The poultry sector is still undergoing a crisis phase and Pakistan Poultry Association (PPA) North Zone Vice-Chairman, Raja Attique-ur-Rehman Abbasi, considers government intervention to stabilize prices to be even more harmful.
He made these remarks at a press conference, highlighting that poultry was one of the most organized branches of the agri-based economy in the country. The annual turnover of the poultry sector is over Rs. 800 billion with over 1.5 million people directly and indirectly employed in this sector. Pakistan produces 1,322 million kg of chicken meat and 17,500 million eggs annually.
Prices of chicken products are determined purely based on market supply and demand, which may lead to the prices of these products to remain below the input cost borne by the farmers.
Abbasi explained, “The phenomenon of low and high prices helps farmers to achieve an average price (year-on-year) which is slightly better than the input cost, where a farmer can make some profit provided the efficiency remains good.”
Abbasi informed that the PPA cautioned the government against intervention in price-fixing. Otherwise, forced price stability might lead to a shortage of chicken meat and the closure of farms.