HomePakistanPoultry Sector Slowdown: May Impact Corn Demand in Coming Weeks

Poultry Sector Slowdown: May Impact Corn Demand in Coming Weeks

The price of day-old chicks (DOC) in Pakistan has witnessed a sharp decline, falling to around PKR 77 per chick, nearly half of last year’s level of PKR 145. This reflects a significant correction in the poultry supply chain after a period of volatility driven by demand fluctuations and production adjustments.

Earlier in October, particularly around the 20th, DOC prices had dropped sharply to as low as PKR 25.5 per chick, mainly due to weak domestic demand and temporary closure of the Afghan border, which restricted export flow. However, as market demand gradually improved in the following days, prices recovered to current levels.

📊 Price Movement Overview

PeriodDOC Price (PKR per chick)
Peak Phase~300
Last Year145
Low (Oct 20)25.5
Current77

👉 The market has experienced high volatility due to alternating phases of oversupply and demand recovery.

🐓 Oversupply Phase and Market Correction

In previous months, a sharp increase in DOC placements at hatcheries led to:

  • Higher production activity
  • Excess supply in the poultry chain
  • Strong downward pressure on chicken prices

👉 This oversupply eventually forced a market correction in DOC pricing

🌽 Impact on Poultry Feed Demand

During the high-production phase:

  • Poultry feed demand increased significantly
  • Corn consumption rose sharply
  • Feed mills operated at higher capacity

This demand was further strengthened by:

  • Government restrictions limiting wheat usage in feed
  • Corn becoming the primary feed ingredient

👉 As a result, corn prices remained stable in the range of PKR 3,200 – 3,300 per maund for several weeks.

⚖️ Current Shift in Market Dynamics

With recent decline in DOC placements:

  • Poultry production activity is slowing
  • Feed demand is expected to weaken
  • Corn consumption may decrease in the coming weeks

👉 This marks a potential shift from strong feed-driven demand to a more balanced market phase

🔮 Corn Market Outlook Linked to Poultry Sector

The poultry sector remains a key driver for corn demand:

  • DOC placements → feed production → corn consumption

👉 Any slowdown in DOC activity directly impacts corn demand.

Short-Term Outlook:
  • Slight weakening in feed demand
  • Corn prices may remain stable or soften slightly
Key Risk Factor:
  • No strong recovery in DOC placements

🔚 Conclusion

The recent decline and partial recovery in DOC prices reflect ongoing adjustments in Pakistan’s poultry sector after a period of oversupply. While feed demand — particularly corn — remained strong during high production phases, the recent slowdown in placements may reduce consumption pressure in the coming weeks. Market participants, especially feed millers and traders, are closely monitoring DOC trends as they remain a key signal for future corn demand and price direction.

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