Panic in Bangladesh, business shaky

25-04-2007 | |
Panic in Bangladesh, business shaky

Fate of the investors of the Tk 100 billion (€1.1 billion) in the country’s poultry industry has become uncertain after bird flu outbreak in Savar.

Due to the bird flu panic, all hopes of 200,000 poultry farm owners have been shattered as selling price have decreased to lower than production costs.
Over 500 farm owners have already sold their chickens at throwaway prices. Meanwhile, loan distributing organisations, including banks and NGOs, are also uncertain about loans.
Huge losses
The production cost per 100 eggs is Tk 320 (€3.5), but, in reality are selling between Tk 250-260 (€2.75-2.86) in the wholesale market against its previous price of Tk 350-360 (€3.85-3.97). The price of 1 kg chicken has also decreased by Tk 20 (€0.22) to Tk 25 (€0.28).
Moreover, the export of eggs and dressed chickens has been halted. Meanwhile, Ranikhet (New Castle) disease is affecting poultry birds alongside the bird flu, resulting in a huge loss.
Development destroyed
The poultry industry has developed in the country, particularly in Savar and Gazipur, on a massive scale in the last decade, providing jobs for about 5 million people. Approximately 25% of the total poultry farms have been set up in the area during that period.
Industries centred around poultry
Equipment factories, feed mills, veterinary, hatchery and transport businesses have been established in the country depending on the poultry farms. Maize cultivation has increased to meet the increasing demand of poultry feed. Different banks and NGOs have also distributed loans among the poultry farm owners and maize cultivators to boost up the industry.
President of Bangladesh Egg Producers’ Association Taher Ahmed said most of the farm owners are now burdened with huge debt as the industry is running mostly on loans.