Indian Poultry Industry Orders 25% Cut in Day-Old Chick Production

Pashu Sandesh, 10 June 2026

India's poultry industry has taken the unprecedented step of reducing production of day-old chicks (DOC) by nearly 25 percent, a move that industry leaders say is necessary to contain mounting losses caused by soaring feed costs and weakening seasonal demand.

The decision, taken jointly by major poultry associations and breeder organizations across the country, marks one of the most coordinated supply-management exercises undertaken by the sector in recent years. The industry has simultaneously initiated culling of parent breeder stocks to reduce future chick placements and prevent a market glut in the months ahead.

Industry Bodies Unite Over Crisis

The decision emerged after consultations involving leading industry organizations, including the All India Poultry Breeders Association (AIPBA), Compound Livestock Feed Manufacturers Association (CLFMA), Karnataka Poultry Farmers and Breeders Association (KPFBA), Indian Poultry Equipment Manufacturers Association (IPEMA), Telangana Poultry Breeders Association and regional broiler coordination committees.

According to industry sources, the production cut is aimed at balancing supply with expected demand conditions during the July–October period, traditionally marked by lower poultry consumption across several regions due to religious observances such as Sawan, Navratri and Durga Puja.

Breeder Culling Signals Seriousness of Situation

Perhaps the strongest indication of industry concern is the reported culling and liquidation of breeder stocks.

Parent breeders, which form the foundation of chick production, are reportedly being sold at steep discounts as companies attempt to reduce future chick output. Industry reports suggest breeder bird values have fallen sharply amid the liquidation drive.

Such actions are generally considered a last-resort measure because rebuilding breeder capacity can take several months and requires significant investment.

Why the Industry Decided to Cut DOC Production

Feed Costs at the Centre of the Storm

Industry representatives said that the immediate trigger behind the move is the sharp escalation in soybean meal prices,which is  primary poultry feed protein source that have reportedly risen by more than 40 percent within a month, severely impacting production economics. Feed typically accounts for 65–70 percent of the cost of poultry production. 

The poultry sector's dependence on soybean meal has once again exposed its vulnerability to feed-market volatility. Over the past decade, feed ingredients—primarily maize and soybean meal—have become increasingly sensitive to fluctuations in crop production, exports, ethanol demand and speculative trading activity.

Poultry industry leaders also mention that the decision to cut day-old chick production is not solely a reaction to rising feed costs but also an attempt to address the extreme volatility witnessed in broiler markets over the past six months. 

After witnessing a sharp decline in prices during January and February, broiler rates rebounded strongly during March and April on the back of Ramadan demand, summer-related supply disruptions and rising feed costs. In several major consuming centres, retail chicken prices rose by 20–50 percent within weeks, highlighting the widening mismatch between supply and demand. Industry leaders believe that reducing chick placements and culling breeder stocks could help stabilize production and prevent another cycle of oversupply and price collapse later this year.

Outlook: Temporary Correction or Structural Warning?

While industry leaders describe the 25 percent production cut as a temporary corrective measure, the development highlights deeper structural concerns facing India's poultry value chain.

Heavy dependence on a narrow basket of feed ingredients, increasing climate-related volatility in crop markets, and periodic demand disruptions continue to expose poultry producers to significant financial risk. For now, the industry's strategy is clear: reduce supply, protect margins and wait for feed markets to stabilize.

Bottom Line: The poultry industry's decision to reduce day-old chick production by one-fourth is among the strongest supply-control measures seen in recent years and reflects the severity of the current feed-cost crisis. While intended to protect producer margins, the move could reshape poultry prices and availability across India during the second half of 2026.