Domestic Economy

Poultry Farmers Cut Back Output Amid High Feed Prices

Poultry Farmers Cut Back Output Amid High Feed PricesPoultry Farmers Cut Back Output Amid High Feed Prices

The shortage and the inflated prices of poultry feed have forced farmers to reduce their day-old chicken production, which move could lead to market agitation in the near future.
“Due to the government’s lack of commitment regarding the provision of poultry feed, farmers now have to spend four times higher than regular prices to procure their feed,” Habibollah Asad-Nejad, the deputy head of Iran’s Chicken Producers Association, has been quoted as saying by IRIB News.
“Farmers have to pay over 120,000 rials [$0.5] for each kilogram of the product while the feed should be sold at 40,000 rials [$0.16] per kilogram.”
Asad-Nejad noted that poultry farms have had to reduce their day-old chicken production to 105-110 million per month while the monthly market demand hovers around 115-120 million day-old chickens.”
Should the government not take necessary supportive measures, he said the already-volatile market will face grave consequences.
According to Parviz Foroughi, the secretary of Iran Chicken Farmers Union, unaffordable prices of chicken feed in the past several months have pushed out around 7,000 chicken farmers from the production cycle in the past few months.
The union said early in May that the shortage of poultry feed at subsidized prices has forced broiler chicken producers to procure at least half of their requirement at higher, open-market rates, causing a rise in chicken prices.
The average Producer Price Index for industrial chicken farms in the first quarter of the current Iranian year (March 20-June 20) increased by 16.12% compared with the corresponding quarter of last year.
The overall PPI for the sector in spring, which ended on June 20, using 2011 as the base year, stood at 504.81, indicating a 1.24% growth compared with the preceding quarter. 
During the four-quarter period ending June 20, PPI increased by 12.85% compared with the similar period of the year before. The index grew 19.36% in the four-quarter period ending March 19. 
The highest quarter-on-quarter increase of the index among Iranian provinces during the period was registered for Gilan with 29.14% and the sharpest producer deflation was recorded in Bushehr with 23.34%.  
On a year-on-year basis, Chaharmahal-Bakhtiari Province registered the highest increase with 128.06% and Bushehr posted the biggest deflation with 19.27%, the Statistical Center of Iran reported. 

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