Soaring egg prices: Poultry farmers call for importing chicks, feed to break syndicate

As the price of eggs continues to rise, with the government's measures such as setting maximum price and allowing imports having little or no impact, the Bangladesh Poultry Association (BPA) calls for introducing imports of poultry chicks and feed to combat the syndicate it holds responsible for this situation.

At a press conference held in Dhaka on Tuesday, the poultry farmers association said it wants to break the shackle of the syndicate by importing poultry chicks and feed.

Sumon Hawladar, president of the association, emphasised the need to reduce the production cost of eggs and chicks. He suggested that if necessary, chick imports should be considered while recommending an end to egg imports to protect small-scale poultry farmers.

Over the past few months, egg prices in the country have risen at an alarming rate. Despite several steps by the government to regulate the prices, including permitting 10 crore egg imports by four companies initially and later by six more firms, the retail price of an egg in Dhaka continues to hover at Tk12.50 or even higher, defying the government's fixed pricing of Tk12 apiece.

The association president argued against egg imports, saying that such a move would not alleviate the market situation but instead adversely affect poultry farmers. 

He expressed concerns that if the poultry farmers are bound to reduce their production, an egg price could soar to even Tk20. He also highlighted the substantial cost difference between egg and chicks production in Bangladesh compared to India, primarily due to the high prices of poultry feed and chicks.

Sumon Hawladar proposed an alternative approach, suggesting that the corporate syndicate controlling the poultry industry should be dismantled. Instead, arrangements should be made to facilitate the import of poultry feed and chicks for small-scale farmers, which could lead to a reduction in egg prices, potentially down to Tk8 per egg.

He further explained that the production cost of an egg in Bangladesh is currently around Tk10-11, with a chick price at Tk35, and the production cost of 1kg broiler chicken at Tk167. Despite having a daily production capacity of 5 crore eggs against a demand for 4 crore, Bangladesh should aim to export eggs and chickens by reducing production costs, according to Hawladar. "So it's time for us to think about exporting eggs and chickens instead of importing eggs. But to materialise that we have to reduce the production costs," he continued.

To protect the interests of the 50-60 lakh farmers directly or indirectly involved in the poultry industry, the BPA president urged the cessation of egg imports.

Zakir Hussain, a marginal farmer and recipient of the National Youth Award 2022 in the self-employed category, shared his perspective at the press conference, highlighting the financial struggles faced by small-scale farmers due to rising feed costs. He lamented the substantial increase in the price of broiler and layer feed, leading to financial strain and closures of farms.

"I am a marginal farmer. No one sees the bleeding hearts of marginal farmers. One-and-a-half years ago, one sack of broiler feed cost Tk2,250, which is now Tk3,450. Similarly, one sack of layer feed cost Tk1,900 a year ago, which is now Tk2,870. Our costs are increasing. Many farmers are closing their farms," Zakir stated.

Sumon Hawladar said a month ago the price of a layer chick was Tk35, now it is Tk75. And the price of a broiler chick was Tk35, now it is Tk53. Whereas in India, the price of a layer chick is Rs35, and the price of a broiler chick is Rs27.

"Corporate groups make 50% to 200% profit in feed and chicks and marginal farmers have to sell eggs and chickens incurring a loss," he added.

Ilias Khondokar, secretary of the association, said few corporate groups in the country control almost the entire production and marketing of day-old chicks. He went on saying that the syndicate charges extra price of chicks and a cycle is making an additional profit of Tk6.5 crore per day. "This sector is becoming a hostage to the syndicate," he stated.