Hundreds of Hatcheries Shut Down Due to Post-Pandemic Crisis

Nepal’s poultry industry continues to struggle in the aftermath of the COVID-19 pandemic, with 236 hatchery businesses shutting down due to financial losses.

Before the pandemic, there were 348 hatcheries in operation, but now only 120 remain, according to the Nepal Poultry Federation. Layer hatcheries have also dwindled from 14 to just six.

The production of broiler chicks has fallen from 5.5 million per week to 3 million, while layer chick production has dropped from 250,000 to 130,000 per week.

The financial crisis was triggered by plummeting chick prices, which often failed to cover production costs. The cost of producing a broiler chick ranges from Rs 55 to Rs 60, while a layer chick costs Rs 120 to Rs 125. However, for two years following the pandemic, hatchery owners struggled to even recover these costs.

Though prices have slightly improved—broiler chicks now sell for Rs 70 to Rs 75, and layer chicks for Rs 130 to Rs 150—the industry still faces multiple challenges, including high feed and medicine costs, increased bank interest rates, and illegal imports from India. Many hatcheries and poultry farmers have been forced out of business, with those still operating relying on heavy bank loans.