Sri Lanka poultry industry margins to narrow

Apr 19, 2012 (LBO) – Margins in Sri Lanka’s poultry industry would narrow amid higher capacity but per person chicken consumption would continue to grow, a top poultry firm in the island has said. Three acre farms, a unit of Ceylon Grain Elevators, which is Sri Lanka’s largest day old chick producer said per capita chicken mean consumption is expected to rise to 8 kilograms a year in 2016 from 5.7 in 2011 after rising from 5.0 kilos in 2011.

“The poultry industry is anticipated to be over capacity in the coming years due to the rapid expansion of key players in the market and in view of this we expect margins will be affected in the coming years,” Cheng Chih Kwong, Primus chairman and chief executive told shareholders in the annual report.

“However, to maintain its leading position in the country, the Company has to refurbish its facilities to improve productivity in the coming years, and at the same ti me expand its capacity in line with the market demand.”

Three acre farms produces day old chicks and also markets processed chicken and runs an out grower scheme. Its parent, CGE runs a feed milling business.

TAFL, said in the fourth quarter 2010 the state has intervened to incr