The economy is a very complex structure. As the economy improves, every industry is positively affected. Likewise, a worse economy has negative effects throughout every sector and industry.
Inflation is the general increase in the prices of goods in a country. In any business, there are three main stages: investment or input, processes or work, and output or production. As the average prices of goods increase, the investments increase.
Increase in Inflation
In the case of Poultry, the investment may be feed, water, land, equipment, labor, etc. Due to inflation, the prices of investments increase. This will lead to an increase in poultry prices. However, if the government fixes the prices of poultry items, it may result in lower profits or losses. Investors will try to use the cheaper options (like changing the feed) that may result in lower quality of products.
Many people use loans to start businesses and when investors lose investments, the business may get shut down and the employees will become unemployed. Poultry is a part of the agriculture sector, and Pakistan is an agricultural country, which means that the economy would worsen as many people of Pakistan are employed in this sector. As unemployment rises the average quality of life decreases. These all factors will eventually lead to political instability. Due to inflation the currency also depreciates, which means that the exported items will provide less foreign exchange and imported items will get more expensive.
Decrease in Inflation
On the other hand, a decrease in inflation will decrease with help decrease poultry prices. It may also result in a better quality of products which means that the items will be good enough to be exported. If the profits are good, the investors will most likely invest more capital and will expand their business. This will create employment opportunities. The national currency (PKR) may also appreciate, which means that exports will become more expensive, imports will become cheaper, and foreign exchange will most likely increase. This will lead to a better economy and will affect every sector of the country.
Many families in Pakistan plan their monthly budget and it is very important to know the poultry prices. You can check these prices by searching on Google, “chicken rate today” or “egg rate today”, if you are being specific. Otherwise, just search “poultry prices today”.
Why Poultry Prices Increase?
Poultry prices may increase if diseases infect chickens on a large scale. Investors will increase the prices of the products to recover the losses. However, a good disease control policy can help avoid this situation, and every chicken should be vaccinated for every possible disease.
Increase in Input Capital
As stated above, as the prices of input items increase, the prices of products will also increase. However, this is not under the control of investors. Therefore, it is important to plan your investments.
Every industrial sector is linked to the economy of the country. If one sector gets affected the economy of the whole country gets affected. Therefore, before starting a business one should study it in detail to avoid any possible losses and should think about its feasibility in their country.