Hundreds of small poultry farms are shutting down in the country due to syndicate-driven market manipulation, paving the way for dominance of corporate companies over the industry.
By inflating prices of essential inputs like feed and chicks, these corporate companies are reportedly pocketing around Tk 6,000 crore annually. As a result, marginal poultry farmers are now struggling for survival.
Poultry organisations have reported that 60 per cent of small farms have closed over the past five years and poultry production has decreased significantly. Giant corporate companies take advantage of such a vacuum throughout the year. In early 2021, poultry feed prices increased four times within eight months. During the Covid-19 pandemic, the prices of vaccines and chicks also tripled. Approximately 30 domestic and foreign companies involved in poultry industry repeatedly hiked feed and chick prices, and earned crores of taka in profits. According to Bangladesh Poultry Association (BPA), unscrupulous syndicates pocketed Tk 5,920 crore annually by selling poultry feed, chicks, and chickens at inflated prices.
Market analysis and data from poultry organisations reveal that though global prices of key poultry feed raw materials, including corn and soybean, decreased during the period between 2022 and 2024, feed prices in Bangladesh did not follow suit. Currently, a sack of poultry feed costs between Tk 3,200 and Tk 3,800, up from Tk 1,700–1,750 five years ago, showing an increase of Tk 1,500–1,800. Shamsul Arefin Khaled, president of Feed Industries Association of Bangladesh (FIAB), said that poultry feed primarily comprises 75-80 per cent corn and soybean meal. The industry has found no viable alternative as availability of these raw materials in the country is insufficient. In contrast, neighbouring countries utilise several substitute ingredients.
Khaled further said that if the government allows duty-free import of such alternatives, it could significantly lower feed costs.
Small-scale farmers said that debts at feed dealerships and veterinary shops have become unbearable. They blame the syndicates for this dire situation. Farmers who signed up for contract farming have found themselves ensnared, losing financial independence.
According to Rajshahi Poultry Farmers Association, 45 per cent of poultry farms (broiler, layer, and Sonali chicken) in the regions known for leading poultry production have shut down due to losses. Around 1,500 farms have closed in Puthia, Durgapur, Tanore, and Bagmara upazilas in Rajshahi. Across eight districts in the Rajshahi region, 50 per cent of poultry farmers have either changed professions or shut down their operations.
In the past five years, over 1,000 small and medium-sized farmers nationwide have been forced to abandon their farms due to debt.
Expensive farm sheds and equipment now lie abandoned while NGO workers relentlessly pursue debt recovery. Many farmers are evading creditors; some have even sold farmland and homes to repay loans.
While talking to retailers, wholesalers, poultry association leaders and stakeholders, it is learnt that local dealers exploit farmers. Dealers provide feed and day-old chicks on credit, but farmers must return chickens to dealers for sale. However, farmers are often bound by contracts preventing them from purchasing feed, vaccines, or supplies from alternative sources. This monopoly allows syndicates to inflate prices artificially.
Further investigation exposes the existence of a powerful syndicate among hatchery owners. For instance, production cost of a Sonali chick is Tk 14–20, but by the time it reaches farmers, the price skyrockets to Tk 28–48.
Farmers said hatchery owners play the most significant role in the poultry industry. They collaborate with dealers under profit-sharing agreements to tie farmers into their system. Local agents operate regionally, and their job ends once they introduce chicks into a farm. From that point, dealers, veterinary doctors, and wholesalers drain the farmers financially throughout the year, like leeches.
When asked about this three-tier syndicate, a leader from the Poultry Association explained that large corporations have heavily invested in the poultry sector. These companies manipulate feed prices at their will because they control the production of feed, chicks, meat, and eggs. Farmers not under their (corporate companies) umbrella are exploited by their dealers.
The syndicates raise chicken meat and egg prices twice yearly to attract new farmers, but farmers suffer losses the rest of the year. Unlike other livestock, poultry cannot be sold suddenly; farmers often sell land to feed their chickens.
Even the government has failed to break this syndicate. While the production cost of an egg exceeds Tk 10, it sells for only Tk 11.20, leaving farmers stuck in financial quicksand.
Suman Hawladar, President of the Bangladesh Poultry Association (BPA), said the association has tried to stabilise the market for eggs and chicken and has consistently spoken against corporate syndicates.
Comparing costs, he highlighted that in India, the cost of poultry feed per kilogram is Tk 40–50, while in Bangladesh it is Tk 60–72. Similarly, the cost of raising a broiler chicken is significantly lower in India at Tk 76–86 per kg compared to Bangladesh’s Tk 155–170 per kg.
He said that BPA urged the government to take action against these syndicates.
BPA also called for a review of corporate group contract farming and commercial egg and chicken production, he added.
Fisheries and Livestock Adviser Farida Akhtar stressed the need to establish fair partnerships between farmers and the industry.
She warned that contract farming strips farmers of their independence. Large corporations are undermining traditional agriculture and exploiting farmers, and it is crucial to evaluate whether farmers are genuinely benefiting from this system.
