TDS Desk:

The skyrocketing trend of chicken and egg prices in the country is directly linked to feed price manipulation by major corporations, industry insiders have alleged.

Egg and broiler chicken are the main sources of low-cost protein for middle- and low-income people. A corporate syndicate has been deliberately planning to make excessive profits by hiking the prices of these commodities at different stages in recent times.

Their first target was the poultry feed market, which they have been monopolising and manipulating for years, said people involved in this sector.

For example, prices of maize and soybean meal – the most essential raw materials for poultry feed – have recently dropped significantly, but the feed millers have lowered their prices only nominally. This creates a major burden on small farmers and consumers alike.

Sumon Hawlader, president of the Bangladesh Poultry Association (BPA), said poultry feed production primarily relies on maize (60%) and soybean meal (25%). Last year, when maize was priced at Tk43 per kg and soybean meal at Tk82–84 per kg, the price of a 50-kilogram bag of poultry feed was Tk3,600.

Over the last one year, the maize price has dropped to Tk30-32 per kg and soybean meal to Tk60-62 per kg. This means maize price slid by around Tk10 per kg and soybean meal price by around Tk20 per kg, but the price of poultry feed has only been reduced by Tk1-2 per kg, he said.

He argues that the price of poultry feed should have decreased by at least Tk15 per kg, given the lower raw material costs. Instead, farmers are still paying Tk3,500–3,600 per bag, almost the same inflated price as before.

“This is unfair to farmers who have to pay the same high prices for feed despite the drop in input costs,” he said. He called the situation a “deceptive practice” that is hurting small and medium-sized poultry farmers the most.

Amit Mukherjee, sales manager at Kapotakkhi Feed Ltd, said soybean cake is the most essential raw material for poultry feed. A syndicate is manipulating its price, which causes a hike in the poultry feed price.

Sumon Hawlader, president of the Bangladesh Poultry Association (BPA), criticised corporate groups for forming a syndicate that controls feed prices, effectively monopolising the market. He called for government intervention to break up this cartel, arguing that it is essential for restoring price stability in the poultry market.

Dr Jahangir Alam Khan, an agro-economist and researcher, told the Daily Sun that the high cost of poultry feed is one of the major causes for the rising price of eggs and chicken.

“Farmers allege that the price of feed is not fair according to the price of its raw ingredients. It is inflated. The government should fix the price of feed in the same way they fixed the egg and chicken prices earlier,” he said.

Global soybean meal price (any origin) currently stands at $436.03, down from $472.46 last month and $514.56 a year ago. This is a 7.71% drop from last month and 15.26% from one year ago, according to the World Bank data.

Currently, the US maize price (Gulf ports) is $170.32, down from $177.43 last month and $207.61 a year ago. The current maize price reflects a 4% drop from last month’s price and 17.96% from that of a year ago, according to the World Bank data.

During April 2024, farmers sold maize at Tk800 to Tk900 per maund (Tk20-22.5 per kg) in the local market.  However, the dry and fresh maize price is Tk32-33 per kg at the mill gate.

Aside from hike in feed costs, unjustified increases in one-day chick prices and the rising cost of poultry medicine are also responsible for the hike in poultry prices, said farmers.