Al Mamun Harun Ur Rashid :
Volatile feed market is a major challenge for a sustainable poultry sector where thousands of farmers engaged in meeting animal protein and creating employment are struggling to survive.
Poultry farmers said when the feed price rises exorbitantly, it directly hits the farms and even forces them to close it.
Even if farmers compromise with feed quality to reduce cost, the production level drastically falls which leads to loss, they said.
Stakeholders said that government’s direct intervention and surveillance in the import-driven feed market is imperative to save the small and medium scale farms. It is because feed market can easily be manipulated.
Sabbir Rahman, Proprietor of ‘Orko Poultry and Hatchery’ in Sabgram Union of Bogura Sadar, started his farm ten years ago, but it has recently been closed due to heavy loss caused by soaring feed price and diseases.
“I started with 1000 broilers and layers. I made some profits in the initial years as the feed price was affordable,” he told The New Nation recently.
“When I closed the farm I had 2000 chickens and a hatchery. Six months ago, the price of a 50kg feed sack was Tk 1,600-Tk 1,700, but recently it is Tk 3,000-Tk 3,400. I needed around 85 bags per month,” he explained.
“In every month, my production cost was about three lakh Taka for feed, medicine, electricity, employees and others. When the profit began to dwindle badly, I closed it to check further loss,” he said.
After losing capital, unemployed Sabbir is now struggling to survive with his five-member family.
Ariful Rahman, Proprietor of ‘Sabbir Sadi Poultry Farm’ in Gabtoli Upazila of Bogura, said when the feed prices shot up three to four times in a month his farm was badly affected.
“I had about 4,000 broilers and Pakistani chickens. But the farm situation became difficult after the pandemic as production cost went up and sales dropped,” he said.
“Against price hike, I used low quality feed. But it affected the production. So I faced heavy losses and closed the farm this year. I have a loan of five lakh Taka. I don’t know how to repay,” he sighed.
Like them, many other farmers in the area are wrapping up from this business after heavy losses due to high production cost against the output.
Suggesting for a buffer stock of raw materials to contain the crisis period, they urged the government to have a mechanism to keep the feed market stable for their survival.
On the other hand, importers and feed mill owners said feed price is high because of non-availability and high pricing of raw materials in the international market.
Since December 2021, the poultry, cattle and fish feed prices have increased by approximately 25-30 percent.
Dr Md Saifur Rahman, AGM of Quality Feed Limited said, “The price of per kilo feed has been increased by Tk 15 recently. As a result the farmers’ production cost has shot up. It is difficult for small and medium level farmers to sustain.”
He also said there are other factors including poor infrastructure, diseases and low quality feed, and lack of training responsible for the closure of the farms.
Increasing maize and soybean production, two major ingredients for feed, can lower prices tremendously, they opined.
According to the Department of Agricultural Extension (DAE), 56.63 lakh tonnes of maize were produced in FY 2020-21, 54 lakh tonnes in FY 2019-20 and 35.78 lakh tonnes in FY 2016-17. DAE has set a maize production target of 62 lakh tonnes by 2030.
Due to unsatisfactory production, Soybean cultivation was almost the same for the last five years. It was 1.3 lakh tonnes in FY 2020-21 and 1.4 lakh tonnes in FY 2019-20 while it was one lakh tonnes in FY 2016-17.
The current annual demand for maize is around 70 lakh tonnes while Soybean meal is around 20 lakh tonnes, Department of Livestock Services (DLS) said.
“About 72-80 percent of the cost of a farm springs from feed. When the market becomes volatile, the small farms cannot sustain due to heavy loss,” Zeenat Sultana, DLS Deputy Director (Farm) said.
About market stability, she said the import tax from raw materials should be removed as the feed sector largely depends on imports.
“There was tax exemption till 2015. But it returned soon. We always write to the concerned authority for the exemption till 2025,” she added.
To contain the feed market manipulation, she said that DLS has introduced collecting data including feed production capacity, target, costing and pricing from feed mills every year.
DLS is also working on the amendment of the National Poultry Development Policy, 2008 to protect small and medium farms and to restrain the giant ones to bridge the gap.
Zeenat Sultana also said that there were many hands trying to temper the feed pricing and selling of meat and eggs for absence of no receipts in most of the cases.
“Farmers should maintain receipts while buying feed and selling their products so that it helps the government to intervene for the sector’s survival,” she said.
Stakeholders said careful attention is needed for a stable feed market to save the sector contributing to the national economy, employment and women empowerment.
Md. Abdur Rahim, Project Director (Joint Secretary) of Livestock and Dairy Development Project said, “As the sector is expanding, support is necessary for small and medium scale farms. Secondly, food preparation formulas should be modernised for cost minimisation.”
Poultry sector is the lifeline for meeting animal protein within affordable prices, but if the sector declines, the nutrition demand for good health mentioned in the Sustainable Development Goals and government’s plans and policies will be at stake.
