Poultry price recovers on supply shortage as birds die of scorching heat

May 8, 2018

Poultry prices have recovered in the past three to four weeks, largely due to a after the death of many birds in scorching heat on ill-maintained farms.

Prices of are now Rs 81 a kg in Gujarat, after plunging to Rs 61 a kg on April 11 from Rs 72 a kg in early March. In Mumbai, these had slipped to Rs 49 a kg towards end-March, from Rs 59 a kg earlier that month; it is now Rs 82 a kg. Elsewhere across the country, too, it shows similar movement. And, has pulled along 

“Normally, poultry demand goes down during the peak (school) examination season of March, resulting in price declines. Demand gradually resumes by the first to second week of April, when the examination season gets over. With the onset of scorching heat, the mortality rate in chicken also goes up, resulting in a sharp reduction in its supply. All factors worked together for this sudden price increase in poultry.

With feed prices still subdued, poultry farmers see a sharp increase in their margins this season. Prices of soybean extraction (bulk) for export quality rose a marginal 3.9 per cent to Rs 33,550 a tonne over a month to April 20 (latest data available). In the same period, soybean rose 4.1 per cent to Rs 38,000 a tonne

Apart from the usual consumer demand, the ongoing wedding season in Hindus and Muslims has elevated demand of poultry products all across the country. Normally, the peak demand season for the industry is between April 10 and June 1.

The mortality rate in chicken goes up sharply to eight or nine per cent with the onset of heat wave in April and May, as against five per cent during the winter season of November and December, also due to less water on farms. Experts say a 25-30 per cent price rise is possible in the next two to three weeks.