Syndicate rakes in Tk4,000cr extra profit from inflated feed prices in a year: Poultry Assoc

The Bangladesh Poultry Association has alleged that feed manufacturers for poultry, beef, and fishery companies have accrued at least Tk4,000 crore in additional profits over the last one year (April of 2023 to April 2024) by inflating feed prices.

According to the association, hatcheries have earned an extra Tk1,920 crore in just eight months by artificially hiking the price of chicken chicks, which has heavily impacted farmers and consumers.

Suman Howlader, president of the Bangladesh Poultry Association, presented these findings at a press conference held at the Dhaka Reporters Unity on Monday.

At the press conference, the association claims that feed prices in Bangladesh are significantly higher compared to neighbouring India. While global prices for feed ingredients rose due to the Ukraine-Russia war, feed prices increased worldwide. However, when the prices of these ingredients fell last year, India saw a reduction in feed prices, whereas Bangladesh did not adjust its prices accordingly.

With an average price increase of at least Tk5 per kg, the feed industry has made an additional profit of Tk4,000 crore from April of 2023 to April 2024. The industry produces at least 80 lakh tonnes of feed annually.

The association also said that the Department of Livestock Services set the price of day-old chicks at Tk52-57 last year. Since then, producers have been selling chicks for Tk70 or more. Despite a subsequent increase in the price to Tk60, chicks continue to be sold at Tk25-30 above the regulated price. 

Hatcheries have reportedly earned an extra Tk1,920 crore from selling chicks at inflated prices over the last eight months. Hatcheries produce eight crore chicks each month, the association also said.

Suman Howlader expressed concern that while government agencies are attempting to reduce prices, the Department of Livestock Services appears to be supporting the syndicate's interests. 

He said that from May 2022, when international prices for corn and soymeal began to drop, feed prices in India also decreased. By 2023, feed prices in India fell to Rs41-43, and further reduced to Rs36-40 in 2024. Despite international price drops, feed prices in Bangladesh continued to rise without justification, currently ranging from Tk60-72 per kg.

He also said, "Since 75% of the cost of producing eggs and chickens is attributed to poultry feed, breaking the collusive syndicate involving feed mills, hatcheries, pharmaceutical companies, and corrupt officials of the Department of Livestock Services is crucial to alleviating the burden on farmers."

The press conference also highlighted that many farmers have faced losses since the pandemic and have been forced out of business. The number of poultry farmers has dwindled from 1.60 lakh to just 60,000 due to these issues.