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Source: http://in.reuters.com/article/domesticNews/idINBOM31980020080417?sp=true
INTERVIEW -India poultry prices to jump as supplies fall short
Thu Apr 17, 2008 4:18pm IST
By Rajendra Jadhav
MUMBAI, April 17 (Reuters) - Indian poultry prices are set to surge with demand peaking on soaring prices of vegetables and pulses, and an industry, scared of bird flu, slashing output ensuring a supply shortfall, a senior industry official said.
"Prices dropped due to the bird flu outbreak and farmers started reducing production..the process is still going on," Anuradha Desai, chairwoman of India's National Egg Coordination Committee, said in an interview.
In January, India reported the outbreak of bird flu in the eastern state of west Bengal and importers immediately clamped ban on the Indian imports.
Tripura, another Indian state which also borders Bangladesh, reported a H5N1 outbreak in poultry in early April and culling operations are continue there.
The bird flu spread panic and some states banned poultry products, pulling down prices sharply, prompting farmers to cut production.
Egg prices had fallen by half to 90 rupees ($2.25) per 100 eggs, while chicken slumped 35 percent to 25 rupees per kg.
"Egg production has come down to 115 million eggs per day from 120 million eggs in January. In next 3-4 months it will go below 100 million eggs," said Desai, who is also the chief of Venkateshwara Hatcheries, the country's largest poultry producer.
We are seeing decrease in chicken production, while the impact on egg production will be noticeable in the next 3-4 months, she said.
Broiler chicken, raised solely for meat, takes 35-42 days from chick to bird, while layer chicken, raised for eggs, become productive in 20 weeks.
"Input costs are rising sharply and profit margin is going down. Prices of corn and soymeal are shooting up due to futures trading and exports... soon we can see egg at 3 rupees and chicken at 60 rupees per kilo."
Wholesale egg price has risen 81 percent to 163 rupees per 100 eggs, while chicken prices have shot up 112 percent to 53 rupees a kg since January.
Chicken is a staple meat product in India, where the majority of the Hindus avoid beef for religious reasons.
Higher prices of vegetables and pulses usually divert poorer people towards poultry products, she said.
On Thursday India's wholesale price index <INWPI=ECI> rose 7.14 percent in the 12 months to April 5.
In India poultry products are far cheaper than competing countries and once importers lift the ban, exports will go up sharply, she said. Prior to ban India exported about 10 million eggs per day.
Indian poultry is likely to grow by 12 to 15 percent annually on the back of rising incomes, urbanization and lower prices of chicken compared to meat, Rabobank International estimated in February.
India is the world's second largest producer of eggs and the fourth largest producer of chicken, according to NECC.
($1= 39.92 rupees)
(Editing by Harish Nambiar)
INTERVIEW -India poultry prices to jump as supplies fall short
Thu Apr 17, 2008 4:18pm IST
By Rajendra Jadhav
MUMBAI, April 17 (Reuters) - Indian poultry prices are set to surge with demand peaking on soaring prices of vegetables and pulses, and an industry, scared of bird flu, slashing output ensuring a supply shortfall, a senior industry official said.
"Prices dropped due to the bird flu outbreak and farmers started reducing production..the process is still going on," Anuradha Desai, chairwoman of India's National Egg Coordination Committee, said in an interview.
In January, India reported the outbreak of bird flu in the eastern state of west Bengal and importers immediately clamped ban on the Indian imports.
Tripura, another Indian state which also borders Bangladesh, reported a H5N1 outbreak in poultry in early April and culling operations are continue there.
The bird flu spread panic and some states banned poultry products, pulling down prices sharply, prompting farmers to cut production.
Egg prices had fallen by half to 90 rupees ($2.25) per 100 eggs, while chicken slumped 35 percent to 25 rupees per kg.
"Egg production has come down to 115 million eggs per day from 120 million eggs in January. In next 3-4 months it will go below 100 million eggs," said Desai, who is also the chief of Venkateshwara Hatcheries, the country's largest poultry producer.
We are seeing decrease in chicken production, while the impact on egg production will be noticeable in the next 3-4 months, she said.
Broiler chicken, raised solely for meat, takes 35-42 days from chick to bird, while layer chicken, raised for eggs, become productive in 20 weeks.
"Input costs are rising sharply and profit margin is going down. Prices of corn and soymeal are shooting up due to futures trading and exports... soon we can see egg at 3 rupees and chicken at 60 rupees per kilo."
Wholesale egg price has risen 81 percent to 163 rupees per 100 eggs, while chicken prices have shot up 112 percent to 53 rupees a kg since January.
Chicken is a staple meat product in India, where the majority of the Hindus avoid beef for religious reasons.
Higher prices of vegetables and pulses usually divert poorer people towards poultry products, she said.
On Thursday India's wholesale price index <INWPI=ECI> rose 7.14 percent in the 12 months to April 5.
In India poultry products are far cheaper than competing countries and once importers lift the ban, exports will go up sharply, she said. Prior to ban India exported about 10 million eggs per day.
Indian poultry is likely to grow by 12 to 15 percent annually on the back of rising incomes, urbanization and lower prices of chicken compared to meat, Rabobank International estimated in February.
India is the world's second largest producer of eggs and the fourth largest producer of chicken, according to NECC.
($1= 39.92 rupees)
(Editing by Harish Nambiar)