Karachi: Pakistan’s Poultry Association (PPA) recently appealed to Government to seek short term loans in the wake of risk recently imposed by Coronavirus in the country.
In a pictorial post advertised in major newspapers, PPA’s officials wrote that they were very hopeful for a favorable response from the government and that not only will they take notice of this but also, would take action and a positive decision to tackle this devastating condition of the poultry industry.
PPA representatives said that Pakistan’s poultry industry was ranked amongst the most advanced and hi-tech industries in the world. Its poultry farms, hatcheries and feed mills were at par with those in the US and Europe both by quality standards and technologically. The industry has over Rs 750 billion private investment, providing employment to around 2.0 million people which made it a source of pride for the country. Chicken meat and eggs were the cheapest source of high-quality protein which is the preferred food for the common man of the country.
The officials of PPA said, “Pakistan is self-sufficient in chicken and egg production. Not only is the industry satisfying the protein needs of the country but also, providing services in the form of employment for its people. It is also playing a vital role in satisfying the demand for meat in the country and is a valuable exporter to countries like Afghanistan, Saudi Arabia, Qatar, Bahrain, UAE and Yemen.”
In the advertorial post, it was written “In the previous fiscal year, factors like the devaluation of the Pakistan rupee, increase in the cost of electricity, import taxes and bank markups have raised the cost of poultry production by almost 50%. Regardless of this, poultry prices have not been increased. As a result, farmers are experiencing continuous losses to an extent that payment of utility bills and salaries have become difficult.”
The representatives of PPA highlighted that Poultry farmers were being forced to sell premature breeder and layer flocks at lower rates. “As a result of little or no demand, a day-old chick, costing almost 40 rupees, is being sold for 3-4 rupees, resulting in heavy losses and pushing the poultry hatcheries into a financial crisis. Poultry feed is supplied to the poultry farmers on credit basis but because of the constant losses, the farmers are unable to payback and as a result, billions of rupees of the feed mills are stuck with these farers. This is the reason why poultry farmers have stopped placing chicks in their farms; they are forced to shut down their businesses as they have to sell chicken for price lower than their production cost. Poultry feed mills, hatcheries, breeders, boilers, and layer farmers have taken loans from the banks and invested in their businesses. However, due to continuous financial losses, they are unable to pay the debt on time thus, becoming bank defaulters,” article said.
PPA’s appeal read, “Corona virus has adversely impacted the world economy. In the prevailing circumstances, country-wide ban has been placed on wedding ceremonies, hotels, restaurants and travel restrictions have been imposed on the airlines. All of this has contributed to a decline in the demand hence, the prices of eggs and chicken. Additionally, as a result of the closure of international flights and borders, exports to Afghanistan, Saudi Arabia, Qatar, Bahrain, UAE and Yemen have stopped This has resulted in further decline in the revenues, leading to devastating impact on the industry.
PPA representatives urged “The poultry industry is passing through a period on heavy losses as a result of the said factors and if this continues in the same manner, poultry farmers would soon have to shut down their businesses. In such a case, this would cause reduction in the supply of eggs and chicken and that would cause the prices to increase dramatically, making it impossible for a common man to afford. Not just this, millions people, directly or indirectly related to the industry, will become unemployed.”
PPA officials appealed that in order to rescue the poultry industry from prevailing crisis and cater to regular production to ensure a continuous supply, it was very important to take the following measures so that the nation-friendly industry could continue to provide quality food to its people at reasonable prices:
- Bank installments and mark-ups may be delayed for one year.
- Bank loans may be rescheduled and government of Pakistan may pay the markup costs of loans of two years to banks.
- Short-term loans may be converted into long-term loans.
- Small farmers may be provided interest-free loans for two years.
- Electricity bills of three months may be deferred and payment be reallocated to a year’s time period, without any fines, and in installments.
