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Broilers & Layers
on January 17, 2012

India poultry industry may experience negative growth in 2012

Rising feed, production costs leading to losses for farmers in Indian state of Andhra Pradesh

India's poultry industry may be looking at negative growth in 2012 due to increasing feed costs, particularly soybean and maize, and production costs, most notably in the last three months, according to industry experts in the Indian state of Andhra Pradesh.

One metric ton of soybeans now costs Rs 16,000 (US$311.08) in Andhra Pradesh, compared to Rs 12,000 (US$233.31) in October/November 2011. A metric ton of maize currently costs Rs 12,000, compared to Rs 9,000 (US$174.98) during the same time in 2011.

The production cost for broiler chicken has increased from Rs 30 (US$0.58) to Rs 50 (US$0.97) per kg, but the market rate has decreased from Rs 100 (US$1.94) to Rs 70 (US$1.36) per kg. "Skinless chicken is available at Rs 102 (US$1.98) a kg, dressed chicken at Rs 86 (US$1.67) and a live bird for Rs 50," said A Gopal Reddy, executive director of a private hatchery in the state.

According to industry sources, 14,000 poultry breeders and 95 hatcheries across Andhra Pradesh are stagnating due to the costs. Breeders say they want the government to ban forward trading in soybeans and maize to help offset the crisis. The state produces 30 million broilers per month.

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