TDS Desk:

Winter is usually the peak season for social and family events across the country, driving strong demand for eggs and broiler chickens. This year, however, political and economic instability has sharply reduced such activities, leading to a significant fall in demand and prolonged losses for poultry entrepreneurs.

Industry stakeholders say that although winter generally sees lower egg and chicken prices due to increased vegetable supply, strong seasonal demand usually keeps losses in check and often ensures profitability through higher sales volumes. This year, however, winter-centric festivals and social programmes have declined markedly. As a result, prices of both white and brown eggs at farms have fallen by nearly one-third. Just a few months ago, wholesale egg prices hovered around BDT 12 per piece; they have now dropped to BDT 7.60–7.80. With production costs exceeding selling prices by BDT 1–1.5 per egg, many farmers are on the brink of bankruptcy.

Litton Chowdhury, president of the Greater Chattogram Poultry Association, told journalists, “Poultry entrepreneurs across the country have been losing capital steadily over the past two months and are heading towards financial ruin. The wide gap between production costs and market prices of eggs and poultry has left many farm owners unable to purchase feed regularly. About 40 percent of broiler farms have already shut down. Even after closures, broiler prices are not stabilising due to weak demand.”

A similar situation prevails in the egg sector. Producing an egg costs farmers around BDT 9 or slightly less, while current prices have fallen to about BDT 7.50. With demand remaining sluggish, further price declines cannot be ruled out. Yet layer farms cannot simply shut down operations, as egg production cycles require maintaining flocks for 18 months to three years. As a result, farmers are being forced to continue production despite mounting losses. Farmers attribute the demand slump partly to a sharp fall in vegetable prices at the start of winter this year, prompting consumers to shift towards vegetables instead of eggs and chicken. This trend has reduced demand not only at events, hotels, and restaurants but also at grassroots levels.

Although egg and poultry prices have fallen, feed prices have remained unchanged. Farmers allege that poultry feed manufacturers have not adjusted prices despite declining demand. With feed production concentrated among a handful of companies, the lack of competition is preventing price rationalisation, leaving production costs stubbornly high even as selling prices fall.

Shubhashish Bhattacharya, a broiler and layer farm owner from Raozan upazila in Chattogram, told journalists, “Eggs were sold at BDT 8.30 per piece on Tuesday, from which wholesalers deduct a commission of BDT 0.50–0.60. At this rate, losses exceed BDT 1 per egg. Seasonal downturns are common in poultry farming, but this slump has lasted nearly two months, forcing farm owners to close their farms due to financial pressure. If egg prices continue to fall, many poultry entrepreneurs may lose their capital and become bankrupt.”

According to sources at the Trading Corporation of Bangladesh (TCB), eggs were sold at the retail level on Tuesday at a minimum of BDT 36 per hali (four eggs). As recently as October, farm-level eggs were priced at BDT 45 per hali. With the retail price of eggs dropping to around BDT 9 per piece, selling pressure at the farm level has intensified. Amid heightened competition, egg prices have been falling almost daily.

On Tuesday, broiler chicken was sold at a minimum of BDT 150 per kilogram at the retail level, while the wholesale farm-gate price stood at BDT 125–130 per kilogram. Farmers say that although the current cost of producing broiler chicken ranges between BDT 140 and BDT 150 per kilogram, forced sales at lower prices have pushed many farms into losses. As a result, at least 30–40 percent of poultry farms across Greater Chattogram and other parts of the country have shut down, according to industry claims.

Kazi Amin Masum, an entrepreneur operating broiler and layer farms in Sandwip upazila of Chattogram, told journalists, “There is no alignment between poultry feed prices and the prices of chicken and eggs. There is pressure to keep the prices of poultry products in control at the government level. As prices continue to fall, entrepreneurs are incurring heavy losses. Large farm owners and companies, which produce their own poultry feed and ancillary products, are managing to remain profitable, but small and independent entrepreneurs are suffering significant losses.”

Industry insiders say uncertainty has been created among consumers ahead of the election. As a result, people are avoiding social events, travel, and festivities unless absolutely necessary. Demand has also declined at hotels, restaurants, and other food production establishments. However, investments in poultry farms are made for fixed production cycles and cannot be withdrawn midway. Consequently, despite mounting losses, farmers are compelled to continue operations until the produce is sold. Similarly, layer farms must continue egg production for a predetermined period. Business owners say that even amid losses, they have no option but to sustain production.