ECONOMYNEXT – Sri Lanka has seen stronger demand for processed chicken leading a higher prices for day old broiler chicken, a top poultry group said, while farmers reduced layer chick purchases as egg prices dropped.
“The Group recorded higher revenue during the quarter under review, primarily driven by stronger demand for Broiler Day-Old Chicks (DOCs) and continued growth in processed chicken sales,” Three Acre Farms, a unit of Sri Lanka’s Ceylon Grain Elevators said.
“However, increased volatility in table egg prices caused by market oversupply has led to a decline in demand for Layer DOCs.
“Group profitability improved significantly during the quarter, largely attributable to higher average selling prices of Broiler DOCs.”
A pick up in tourism has also increased chicken demand, the firm said.
In Sri Lanka, especially after 1978, food prices – or any other price – that go up do not usually come down due to central bank’s inflationism, cemented by currency depreciation.
Sri Lanka’s central bank has undershot its controversial 5-7 percent inflation targeting, giving exceptional almost East Asian style monetary stability to the country, through the rupee depreciated in 2025, due to excessive dollar purchases.
In Sri Lanka chicken demand also usually collapses after central bank triggers currency crises with rate cuts, leading to culling of day old chicks and chicken meat becomes unaffordable to pople with vegetable and other food and non-food prices rocketing up.
The recovery takes some time.
Sri Lanka’s poultry firms struggle to supply people with cost – effective proteins amid import controls of maize to given profits to a so-called maize mafia.
Sri Lanka’s chicken meat demand picked up earlier in part due to malnourished chicken from locally produced self-sufficiency maize, the industry has said.
Ceylon Grain Elevators said its feed sales also picked up as farmers found it difficult to maintain the quality of self-mixed feed.
“Further, revenue from compounded feed remained steady due to its consistent quality and competitive pricing compared to self-mixed alternatives,” Ceylon Grain Elevators, the parent of TAFL said.
“Despite the rise in prices of key domestic raw materials, the Group achieved improved profitability through efficient cost management, product mix optimization and economies of scale across its operations.”
Protein malnutrition of children was perhaps a key achievement of food, particularly maize self-sufficiency advocates, critics have said.
Ceylon Grain Elevator revenues grew 22 percent to 7.3 billion rupees, cost of sales grew 7 percent to 5.56 billion rupees and gross profit rose 112 percent to 1.76 billion rupees.
Net profits rose to 936 million rupees from 515 million a year earlier, giving earnings of 15.60 rupees per share. (Colombo/Nov14/2025)