Afghanistan border closure pushes Pakistan’s poultry industry into deepening crisis

Pakistan's poultry sector is grappling with a prolonged oversupply and mounting losses, according to Profit by Pakistan Today. Exports to Afghanistan have been halted since October of last year after the border was shut, and that market previously absorbed roughly 20% of national poultry output. With no outlet across the border, producers are left holding surplus stock that local demand cannot soak up.

Industry representatives described the border shutdown as a major factor behind lower poultry prices, and said costlier diesel and transport have added strain on farmers. Distribution into Kashmir and Balochistan has been hit as well, which complicates getting products to buyers. Chicken production currently costs about Rs290 per kilogram, yet it fetches roughly Rs250, leaving a shortfall of around Rs40 per kilogram.

Chicks are in an even weaker position, with birds costing about Rs70 being sold for as little as Rs5, a loss near Rs65 per chick. Producers also pay around Rs10 per chick in Federal Excise Duty while operating at a loss. Industry bodies want exports to Afghanistan reopened to soak up the excess, and they call the current slump graver than the bird flu outbreak of nearly two decades ago. The Sindh-Balochistan Broiler Farmers Alliance has agreed that prices should be set through a transparent process linked to production costs, and it plans a data-based alternative rate mechanism.