Nepal’s poultry industry saw vigorous growth over the last few decades to become the key affordable source of egg and meat.

The Covid-19 pandemic came in 2020 severely affecting businesses.

Now, insiders say the ongoing economic crisis is pushing thousands of poultry farmers out of business, because of the subdued demand and high production costs.

They say the steep drop in demand is forcing them to sell eggs below cost.

But there is one interesting fact. The price of eggs, however, has not dropped in the retail markets.

Gun Chandra Bistra, president of the Nepal Poultry Federation, says middlemen enjoy most of the profit.

“Both farmers and consumers are at a loss.”

He said that the ongoing economic crisis has worsened sales.

Binod Pokharel, president of the Nepal Layers Poultry Farmers Association, said that the daily production of eggs, which was 5 million to 5.5 million pieces before the pandemic, has decreased to 3 million pieces.

He said that the price of chicken feed has nearly doubled over the past four years.

“Four years ago the price of chicken feed was around Rs40 per kg, now it has jumped to Rs70 a kg. The cost of producing each egg has increased from Rs11 a piece to Rs16.”

Pokharel said that they have been selling eggs at a loss of Rs4.5 per piece.

Farmers get Rs340 to Rs360 for a crate (30 pieces), but he said consumers are compelled to pay Rs500 to Rs550 for a crate in the retail market.

A few days ago, farmers got up to Rs450 for a crate and the retail price had also increased.

But the prices have dropped for farmers and remained the same for customers, said Pokharel.

Poultry farmers complain that they are rushing to sell their products at whatever price they get from middlemen because they have to repay the periodic interest of the banks.

They also say that the production and sales of chickens have decreased lately due to the downfall of poultry farming in the country.

“The number of hatcheries once reached 15 with a combined production of 300,000 chicks per week, but now only five are in operation with a weekly capacity of 125,000 chicks,” said Tika Pokharel, vice president of the Nepal Poultry Confederation.

“The price of a layer chick has decreased from Rs200 before the pandemic to Rs100.”

To increase consumption, farmers along with the Nepal Veterinary Association are now busy organising various programmes to raise awareness about the nutritious values of eggs.

A single egg offers roughly 72 calories, as well as 6 grams of high-quality protein, 5 grams of fat, 1.6 grams of saturated fat, iron, vitamins, minerals, and carotenoids.

The egg is also a potent source of nutrients like lutein and zeaxanthin that fight disease.

Dr Nikesh Khanal, a central member of the Nepal Veterinary Association, said that on the occasion of the 27th World Egg Day, on Friday, they organised an awareness programme in 10 public schools in each province.

The organisers have also scheduled to distribute eggs for free and discuss with the local farmers in each province about the challenges they have been facing.

“The per capita consumption of eggs in Nepal is 62 pieces, which is way below the global average of 161 pieces. The consumption is decreasing alarmingly in Nepal due to increased cost and low production,” said Khanal.

“The small-scale producers have left poultry farming in large numbers.”