RIZWAN BHATTI

KARACHI: Pakistan’s poultry industry is facing a serious crisis and massive financial crisis as exports to Afghanistan have remained suspended since October last year following the closure of the border, leaving producers with surplus supply and forcing them to sell chicken below production cost.

Around 20 percent of Pakistan’s poultry production was previously exported to Afghanistan, but the export has not resumed because the border remains closed. Imran khan a leading poultry farmer and Executive Member of Pakistan Poultry Association informed that continued closure of the Afghanistan border has emerged as one of the major factors behind the deterioration in poultry prices. He also pointed to high diesel prices and rising transportation costs as additional pressures on farmers and producers.

“The prolonged suspension of export to Afghanistan has created a significant supply glut in the domestic market and resulted heavy financial losses to the poultry farmers and producers”, he added

In addition, he said that, supplies to Kashmir and Balochistan are also disturbed and domestic demand is also insufficient to absorb the additional production.

Imran informed that chicken production currently costs around Rs290 per kilogram, whereas producers are being forced to sell it at approximately Rs250 per kilogram, resulting in a direct loss of around Rs40 per kilogram.

A chick currently costing around Rs70 is being sold for as little as Rs5, causing a loss of approximately Rs65 per chick. Producers are additionally paying around Rs10 per chick in Federal Excise Duty (FED) despite operating at a loss, he added.

Despite the severe price decline, poultry production remains sufficient, creating further downward pressure on market prices. “We have 20 percent surplus supply and that can be catered by reopening poultry exports to Afghanistan to provide relief to producers that are facing millions of rupee losses,” he said

He said that this is the longest and most severe poultry crisis in Pakistan’s history, even worse than the bird flu crisis nearly two decades ago.

Meanwhile, the Sindh-Balochistan Broiler Farmers Alliance held an important consultative meeting on the ongoing crisis.

The meeting was attended by Dr Zafar Islam, Kamal Akhtar Siddiqui, Abdul Ghani Baloch, Mian Sheikh Wali Muhammad, Imran Khan, Usman Hashmi, Zain Siddiqui, Chaudhry Nadeem, Javed Gabol, Brigadier Atiq (retd), Mubarak Gabol, Qasim Ehsani, Dr Rehan, Sohail of Pioneer Feeds, Farhan Jan, Chaudhry Ashraf, Rizwan Tanoli, Saad Siddiqui, Tahir and a number of other farmers.

The meeting held detailed discussions on the current situation of the poultry industry, continued financial losses being faced by farmers, chicken prices, the existing rate mechanism, chick supply and the prevailing market system.

The participants agreed that an effective role should be played in developing a transparent and fair rate mechanism based on farmers’ production costs, available data and actual market conditions.

The meeting decided that the Sindh-Balochistan Broiler Farmers Alliance would develop its own data-based alternative rate mechanism to effectively safeguard the economic interests of farmers.