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Poultry
breeders resort to production holiday to bridge demand-supply
gap
K
V V V Charya in Hyderabad
In a bid to bridge the supply-demand gap of broiler
chicken, the poultry breeders in south India have resorted to
a novel method of ‘production holiday’ throughout the four southern
states - Andhra Pradesh, Karnataka, Tamil Naidu and Kerala.
The decision will bring down the broiler chicken supply by about
25 per cent to 30 per cent during the lean period of February
and March, Mr M Damoder Reddy, president, AP Poultry Breeders
Association told The Financial Express.
“We expect this stoppage in production would be enough to improve
the market sentiment and to stabilise the prices at ‘no loss
no profit’ range,” Mr Reddy opined. Earlier, breeders used to
destroy the hatching eggs, whenever they foresee a surplus in
the production of chicks. However, the new approach of implementing
a production holiday will enable the farmer and the breeder
to avoid unnecessary costs, Mr Reddy said. As per the decision
of the representatives of the southern state hatcheries, the
production holiday was implemented between December 16 and 22,
2001. Further it was also decided to cull the broiler parent
stock of 65 weeks and above, he added.
Subsequent to the production holiday, Andhra Pradesh is expected
to produce 20 lakh less chicks, compared to the earlier periods,
thus creating an estimated supply gap of 36 lakh kilos of broiler
meat in the market during February-March 2002.
“This gap is enough to obtain the break-even price of Rs 30
per kg,” Mr Reddy said.
The broiler industry is passing through a difficult phase since
last two years due to the depressed broiler prices, ranging
between Rs 18 and Rs 20 per kg, coupled with a rapidly increasing
cost of feed ingredients. This has resulted in the closure of
small farms, distress sale and culling of birds. The breeders
have already culled 2.17 lakh parent and hoped that this measure
will help in stabilising the market. |
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