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Sat, 26 July 2014 00:55:57
Sri Lanka poultry firms in the red on higher costs, weaker sales
01 Mar, 2013 10:15:28
Mar 01, 2013 (LBO) - Sri Lanka's Ceylon Grain Elevators, which has interests in feed-milling, hatchery and poultry meat said it lost 229 million rupees in the December 2012 quarter on weak sales and higher costs.
The group reported a loss of 2.82 rupees per share for the quarter, in accounts filed with the Colombo Stock Exchange.

In the year to December the group reported earnings of 2.44 rupees per share on profits of 134 million rupees, down from 346 million rupees a year earlier.

Chairman Cheng Chih Kwong, Primus told shareholders the group was hit by higher energy costs, a depreciated rupee and weak demand.

Its subsidiary, Three Acre Farms said demand for day old chicks fell and it started culling parent birds early.

Sri Lanka's poultry farms operate amid heavy state interventions where the consumer affairs authority controls selling prices and imports of feed such as maize is taxed to 'help the farmer' putting small chicken farmers out of business when there is an economic downturn.

Analysts have warned that such autarkist policies were worsening protein malnutrition, especially in young children of poor families, as high maize prices tends to push up poultry prices.

The consumer affairs authority had allowed a price increase in December.

However in an economic downturn which follows a balance of payments crisis triggering currency depreciation and inflation, people's disposable incomes can fall, putting proteins out of their reach.

Three acre farms said it lost 33.6 million rupees in the December 2012 quarter down from a profit of 36.7 million rupees a year earlier.

The firm reported a loss of 1.43 rupees per share for the quarter. In the year to December it reported earnings of 1.57 rupees per share on total profits of 36 million rupees down from 170 million rupees a year earlier.

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