Consumer affairs minister appraised of poultry farmers' problems

By Shezna Shums

The All Island Poultry Association (AIPA) is hoping to revive the collapsed poultry industry as the surging cost of production saw farmers ceasing their poultry operations.

Last week, Chairman, AIPA, Dr. D.D.Wanasinghe held discussions with the Consumer Affairs Minister regarding the problems faced by poultry farmers and the steps that should be taken to revive the industry.

AIPA was asking that the price of a kilo of chicken to be fixed at Rs. 350 from the last year's price of Rs. 280 per kilo. However considering the minister's request not to increase the price due to the economic situation in the country, AIPA decided to sell a kilo of chicken at Rs. 320.

"Even with this price we will only be earning a marginal profit and be able to revive the poultry industry to some extent. Chairman AIPA explained that if they are allowed to sell a kilo of chicken at Rs. 350, they would be able to stabilise and revive the poultry industry and also be able to restart some of the livelihoods of small-scale poultry farmers.

It was pointed out that from last year the cost of production had increased by 59.5 percent. "We are looking at a proportional increase in the selling price of chicken," said the Chairman.

Usually there is a 10 percent increase in the poultry industry. But since 2007 this expansion has stopped and there has been a sharp decline.

"Many small scale farmers have ceased operations, while the large poultry farming organisations have reduced their operations by 40 percent. Instead of closing down, the organisations reduced their operations to prevent losing their establishments," explained the Chairman.

Maize consists of 80 percent of the feed needed for the poultry industry, but this feed is sold with a 20% cess.

"If the cess is reduced the industry will benefit," said the Chairman. The Chairman AIPA, however, was told to make a written request to the minister in this regard.

The Chairman added that if the cess was reduced the poultry industry would guarantee that they would buy the entire maize production in the country.

At the moment the country produces about 65,000 to 70,000 metric tonnes of maize per year. But the poultry industry alone needs at least 200,000 metric tonnes of maize annually.

A survey of the poultry industry has shown that there were about 85,000 poultry farmers, and another 100,000 input suppliers such as the drivers used for transportation, sales people and others indirectly involved.

The Chairman said that there are about one million people including family members who were dependant on the poultry industry and added that they would be affected if measures were not taken to revive this industry.