The Covid-19 pandemic brought business to a standstill around the world for a long time, and with continuing losses, new investment stopped in many sectors. As the situation gradually improved, investment resumed in Bangladesh's livestock and dairy industry, as in many other sectors. Besides marginal farmers, small and medium farmers turned their attention to milk and meat production. But animal feed prices have risen abnormally while milk and meat prices have not, and many who are selling milk at a loss fear losing their capital all over again.

One of them is Md Oli Uddin, a farmer at Messrs SAI Agrovet in Bhatiari, Chattogram, who has run a cattle farm for five years. Alongside local cattle, he used to sell more than 100 kg of milk a day on average. But after the novel coronavirus outbreak began, his farm ran at a loss for more than a year. When restrictions were lifted, a new problem appeared: rising feed prices. Because meat and milk prices have not kept pace with production costs, the young entrepreneur's farm is close to shutting down.

Farmers in Chattogram and other parts of the country are in the same situation. Supply falling short of demand, higher prices on the world market and shipping charges that have more than doubled have plunged small and medium farmers across the country into crisis.

Several Chattogram farmers said a litre of milk is selling at Tk 50 to 52 at wholesale. Given how much feed a cow needs every day, the profit at this price is very small. Meanwhile, feed prices in the domestic market have risen by Tk 200 to 500 per 50 kg sack over the past few months. Medicines and other farm inputs have become more expensive too, yet only the price of milk has fallen, and meat prices have not risen in line with costs. Most farmers also failed to get fair prices at the last Eid-ul-Azha, and many cattle went unsold. All in all, farmers are struggling with running costs.

Enquiries at warehouses in Khatunganj, the country's biggest wholesale market for consumer goods, and Pahartali wholesale market found that fine bran, once sold at Tk 1,100 per 55 kg sack, now sells at Tk 1,850. Leaf bran has risen from Tk 900 to Tk 1,400 per 50 kg sack, maize from Tk 20 to Tk 30 a kg, oil cake from Tk 1,700 to Tk 2,350 per 50 kg sack, and rice bran from Tk 500 to Tk 900 per 40 kg sack.

Soymeal, which used to sell at Tk 30 to 32 a kg, now costs Tk 47 to 48. Lentil husk (30 kg) is up Tk 300 to Tk 950; mung bean husk up Tk 200 to Tk 1,460 per 40 kg sack; chickpea husk (25 kg) up by about the same to Tk 1,320; wheat bran (50 kg) up Tk 250, from Tk 1,100 to Tk 1,420 a sack; broken rice (50 kg) up Tk 200 a sack to Tk 1,380 to 1,420; and soybean hulls up Tk 200 per 35 kg sack to Tk 1,020 to 1,030.

People in the sector say most of the country's feed demand is met from local sources, but large companies usually run their farms on feed imported from the world market. With shipping charges up, the cost of imported feed has risen sharply, so large farms are also turning to local feed, pushing up its price as well. And because the price of almost all raw materials for feed has risen, the feed market is higher than ever before. Buying feed at high prices raises the cost of producing milk and meat, but with milk prices falling rather than rising, small and medium farmers are hit hardest.

Sudipta Saha, a farmer in Rangunia upazila of Chattogram, said feed prices rise every month. Milk supply has increased since the lockdown ended, but prices are not rising. With sugar, edible oil, flour and maida more expensive, demand for bakery products has also fallen, so the milk he produces cannot be sold on time. Sweetmeat makers still buy milk but pay less than before, so he is trying to keep the farm going by making and selling chhana. If this continues, he said, he will have no choice but to close the farm at a loss at any time.

Md Shahjalal, senior manager at Agrotech Poultry and Animal Food, said higher import costs have created the biggest crisis in the country's animal feed. A year ago the shipping charge was only $500 a tonne, but with China importing more, shipping charges have tripled. With transport costs outstripping import prices, the domestic market has been affected. Rice, lentil and wheat prices have also risen recently for the same reason, forcing local feed makers to sell at higher prices too.

Maize is the most imported animal feed, mostly from Argentina and Brazil, with some from neighbouring India. But since the second wave of the novel coronavirus, sourcing maize from the world market has slowed, and with supply short of demand its price keeps rising. Bran is imported from Canada, but because shipping companies' bookings are focused on China, importing any product now costs more and takes more than twice as long, which has affected the country's feed market.

Rubel Majumder, proprietor of Messrs Dipak Store at Chattogram's Pahartali wholesale market, said feed prices are going up every month. Mills cite higher production costs, and wholesalers are also selling at higher prices. He also believes a slight fall in the supply of imported feed has created an artificial shortage and instability in the market.

Source: Amader Shomoy. First published in Bengali on The Agro News.