‘Capping of prices may cause closure of poultry farms’

LAHORE: The Pakistan Poultry Association (Northern Region) has issued a strong warning to the Punjab government that the capping of chicken meat prices could force many poultry farms to shutdown due to significant financial losses.

Malik Muhammad Sharif, Vice Chairman of the PPA (NR), accused the government of causing substantial damage to farmers by imposing an upper price ceiling on chicken meat. He called for an immediate removal of this cap and advocated for a return to free market practices.

In a statement released on Friday, Sharif emphasized that the poultry industry is one of the most organized sectors within agriculture.

Currently, it accounts for 40% of the meat consumed in the country and employs around 1.5 million people. The prices of poultry meat and eggs are typically dictated by supply and demand dynamics which fluctuate with seasonal changes. Other contributing factors include Islamic festivals, farm diseases, load shedding, and inflation.

These market forces regulate poultry product prices autonomously, beyond the control of both farmers and the public sector. Price reductions occur due to fluctuations in demand. Increasing production and supply is the only proven way to balance the market. Government intervention to address low prices has consistently proven counterproductive and tends to exacerbate the situation, pushing poultry farmers into crisis and forcing them to shutdown their operations.

“Currently, the Punjab government has unlawfully interfered in the market by setting the upper price of broiler chicken at Rs600 per kilogram, establishing an upper limit without any corresponding lower limit. As chicken meat is a perishable item, it cannot be stored on farms for more than 4-5 days, leading to substantial losses. Each shed is incurring estimated losses of 5.5 to 6 million rupees, pushing many poultry farmers toward business closure,” he concluded.