The government of Bangladesh has introduced new pricing guidelines for eggs, Sonali chickens, and broiler chickens across the supply chain, from producers to consumers. This decision, driven by the need to bring stability and transparency to the poultry market, involves setting prices at three levels—producer, wholesale, and retail. The directive, issued by the Department of Livestock Services (DLS), marks a significant intervention to control the rising costs and fluctuations in the poultry market, which have been a concern for both consumers and producers in recent months.
Egg prices:
Producer level: BDT 10.58 per egg
Wholesale level: BDT 11.01 per egg
Retail level: BDT 11.87 per egg
Sonali chicken prices (per kg):
Producer level: BDT 260.78
Wholesale level: BDT 264.57
Retail level: BDT 269.64
Broiler chicken prices (per kg):
Producer level: BDT 168.91
Wholesale level: BDT 172.61
Retail level: BDT 179.59
These prices were outlined in a letter signed by Dr. Mohammad Rezaul Haque, Acting Director General of the DLS, on Sunday, September 15, 2024. The letter instructed all relevant authorities, including regional livestock offices, to ensure that the new prices are implemented promptly and accurately across all levels of the poultry industry.
Formation of the Joint Working Group
The decision to set official prices for poultry products comes after extensive discussions within a Joint Working Group. This group comprises representatives from the Department of Agricultural Marketing, the Department of Livestock Services, and various poultry-related organizations. Its role was to assess the current market conditions and determine reasonable price points that would benefit both producers and consumers while ensuring fair competition within the industry.
The prices were established based on input from industry leaders and stakeholders, including poultry farmers, wholesalers, and retailers. The goal was to create a balanced approach that reflects the current production costs while preventing excessive price inflation at the consumer level.
The Joint Working Group’s recommendations were reviewed by the Ministry of Agriculture before being approved and forwarded to the Ministry of Fisheries and Livestock, which then took steps to formalize and enforce the pricing structure.
Implementation and Compliance
To ensure compliance with the new pricing structure, the DLS has issued letters to several organizations across the poultry industry.
These include:
- Bangladesh Poultry Industry Association
- Feed Industries Association of Bangladesh
- Breeders Association of Bangladesh
- World Poultry Science Association
- Bangladesh Poultry Industries Central Council
- Bangladesh Poultry Farm Protection National Council
- Animal Health Companies Association of Bangladesh
- Bangladesh Agro Feed Ingredients Importers and Trading Association
These associations, representing various sectors within the poultry industry, have been instructed to take the necessary measures to enforce the new pricing guidelines. The DLS also called upon regional livestock offices to closely monitor the situation and ensure that the prices are followed strictly at every level—producer, wholesale, and retail.
Rationale Behind the Price Controls
The primary motivation behind this government intervention is to stabilize the poultry market, which has seen significant price volatility over the past year. Rising production costs, including feed and transportation, have led to increases in poultry prices, straining household budgets and raising concerns about food security.
Eggs and chicken are staple protein sources for many families in Bangladesh, and their affordability is crucial for maintaining a balanced diet, especially in lower-income households. The government has faced increasing pressure to intervene as prices continued to rise, making it difficult for consumers to afford these essential food items.
Additionally, producers have faced their own set of challenges, with fluctuating input costs and market instability affecting their profitability. By setting fair prices at the producer level, the government aims to protect poultry farmers from losses while ensuring they can continue to operate sustainably.
Challenges and Concerns
While the new pricing guidelines are a step towards market stabilization, there are concerns about how effectively they can be implemented. Price control measures often face resistance from various players in the supply chain, especially if they believe the set prices do not adequately cover their costs or profit margins.
For instance, while the prices for broiler chickens and Sonali chickens have been set at a certain level, some wholesalers or retailers may attempt to sell at higher prices, citing additional costs or market demand. Ensuring compliance will require strict monitoring and enforcement from the DLS and other regulatory bodies.
There is also the question of whether the set prices will be sufficient to cover the rising costs of feed, labor, and other production inputs. The poultry industry has faced increasing costs due to global supply chain disruptions, inflation, and the higher price of imported feed ingredients. If these input costs continue to rise, the current pricing structure may need to be revisited to ensure that producers can continue to operate profitably.
Moving Forward
The government’s decision to set prices for eggs and poultry products is a significant move aimed at protecting both consumers and producers in a volatile market. By establishing a fair and transparent pricing system, the authorities hope to reduce market speculation and prevent price gouging, ensuring that essential food items remain affordable for all citizens.
However, the success of this initiative will depend on effective enforcement and the willingness of all stakeholders to comply with the new regulations. The DLS, in coordination with the Joint Working Group and industry associations, will need to monitor the situation closely and make adjustments as necessary to maintain market stability.
