Pricier broiler chicken, eggs: Producers smile while consumers cry

Amid the upward trend in food prices, soaring prices of broiler chickens and eggs, which are known as cheap sources of protein, have added to the burden of consumers.

Marginal poultry farmers are also incurring losses in eggs, but they are able to adjust to the situation as broiler chicken is getting them profits, leaders of Bangladesh Poultry Association (BPA) said at a press conference organised at the Dhaka Reporters Unity on Monday.

Suman Howladar, president of the association, in a written statement, said that the price of broiler chicken and eggs suddenly started increasing, hurting people with limited earnings, who meet their protein needs from these two food items.

The price of eggs increased from Tk130-135 to Tk145-150 per dozen and the price of broiler chickens increased from Tk155-160 to Tk200-210 per kg.

According to the Trading Corporation of Bangladesh (TCB), egg prices have increased by 23% while broiler chicken prices shot up by 28% in a month.

"Low-paid workers are under pressure due to soaring food prices, which increased dependence on broiler chickens and eggs in the first place. As a result, the prices of these items have increased as well," Md Wasim at Rampura market told The Business Standard.

Farmers say a bag (50 kg) of feed a year ago used to cost Tk2,200-2,300, which is now Tk3,500. The price of a day-old-chick even a month ago was Tk9, which has now soared to Tk56 as its production cost has also gone up to Tk25.

Farmers have also said that amid the economic crunch they could not sell their produce at fair prices for the past year.

The production cost of one kg broiler chicken is now Tk148 and farmers are selling it at Tk160. The price even a few days ago was Tk118-120.

While they are making profit on broiler chicken sales, they are incurring losses on egg sales as the selling price is still Tk10 per egg against the production cost of Tk11.11.

BPA president Suman Hawladar said that the corporates control 10-20% of the market, including their own production and production through contract farming. Each company markets lakhs of chickens, whereas the marginal big farmers cannot supply more than 5,000 to 10,000 chickens.

"Prices of chickens and eggs in the market and at the farms are determined by the price set by corporate institutions," he said.

"The corporate organisations have not only day-old-chick production, they also own feed mills and medicines. In contrast, the farmers buy from them at higher prices. For example, a sack of broiler chicken feed is bought by the marginal farmer at Tk3,500, while the company's contractual farmer buys it at Tk2,500. Needless to say, this helps the corporates enjoy a lower production cost, which is not the case for ordinary farmers," explained Suman Hawladar.

The association's president claimed that for the last one year, farmers have produced chickens involving a production cost of Tk150 and selling them at a maximum of Tk120 – a loss of Tk25-30 per kg. Due to this, the number of farmers in a year has declined from 1,60,000 to 60,000 now," he added.

Because of these reasons, the BPA demanded that corporate companies stop the production of eggs and chickens.

Leaders of the BPA expressed the fear that unless it is stopped the price of broiler chickens may shoot up to Tk400.

At the same time, they called for fixing a reasonable price of feed through the Department of Livestock Services considering the price hike of feed ingredients.

The chicken farmers also said they also think that a lack of concern on the part of the livestock department is one of reasons behind the instability of the chicken and egg market.

Ilyas Khandkar, general secretary of the association, said, "Tk56 for a day-old-chick is not normal. The government should take the initiative to sell day-old-chicks at a reasonable price. Although we briefed the government on the matter, it is not taking any action, which is worrying."

As Nazrul Islam, secretary, Feed Industries Association Bangladesh, put it, "Many companies have now stopped production because they could not adjust to the rate at which the price of feed materials is increasing due to the effects of the Russia-Ukraine conflict. It is not only farmers but feed companies too which are looking for a way out of the situation because they are not making profits."