Building a resilient poultry supply chain in Bangladesh

A worker collects eggs at a poultry farm in Sreepur of Gazipur. The industry continues to grapple with a persistent mismatch between supply and demand. Photo: Rajib Dhar

Bangladesh's poultry industry plays an important role in the nation's agricultural economy, significantly contributing to economic growth and food security. With a growing population and increasing demand for protein-rich diets, the sector's importance is set to rise further.

Currently, the poultry sector stands at a promising yet fragile juncture. While producing approximately 50 million eggs and 2.5 million broiler chicks daily, the industry continues to grapple with a persistent mismatch between supply and demand. Both producers and consumers are impacted by the price volatility caused by this imbalance. 

It is anticipated that the average amount of poultry meat consumed per person will increase from 6.3 kg in 2023 to 7 kg in 2025; however, it will be difficult to meet this demand without a strong supply network. However, ongoing supply chain issues that jeopardise the industry's viability and profitability erode this potential. To tackle these problems head-on, cooperation between producers, the government, and private businesses is essential.

Overproduction of Day-Old Chicks (DOC) remains one of the most pressing issues in Bangladesh's poultry supply chain. Contrary to popular belief, this overproduction leads to price drops, significantly reducing manufacturers' profits. Small hatcheries, unable to compete in an oversaturated market, often exit the industry. This cycle of overproduction followed by shortages creates instability, making long-term planning a considerable challenge.

The poultry supply chain's woes are made worse by inadequate infrastructure. Proper refrigeration and transportation systems are essential to maintaining product quality from farm to market, yet many areas lack these facilities. 

Without advanced freezing and packaging methods, large poultry firms struggle to deliver fresh, high-quality products to consumers. This not only erodes consumer confidence but also limits smallholder farmers' market access, as they cannot compete with larger, better-equipped operations.

Another significant issue is the poultry sector's lack of market intelligence. Farmers often lack timely information on pricing trends and demand, leading to cycles of overproduction or underproduction. This information gap destabilised the market and resulted in substantial financial losses for producers.

Due to its current reliance on imports for essential commodities like corn and soybean meal, the industry is susceptible to changes in world prices as well as supply interruptions brought on by trade restrictions or geopolitical unrest.

Another major issue with the poultry supply chain is disease management. Production levels and customer confidence are severely impacted by avian influenza outbreaks. Strict biosecurity protocols must be put in place at every stage of the supply chain to safeguard flocks against disease outbreaks.

The adoption of digital platforms providing real-time data on market trends could revolutionise production decisions. By using technology to disseminate information on consumer preferences, price fluctuations, and demand forecasts, farmers can make more informed decisions aligned with market needs.

Furthermore, strengthening the resilience of Bangladesh's poultry industry requires lowering reliance on imported raw resources for feed production. 

These dangers can be reduced by promoting regional feed production through research and development. We may lower expenses and support local agriculture by investing in alternative feed supplies, such as cereals that are readily available in the area or byproducts from other sectors.

Infrastructure investment is not only essential but also an opportunity for economic growth. The government should prioritise funding for cold storage facilities and transportation networks to ensure efficient logistics for poultry products. 

Such investments would minimise spoilage during transportation while improving market access for small farmers. By enabling direct connections with consumers, smallholders could enhance their profit margins significantly.

To tackle overproduction, better coordination between hatcheries and farmers is essential. Establishing a system that facilitates improved forecasting based on market demand can stabilise prices, preventing manufacturers from selling at unsustainable rates or being burdened with unsold inventory. Promoting collaboration between hatcheries and farmers would help create a resilient supply chain that benefits all stakeholders.

The sector must also adopt standard operating procedures that include routine flock health inspections, vaccination programmes, and training in disease prevention practices. Additionally, the government should actively monitor disease outbreaks and provide timely updates to farmers, enabling prompt responses.

A holistic approach to addressing these challenges requires strong public-private partnerships. Collaborative efforts can drive innovation in the poultry supply chain by encouraging investments in processing equipment, enhancing food safety standards, and supporting research initiatives aimed at improving efficiency across the sector.

Already, a number of big companies are heavily investing in the poultry industry. For example, Kazi Farms Group has made significant investments to modernise its business practices while emphasising biosecurity protocols on all of its farms. In the same vein, businesses like CP Bangladesh and Paragon Group are aggressively attempting to improve their supply chains by means of integrated farming operations.

To address the underlying challenges facing Bangladesh's poultry sector, these initiatives must be scaled up significantly. Success cannot rest on the efforts of individual businesses alone; a thriving ecosystem is required, one in which large enterprises and smallholder farmers alike benefit from a more efficient and equitable supply chain.

In conclusion, all parties concerned must act quickly to address supply chain issues in Bangladesh's poultry sector. We can build a robust chicken supply chain that can satisfy rising consumer demand by making investments in infrastructure upgrades, improving market intelligence systems, encouraging local feed production, bolstering biosecurity protocols, and cultivating public-private partnerships.

The poultry industry's future in Bangladesh depends on our capacity to work together to overcome these obstacles. We must continue to be dedicated to creating an industry that not only satisfies present needs but also anticipates and responds to future issues with agility as we enter a time of rapidly shifting consumer tastes and market dynamics. 

We can guarantee the survival of this crucial industry by doing this, giving our expanding population access to reasonably priced protein sources and establishing Bangladesh as a major player on the international scene.

Yemad Fayed Ahmed is a public relations professional.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.