Chicken and eggs demand during the Covid pandemic reached a record level as people searched for protein to remain immune to the virus.

Now, poultry entrepreneurs are wary about the future. This week, stakeholders discussed the current state of the sector, noting that the industry has faced continuous challenges and a downward trend post-Covid.

Raghunath Bhatta, president of the Nepal Poultry Entrepreneur's Forum, revealed that before the pandemic, there were 14 hatcheries producing "layers" chicks for egg production; that number has now dropped to seven.

Similarly, hatcheries producing "broiler" chicks for meat have plummeted from 340 to just 109. The number of feed industries has also shrunk from over 200 to 115. The main reason for the drop was the rising feed cost and unauthorised imports of chicken and eggs from India, entrepreneurs say.

According to data provided by Bhatta, total investment in Nepal’s poultry sector currently stands at Rs160 billion, with an annual turnover of approximately Rs145 billion. While Nepal is nearly self-sufficient in chicks, feed, eggs, and meat, it remains heavily dependent on imports for feed raw materials, medicines, vaccines, and technical equipment.

Bhatta added that the import of raw materials and other essential goods for the poultry business results in an annual capital outflow of Rs45 billion.

Government officials said that despite past setbacks from bird flu outbreaks, the poultry sector has been expanding at a rate faster than expected. Chicken has become widely popular as it is cheaper than other meat products. As a result, the poultry market has been growing rapidly despite challenges.

Amid the gloomy outlook, poultry entrepreneurs are preparing to celebrate the 13th National Poultry Day.

According to them, poultry farming began in Nepal after the late king Mahendra inaugurated the Central Hatchery in Parwanipur, Bara district, on January 1, 1961. However, commercial chicken production in Nepal started in 1974. Between 2004 and 2013, the country saw a large number of farmers shifting to the poultry business.

Nepal started officially observing National Poultry Day on January 1 every year since 2013.

A press conference was organised by the forum in Bharatpur on Tuesday morning to provide information regarding the upcoming celebrations.

It was disclosed during the press meet that up to 70 percent of raw materials for feed are imported. Furthermore, 90 percent of medicines and 95 percent of vaccines and equipment are brought in from abroad.

Umesh Chandra Sapkota, central president of the Nepal Feed Industries Association, said that while maize imports were once very high, the situation has now improved due to increased domestic cultivation.

"Currently, less than 50 percent of the maize required for feed is imported,” he said, adding that demand for feed industry has led farmers to switch to maize nowadays.

However, according to Sapkota, soybeans that are needed for the preparation of the feed must be imported in large quantities.

“We rely on imports for 99 percent of our soybean requirements because domestic production is insufficient," Sapkota said.

Since feed accounts for 70 percent of the total cost of poultry production, the reliance on foreign raw materials significantly drives up costs, he said.

"It is difficult to start producing vaccines immediately, and we may not be able to manufacture tools, equipment, and technology locally yet. However, we can certainly increase maize and soybean farming.”

“The government must provide incentives, and Nepali farmers need to step forward," said Rajendra Lamichhane, central president of the Nepal Hatchery Industry Association.

Poultry farmers have suggested the government totally ban illegal import of chicks, offer subsidies for the construction of poultry farm houses, and fix the price of chicken and eggs. They have also suggested the government arrange market centres for selling chicken and eggs and provide loans at reasonable rates.