The Hindu Business Line : TN poultry prices firm on festive demand

Steady rise in winter consumption has put the Tamil Nadu's poultry sector in a safe zone as the broiler chicken and shell egg off-take has moved up in recent weeks, imparting stability to their selling prices in the past one month.

Broilers

The broiler producers have reasons enough to be cheerful as the stable farm-gate price prevailing at Rs 35-36 (per kg) band for the past one month has sustained their margins.

Though the same is the case with shell egg producers who also see the wholesale price stationed at Rs 1.50 per piece for nearly four weeks, in the latter's case the high input costs do erode their margin to some extent causing worry on long term viability.

The State broiler coordination committee (BCC) at Palladam has chosen to retain the wholesale price at Rs 36 per kg considering the sustained consumption demand both in Tamil Nadu and Kerala.

Egg prices

The farm-gate table egg price too is more or less stabilised at Rs 1.50, though the egg trade is apprehensive that any further rise in the price could not be sustained at retail level, particularly during the anticipated lean season in February and March when the egg consumption tend to be low due to rising heat conditions.

Consumption

The Christmas and New Year festivities which gave the momentum for the surge in demand for poultry products are followed this month by `Pongal', which too will go to further supporting a rising consumption of chicken, said Mr B. Soundarajan, Managing Director of the Coimbatore-based Suguna Poultry Farm Ltd, who feels the December/January months will normally trigger a 25 per cent jump in poultry consumption.

After a flat consumption in February and March months, it is anticipated to rise again in April-June quarter.

The shell egg trade in Namakkal anticipates that the current price trend would support till next month.

Price Stability

Some diversion of stocks to western and northern States has also enabled stabilisation in egg price.

The cautious approach adopted by the poultry farmers in resuming bird replacement has also led to stability in the market price for the eggs.

`In view of the good consumption forecasts especially in upmarkets, the table egg rate may see an upward move, say by another five paise or so, by next week', said Mr P. Valsan, Secretary of the Namakkal-based All India Poultry Products Exporters Association.

He was, however, cautious that any breach in retail price for eggs beyond Rs 1.90-2 may pose consumer resistance particularly in urban centers which account for bulk consumption.