Reasons and consequences of price hikes

In recent years, the poultry industry in Bangladesh has witnessed a significant increase in prices, leading to concerns about the affordability and accessibility of its products for consumers.

There are several reasons behind the price hikes, which have had substantial consequences on the economy and people’s livelihoods.

One of the primary reasons is the increased production costs. Poultry farmers rely heavily on imported feed and vaccines, which have become more expensive due to the devaluation of the taka against the US dollar.

In addition, the cost of electricity and fuel has also increased, making it more expensive to run poultry farms. As a result, farmers have been forced to raise their prices to cover their costs and maintain profitability.

Another factor contributing to the price hike is the high demand for poultry products, which are a popular source of protein for many people, particularly in urban areas as population and urbanisation is growing.

The price of poultry feed has been increasing in recent years, and there are several reasons behind this trend. They are —

Increased cost of raw materials: The primary raw materials used in poultry feed production are corn and soybean meal. Their prices have been increasing due to various factors such as supply-demand imbalances, weather-related factors like drought or floods, and geopolitical issues. When their cost rises, it leads to an increase in poultry feed prices.

Transportation costs: Poultry feed is often transported over long distances from production sites to farms. Transportation costs, including fuel and labour, can be affected by external factors such as fuel price hikes, which impact poultry feed prices.

The consequences of the poultry feed price hikes are significant, as it directly affects the cost of poultry products’ production. When the price of feed increases, farmers either have to absorb the higher costs or pass them on to consumers by raising prices for poultry products.

This can lead to a decrease in demand for poultry products, which in turn can impact the livelihoods of farmers.

The consequences of the price hikes in the poultry sector have been noteworthy. For consumers, the higher prices have made it more difficult to afford poultry products, particularly for those on low incomes.

This has led to a shift in consumption patterns, with people turning to cheaper alternatives, such as pulses and vegetables, for their protein needs.

Price hikes in the poultry sector are a complex issue with multiple causes and consequences. While the high demand for poultry products and the poultry feed price hikes have contributed to the current situation, the increased production costs have been the primary driver.

To address this issue, the government needs to take steps to support the poultry industry, such as providing subsidies for feed and vaccines and improving access to credit for farmers.

By doing so, they can ensure that poultry products remain affordable and accessible for all while supporting the livelihoods of poultry farmers.

The writer is a postgraduate Research fellow at the Microbiology and Parasite Department, Sher-e-Bangla Agricultural University.