Over 230 hatcheries in Nepal shutdown due to pandemic

CHITWAN, MARCH 18: According to the Nepal Poultry Federation, 236 hatcheries have closed down across the country as an aftereffect  of the outbreak of the  COVID-19 pandemic some six years back. The closures followed a sharp decline in the demand for hatched chicks, which failed to cover production costs during and after the pandemic.

Tikaram Pokhrel, Vice-President of the Federation, reported that before the pandemic, there were 348 hatchery businesses operating in Nepal. This number has now dropped to just 120. Layer hatcheries have seen an even more drastic decline, from 14 to only 6.

Before the pandemic, hatcheries produced 5.5 million broiler chicks weekly, but this number has now fallen to 3 million. Similarly, the production of layer chicks has dropped from 250,000 to just 130,000 per week. Pokhrel explained that the production cost of broiler chicks is between Rs 55 and Rs 60 per chick, while the cost of layer chicks ranges from Rs 120 to Rs 125.

Rajendra Lamichhane, Central Senior Vice-President of the Nepal Hatchery Industry Association, highlighted that hatcheries closed because they struggled to break even for two years after COVID-19. The price of broiler chicks has now risen to Rs 70 to Rs 75 each, while layer chicks range from Rs 130 to Rs 150.

Lamichhane added that many hatcheries shut down as they were unable to cover production costs, while some still in operation had to rely on loans from banks to stay afloat.

Hatchery industries and poultry farmers are facing significant hardships due to the inability to sell chicks at profitable prices, rising costs of poultry feed and medicine, high bank interest rates, low meat prices, the displacement of poultry farmers, and the illegal entry of chicks from India.