Desk Report,
Chicken production increased in the hope of profit, now costs are not rising
Last year, the price of a day-old chick had risen to a maximum of 90 to 100 taka. Hatchery owners increased their production capacity in the hope of higher profits. As a result, production increased by about 25 percent in a year. On the other hand, demand increased by only 5 percent. As a result, the price of chicks has decreased due to production increasing much more than demand, and now it has come down to 10 to 20 taka. Hatchery owners say that the cost of production has fallen to 30-35 taka. As a result, hatcheries are facing huge losses.
Chicken production increased in the hope of profit, now costs are not rising
People involved in the sector say that now marginal farmers are not able to make a profit on chickens or eggs. Because, on the one hand, the price is low, on the other hand, the cost of production is high. The price of feed and medicine has increased again.
According to the Breeders Association of Bangladesh (BAB), the demand for broiler chicks in the country is about 17 million per week. About 20 million are being produced there. The production of golden and colored chicks has exceeded 25 million. The demand for such chicks is 21 million per week. As a result, the price of chicks has fallen due to the higher supply than demand. People involved in the sector consider such a downward trend in prices for a long time to be unusual. Due to this, there is a fear that small hatcheries will disappear due to losses, say hatchery or farm owners. In this regard, BAB General Secretary Shah Fahad Habib told Prothom Alo, “The price of chicks has been low in the market since last April. The main reason for this is that supply is higher than demand. Last year, everyone increased production because the price was high. Now more than 23 million chicks are being produced a week. Even if demand decreases, there is no opportunity to suddenly reduce production.” Hatchery-related people say that currently the cost of producing each broiler chick is 35 to 40 taka; but it is being sold in the market for 10 to 20 taka. Although the government-set price was 58 to 60 taka. Similarly, layer chicks are being sold for 15 to 20 taka, while the production cost is about 47 taka. In addition, although it costs 20 to 30 taka to produce each golden chick, these chicks are being sold for 10 to 15 taka.
Planet Egg Limited has the capacity to produce 200,000 to 250,000 chicks per week. The average cost of producing each chick in this farm is 45 taka; but they are selling it for 15 to 20 taka. As a result, they are losing 25 to 30 taka on each chick. The company’s director, Shah Fahad Habib, said that against producing 1 million chicks per month, they are losing about 25 million taka.
