Bangladesh poultry feed makers raise prices as input costs climb
Bangladesh's poultry sector is facing another cost squeeze after feed prices rise nearly 7% since early August, adding pressure to farmers already dealing with expensive production inputs. Raw material costs have surged 27% over the same period, while manufacturers say finished-feed prices still do not fully cover their costs.
Highlights
- Bangladesh poultry feed makers implemented a second price increase in a month as input costs surged, with corn up 24%, DORB 27%, and soybean meal 20%.
- Manufacturers still lose over Tk3 per kg despite feed price increases, creating significant pressure along the poultry supply chain.
- Retail prices in Dhaka jumped, with broiler chicken now at Tk190-Tk200 per kg and farm eggs at Tk150 per dozen, prompting farmers to demand tax cuts and cheaper inputs.
Feed cost increases pressure supply chain
The Business Standard reports that feed manufacturers say they are still losing more than Tk3 per kg because higher finished-feed prices have not fully matched the jump in raw material costs. The latest increase marks the second rise in poultry feed prices within a month, reflecting sustained inflation in key inputs used by the industry.Major ingredients have recorded sharp gains, with corn prices up about 24%, de-oiled rice bran, or DORB, rising 27%, and soybean meal increasing 20%. These increases are raising operating strain across the poultry value chain, where feed accounts for a large share of production expenses.
Higher consumer prices and farmer demands
Small farmers are cutting production as higher feed costs erode margins and reduce their ability to maintain output. The tighter supply is also feeding into retail markets in Dhaka, where farm eggs are selling for around Tk150 per dozen and broiler chicken for Tk190 to Tk200 per kg.Before August, broiler chicken was sold for Tk170 to Tk180 per kg and farm eggs for Tk130 to Tk140 per dozen. Farmers are calling for lower taxes and cheaper feed inputs as they protest against rising costs and the pressure on supply.
In our earlier coverage of UK shop price inflation, we noted a slight easing in September as both food and non-food price growth cooled. The update highlighted how retailers were still grappling with elevated energy-related costs and other operating expenses, while looking to the government’s upcoming Budget for potential relief as cost pressures continued to shape prices.
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