soymeal is still being sold at Tk 70 per kg within the country.
“The mill owners have failed to adjust the price of feed ingredients in line with the global market trends, and instead, they are citing reasons like non-importation of cheaper products and the high price of the dollar. The price of the dollar has even slightly decreased in the last three to four months, undermining their excuses,” he said.
He added, “The farmers are facing significant losses primarily due to the exorbitant prices of animal feed and ingredients. As a direct consequence of this, the costs of meat, milk, and eggs have escalated as well, owing to the increased expenses in animal husbandry.
“Unfortunately, within the country, there are no viable alternatives available to alleviate the price burden on animal feed, which exacerbates the situation further and makes it challenging to meet the demand for affordable animal feed.”
According to World Bank commodity price data, there has been an 18 per cent decline in the price of soymeal in the global market over the last 3-4 months. In March of the previous year, soymeal was being sold at $597 per tonne, whereas by the end of June, the price has substantially dropped to a range of $490-492 per tonne.
Over the course of the last 3-4 months, there has been a significant decrease in the prices of maize and wheat in the global market. Maize witnessed a decline of 9.49 per cent, with prices at the end of June falling to $266 per tonne, compared to $294.5 per tonne in March.
Similarly, the price of wheat experienced a decrease of 10 per cent, with prices at the end of June reaching $345 per tonne, down from $382 per tonne in March. These price adjustments reflect the changing trends in the global commodity market for maize and wheat.
Khondokar Mohsin, secretary of Bangladesh Poultry Farm Protection National Council said, “In response to the fluctuations in the international market, mill owners swiftly raise the prices of feed in the domestic market when feed ingredient costs escalate.
“However, when the international market experiences a decline, the price reduction of feed in the domestic market is significantly delayed, and poultry feed is persistently sold at higher rates, often justified with various pretexts.
This situation mainly arises due to the dominance of a handful of major mill owners in the country's animal feed market, exerting significant control over pricing decisions.”
We demand for a comprehensive review and regulation of animal feed prices, akin to the fixed pricing system implemented for eggs, milk, and meat, he added.
