Poultry farms closing as egg prices hit 10-yr low

Small poultry farms across the country are facing closure as egg prices remain far below production costs for months, leaving farmers with mounting losses and rising debt.

Egg prices at the farm level have dropped to just Tk 6.4-6.7 a piece, while they are being sold in city markets at around Tk 9.5-9.45 each-the lowest level in a decade, according to the Bangladesh Poultry Industries Association (BPIA).

The current farmgate price is about Tk 3.0 lower per egg than the government-fixed price of Tk 10.66, BPIA leaders said.

Farmers say they have been selling eggs below production cost for the past four months, forcing many small and marginal farms to shut down operations. Monwar Hossain, a marginal poultry farmer in Gheor, Manikganj, said he sold eggs at Tk 6.6 each earlier this week.

"But it costs me about Tk 10.5 to produce each egg. I have been selling eggs at a loss for four months. I no longer have the capacity to bear such losses," he said.

He added that at least 50 farms in his area have closed over the past few months due to persistent losses.

Abid Ali, a farmer from Dhonbari in Tangail, said most small farmers are struggling to survive because of prolonged losses.

"Feed prices remain high at Tk 60-65 per kg, but egg prices have fallen sharply. Many farmers in our area are considering shutting down their farms because it is no longer possible to continue under such losses," he said.

President of the Bangladesh Poultry Industries Association (BPIA) Mosharraf Hossain Chowdhury said the country's Tk 500-billion poultry industry is facing a serious crisis due to market mismanagement, alleged syndication among traders and policy weaknesses.

He said marginal farmers have played a key role in making eggs and chicken affordable for consumers over the past two and a half decades.

"But today they are the ones facing the biggest crisis," he said. He urged the government to provide farmer cards to poultry farmers on a priority basis, ensure easier access to loans and subsidies, and improve market management to protect small producers.

Director of the Department of Livestock Services, Dr ABM Khaleduzzaman, said the number of poultry farms in the country has declined compared to previous years, although exact statistics on the sector are still unavailable.

Farm economist Prof Golam Hafiz Kennedy warned that if small farmers continue to leave the sector, the industry could gradually come under the control of a few large corporate companies.

He said that without transparent market management and fair pricing mechanisms, small farmers will continue to drop out, which could eventually affect egg supply and prices for consumers.

"The closure of farms now could push egg prices to new highs in the coming months," he added.

Bangladesh currently produces about 40 million eggs a day, while the actual demand is around 50 million pieces daily.

BPIA said egg production may have declined further due to the closure of many farms.

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