Staff Reporter :
Despite achieving self-sufficiency in livestock production in recent years, prices of meat, particularly beef, is on the rise under the excuses of increased fodder prices and other associated costs, making the beef market volatile.
Currently, the demand for meat is approximately 76 million metric tonnes, while the country’s annual meat production exceeds 87 million metric tonnes, with a significant portion being beef, a significant source for nutrients.
According to data from the Department of Livestock Services (DLS), meat production reached 87.10 million tonnes in the fiscal year 2022-23, surpassing the demand of 76.08 million tonnes exceeded by 11 million tonnes.
From the fiscal year 2017-18 to 2022-23, the country has consistently been meeting the demand for sacrificial animals through domestic cattle production.
In the fiscal year 2022-23, when there was a demand for 100 million cattle for sacrificial purposes, Bangladesh had a total of 125 million cattle, indicating an excess of production against the current demand.
In a report, Centre for Policy Dialogue (CPD) last year said that the price of meat in Bangladesh is higher than the international market.
The global average market price for beef is Tk 550 or $5 dollars per kg. In India, the average market price ranges from Tk 330 to 462, while in Pakistan, it is Tk 300.
Comparatively, the price of beef in Bangladesh is three times higher than both in Pakistan and India. Meanwhile, in economically challenged Sri Lanka, the cost of beef is Tk 700 per kilogram, significantly higher than the global average.
Despite an earlier decision to sell beef at Tk 650 per kilogram, the price has now surged to Tk 700, forcing the ordinary people to buy the item at an increased price.
In 2021, beef prices surged, reaching Tk 600 per kg. Subsequently, in 2022, the cost rose to Tk 650-700 per kg. Shockingly, in 2023, the price soared past Tk 900 per kg, further complicating the dynamics of the beef market.
Currently, traders are saying that if they sell meat at Tk 650 per kilogram, their profit margin is getting squeezed.
“Adhering to the set price of Tk 650 per kilogram has become challenging for us. We have been selling beef at new prices since January 10. The price of a cow has increased by Tk 5,000 to Tk 10,000,” Sabuj Mia, a seller at the Agricultural Market in the capital told this correspondent.
“Earlier the price of a cow was around Tk 80,000. Now we have to buy it for Tk 85,000 to TK 90,000. Besides, the expenses for the shop, rent, and employees have also increased,” he added.
Several cattle traders at the city’s Gabtoli cattle market told this correspondent that there is an adequate supply of cattle based on the demand. However, despite this, the prices of cattle have increased.
They explained that due to the rise in the cost of cattle feed and other expenses, it is not possible to reduce the prices of cattle.
The Bangladesh Meat Merchants Association and Bangladesh Dairy Farmers Association jointly decided to implement Tk 650 pricing strategy at a meeting under the Consumer Rights Protection Directorate on December 6. This decision was effective from December 7 to January 7. However, after this period, traders started raising prices again.
From January 10 onwards, traders increased the price to Tk 700 per kilogram. The Meat Merchants Association argues that the high cost of cattle necessitates a price increase to avoid financial losses.
They claim that the decision to sell at Tk 650 was feasible when cattle prices were lower, but the recent surge in costs requires them to raise prices. They also highlighted the increased demand and sales after the initial price reduction.
Conversely, the Bangladesh Dairy Farmers Association said that there has been no sudden change justifying the price increase. They argue that traders unilaterally decided to raise prices without proper consultation.
In November last year, beef was sold at Tk 595 per kilogram in some areas. The Consumer Rights Protection Directorate intervened to sell beef at Tk 650 for a month.
However, this agreement appears to have been ignored as prices have now reached minimum Tk 700.
The owner of Noor Muhammad Meat Market, Kiron, explains that selling meat at Tk 650 was possible when cattle prices were lower.
“With a significant increase in cattle costs, meat prices have also risen. However, both demand and sales increased after the initial price reduction,” he said.
Golam Mortuza, President of the Meat Business Association, said, “Selling at Tk 650 resulted in widespread losses for traders, leading them to reconsider and increase the price to Tk 700.”
“Reducing the current price is not feasible unless cattle cost decrease,” he said.
On the contrary, Imran Hossen, President of the Bangladesh Dairy Farmers Association, opposes the price increase, stating that there has been no change warranting such a decision.
He accuses meat businessmen of acting unilaterally for personal gain.
Mohammad Shah Emran, the General Secretary of the Bangladesh Dairy Farmers Association, attributed the rising cost of animal feed, transportation, and electricity to the high meat prices especially beef though the country’s self-sufficiency in meat production.
“Over the past year, the prices of nearly all types of feed have surged by 50 percent. Additionally, electricity costs have seen a 10 percent increase, while transportation expenses have doubled,” he said.
In a competitive market, if the production costs decrease, it will naturally lead to a reduction in prices, he said.
