Factors affecting chicken rates and prices- Revealing dominant market forces

There are multiple factors affecting chicken rates/prices especially that of broiler chicken. Let’s have a look on them

Factors affecting chicken rates include:

Demand and supply chain

Factors affecting chicken rates include demand and supply chain, because whenever there is imbalance between demand and supply, it affects rates. More demand than less supply causes an increase in chicken rates.

From the last few years demand for chicken has increased because of rapid population increase and people’s awareness about healthy and balanced food.

Demand spikes,, during winter months when chicken soup becomes more popular than in summer, and grilled chicken consumption rises. In Pakistan winter is also the season of marriages function, and lots of food is served on such occasions with chicken as a main core dish. During Eid-ul-Azha, with an abundance of mutton and beef from sacrificial practices, chicken demand diminishes. But in Ramadan and Eid-ul-Fitr there is more demand for chickens because people love to invite their relatives and friends and serve them with luxurious food, featuring chicken as a central dish.

Cost of input

Input costs involve labor, infrastructure of farms/sheds, feed and feed raw material prices, vaccination of chickens etc, all these things significantly affect broiler production costs.

Environmental challenges such as floods and droughts can disrupt crop production,the primary source of animal feed-leading to increased feed costs and ultimately affecting chicken prices.

Government policies

Among factors affecting chicken rates are government policies and regulations, such as restrictions on the import of chicken meat to protect domestic poultry producers, can burden the domestic supply chain and contribute to price increases. These restrictions cause shortage in poultry supply and cause reduction in variety of choices , which can cause ultimate increase in chicken prices.

Birds flu/avian diseases

Bird diseases can reduce chicken production, disrupting supply and demand chains thus leading to increased prices. This reduction in supply can prompt suppliers to raise prices to balance the decreased availability with market demand. Furthermore, the cost of vaccination to treat these diseases can also contribute to the overall increase in production costs, further elevating chicken prices.

Economic factors of a country

Economic conditions such as petrol prices and exchange rates are key factors affecting chicken rates and these are interconnected with chicken prices, influencing production and distribution costs.

Petrol prices

Higher petrol prices increase the cost of transportation.Transportation is not only involved in distribution of the final product (chicken) but also involved in the transportation of feed.

So an increase in petrol prices can lead to higher distribution costs, which may be passed on to consumers as higher prices for chicken.

Higher petrol prices also lead to an increase in feed prices, which, in turn, contribute to higher chicken prices

Exchange Rates

Pakistan imports both poultry feed and chicken meat. A depreciation of the local currency against the dollar makes these imports more expensive, leading to an increase in chicken prices as a result of the higher exchange rate.

You may want to know: chicken rate in Lahore

Conclusion

In conclusion, the rates of chicken prices are influenced by a complex interplay of demand and supply dynamics, cost of inputs, environmental challenges, government policies, and broader economic factors such as petrol prices and exchange rates. These factors affecting chicken rates are collectively shape the cost of production, distribution, and ultimately, the market price of chicken. Understanding these factors is crucial for stakeholders in the poultry industry to navigate the volatile market and for consumers to understand the reasons behind fluctuating chicken prices.

Whether it’s Pakistan or Turkey, the factors affecting chicken rates remain remarkably similar. To delve deeper into this topic, feel free to explore the detailed insights provided in this article.