CHITWAN: Nepal’s poultry sector is grappling with a severe crisis as 236 hatchery industries have shut down due to prolonged financial struggles since the Covid pandemic. The closures follow an extended period of chick sales failing to meet cost prices, leaving the industry in turmoil.
According to Tikaram Pokharel, Vice President of the Nepal Poultry Federation, the number of hatcheries has drastically declined from 348 to 120 for broiler chicken chicks. Similarly, the number of layer hatcheries has decreased from 14 to just six.
Prior to the pandemic, hatcheries produced around 5.5 million broiler chicks weekly, but the current output has dropped to just 3 million. The weekly production of layer chicks has also fallen from 250,000 to 130,000.
The cost price for broiler chicks ranges from Rs 55 to Rs 60 per chick, while layer chicks cost between Rs 120 and Rs 125. Despite recent price increases — with broiler chicks selling at Rs 70 to Rs 75 and layer chicks at Rs 130 to Rs 150 — the damage has already been done.
Rajendra Lamichhane, Senior Vice President of the Nepal Hatchery Industry Association, stated that hatcheries were forced to close after two years of not receiving cost prices.
Even those that remained operational did so by relying on additional bank loans. The industry has faced compounding challenges, including high feed and medicine costs, increased interest rates, low meat prices, and an influx of illegal chicks from India.
Former central president of the association, Rishiram Paudel, warned that the closure of hatcheries has caused substantial financial losses, with a single hatchery requiring around Rs 400 million to operate. The rising cost of land has further compounded the financial burden.
Moreover, Nepal’s poultry sector heavily relies on imported parent chicks, which cost approximately Rs 700 each. With declining meat consumption and low market prices, many small-scale farmers have been displaced, leaving the poultry industry in a vulnerable state.
The industry stakeholders are calling for immediate intervention to stabilize prices, regulate imports, and provide financial support to struggling hatcheries to prevent further closures.
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