ECONOMYNEXT – Sri Lanka’s Three Acre Farms, a hatchery, said revenues fell 58 percent in the December 2024 quarter from a year ago to 1.3 billion rupees amid lower demand for day old chicks as chicken and egg prices fell.
“This decline was mainly caused by the reduction in inputs by key processors and farmers due to oversupply market situation with excess stocks of chicken meat,” Chief Executive Cheng Chih Kwong told shareholders.
“Additionally volatile market prices for table eggs decreased the demand for Layer day old chicks during the quarter under review.”
Both volumes and average selling prices of day old chicks were down, the firm said.
Ajith Gunasekera, head of the All Island Poultry Association said layer farmers had increased bounced back to about 8.5 million eggs, from the from around 5.5 million after a price controls killed off the layer flock.
But due to weak consumer purchasing power, the pre-crisis demand was no longer present, which was leading to low and volatile prices, he said.
Layer chick prices were down around 400 rupees from 650 but farmers were not starting new flocks due to low egg prices, and high feed prices, he said.
Feed prices were still high, he said.
Three Acre Farm’s Parent Ceylon Grain Elevators said feed demand went up as self-mixing declined.
CGE group revenues went up 56 percent to 7.05 billion rupees in the December 2024 quarter and cost of sales were up 72 percent to 6.0 billion rupees. Gross profits were up 1 percent 1,000 billion rupees.
Sri Lanka taxes foreign maize for ‘self-sufficiency’ at 25 rupees a kilogram and imports are also subject to licensing.
Local production was now coming to the market, but prices were around 140 rupees a kilo, Gunasekera said.
Rice which is also an input, though prohibited by gazette has also shot up. (Colombo/Feb27/2025)
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