After more than a week of disruption in the chicken trade due to a dispute over raising the minimum price for poultry farmers, supply in the state stabilizes even as the price of chicken is expected to increase slightly in the next days.
Poultry farmers, who contract with poultry companies as “integrated poultry farmers” had refused to lift new outbreaks and banned companies from raising birds for market supply, are calling for an increase in the minimum price of ‘around 4 at â¹ 12 per kilo. However, after mediation by officials from the Department of Livestock where an intermediate increase of 7.5 yen per kg has been accepted, the supply is being normalized.
A committee made up of breeders, farmers and officials will now look into improving the minimum price. The minimum price dispute, which is a kind of compensation for poultry farmers when the feed conversion rate (the weight gained by the chicken relative to the feed consumed) decreases, arose after a few thousand farmers demanded a stable minimum price. âThe minimum price varies from zero to 4 per kg depending on the company, and we are asking for a revision of the price, which was set more than five years ago. Expenses have increased for farmers, but the price has stayed the same, âsaid Bengaluru District Poultry Farmers Association president N. Nagaraj.
In the contract, which is called the âintegration system,â the company provides chicks, medicine, veterinary services, food, and redeems the raised bird at an agreed rate while the farmers’ expenses come on. the hen house, its maintenance, including electricity and water connections, labor and heating installation for the chicks, among others. While the Karnataka Poultry Farmers ‘and Breeders’ Association (KPFBA) argues that the problem arises when good poultry management practices are not implemented and feed is diverted, farmers argue that climatic variations and diseases, among others, lower the feed conversion rate (FCR).
âIf the FCR is removed for the purpose of paying farmers, then there could be quality issues. The price of chicken is set taking into account the cost of production and all other variables. It also works on the basis of prices in neighboring markets. We need to match the rate and it needs to be balanced. Price is dynamic in nature in a saturated market, âsaid Inayath Ulla Khan, CEO of KPFBA. He said it is virtually impossible to pay 12 per kg as a minimum price to farmers.
Manjesh Kumar Jadav, chairman of the KPFBA Broiler Coordinating Committee, said the industry works on a very thin margin and earns around 1-1.5 per kg on an annual average. He added: âWe did not accept â¹ 7.5 per kg as a minimum price as a permanent feature. It was made to allow the lifting of birds. It can go down when the committee is sitting to decide the minimum price. “