Chicken prices take off

KATHMANDU, AUG 08 -

The price of chicken in the Kathmandu valley has been soaring over the last few weeks. The price has jumped from Rs 235 per kg in June to Rs 265 per kg presently.

The Nepal Chicken Sellers Business Association hiked the price of chicken twice in July, on July 18 by Rs 15 per kg and again on July 30 by Rs 15 per kg.

Traders said that prices would likely maintain an upward course with the festive season nearing when chicken consumption goes up. They said that they had been forced to hike prices twice in a month due to the rising cost of feed and other materials.

“Prices of chicken pellets and other raw materials have soared in recent days,” said Babu Raja Rawal, general secretary of the business association. “That’s why the cost of production has gone up tremendously.” According to traders, the price of chicken pellets has jumped by Rs 8 per kg over the last one month.

Likewise, an unexpected surge in demand for chicken has pushed up prices even during the off season. “Normally, consumption of chicken dips around 15-20 percent during the period mid-July to mid-August as people prefer to stay away from meat during the holy month,” said Rawal. “Surprisingly, demand hasn’t gone down this year like in previous years.”

According to him, chicken farmers planned their production based on past consumption patterns, resulting in a shortage this year and consequent rise in prices. The daily requirement of chicken in the valley is estimated to be 200 to 250 tonnes.

Traders said they expected chicken prices to remain on the high side due to the relatively higher mortality rate during the monsoon. “As the time is approaching when demand rises, the short supply will definitely push up prices,” said Rawal.

Most of the chickens sold in the valley come from Dharmasthali, Kavre, Banepa, Godavari, Dhading, Sundarijal and Trishuli. Poultry firms in Bhaktapur also fulfil a large chunk of the requirement.

According to the Nepal Feed Industries Association, chicken production in the country has more than doubled in the past five years. In fiscal 2011-12, sales were up 23 percent year on year.

Source: http://www.ekantipur.com/2012/08/08/business/chicken-prices-take-off/358451/