Chicken prices jump as govt okays new production cost

Broiler chicken prices are on the rise in the country's kitchen markets because of new production costs approved by the government.

Besides, there is instability in egg prices as production is much lower than demand.

The price of broiler eggs has increased by about 10% and chicken by more than 12% in a month, according to the Trading Corporation of Bangladesh.

The Ministry of Fisheries and Livestock recently approved the production cost of broiler chickens at Tk170-175 per kg, which was around Tk140 a year ago. 

Soon after the cost of production was hiked, broiler chicken prices jumped from Tk160 per kg to Tk180-Tk190, 

Meanwhile, egg prices in different areas in Dhaka on Monday were in the range of Tk160-165 per dozen.

The government is also working to fix the cost of egg production, sources said. The current production cost of each egg is more than Tk11. 

Suman Howladar, president of Bangladesh Poultry Association, told The Business Standard, "Egg production is less than demand. That is why the price of eggs is increasing. If farmers are not given protection, the situation will gradually get complicated." 

"There should be plans to bring back those who have left egg production," he stressed.

Industry insiders said the prices of eggs and chicken were low during Eid al-Adha because of low demand. Many had to sell these products at prices below the cost of production.

Around 40,000 layer farms and more than 30,000 broiler farms have been permanently closed in the last three years, they said. Due to this, production has decreased compared to demand.

Demand has normalised but production costs remain high, they said. 

The extreme heat and heavy load shedding outside Dhaka also increased the mortality rate of chickens, heavily disrupting production.

Md Emdadul Haque Talukder, Director General, Department of Livestock Services, told TBS, "We are working to determine the cost of poultry production to regulate the market so that the price of the products can be in accordance."

Mahbubur Rahman, general secretary of the Breeders Association Bangladesh, told TBS, "The production of eggs has gradually decreased since the closure of farms, but demand has increased. 

"Due to this gap the price is increasing in the market. Having counted losses for a long time, many farmers have permanently withdrawn from egg production," he added.

He said the government is working to formulate a policy in coordination with all public and private parties so that there is no further instability in the chicken and egg market.