Egg racks in a poultry farm used for representational purposes only.  Express
Tamil Nadu

Higher cost of maize, which accounts for half of feed mix, narrows profits for Namakkal poultry farmers

Farmers noted that July to September usually sees stronger demand for maize nationwide, as production falls in most states.

Sneha Sivashanmugam

NAMAKKAL: Poultry farmers in Namakkal say the recent hike in maize prices has added pressure on their input costs, even as egg prices have stabilised after a brief fall earlier this month.

Maize accounts for nearly half of poultry feed mix, and for a farm with about one lakh hens, the daily requirement is close to 6 tonnes, or 60 quintals. Farmers pointed out that the price of maize has moved from Rs 2,400 to Rs 2,800 per quintal. This works out to an additional Rs 24,000 a day for a farm of that size.

"Whenever the price of maize goes up, our production cost rises accordingly," C Sasikumar, a poultry owner in Namakkal, said. "Overall, the cost of producing an egg, including feed, electricity, and labour, is approximately Rs 5. Earlier this month, the price of eggs had dropped to Rs 4.35 before rebounding to Rs 5. When prices fall below the cost of production, it becomes difficult, and now with higher feed costs, the profit margin turns thin."

Farmers noted that July to September usually sees stronger demand for maize nationwide, as production falls in most states. Tamil Nadu harvests maize between January and March; after that, farms here depend on Andhra Pradesh until May and Bihar until July. The seasonal supply variation often leads to such a price rise, they added.

Sasikumar added, "Now that egg prices are steady, we can manage. That said, a rise in maize cost means the profit factor is almost nil." He also pointed out that large-scale poultry farms can procure maize in bulk when it is readily available and are better equipped to manage costs during high-demand periods, while small-scale poultry farmers are the most affected, facing tighter margins and less flexibility.

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