Poultry sector - that contributes around three percent in Gross Domestic Product - has seen an encouraging growth with total investment amounting to Rs 24 billion over the period. Five years ago, total investment was estimated at Rs 18 billion. [break]
The surge in the scope and size of the business is due mainly to opening of big poultry farms, hatcheries and feed industries in poultry hub of Chitwan and other emerging new markets.
"Lower cost coupled with nutritional value of poultry products and their growing popularity among consumers has unleashed a huge potential for business expansion across the country. This is why there is an upward trend in opening new farms and expanding existing ones," Dr Tilchandra Bhattarai, a poultry researcher, told myrepublica.com on Saturday.
He said that the surge is particularly marked in hatcheries, commercial farms and feed production.
The new investors -- Numbus, Rungta, Well-up and Pancharatna Groups -- have been focusing on the production of pellet feed, which contains high-nutrient feed - with the use of latest production technology. Small feeds are also on the rise among moderate investment.
Meantime, Tribeni Group, Valley Feed Industries and Sagar Feeds are opening new feed industries in Birgunj, Hetauda and Itahari, respectively.
The cost of erecting a pellet feed industry with high-technology plants and silo (storage tower) facility is estimated to be Rs 150 - 250 million.
Bhattarai, managing director of Pancharatna Group -- one of the largest poultry entrepreneurs in the country -- said he is all set to opening Ruchi Poultry in Shukranagar of Chitwan and Pancharatna Hatchery in Pokhara with the combined production capacity of 100,000 chicks per week.
According to Bhattarai, who is also the former president of Nepal Poultry Entrepreneurs Forum, an umbrella organization of poultry producers, investment in each hatchery hovers around Rs 220 million to Rs 300 million depending on the capacity and technology used.
Pancharatna also owns poultry farms in Kohalpur and Itahari which have the capacity of 80,000 and 100,000 chickens respectively. It is targeting to expand the seating capacity for 200,000 chickens in each of them.
Abhinash Group, which operates country´s largest hatchery, Abhinash Hatchery, also opening a state-of-the-art hatchery in Beldia of Nawalparasi with the target of producing 350,000 chicks per week.
"We are encouraged in funneling more money into poultry sector as demand for poultry products shoot up across the country," said Gundchandra Bista, managing director of Abhinash Group.
Bista, who is also the president of Nepal Hatcheries Association, said over 15 big hatcheries and half-a-dozen high technology feeds have been opened in the past five years with massive investment.
However, poultry entrepreneurs bemoan over a lask of prospect for export of poultry products due to higher cost of domestic production.
"We can´t compete with our Indian counterparts as production cost in Nepal is at least 15 percent higher than in the southern neighbor," said Bhattarai.
According to him, population of commercial broilers and layers grew by 18 percent and 17 percent to touch 46.76 million and 6.4 million respectively in 2009/10 when compared to a year earlier.
Similarly, production of chicken shot up by 83.44 kg and 1.26 billion pieces, up by 23 and 12 percent respectively, during the same year. Total feed production have gone up by 16 percent to 581,132 tons during the review year.
To date, there are a total of 76 big hatcheries, 115 feeds, 500 layers and 1,000 broiler farms in the country.
prabhakar@myrepublica.com
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