The poultry industry in Bangladesh has witnessed remarkable growth in recent years, contributing significantly to the country’s economy. However, this success is accompanied by a critical challenge – the increased production cost. In this article, we will delve into the factors influencing these rising costs and explore potential solutions for sustainable poultry farming in Bangladesh.
A. Brief Overview
Bangladesh’s poultry sector plays a pivotal role in meeting the growing demand for meat and eggs. As the industry expands, understanding the dynamics of production costs becomes crucial for its continued success.
B. Importance of Understanding Production Costs
Effective cost management is essential for the economic viability of poultry farming. Farmers and industry stakeholders need insights into the factors driving the increased production costs to devise strategic solutions.
Factors Influencing Production Costs
A. Feed Costs
One of the primary contributors to escalating production costs is the price of poultry feed. Fluctuations in grain prices and dependency on imported raw materials impact the overall expenses.
B. Labor Costs
The labor-intensive nature of poultry farming makes labor costs a significant factor. Balancing fair wages with productivity becomes challenging, especially for small-scale farmers.
C. Disease Management Expenses
Poultry diseases pose a constant threat, necessitating robust management strategies. The expenses incurred in disease prevention and treatment contribute to the overall production cost.
Impact on Small and Large Scale Farms
A. Challenges Faced by Small-Scale Poultry Farms
Small-scale farmers often bear the brunt of increased production costs, affecting their profitability and sustainability. Limited resources and access to technology further compound these challenges.
B. Strategies Employed by Large-Scale Poultry Farms
Larger operations leverage economies of scale and technological advancements to mitigate production cost challenges. Efficiency gains and bulk purchasing power contribute to their competitive edge.
Technological Advancements
A. Role of Technology in Cost Reduction
Technological innovations, such as precision farming and automated systems, play a pivotal role in reducing production costs. Smart investments in technology can enhance efficiency and productivity.
B. Automated Systems and Their Benefits
Automation in poultry farming, from feed distribution to temperature control, not only reduces labor costs but also ensures optimal conditions for bird growth, positively impacting overall production.
Government Policies and Subsidies
A. Existing Policies Affecting Production Costs
Government policies have a significant impact on the poultry industry. Understanding current regulations and their implications helps farmers navigate the regulatory landscape.
B. Subsidies Available for Poultry Farmers
Governments often provide subsidies to support the agricultural sector. Poultry farmers should be aware of and take advantage of available incentives to alleviate production costs.
Market Trends and Global Comparisons
A. Overview of Current Market Trends
Staying abreast of market trends allows farmers to anticipate changes in demand and adjust their production strategies accordingly.
B. Comparisons with Production Costs in Other Countries
Benchmarking production costs against other countries provides valuable insights. Learning from global best practices can inform cost-effective strategies.
Sustainability Practices
A. Sustainable Approaches to Reduce Production Costs
Implementing sustainable practices not only benefits the environment but also contributes to cost reduction. Efficient resource use and waste management are key components.
B. Benefits of Adopting Eco-Friendly Methods
Apart from cost savings, adopting eco-friendly methods enhances the industry’s reputation, meeting the growing consumer demand for sustainable and ethically sourced products.
Overcoming Production Challenges
A. Collaborative Efforts Within the Industry
Industry collaboration fosters knowledge exchange and the development of collective solutions. Cooperative efforts can address common challenges faced by poultry farmers.
B. Innovative Solutions for Cost-Effective Production
Encouraging innovation within the sector can lead to the development of new, cost-effective technologies and practices. Investment in research and development is crucial for long-term sustainability.
Future Outlook
A. Predictions for the Future of the Poultry Industry in Bangladesh
Anticipating future challenges and opportunities allows industry stakeholders to proactively address issues and capitalize on emerging trends.
B. Emerging Trends in Cost Management
Continuous improvement and adaptation to evolving market dynamics will be essential for the poultry industry in Bangladesh to navigate the complexities of production cost management.
