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| Sunday, 10 April 2005 |
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| News Business Features Editorial
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Chicken prices up as supply dips by Hiran H. Senewiratne Most of the leading chicken manufacturers in the country are unable to meet the current demand in the market due to low production in their farms. Many mass scale and small scale chicken manufacturers did not go ahead with their investment plans due to the Bird flu outbreak in the Asian region last year. This led to an increase in prices owing to the shortfall in production. Fifty percent of small chicken suppliers moved out of the business, while large scale manufacturers cut down production and put their investment plans on hold due to the outbreak of the deadly Bird flu. Small suppliers account for more than half of the total production in the country. Secretary, Ministry of Trade, Commerce and Consumer Affairs S. Wirithamulla said that they have recognised the issue as a matter of importance due to the high prices in the market. The Ministry has no idea of importing chicken in the interest of the local industry. The stringent rules imposed by the Department of Animal Husbandry to protect the local industry, discourage imports by and large, he said. They had received many inquiries from leading supermarkets to import chicken to check this situation, Wirithamulla said. The Manning Market Poultry Traders' Association says that all chicken shop keepers under the association in Colombo will be compelled to close for a short period due to the short supply and high price of chicken. Chicken prices have doubled in most shops in and around Colombo and it could go up further during the festive season, its President A.M. Mohusun said. He said that after the tsunami disaster chicken consumption in the country increased sharply with the drop in fish consumption. Managing Director Pussella farm Dilshan Wawitta said that during the last two years the entire poultry industry underwent a crisis due to the Bird flu outbreak. He said that the Bird flue in the Asian region had affected the local poultry industry in a big way, although it did not spread in Sri Lanka.Therefore they did not go ahead with their investment plans. Wawitta said that importation of parent stocks which were curtailed by 50 per cent during the Bird flu outbreak put the industry in a dilemma. Prices of animal feed also increased by 25 per cent last year. Maxies-Managing Director Maxi Perera said that there was a 30 per cent shortfall in the market and as a result chicken prices increased as never before. He said that last year's Bird flu outbreak discouraged many manufacturers from investing in the industry. One of the reasons for the demand to increase was the drop in fish consumption in the aftermath of tsunami. Bairah Farms Ltd sources said that they did not invest in their business due to the Bird flu outbreak, which resulted in an acute scarcity in production. The country's monthly chicken consumption is 5.5 million kilograms and the current production is approximately 4 million kilograms. |
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