Unlike standard grocery commodities with fixed monthly prices, live broiler chicken is a highly perishable agricultural commodity subject to daily price discovery. Key factors influencing daily price shifts include:
1. Feed Ingredient Costs
Poultry feed accounts for over 70% of total broiler production cost. Fluctuation in the prices of imported soybean meal, local corn (maize), canola meal, and vitamin premixes directly impacts farmer production cost per bird.
2. Temperature and Mortality Risks
Extreme summer heat increases farm mortality rates and causes heat stress in birds, forcing farmers to harvest flocks earlier at lower average weights. Conversely, pleasant winter conditions reduce mortality but increase heating and litter management costs.
3. Seasonal Demand Waves
Consumer demand surges significantly during wedding seasons (November through February), Ramadan Sehri/Iftar feasts, and Eid holidays. When high seasonal demand coincides with tighter farm supply cycles, market prices experience swift upward rallies.
4. Day-Old Chick (DOC) Placement Cycles
A broiler flock takes approximately 30 to 35 days to reach market weight (1.8kg - 2.2kg). If hatcheries experience low chick demand in previous weeks, a subsequent supply vacuum occurs 5 weeks later, driving wholesale mandi prices higher.