Feed raw material prices hiked by 123 per cent – FIAB

Country’s fish and poultry feed manufacturers have cut production by around 20 per cent due to high prices of raw materials, which is likely to cause further hike in prices of fish, meat and egg, insiders said on 19th March.
They said the prices of key raw materials, maize and soymeal, have increased by 18-30 per cent in the local and global markets, resulting in higher production cost.
It would ultimately push up the prices of chicken, fish, egg and meat in the retail markets, affecting the consumers, they added.
The feed producers thought that a tax holiday and other fiscal incentives might help check the price spiral.
The Feed Industries Association of Bangladesh (FIAB) has claimed that the adverse impact of the coronavirus pandemic and Russia-Ukraine war jacked up the raw material prices by up to 123 per cent in the global market.
President of the FIAB Ehtesham B. Shahjahan said the prices of soymeal increased by 80 per cent in the last two years and other raw materials by 123 per cent.
“The poultry industry is losing Tk 3.0-4.0 per kg while cattle by Tk 3.5- 4.0 per kg and fish Tk 2.50-5.0 per kg due to the higher production cost in recent days,” he said.
If the upward price trend of raw materials continues, the farmers would have no option but to raise the prices of feeds of poultry, fisheries and livestock productions, he added.
When asked, Bangladesh Poultry Industries Central Council (BPICC) President Mashiur Rahman said the feed prices have already escalated in the market and affected the farming.
Many small and medium farmers have already closed their farms while the big ones cut their production of meat and egg, he added.
If the situation continues, they would have to increase the chicken and egg prices, affecting the protein supply and employment generation, Mr Rahman said.
FIAB General Secretary Md Ahsanuzzaman said the price of maize increased to Tk 37 per kg now from Tk 24.17 in 2020.
Similarly, the prices of soymeal increased to Tk 70 per kg from Tk 37.25 per kg two years ago while rice polish to Tk 36.33 per kg from Tk 21.25 per kg, DLM to Tk 300 per kg from Tk 200 per kg and poultry meal to Tk 80 per kg from Tk 54 per kg, he said.
Local soybean meal producers, a few in Bangladesh, have enhanced prices of the key raw material by 30 per cent in the last few months which has ultimately increased the feed production cost, MrAhsanuzzaman said.
FIAB Vice President Abu LutfeFazle Rahim Khan said the higher raw material prices have not only affected the feed industry but also the supply chain of chicken, egg, fish and milk in the local market.
The government’s decision to allow export of local soybean meal has also affected the poultry and livestock industry a lot, Mr Khan said.
BPICC’s Vice President Shamsul Arefin Khaled said, “We don’t want any direct financial support from the government. We want a tax holiday for the poultry industry and low-cost and easy loan facilities for recovering from the losses.”
Source: The financial express