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Poultry production plummets over 20%

Shortfalls push egg prices up to Tk 170, broiler chicken to Tk 180-190
Rokon Uddin
03 Oct 2024 22:56:19 | Update: 03 Oct 2024 22:56:19
Poultry production plummets over 20%

Country’s poultry production, a key source of accessible protein for low and middle-income consumers, has seen a sharp decline of over 20 per cent.

Poultry farm owners attribute this drastic reduction to devastating flash floods in August, followed by an intense heatwave that has further disrupted supply.

The floods, which submerged around 10-12 districts in the country, have led to the closure of many poultry farms. These districts accounted for 8-10 per cent of the country's total egg and poultry production.

Additionally, the extreme heatwave that followed the floods further reduced production by 10-15 per cent.

Industry insiders report that these combined factors have collectively resulted in a production drop exceeding 20 per cent, significantly affecting the supply of this vital protein source.

This shortfall has driven another surge in the prices of farmed poultry and eggs at both wholesale and retail levels, placing added pressure on low and middle-income consumers.

Over the past week, retail prices for a dozen eggs and per kilogram of broiler chicken have risen by Tk 10.

However, farm owners also point to “excessive middlemen” as a major factor behind the price rise. They claim that after leaving the farm, the price of each egg increases by around Tk 3 before reaching consumers—an increase of over 26 per cent.

Egg, chicken prices show no signs of easing

In Dhaka's kitchen markets, eggs are now being sold at Tk 170 per dozen, up from Tk 160 just a week ago, according to market data. A month ago, the price stood at Tk 150 per dozen, marking a Tk 20 increase over the past month in two increments of Tk 10 each.

Similarly, broiler chicken is currently priced at Tk 180-190 per kilogram, compared to Tk 170-180 per kilogram a week ago. Last month, broiler chicken was available at Tk 160-170 per kilogram.

Like eggs, the price of broiler chicken has seen a Tk 20 rise per kilogram over the past month in two stages.

Flood leaves production crippled

Tafazzal Hossain, the owner of Ajirin Poultry in Maona Union of Gazipur, told The Business Post that floods in districts such as Feni, Lakshmipur and Cumilla have devastated many poultry and egg farms, leading to a near-complete halt in production in those areas.

“As a result, eggs and poultry are now being supplied from other districts to meet demand, contributing to the supply shortage. Additionally, many chickens have died due to the extreme heat, while those that survived are producing less, causing further shortfalls in the market,” he said.

“My farm has seen a 10-15 per cent drop in production over the past month due to the heat,” he added.

Hossain also noted that middlemen are significantly driving up prices in the market. "We sold eggs on Tuesday and Wednesday at Tk 11.10-11.20 each. Those same eggs are being sold in Dhaka’s kitchen markets at Tk 14.16 each. That is an increase of nearly Tk 3, or 26 per cent, after leaving our farm," Hossain explained.

Price cap efforts unenforced

At the beginning of September, as egg and poultry prices continued to rise, the Department of Agricultural Marketing (DAM) fixed the prices of both commodities.

According to the government-imposed rates, broiler chicken should be sold at a maximum of Tk 180 per kilogram, while Sonali chicken should be available at Tk 270 per kilogram. Additionally, the retail price for a dozen eggs should have been Tk 142.44.

However, since the price caps were announced, they have yet to be effectively enforced. Instead, prices have continued to climb.

Daily production drops to around 10m eggs

Foyez Ahmed, an executive member of the Bangladesh Poultry Industries Association (Feni district), explained that prior to the floods, the Department of Livestock estimated that 40-45 million eggs were produced daily across the country, with Feni district alone contributing 6,00,000 eggs, accounting for approximately 1.5 per cent of total production.

Due to the devastating flooding in August, 2,000-2,500 poultry farms in Feni were shut down. Currently, daily production has dropped to around 10 million eggs, which is insufficient to meet local demand. The situation is similar in other flood-affected districts.

The Ministry of Fisheries and Livestock reported that in August, 86 upazilas across 12 districts in the Chattogram, Sylhet, and Khulna divisions were hit by sudden flooding.

The floods caused significant damage to infrastructure, submerging numerous cattle and poultry farms. In addition, large quantities of animal feed, including poultry and livestock supplies, were destroyed.

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