Poultry sector: Industry demanding compensation of Rs28.4b

Officials believe strict state control is reason behind huge losses.

KARACHI: The Pakistan Poultry Association (PPA) has demanded compensation of Rs28.4 billion from the government for losses that have been incurred by farmers due to irrational policies of the government.

“The government must come forward with the compensation of Rs28.4 billion for the losses the sector incurred in the past six months owing to irrational policies of the government,” said PPA Chairman Ahmad Waseem while talking to media on Saturday.

PPA leadership claims that out of the country’s 30,000 poultry farms, 30-35% have already been closed down due to the ongoing crisis of the industry. They said the smaller farmers are being wiped out and the situation will soon lead to a full-blown demand and supply crisis if the government fails to take any corrective action.

According to Waseem, the national average cost of production of broilers was Rs156.07 per kg. “While for the last six months the national average selling price was Rs129.35 per kg,” said Waseem. “The industry is losing Rs26.72 per kg.”

The industry officials believe that the strict state control of poultry prices is one of the prime reasons of the current crisis.

The farmers or breeding companies lost Rs3.86 billion because there are not earning even half of their input costs. The average national cost of production of a day-old chick is Rs40.82 but, for the last two months, the average national selling price has come down to Rs21.49 per chick, said Waseem.

Published in The Express Tribune, March 8^th, 2015.

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