Good times ahead for poultry sector

The growth potential of the local poultry sector remains encouraging due to an improving market balance, coupled with declining grain and feed costs.

Furthermore, Sri Lanka’s per-capita chicken consumption is expected to rise with higher per capita disposable incomes. Poultry prices will see further support from the government in future, given that the existing price ceiling for poultry products was replaced in the budget for 2014 by a proposed pricing formula that takes into account the overall cost of production, a Ram Ratings Sri Lanka report said.

The poultry industry in Sri Lanka primarily consists of two major segments, egg and meat production. Taking into consideration the current purchasing level of consumers, the local poultry industry is deemed capable of meeting the domestic demand for chicken meat and eggs. These products are accessible throughout the country, from supermarket chains in the main cities to small retail shops in rural areas. The current per capita consumption of chicken meat and eggs in the country are estimated to be 4.8 kg and 57 eggs, respectively,the report said.

The branded chicken meat segment is dominated by large-scale meat producers such as Bairaha, Prima, Three Acre Farms (TAFL), Crysbro, and Pussellawa. The wet market, however, encompasses a number of independent small-scale retailers who sell chicken meat to consumers in the open.

The chicken meat industry (both dry and wet segments) is dominated by broiler meat, which is produced on a large commercial scale by local manufacturers. Broiler meat production has increased rapidly in the last two decades in line with higher demand compared to other meats.The majority of chicks in Sri Lanka are found in the North Western, Western and Central provinces, with the North Western region remaining the largest contributor.

There were 16,071 broiler farms in Sri Lanka in fiscal 2012, around 88% of which were considerably small with an average of less than 1,000 chickens.

The majority of broiler farms with more than 1,000 chickens were situated in the North Western and Western provinces. The North Western region had the largest number of broiler farms, with almost half of the large-scale broiler farms in the country.

Per capita consumption of chicken and eggs in Sri Lanka is anticipated to increase in tandem with the projected growth in per capita income level, which is expected to reach US$ 4,000 by end-2016, the report said.

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