Business
04 Jun, 2026
Hit by higher feed cost & demand drop, poultry industry to cut production by 25 pc
Business To Business, New Delhi, 4th June, 2026: The All India Poultry Breeders' Association has announced a 25% reduction in poultry production with immediate effect, citing a sharp increase in feed costs and the seasonal decline in demand typically seen during the July–October festival period.
Why production is being cut
At a recent meeting chaired by Bahadur Ali, industry representatives reviewed the challenges facing poultry producers across India.
The key concern was the steep rise in the price of soybean meal, a major component of poultry feed.
According to the association:
- Soybean meal prices have increased by more than 40% in the past month.
- Feed costs, which account for the largest share of poultry production expenses, have risen sharply.
- Producers are facing significant financial pressure due to shrinking margins.
Expected impact
The production cut is intended to:
- Prevent oversupply during a period of traditionally weaker demand.
- Help poultry farmers manage rising input costs.
- Stabilize market conditions for producers.
However, the move could also have implications for consumers and the broader food market, including:
- Potential increases in chicken and egg prices if supply tightens.
- Pressure on food inflation if higher costs are passed on to consumers.
- Reduced output from poultry farms until feed prices become more manageable.
Industry outlook
The poultry sector has urged policymakers to closely monitor feed ingredient markets, particularly soybean meal, as sustained high prices could affect the profitability and viability of poultry farming operations nationwide.
Industry participants will likely continue reviewing production levels in the coming months based on feed costs, demand trends, and market conditions.