The Hindu Business Line : Diwali demand pushes up chicken prices

The official price quote of Rs 36 per kg in the farm-gate price that is continuing for the second week now appears to have broken the nearly 10-month-long lean period faced by broiler producers who were practically selling the birds below cost of production.

``The downtrend in chicken prices that started in November-December 2003 and worsened during February-March seems to have been arrested for the time being, though we'll have to go a long way to see a real price surge for chicken,'' sources seeking anonymity in the broiler trade said.

Will the live chicken price see further surge to touch Rs 40 per kg over the next couple of weeks?

The sources say considering the over-supply scenario in the broiler segment of poultry, any further wholesale price beyond the Rs 36-38 band will push up the cost at the retailers' end.

Though the State broiler coordination committee recommended wholesale price for live bird of Rs 36, the actual price offer in the market is said to be in the Rs 33-34 band.

The sobering maize and soyameal prices— the poultry feed inputs that determine the cost of production— have given the chicken producers a price a cushion of Rs 3-4 a kg.

While maize prices have come down to Rs 5.50-5.75 a kg from Rs 7.50-8, soya prices have fallen from Rs 16-17.50 a kg to Rs 9-9.50.

"Considering the fact that a live chicken during the 45 days of cage rearing will consume an average four kg of feed (comprising 65% maize and 35% soya feed mix), the current fall in the prices of these feed material will support the broiler producers in bringing down their feed cost to that extent," Palladam broiler producers say.