Chicken sizzles at Rs 220|kg in state
After eggs, chicken prices are on the boil.Broiler chicken prices have surged nearly 18% in the last one month to a record high of `106 per kg at the farm gate level now due to increase in input costs and a fall in production.Prices are ruling at around `220 per kg at the retail level, the highest ever.
“Production has come down and feedstock prices have gone up. This has resulted in an increase in broiler chicken prices,“ said R Lakshmanan, president of the Palladam-based Broiler Coordination Committee (BCC). While the normal production is around 75 lakh broilers per week, the output now is only about 65 lakh broilers per week, he said.
Broiler chicken prices were ruling at `90 per kg at the farm gate level in the first week of June, BCC said. Poultry farmers have reduced production as profits have come down.
The cost of production has zoomed 25% to around `75 per kg now. Prices of maize, the main feedstock, has jumped to `20 per kg from `14 `15 per kg, Lakshmanan said. Prices of soya, another key ingredient, has increased to `40 per kg from `30`32 per kg.
The difference between farm gate price and that of chicken at the retail level is usually the double -a farm gate price of `90 per kg would translate into retail prices of `180 per kg–as retailers would have to take into account wastage and transportation costs.
Retailers typically keep a profit margin of at least `25 per kg. High feedstock prices coupled with drought in several parts of India pushed egg prices to record highs last week. Supermarkets in Chennai were retailing them at `8 apiece.
Chicken prices are likely to come down as consumption typically drops during the Tamil month of ` Aadi’, which is considered an austere period.Consumption would decrease as the `Shravan’ period, which is also considered holy in Maharashtra and other southern states, would also begin soon.
dinathanthi newspaper 09/07/2016 : http://www.dinathanthiepaper.in/firstpage.aspx