Due to reduced consumption and price crash, broiler farmers have reduced placement of day-old chicks at their farms as a result of which hatcheries had almost stopped setting eggs for chick production.
"Egg layers have also been culled leading to short supply of eggs. Until last week, day-old chicks were being sold at Rs 2-3 per chick against the cost of production of Rs 38-40 per chick," said Pakistan Poultry Association (PPA) Northern Zone Chairman Chaudhry Fargham Toor while talking to Business Recorder on Monday.
At present, the poultry sector is facing 30 per cent less demand due to shutting of restaurants and wedding halls. "It is the first time in the history of Pakistan that we are having such a low demand.
Due to this, farmers have stopped placement of chicks and selling their flocks before time," he added. On resumption of businesses as usual and opening of schools, hotels, restaurants, wedding halls, the demand is going to spurt and due to extreme low availability of chicken, prices will shoot up, he feared.
"If the government intervenes by way of price controls, the farmers who have lost during this period will suffer greater loss and discouragement for resuming production," he said. Regarding constant up and down of poultry prices in the market, he said it is because of the same reason as farmers start selling whatever it has when the price shows some upward trend and then hold when it comes down.
The chairman further said that sale of generic agriculture and livestock produce prices fluctuate in a free economy because of demand and supply rule. "In the current environment, we do not expect the government to reopen marriage halls, hotels, restaurants, as we fully understand that the life of citizens is more important but it is our responsibility to inform the government of what is likely to be in the prospect."
He also mentioned that electricity had become the second highest input cost in chicken and eggs. In order to avert the losses, the association has requested for reduction in electricity tariffs and deferring recovery of loans. The government may have a compassionate look at the demands of the poultry sector.
He also requested the government that shops of poultry may be allowed to work for extended hours instead of working till 5:00 pm. He said if 24/7 working permission is not possible then poultry shops should be allowed to work till 8:00 pm as police force start forcing shopkeepers shutting down at 4:00.