Soaring prices of maize to affect poultry, aquaculture, dairy industries

Prices of maize increased notably in the country in recent weeks.

The surge in corn prices might hurt local poultry, aquaculture and dairy industries in the form of rising feed prices, said insiders.

However, unrestricted maize corn export pushed up prices of the item in the local market in which the country has a deficit, claimed feed mill industries.

The recent surge in maize prices, however, hardly could benefit farmers as they sold their products long before July last.

Big traders and hoarders are cashing on maximum profits, said insiders.

Bangladesh produces 3.2 million tonnes of maize annually against a demand for 4.2 million tonnes.

Maize corn was trading at Tk 18.00-Tk 24 a kg (local trader to feed mill-gates) in August which was Tk 9.0-Tk 14 a kg during harvesting season from April to June.

Feed Mill agents in Dinajpur, Rangpur, Nilphamari, Panchagarh, Natore, Bogura, Jashore, Mymenshingh and Chittagong districts were purchasing local maize at Tk 20-Tk 24 a kg from traders.

The Department of Agricultural Marketing (DAM) data showed farmers in Rangpur, Dinajpur, Rajshahi, Jashore and Kushtia regions got only Tk 9.0-Tk 12 for per kg corn-Tk 2.0-Tk 3.0 less than their production costs.

Shariful Islam Swapan, a maize grower at Charaikhola union in Nilphamari Sadar Upazila, told the FE that they sold maize at Tk 430-Tk 440 a maund in June.

Most of the framers sold their produce below their production cost fearing further decline like that of last year, he said.

Farias (local middlemen) grabbed all the profits, he said.

Md Jashim Uddin, a trader at Bhaluka in Mymenshingh, said he sourced 129 tonnes of maize from Rangpur region until July this year.

"Both exporters and feed millers are now bargaining to buy my produce," he said.

Md Arman Habib, executive director of Nilsagor Group, which markets 'Nilsagor' branded poultry, fish and animal feeds, said maize corn comprises of 50-55 per cent of the feed.

He said traders hoarded most of the corn this year to make maximum benefits.

"We need 20 tonnes of corn a day for our 6000 tonnes of monthly feed output", he said.

He said they were purchasing corn at Tk 20 a kg now. "We fear prices of maize might surge further," he said.

"It would be impossible to keep prices of broiler feed within Tk 40 a kg if maize prices increase further," he said.

Md Ruhul Amin, asst general manger of Nourish, a leading poultry industry in the country, said government's permission to export maize might have pushed up prices of the item.

He said: "it is sarcasm that government allows maize export despite having a 1.4 to 1.5 million tonnes of deficit in the local market."

He said we had to import 1.4 million tonnes of maize last year despite a 3.2 million tonnes of domestic production.

He said apart from the feed industry, the confectionery and hotel and restaurant sectors, also imported good quantity of maize.

But industries prefer Bangladeshi maize for its better quality which encourage us to source maximum from the local markets.

He said Bangladeshi maize is being exported to India and Nepal for last two months in a big quantity.

"But the current market trend would help rise in import of the corn notably this financial year," said Mr Amin, whose company produces 60,000 tonnes of feed per month.

He said prices of feed might surge by Tk 2.0-Tk 3.0 a kg if the prices of maize further rises.

Ihtesam B Shahjahan, chairman of Feed Industries Association of Bangladesh (FIAB), said the government should not permit maize export as the country has significant deficit in the produce.

He said if the current trend continues, imports of maize might increase to 1.8 million tonnes this year.

The government had a target to get 3.8 million tonnes of maize in FY'19.

Primary field reports showed the production might surpass the target as a good amount of wheat-land has been shifted to maize farming this year, according to Bangladesh Wheat and Maize Research Institute.

Maize land has increased to 0.5 million hectares in FY'19 from 0.447 million hectares in FY'18.

The area under corn cultivation in Bangladesh has expanded at 16 percent year-on-year basis over the last six years, a faster growth rate compared to any other crops, DAE data showed.

Despite having a goof domestic production, import of the item also showed a rise during the period.

Bangladesh imports 0.5 million tonnes of maize in FY'13 which increased to 1.45 million tonnes in FY'18, according to Bangladesh Maize Association.

[email protected]