MUMBAI/BENGALURU: Broiler hen costs in India have fallen by virtually a 3rd in every week with consumption dropping after an outbreak of avian influenza was reported in six states, business officers instructed Reuters.
The sudden drop in demand and costs is compounding the woes of tens of millions of small poultry farmers in an business that solely lately began to recuperate from the coronavirus outbreak-led disruption that hit gross sales throughout 2020.
“Demand has fallen almost 30%,” mentioned Uddhav Ahire, chairman of Anand Agro Group, a poultry firm primarily based within the western metropolis of Nashik.
Broiler hen costs have fallen to 60 rupees ($0.8192) a kg from round 90 rupees every week in the past, he mentioned, including that farmers are incurring losses because the manufacturing value is greater than 75 rupees.
Avian influenza, also called fowl flu, was reported within the states of Madhya Pradesh, Rajasthan, Himachal Pradesh, Kerala, Haryana and Gujarat earlier this week.
The central and state governments have been attempting to allay shopper fears, saying consumption of hen and eggs is secure after cooking.
“The business would possibly see some non permanent disruption, however we do not see this to be a long run phenomenon and this would possibly right itself in a interval of 15-20 days,” mentioned Prasanna Pedgaonkar, common supervisor of poultry-focused Venky’s , which has seen its shares slide greater than 10% this week.
Egg costs have additionally fallen by greater than 10% in every week as small farmers attempt to promote their produce as rapidly as doable, fearing an extra drop in costs, mentioned a poultry farmer who declined to be named.
India’s poultry business suffered heavy losses final yr due to unfounded social media hypothesis that chickens contributed to the unfold of the coronavirus, whereas lockdowns to include the virus squeezed demand.