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Poultry feed makers cut prices after Centre allows more soyameal imports

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Agri Business

Godrej Agrovet, IB Group lower feed rates as soyameal eases

Poultry feed makers such as Godrej Agrovet and IB Group have reduced prices following the government’s recent move to allow more soyabean meal imports. Other feed makers are likely to follow suit.

Soyabean meal is a key ingredient in the poultry feed along with maize. Feed prices had been on an uptrend over the past several quarters, on the rising trend in soyameal and maize prices, hurting poultry farmers.

Godrej Agrovet has reduced feed prices by about ₹2,000-2,500 per tonne across various regions and depending on the proportion of soyameal used, said Sandeep Singh, CEO of the company’s Animal Feed business. The reduction in feed prices will provide partial relief to the poultry farmers as egg prices are still ruling below the cost of production, Singh added.

Further, Singh said feed prices are directly linked to the landed cost of soyabean and maize and the feed industry tends to pass it on to the farmers transparently. In States such as Bihar and West Bengal, where the fresh maize crop has hit the markets, Godrej has lowered feed prices three times over the past couple of weeks, Singh said.

Soyameal prices have come down by around ₹4,000-5,000 and are currently ruling at ₹52,500-53,500 on an ex-factory basis in Indore, since the Centre allowed additional imports in late April.

Other costly inputs

While a bullish trend in soyameal and maize prices had resulted in higher feed prices over the past two years, the feed makers have also seen prices of premixes, minerals and amino acids that go into the compound feed go up by 20-25 per cent. The proportion of soyameal varies from 15-35 per cent in the meal depending on the category and the innovation done by the companies in formulation of the feed, Singh said.

Bahadur Ali, Founder and Managing Director of IB Group, one of the largest poultry players in the North, said his firm has reduced the feed prices by around 7-8 per cent. “Soyameal prices have come down by around 10 per cent and every feed-maker has to reduce the prices as it’s a commodity market. Every week the feed prices are revised as per the commodity prices,” Ali, who is also the Chairman of All India Poultry Breeders Association said.

Meanwhile, the Soyameal Processors Association of India (SOPA) said Tuesday pegged soyameal imports at 4.4 lakh tonnes during the October-April period of the oil year to September against 0.09 lakh tonnes in the same period a year ago. Soyameal production during October-April is estimated at 36.72 lakh tonnes, 33 per cent lower compared with 55.07 lakh tonnes in the year-ago period.

Published on May 10, 2022

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