Industry News

Chicken Price to Stabilize despite of Shravan

INDIA: The holy month of Shravan often sees a fall in the price of chicken and other meat products. Reason being low demand as a major chunk of the believers restrict themselves from non-vegetarian food. This has a direct impact on the demand of the chicken resulting in the heavy downfall in the revenue generated.

The chicken producers have decided to cut the output by 30-35% in order to minimize the loss. The chicken prices have already fallen down by 35% to USD 1/kg from USD1.60/kg in June. The farmers are busy suppling the produce in the market before the Shravan sets off. Farmers and Chicken Producers have already witnessed this in the previous year. On the other hand, the raw materials of the poultry industry have risen in past few years. Maize and Soya Bean being the main raw materials, prices of which have risen consecutively in past years due to the draught. With a change in the trend of the consuming habits of the people, regular downfall in the demand have risen from 10-15% to 40-50%.

According to Techsci Research, the food market of the country is largely effected by the latest trend being followed in the market. In past years, the downfall in the demand of chicken in Shravan has risen from 10-15% to 40-50%. This will definitely have negative impact on the industry. Farmers and Chicken Producers have decided to cut the produce so that the loss be minimal.  States like Maharashtra, enjoy a customer base mix of both vegetarians and non-vegetarians. Drop in the sales volume is quite prominent as the percentage is as high as 50%. This new strategy to cut the supply to minimize the loss has been done with respect to previous year’s loss. Chicken Producers are hoping that the produce is not over supplied so that the prices fall, as the demand is very obvious to fall this August.