The poultry industry which saw vigorous growth over the last few decades and became the key affordable source of egg and meat, has been affected severely by the pandemic pushing thousands of farmers out of business. Many farmers could not take the losses as steep drop in demand forced them to sell chicken below production cost. The demand for broiler chickens fell due to lockdowns and restrictions on social events and eateries. Half of the broiler chickens produced are consumed at home and the rest is consumed at various social events such as wedding receptions and restaurants.
Poultry meat production has declined by 40%-45% over the last one and half years from around 90,000 tonnes per month in pre-pandemic days. More than 40% of farms have stopped production as they could not absorb pandemic-induced losses. At present, farmers are selling broiler chicken at Tk 90-95 per kg, while their production cost is Tk 105 per kg. There are around 90,000 registered poultry farms in the country. Insiders said thousands of farmers have lost their capital. If they cannot resume production, the sector will not be able to turn around. Over the last four decades, the poultry industry developed into a Tk 35,000 crore sector, which was meeting more than 40% of the local demand. Before Covid-19 hit, the growth of this sector was 12%-15% annually but growth turned negative in the last one and a half years.
Farmers were given cash assistance a few days ago but their troubles are not going away soon because of the losses. In fiscal 2019-20, 1736 crore eggs were produced. But, egg production decreased by 35%-40% during the pandemic. Eggs are being sold at Tk 95-105 per dozen in the retail market. Support measures from the government helped the sector grow into an industry by promoting commercial farming over the last two decades and many conglomerates started businesses besides small entrepreneurs. The government should provide policy and financial support to the sector as it plays a big role in ensuring protein demand of citizens.
