Drop in soymeal exports keeps poultry feed prices in check.

New Delhi: The forthcoming summer months, when demand for poultry products usually goes down, should not perturb farmers as falling corn and soymeal prices –– the two key constituents of poultry feed–– will keep their input cost also down.

Poultry industry sources said with steep decline in exports of soyameal, the wholesale prices in Delhi have come down to Rs 16,700 per tonne from Rs 19,000 a month back.

According to data released by the Soyabean Processors Association of India (SOPA), India’s soymeal exports dropped to a five-year low of 2.1 million tonne in 2009-10 from 4.2 million tonne last year due to sluggish global demand.

Similarly, corn prices in the wholesale markets have also remained stable at Rs 11,000 per tonne over expectations of a bumper harvest.

As a result of which poultry feed prices have also stabilised at around Rs 17,000 per tonne in the last two months and farmers anticipate that prices might decline further in the next few weeks.

“Drop in soyameal exports is helping the poultry farmers in keeping their cost of operation down which is a good news as usually during summers demand drops,” Ricky Thaper, Treasurer, Poultry Federation of India (PFI), told FE.

Poultry feed comprises of around 70% of the total cost of production of eggs and chicken. Total feed consumption in poultry industry in India is around 15 million metric tonne at an estimated value of Rs 15,000 crore.

In the last few years, volatility in feed prices had been hitting poultry farmers hard.

Meanwhile, the wholesale live weight broiler chicken prices in Delhi has stabilised at around Rs 65 a kg at present down from Rs 68-70 per kg three months back. Correspondingly, retail prices have also been in the range of Rs 120 – Rs130 per kg.

The wholesale egg prices also have declined to Rs 2 per piece as against Rs 2.35 per piece two months back.

However, an official from the National Egg Co-ordination Committee (NECC) said that besides stable feed prices, prompt action taken by the government against spread of bird flu has also helped industry. “We are better prepared for the summer months and by keeping the prices down we would deal with summers,” a NECC official said.

India is ranked fifth in broiler producer in the world.

The poultry industry is worth 20,000 crore. Total production is estimated to 2.3 million tonne of broiler meat per annum. The per capita consumption of broiler is only 2.4 kilogram per person per annum.

The consumption of broiler meat has grown at 10% in last 15 years and this growth is likely to continue.

Source : Financial Express