Over 230 hatcheries shut down in Nepal post COVID-19 crisis

March 18, Kathmandu: Two hundred and thirty-six hatchery industries have shut down across Nepal since the COVID-19 pandemic, according to the Nepal Poultry Federation.

Before the pandemic, 348 hatcheries operated nationwide, but the number has dropped to 120, with layer hatcheries decreasing from 14 to six.

The closures occurred because hatched chicks failed to sell even at their production cost for two years after COVID-19. Tikaram Pokharel, the Federation’s vice president, noted that weekly broiler chick production fell from 5.5 million to 3 million, while layers chick production dropped from 250,000 to 130,000.

Production costs range from Rs 55-60 per broiler chick and Rs 120-125 per layer chick, with current prices now at Rs 70-75 and Rs 130-150, respectively.

Rajendra Lamichhane, from the Nepal Hatchery Industry Association, explained that many hatcheries closed due to low prices, rising feed and medicine costs, high bank interest rates, cheap meat prices, farmer displacement, and illegal chick imports from India. Surviving industries rely on bank loans.