6 strategies to reduce the losses of chicken farmers/chickens should be in accordance with the market needs
According to Fars news agency’s economy reporter, the chicken market began to decline since October of this year. They have said that the total losses of this sector are 2 thousand billion tomans, but is it a sin to produce in the country? Is there no way out of this situation?
Production in an industry like poultry is actually a one-way highway, it is difficult to change your direction. Investments of several hundreds of billions on one hand and the expertise of producers in this field on the other hand have made them unable to change their path so easily, so they must be supported so that the production is spent for them and they walk on the same one-way path.
While the approved price of a kilo of chicken is 63,000 Tomans, producers have been selling for 50,000 Tomans or even less for several months. This has created a cumulative loss for poultry farmers, today many of them say that they have to stop production, and this is a warning for future production and market. While the only sin of these producers is production. At all, their inherent duty is production, and the policy makers and group of managers must regulate this market in such a way that the profits of producers and consumers are provided and production continues, otherwise, foreign currency must be taken out of the country to import these.
* Some strategies to regulate the market
1- Export:
The country produces 2.5 million tons of chicken meat annually, which has a production capacity of up to 2.7 million tons. This amount is more than the domestic requirement and it can be exported at certain times of the year, but as Habib Asadollah Nejad, the CEO of the Meat Poultry Association, says, export has become very difficult due to the increase in production costs in the country. The production cost of poultry farmers is high and if they want to export, the destination country will not accept it.
The increase in the production costs of poultry farmers is partly due to the varieties they use and the conversion rate of grain in them is high; That is, they consume more meat to produce one kilogram of meat. Another part of the costs is related to the waste of energy and the management of poultry farms, which compared to other countries, is a big cost for producers, but the main part of the costs is related to the high price of poultry feed, which 70% of the country is dependent on imports, and recently, with the removal of 4200 Tomans , its price in the market has increased 4 to 5 times, and this has increased the production costs, at the same time, this increase in costs was supposed to be compensated by increasing the market price for the producer.
Therefore, even though the government has released the export of chicken and left the responsibility to the unions themselves, they have not yet been able to export due to these problems. The government should provide support to reduce production costs.
The next problem in export is that the unions, which for the first time assumed the responsibility of regulating the market and export, still do not have the necessary capabilities, and the government should accompany them in this way until they are empowered.
2- Distribution of leaf goods as soon as possible
Another solution to collect surplus chicken in the country and balance supply and demand is to distribute the goods as soon as possible. This action can make the purchase cheaper for the consumer and increase the demand and create a balance in the market. This project has been successfully implemented in Hormozgan province as a trial and it is planned to be implemented in other provinces in the next step.
The Deputy Minister of Commerce of the Ministry of Jihad and Agriculture has also emphasized that if the subsidy is in the form of goods, it can regulate the chicken market.
3- The demand increases during the month of Ramadan
There are about 45 days left to Ramadan, and in this month, the demand for protein products, including chicken, increases. Experts predict that with the increase in demand, a balance will be established in the market and the price will change in favor of the producer. Chicken consumption usually increases by 15 to 20 percent during Ramadan.
4- hatching according to the need
The next solution for the balance of supply and demand of chicken in the market is hatching as much as the market needs, which the producers are now complaining about. In fact, they consider the Ministry of Jihad to be the main culprit of the excess supply of the market, which in recent months hatched up to 135 million pieces per month, while according to them, the market’s need is even less than 120 million pieces.
Concerned that the supply in the market may decrease and be criticized by the people, the Ministry of Jihad Agriculture has increased the supply and this has harmed the producers.
Habib Asadollahnejad, CEO of the Meat Poultry Farmers’ Union of the country, says: The Ministry of Agricultural Jihad has announced 120 million hatchlings for the month of February, which I think is too much.
5- Full transfer of the responsibility of regulating the market to the unions by the Ministry of Jihad
It was about a month ago that the Minister of Jihad Agriculture announced the transfer of regulation of chicken, egg and fruit markets to unions.
Sadati Nejad said: This action is carried out in line with Article 44 of the Constitution. At that time, many interpreted that this was the move of the Ministry of Jihad to escape from the responsibilities that had been making noise in the past few months and a year. Over the past year, the price of chicken and eggs fluctuated regularly, and criticisms were always aimed at the Ministry of Jihad for not managing the market properly. In addition to that last year, the regulation of the fruit market on the eve of Eid made a lot of noise and a corruption case was filed against some officials of the Ministry of Jihad Agriculture, and this case is still open.
Now the unions say that the Ministry of Jihad has entrusted us with this responsibility, but it still decides on the amount of hatching and production itself, and after the excess supply is formed, we must be responsible.
6- Continuation of purchase of excess chicken by the country’s livestock affairs support company
After the formation of excess supply in the chicken market, Peshibani Amor Iran was obliged to buy the excess chicken and store it in warehouses and supply it to the market when needed.
Recently, the CEO of the Meat Poultry Farmers Union of the country says that the purchase by this company has been stopped; He did not give details about the reason for the stop, but maybe it is because the responsibilities have been given to the unions and they do not want to carry the cash burden of the purchase.
On the other hand, the unions say that they do not have the necessary liquidity for the purchase and the government should provide support in this direction. They say that at some point a great responsibility is handed over to the shoulders of the unions and the Ministry of Agricultural Jihad withdraws completely, it is actually shirking the responsibility. They expect this ministry to continue its support until the result is reached.
Therefore, the occurrence of excess supply in the chicken market is the result of a series of mismanagements that the Ministry of Jihad Agriculture must take action to correct. On the other hand, it should use the export strategy that has returned to this ministry after the abstraction law (concentration of agricultural business duties in the Ministry of Jihad), in addition to the capacity of large companies such as the Livestock Affairs Support Company, which happened to be formed for this purpose. and has made a wide and long organization, use it.
Let’s not forget that if production is damaged today, the food damage will affect 85 million consumers tomorrow.
The end of the message/T 396