The price of day-old chicks (DOC) has seen a sharp decline, dropping to around PKR 77 per chick, almost half of last year’s rate, which stood at PKR 145. Earlier in October, specifically on the 20th, DOC prices had fallen drastically to as low as PKR 25.5 due to sluggish demand in the poultry sector and closure of afghan border. However, as market demand picked up in the following days, prices recovered to their current levels. In the preceding months, there had been a substantial increase in DOC placements at hatcheries, driven by higher production activity. This earlier surge had pushed DOC prices up to around PKR 300 per chick, which led to an oversupply situation, eventually leading to a decline in chicken prices.
During those high-production months, demand for poultry feed especially corn also increased sharply. This was further supported by government restrictions on feed millers from using wheat in their feed formulations, making corn the primary feed component. As a result, corn prices remained firm and stable for almost three weeks, trading within the range of PKR 3,200 to 3,300 per maund.
However, with the recent decline in DOC placements, the demand for poultry feed is expected to weaken in the coming weeks. This could result in slower corn consumption compared to last year. Unless there is a significant recovery in poultry placements. Traders and feed millers are therefore keeping a close watch on DOC trends, as they remain a key indicator for future corn demand movements.
