Poultry Feed Makers Reduce Prices after Govt Permits More Soyameal Imports

Following the government's recent decision to allow more soyabean meal imports, poultry feed manufacturers such as Godrej Agrovet and IB Group have reduced prices. Other feed manufacturers are expected to follow suit. Soyabean meal, along with maize, is an important component of poultry feed. Feed prices have been rising in recent quarters, owing to rising soyameal and maize prices, which have harmed poultry farmers.

According to Sandeep Singh, CEO of Godrej Agrovet's Animal Feed business, “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. The decrease in feed prices will provide some relief to poultry farmers, as egg prices remain below the cost of production.”

According to Singh, feed prices are directly linked to the landed cost of soyabean and maize, and the feed industry transparently passes it on to farmers. Godrej has reduced feed prices three times in the last few weeks in states such as Bihar and West Bengal, where the fresh maize crop has hit the markets, according to Singh.

Since the Centre allowed additional imports in late April, soyameal prices have fallen by around 4,000-5,000 and are now ruling at 52,500-53,500 on an ex-factory basis in Indore.

While higher feed prices have resulted from a bullish trend in soyameal and maize prices over the last two years, feed makers have also seen prices of premixes, minerals, and amino acids that go into compound feed rise by 20-25 percent. According to Singh, the proportion of soyameal in the meal varies from 15% to 35% depending on the category and the innovation done by the companies in feed formulation.

Bahadur Ali, Founder and Managing Director of IB Group, one of the largest poultry players in the North, stated that his company has reduced feed prices by 7-8%. "As it is a commodity market, soyameal prices have dropped by about 10%, and every feed manufacturer has to lower their prices." "Feed prices are revised weekly based on commodity prices," Ali, who is also the Chairman of the All India Poultry Breeders Association, explained.

Meanwhile, the Soyameal Processors Association of India (SOPA) reported on Tuesday that soyameal imports totaled 4.4 lakh tonnes during the October-April period of the oil year to September, compared to 0.09 lakh tonnes the previous year. Soyameal production is expected to be 36.72 lakh tonnes from October to April, a 33% decrease from the previous year's figure of 55.07 lakh tonnes.