Poultry prices may increase ahead of Christmas as feed, freight costs rise

The Greater Accra Poultry Farmers Association has warned that poultry prices in Ghana could increase slightly as rising feed costs, higher freight charges and expensive imported additives continue to put pressure on production expenses.

The Association’s Chief Executive Officer, Ali Mohammed, told Citi Business News that poultry producers may be forced to adjust their prices if the cost of key inputs continues to rise, particularly with the festive season approaching.

He explained that increasing prices of maize, soya and other feed ingredients, combined with higher shipping costs and foreign exchange pressures, were making poultry production more expensive.

According to him, the continued rise in these costs could prompt some farmers to increase the prices of poultry products to sustain their operations.

Feed remains a major cost component in poultry production, making changes in the prices of maize, soya and other ingredients particularly significant for farmers.

Mr Mohammed said the cost of imported additives was also increasing the financial pressure on producers. With foreign exchange costs and freight charges remaining major concerns, farmers could face further increases in their operating expenses.

He said the approaching festive season could add to the pressure, as producers consider the combined effect of higher input costs and their pricing decisions.

“If the trend of the major input continues to go up, likewise the additives which are all imported, because the forex is not coming down and knowing a festivity season is coming, dollar will not come down, freight costs are going up, certainly we may see some slight adjustment of poultry products, prices upwards,” he said.

The warning raises the possibility of higher prices for consumers if producers pass on some of the additional costs.

Despite the concerns over rising production costs, Mr Mohammed cautioned against projections that poultry prices could increase by as much as 15%.

He described such estimates as speculative, explaining that pricing decisions differ from one farm to another depending on production costs, profit margins and the base prices set by individual businesses.

He said the association could not responsibly provide a single percentage increase without considering the different cost structures of poultry producers.

“Each farm and its profit margin and the base price that they want to adjust to and we cannot give the kind of percentage raw 15 percent, it can be very speculative, we can’t do that,” he stated.

His comments suggest that any price adjustments would depend on the circumstances of individual farms rather than a uniform increase across the poultry industry.

The potential for higher poultry prices comes as farmers prepare for the festive season, a period when consumer demand for food products may influence market activity.

However, the Association has not confirmed a specific percentage increase or indicated that all poultry producers will adjust their prices.

The extent of any changes will depend on the movement of feed prices, imported input costs, freight charges and foreign exchange expenses, as well as the pricing decisions of individual farmers.

For consumers, continued increases in production costs could translate into higher poultry prices if farmers are unable to absorb the additional expenses.

The Association’s warning highlights the cost pressures facing Ghana’s poultry sector and the potential implications for producers and consumers as the year-end season approaches.