High cost forces Pakistan poultry farms to close

12-03-2009 | |

High input prices for feed and electricity have forced some 40% of Pakistan poultry farms to go out of business.

Chicken meat price, which had averaged Rs100 per kg during the past eight months in Lahore, shot up to Rs175 per kg about a fortnight ago. In Karachi, the price has risen above Rs220 per kg.

Market experts claim these are realistic prices of poultry as cost of production has increased sharply during the past one year.

Pakistan Poultry Association former chairman Abdul Basit said the price of poultry feed had increased by about 90% during the period.

According to Basit prices increased because the government allowed export of maize. Also high prices for soy meal, imported from India were causing problems, because of the devaluation of 29% of the rupee against the dollar.

Furthermore the high cost of electricity is a burden farmers cannot take anymore. Insecurities in the electric grid forced farmers to invest in power generators against high interest costs.

Pakistan Poultry Association Chairman Khaliq Arshad said the poultry farmers had been selling their produce below cost for over a year and 40% of farms, which could not afford to suffer more losses, were forced to close down.

100 Pakistan rupees ≈ €0.98

Natalie Berkhout Freelance journalist
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