By Azhar Razak
The Chairman & Chief Executive Officer of Three Acre Farms PLC (TAF), the largest poultry player in Sri Lanka says that margins of poultry firms in the island will be affected in the coming years as the poultry industry is anticipated to be over capacity in the coming years due to the rapid expansion of key players in the market.
“With growing market trends and the Sri Lankan economy predicted to reach over 8% growth in 2012, it can easily be said that the poultry industry’s contribution to the economy will increase multiple-fold in the coming years. We expect that the consumption of Chicken Meat will increase to about 8Kg per capita by 2016, which is highly favourable for the poultry industry in general and TAF in particular,” TAF Chairman and CEO, Cheng Chih Kwong, Primus said in the Annual Report released last week.
Reviewing operations for the year 2011, he noted that with the intervention by the government to import layer hatching eggs to increase supply of day old chicks (DOC) during the 4th quarter of 2010, the industry entered into a cycle of excess supply of DOC in 1st quarter of 2011 and that subsequently the market showed a shortage of demand for poultry products in the 2nd and 3rd quarter of 2011, when major players were forced to scale down their operations to reduce losses.
“Consequently when the market normalized around the final quarter of the year, the local production was insufficient to meet the demands for day old chicks. These fluctuations in demand pattern greatly contributed to increased operational costs within the Company and the poultry industry as a whole,” Primus analysed.
Meanwhile, Primus who also heads TAF’s parent company, Ceylon Grain Elevators (CGE) said that CGE had achieved its highest ever feed sales volume in 2011 despite facing numerous challenges.
“The Company continued to expand its farming capacity with the addition of 4 new modern environmental controlled (EC) broiler houses, and will continue to increase our farm capacity in the future,” Primus mentioned in his message in CGE Annual Report which was also released last week.
About 70% of the contribution to livestock sub-sector in Sri Lanka comes from chicken meat and eggs. Chicken meat and eggs remain the cheapest source of animal protein. While the country’s economy progresses, the domestic per capita income also increased, and improving Sri Lankan purchasing power. Currently the annual chicken meat consumption in Sri Lanka is approximately 5.7Kg and 54 eggs per person.
The Chairman & Chief Executive Officer of Three Acre Farms PLC (TAF), the largest poultry player in Sri Lanka says that margins of poultry firms in the island will be affected in the coming years as the poultry industry is anticipated to be over capacity in the coming years due to the rapid expansion of key players in the market.
“With growing market trends and the Sri Lankan economy predicted to reach over 8% growth in 2012, it can easily be said that the poultry industry’s contribution to the economy will increase multiple-fold in the coming years. We expect that the consumption of Chicken Meat will increase to about 8Kg per capita by 2016, which is highly favourable for the poultry industry in general and TAF in particular,” TAF Chairman and CEO, Cheng Chih Kwong, Primus said in the Annual Report released last week.
Reviewing operations for the year 2011, he noted that with the intervention by the government to import layer hatching eggs to increase supply of day old chicks (DOC) during the 4th quarter of 2010, the industry entered into a cycle of excess supply of DOC in 1st quarter of 2011 and that subsequently the market showed a shortage of demand for poultry products in the 2nd and 3rd quarter of 2011, when major players were forced to scale down their operations to reduce losses.
“Consequently when the market normalized around the final quarter of the year, the local production was insufficient to meet the demands for day old chicks. These fluctuations in demand pattern greatly contributed to increased operational costs within the Company and the poultry industry as a whole,” Primus analysed.
Meanwhile, Primus who also heads TAF’s parent company, Ceylon Grain Elevators (CGE) said that CGE had achieved its highest ever feed sales volume in 2011 despite facing numerous challenges.
“The Company continued to expand its farming capacity with the addition of 4 new modern environmental controlled (EC) broiler houses, and will continue to increase our farm capacity in the future,” Primus mentioned in his message in CGE Annual Report which was also released last week.
About 70% of the contribution to livestock sub-sector in Sri Lanka comes from chicken meat and eggs. Chicken meat and eggs remain the cheapest source of animal protein. While the country’s economy progresses, the domestic per capita income also increased, and improving Sri Lankan purchasing power. Currently the annual chicken meat consumption in Sri Lanka is approximately 5.7Kg and 54 eggs per person.
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