Increased production cost main challenge in poultry industry in Bangladesh -Talukder-Tetulia-post-044
The Feed Milling Workshop organized by PoultryTechBangladesh addressed the growing challenges
faced by Bangladesh’s poultry industry, particularly the increasing production costs due to rising raw
material prices. The session highlighted the Netherlands’ success in developing cost-effective feed mills
through energy-efficient methods. Challenges discussed included price instability, difficulties in obtaining
loans for farmers, and the absence of government incentives. The event emphasized the need for
interventions to secure the industry’s future, given its vital role in rural employment. The public-private
partnership involving PoultryTechBangladesh, Larive International, and LightCastle Partners reflects a
shared commitment to strengthen Bangladesh’s poultry sector and enhance overall food production. –
Talukder Tetulia, Washington DC, January 29, 2024
Bangladesh’s poultry industry has massive potential, but the gradual increasing production cost is
posing a challenge to this sector, speakers in a discussion have said.
One of the major underlying reasons is the rise of the cost of the raw materials that goes into poultry
production, poultry feed being one of them, they said in the discussion titled ‘PoultryTechBangladesh
hosts Feed Milling Workshop’ at a hotel at Gulshan in the capital on Wednesday evening.
Under the public-private partnership, PoultryTechBangladesh, Netherlands-based consultant firm
Larive International, along with their co-implementor, LightCastle Partners jointly organized the
event, said a press release on Thursday.
Van Aarsen, one of the consortium members of the PoultryTechBangladesh project and developer,
manufacturer and supplier of state of the art machines and complete feed mill and premix plant
solutions, mainly conducted the session.
Over the past few years, in addition to the increase in price of corn and soy, two major ingredients of
poultry feed, increase in fuel prices has also catered to the increase of poultry feed production cost,
the speakers said.
The Netherlands, one of the prominent countries with advanced agricultural practices, has
developed energy-efficient feed mills as per scientific systems by using less costly and energy-
saving methods to reduce the overall production cost, the release read.
On behalf of Van Aarsen International B.V, Mr. Roger Ubags, area sales manager for South East
Asia, presented a keynote paper titled ‘Energy Capacity at Feed Mill’ at the discussion.
In the keynote, it was told that Van Aarsen has been working since 1949 for making a modern animal
feed processing and manufacturing feed mill for providing quality and safe foods for poultry birds.
‘There are 40 such feed mills in the world at the moment. Energy saving is being done in those mills
by using modern scientific methods. It would be possible to ensure the supply of poultry feeds at less
cost if such a method is used on a large scale in Bangladesh,’ according to the keynote paper.
Dr Rashed Mahmud, research manager of One Health Poultry Hub-Bangladesh, presented another
paper citing a survey report on behalf of The One Health Poultry Hub, it was told that it would play a
significant role in reducing diseases among people and animals if production and marketing is done
in safe and more sustainable manners.
‘The discussants mentioned several challenges in the poultry industry. These are: rise in price of
poultry feeds recently, instability in prices of chicken and eggs, trouble in getting bank loans for
marginal farmers, absence of incentive during crisis, and imposing more customs duty on import of
raw materials. Moreover, they mentioned the sector has provided employment facilities for a large
number of people, including women, in Bangladesh’s rural areas. Hence, they called upon the
government to take steps including giving special incentives for the sake of saving the sector,’ the
release said.
Haruni Osman, senior policy advisor, Food & Nutrition Security at Embassy of the Netherlands in
Bangladesh, Sara van Hoeve, first secretary at Netherlands Embassy in Bangladesh, Matthias
Brienen, director of Larive International, Zahedul Amin, director of Light Castle Partners, were
present during the session.
Over 40 officials and representatives of different institutions such as Kazi Group, Meghna Group,
Aftab Group, Paragon and Provita were among the participants.
Amber van Spronsen, emerging market advisor at Larive International and Dipa Sultana, senior
business consultant and project manager of Light Castle Partners, moderated the event.
As part of public-private partnership, Poultry Tech Bangladesh is pledged-bound to work together to
strengthen Bangladesh’s poultry sector. Bangladesh’s farmers and firm owners are being provided
training through joint efforts of the Netherlands Enterprise Agency, Netherlands Embassy in
Bangladesh and leading Dutch and Bangladesh institutions for boosting food production, including
poultry, the release said.