Indian Poultry Industry Cuts Production Amid Sharp Rise in Soybean Meal Prices
India’s poultry industry has announced a 25% reduction in production following a sharp increase in soybean meal prices, which have risen by more than 40% over the past month, significantly escalating feed costs. The decision was taken jointly by leading poultry industry associations, including AIPBA, CLFMA, KPFBA, IPEMA, the Telangana Poultry Breeders Association and the Broiler Coordination Committee, Tamil Nadu.
Feed accounts for the largest share of poultry production costs, with soybean meal serving as the primary protein source in broiler and layer diets. The unprecedented price surge has severely impacted producer margins, prompting coordinated action to reduce output and balance supply with the expected seasonal decline in poultry consumption during July to October, when several religious festivals influence consumer demand.
As part of the strategy, producers have begun culling parent breeder stocks to reduce future chick placements. Industry reports indicate that breeder birds, previously sold at around USD 1.47 each, are now being liquidated for approximately USD 0.68 per bird, reflecting efforts to curb oversupply and manage escalating production costs.
Industry representatives have also expressed concern over domestic soybean market dynamics, arguing that production is adequate to meet national demand. They have alleged that speculative trading and hoarding have contributed to the recent price escalation and have urged the Central Government to intervene.
The industry has renewed its demand for permitting imports of genetically modified (GM) soybean meal to ease feed shortages and stabilize prices. The current situation underscores the vulnerability of India’s poultry sector to feed-price volatility and highlights the need for long-term strategies to ensure feed security and sustainable industry growth.
