Current corn prices are on the rise and have increased from Rs. 42 to Rs. 52. According to industry experts, this will have a direct impact on chicken prices resulting in a price hike of at least Rs. 20 per kilo.
This is in the backdrop where world market prices of corn stands at Rs. 35. The government’s measures to impose a tax of Rs.10.50 per kilo of corn will further jeopardize the poultry industry in Sri Lanka. Chicken producers are also heavily taxed by the government. The tax is high as Rs. 85 per kilo.
Despite all these drawbacks chicken producers such as Crysbro have gone a step further by fully integrating their entire operations. It carries out virtually every activity that is needed to produce its ‘Fresh Upcountry Chicken’.
From producing grains in its extensive farmlands, converting the grains into poultry feed at its feed mill plant, to raising parent birds and broilers, processing meat and packaging it – right down to delivering the chicken to supermarkets and retail outlets. Crysbro is one of Sri Lanka’s first chicken producers to achieve full vertical integration. Yet, rising costs remain an issue that chicken producers have to constantly battle against, a company spokesman said.If the authorities are serious in maintaining the current chicken prices it is necessary to provide chicken producers with more incentives, as well as a conducive regulatory and fiscal climate could help the industry grow, he said.