Poultry farmers in Bangladesh have lost an estimated USD 164 million over the past six months due to a sharp fall in chicken and egg prices, according to the Bangladesh Poultry Association (BPA).
Around 10,000 small and medium farms have shut down during the period, said the BPA.
The association is urging the formation of a USD 82 million emergency fund to support struggling farmers and sustain poultry production.
It also called for clear policies on corporate production and contract farming, and the creation of a Poultry Development Board.
Market manipulation
BPA President Suman Hawlader claims a syndicate is controlling the poultry market—raising or lowering prices at will.
He explained that when prices go up, the government intervenes, but when prices drop, small farmers suffer while the government does nothing.
“Consumers may be happy with lower prices now, but this relief would lead to bigger problems later. The current situation is destroying the capital, labor, and dreams of small farmers,” he warned.
Production costs vs market prices
Mr Hawlader said that producing 1kg broiler chicken costs USD 1.23-1.31, but farmers are forced to sell it for USD 0.90-0.99.
- Sonali chicken costs USD 1.89-2.05 per kg to produce, but is being sold for just USD 1.48-1.64 per kg.
- Producing one egg costs a minimum of USD 0.08, but farmers are selling them for USD 0.05-0.06 each.
Production data
Bangladesh produces 5200 tons of broiler, Sonali, and layer chickens, and around 40-45 millions of eggs daily.
Mr Hawlader said small farmers account for 3000 tons of chicken and 30 million eggs each day and have incurred around USD 164 million in losses over the last six months.
While small farmers sell at low prices, consumers still pay high prices, and market middlemen benefit the most, he said.
“If this continues, small poultry farmers may disappear, as hundreds of farms are closing down daily,” he added.