Chairman Pakistan Poultry Association demands subsidies for poultry industry

Lahore, August 02, 2016 (PPI-OT):Rai Mansab Ali Kharal, Chairman Pakistan Poultry Association (NZ), has said during a press briefing that the poultry sector is the most organized branch of the agro-based sectors of Pakistan. He said poultry sector had been serving the nation and providing affordable poultry products to the masses to fulfil the requirements of animal protein.

Poultry at present contributes 40 percent of the total meat consumption and generates employment and income for about 1.8 million people. But unfortunately, this industry is under crisis despite playing important role in economic growth and providing cheaper protein to the public.

Regarding the prices of broilers, Rai Mansab said that the cost of poultry sector is already high due to power load shedding. He said that broiler average rate remained at Rs.117 per kg during the last one year while cost was in the range of Rs.130-135, causing a loss of more than Rs. 20 per kg to the poultry farmers.

The annual average selling price of broiler chick’s ex-hatchery has been Rs 24/chick against the cost of production of Rs 31/Day Old Chick as worked out by the Commissioner Animal Husbandry, Government of Pakistan in the year 2012 for submission to the Peshawar High Court. The current costs are much higher due to inflation over the years. The average price of Day Old Chick during July 2016 was only Rs 5.50 only. We produce 1.25 day old chicks and presently its cost of production is Rs. 35 if selling price is Rs. 24 per chick, it comes to Rs. 13.75 billion losses in day old chick.

The total loss mounts to around Rs. 43 billion on sales of 1.25 birds (average weight of one bird 1.75kg). This loss may be mounted further because the cost is increasing while sale price is not increasing, he observed. If present situation prevails up to 50% poultry farmers may be closed, affecting lower class due to non-availability of cheaper protein source, besides causing unemployment for hundreds of thousands of people.

The chairman appealed the government to provide following package to support the Poultry industry:

Government should provide Rs.20 per kg subsidy to every poultry farm.

The scheduled banks should be asked to provide interest-free loans to poultry farmers so that they can revive their business.

The poultry farmers, who have already taken loans from banks for poultry business, their repayment should be re scheduled / delayed for at least one year.

20% Duty Draw Back (Export subsidy) and 25% freight subsidy to the exporters of poultry products should be provided to compete the poultry exporters of other countries.

The government should also withdraw sales tax / import duty imposed on import of soybean meal and grandparent chicks / hatching eggs. Government has nullified its own policy by imposing duties on imported raw material. An import duty on these raw materials has put

The district governments should not intervene whenever prices of chicken and eggs are increased so that Poultry farmers could make good their losses up to some extent.

For more information, contact:
Pakistan Poultry Association (PPA)
Central Office Islamabad
Khalid Plaza 1st Floor, Jinnah Avenue Blue Area near D Chowk,
Islamabad, Pakistan
Tel: +92-51-2801469-70
Fax: +92-51-8444027

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