Sri Lanka’s Grain Elevators record an increase in demand for broiler chicken in the country
Ceylon Grain Elevators (CGE), which is a poultry feed milling group has reportedly said that Sri Lanka’s demand for broiler chicken is on the increase. This growth is said to be happening despite continuous hit to the sector from currency depreciation and the issue of maize import permits to third parties.
Revenues have reportedly risen 4 percent to Rs. 3.9 billion in the June 2018 quarter from a year earlier.
“The positive market sentiment for chicken consumption has contributed to increase in the Group revenue from Broiler day old chicks and Broiler feed,” Executive Director Cheng Chih Kwong, Primus has reportedly told shareholders in a quarterly review.
“The Group revenue was further strengthened by the demand for Cattle feed in the embryonic Dairy industry.”
The egg market was still unstable and there were unsold layer day old chicks, Three Acre Farms Plc, the CGE unit involved in poultry has reportedly stated.
CGE was hit by rising maize prices, the key ingredient of its feed business and practice by the rulers to issue import permits to third parties.
“Acute shortage of local Maize, a key raw material for poultry feed has continued to be a major challenge to the animal feed industry,” CGE has said.
“The Country’s feed millers are still waiting for positive response from the Government on their long outstanding appeals for Maize import permits to be issued directly to them.”
In the June quarter revenues have risen 4 percent from a year earlier, cost of sales have risen at a slower 2 percent to Rs. 3.59 billion allowing gross profits to grow 22 percent to Rs. 396 million.
Group profit after tax has increased 23 percent to Rs. 173.6 million, giving earnings of Rs. 6.94 per share. The stock rose 90 cents to Rs. 63.90.
The news report on Ceylon Grain Elevators is indicative of the development in Sri Lanka’s poultry business. Also, the increasing demand for cattle feed shows that foreign businesses/investors could look at engaging in the poultry and livestock business in Sri Lanka.
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