Pune: A surge in livestock feed costs, with prices of key ingredients rising by up to 75%, is pushing poultry farmers into losses and squeezing dairy producers, as weak consumer demand limits their ability to pass on higher costs.
Poultry farmers are facing losses of about 15%, industry executives said, while dairy producers in drought-hit regions are struggling to source fodder. Prices of mustard meal have risen 75%, deoiled rice bran meal 68%, corn DDGS 66%, groundnut meal 43% and maize 8%.
Feed manufacturers are also facing margin pressure as higher prices dampen demand. Industry associations have urged the government to ease maize imports and release foodgrain stocks unfit for human consumption for use as livestock feed. The competition between the poultry and the ethanol manufacturers has increased to get a higher share of maize, whose production has fallen due to a deficient monsoon.