Sri Lanka broiler chicken see pick-up despite currency depreciation woes
Aug 08, 2018 14:39 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's broiler chicken demand is picking up, despite continuous hit to the sector from currency depreciation and the issue of maize import permits to third parties, Ceylon Grain Elevators, a poultry and feed-milling group said.
Revenues rose 4 percent to 3.9 billion rupees in the June 2018 quarter from a year earlier.
"The positive market sentiment for chicken consumption has contributed to increase in the Group revenue from Broiler day old chicks and Broiler feed," Executive Director Cheng Chih Kwong, Primus told shareholders in a quarterly review.
"The Group revenue was further strengthened by the demand for Cattle feed in the embryonic Dairy industry."
The egg market was still unstable and there were unsold layer day old chicks, Three Acre Farms Plc, the CGE unit involved in poultry said.
CGE was hit by rising maize prices, the key ingredient of its feed business and practice by the rulers to issue import permits to third parties.
"Acute shortage of local Maize, a key raw material for poultry feed has continued to be a major challenge to the animal feed industry," CGE said.
"The Country’s feed millers are still waiting for positive response from the Government on their long outstanding appeals for Maize import permits to be issued directly to them.
Analysts say permits are key tool of corruption in many countries.
Ceylon Grain Elevators said currency depreciation pushed up costs.
In the June quarter revenues rose 4 percent from a year earlier, cost of sales rose at a slower 2 percent to 3.59 billion rupees allowing gross profits to grow 22 percent to 396 million rupees.
Group profit after tax rose 23 percent to 173.6 million rupees, giving earnings of 6.94 rupees per share. The stock rose 90 cents to 63.90 rupees. (Colombo/Aug08/2018)