Economic Importance of Poultry Industry, its Issues and Business Dynamics
Economic Importance of Poultry Industry, Mafia and Dr. Firdous Ashiq Awan | پولٹری انڈسٹری، مافیا، اور ڈاکٹر فردوس عاشق اعوان. Dr. Jassar Aftab
کمپٹیشن کمیشن انکوائری، پولٹری، مافیا اور حقائق ۔۔ مضامینِ نو، ڈاکٹر محمد جاسر آفتاب
پولٹری سائنس سمیت دیگر ڈگریوں کی ایکریڈیٹیشن ، ایگریکلچر کونسل کا ویٹرنری یونیورسٹی کا دورہ
It is not known what information the government has on the basis of which it has announced to fight Pakistan’s most important industry, which is directly related to national food security, using the word “mafia” at the most responsible level. If there is any such information, then an investigation should be conducted first and the results should be made public before such words are used for any industry.
The Statement That Sparked the Debate
A statement was made by Ms. Firdous Ashiq Awan that, like the Chinese mafia, they would also fight and defeat the poultry mafia. Possibly, this statement was made in the context of the recent increase in the prices of poultry products. However, the most important aspect here is that if this industry is a mafia, then what kind of weak and ineffective mafia is it that remained in continuous losses last year and sold chicken meat at prices below the cost of production? It is on record that the government’s attention was drawn to the sale of chicken at prices lower than production costs.
Poultry Farmers Also Face Heavy Losses
Let us assume that last year was exceptional because of the COVID-19 pandemic. Even before that, poultry product prices remained low for extended periods, and poultry farmers continued to suffer losses. The media and social media carried pictures and videos showing day-old chicks being distributed free on the streets instead of being placed in poultry farms because of the lack of demand. It is difficult to understand how a so-called mafia could continue to suffer losses worth millions while being unable to increase the prices of its own products.
Pakistan Poultry Association Rejects the Allegations
The Pakistan Poultry Association strongly reacted to the statement made by Dr. Firdous Ashiq Awan. According to the Association’s spokesperson, the poultry industry has been providing affordable and quality protein to the people of Pakistan for the last five decades, and this is the reward it has received.
The Association further stated that Dr. Sahiba’s press conference gave the impression that she had little understanding of how the poultry industry operates. During a meeting held on the issue, members of the poultry industry expressed deep concern and explained that poultry prices are determined under the principles of demand and supply, while poultry farmers have no role in fixing market prices. They further pointed out that chicken meat is a highly perishable product that cannot be stored and therefore must be sold immediately, regardless of the prevailing market price.
Chicken Prices Are Determined by Market Forces
One fact is beyond dispute: poultry products cannot be stockpiled. After a production cycle of 35 to 40 days, the farmer must sell the birds at the prevailing market rate. Poultry farming consists of farmers of every scale, many of whom frequently suffer severe financial losses. Entire flocks may be sold at a loss, while profits are earned only during favorable market conditions.
Chicken prices are not controlled by any individual or organization. They are determined by open market forces under the principles of demand and supply. Whenever production declines and demand increases, prices rise automatically. Conversely, when supply exceeds market demand, prices decline. There are several production-related factors behind these fluctuations that are well understood by people associated with the poultry industry.
Unlike Other Sectors, Poultry Operates in a Competitive Market
Unlike some other agricultural commodities, Pakistan does not have any organized government-controlled institution that dominates poultry products or poultry farming inputs. Even the prices of chicks and other production inputs are determined according to market forces. That is why there are times when no buyers are available even for day-old chicks due to weak demand.
De-Capped Prices Have Helped the Poultry Industry Grow
Compared with other livestock products in Pakistan, poultry product prices are de-capped. This is one of the major reasons why the poultry industry has developed into a self-sustaining sector capable of surviving even under extremely difficult circumstances. Investors entering any segment of the poultry industry understand that both profits and losses are part of the business.
Support Farmers During Losses as Well
Where do the critics, and even the public, disappear when chicken meat is being sold at exceptionally low prices? If the government wants to intervene when prices increase, then it should also establish a mechanism to support poultry farmers during periods when they suffer heavy losses.
Political Statements Should Not Harm Investor Confidence
If government officials continue using such language and intimidating the business community through public statements, the overall investment climate will be adversely affected. Pakistan’s economy is already under pressure. This sector, which provides one of the most affordable sources of protein for the public, should not be damaged through irresponsible statements. Instead, practical solutions should be adopted to strengthen the poultry industry while protecting both producers and consumers.
