Poultry Industry Seeks Low-Cost Loans, Solar Incentives to Cut Power Costs 

Bangladesh's poultry industry is demanding low-cost bank loans, targeted government subsidies and reliable electricity to turn thousands of farm rooftops into solar power facilities, as mounting energy costs and frequent power disruptions threaten production and farmers' profitability.

Shamsul Arefin Khaled, president of the World’s Poultry Science Association-Bangladesh Branch (WPSA-BB), has urged the government to extend financial and technical support to poultry entrepreneurs, particularly small and medium-scale farmers, to accelerate rooftop solar adoption and reduce dependence on conventional electricity.

In an exclusive interview with The Daily Observer, Khaled said thousands of poultry sheds across Bangladesh had large rooftops suitable for solar panels, representing a significant opportunity to reduce operating costs, strengthen energy security and protect farms against power disruptions.

"Uninterrupted electricity is essential for operating ventilation fans, lighting and water supply systems. Power disruptions, particularly during extreme heat, can create serious production risks. For breeder farms, large layer operations and modern broiler farms, solar energy can reduce electricity bills and improve energy security," he said.

WPSA-BB chief urges govt to support rooftop solar adoption across farms as energy insecurity and rising production costs threaten growth

He stressed that government incentives must not remain confined to large enterprises. Small and medium-scale farmers, who often lack sufficient capital to invest in renewable energy, should receive affordable loans, appropriate subsidies and technical assistance.

Banks should introduce financing facilities suited to poultry farmers' cash flows, while technology suppliers must ensure affordable equipment, warranties, spare parts and reliable local maintenance services.

"We should not push small farmers into costly projects from the outset. Instead, manageable pilot projects, energy-efficient equipment and reliable backup systems should be prioritised," Khaled said.

His call comes as Bangladesh's $3.2 billion poultry industry faces mounting pressure from rising feed prices, high energy costs, electricity shortages, extreme heat, disease outbreaks and supply-chain inefficiencies.

Once largely a backyard livelihood, poultry farming has evolved into a major pillar of national food security, employment and rural economic activity. 

The industry employs an estimated 8.5 million people and produces approximately 24.4 billion eggs and 1.84 million tonnes of meat annually, supplying millions of households with affordable animal protein.

The country produces around 80 million commercial broilers and 20 million Sonali and other coloured chickens annually. Its layer population stands at approximately 82 million, while hatcheries produce more than 1.11 billion day-old chicks every year.

But the industry's expansion is increasingly constrained by production costs. Feed accounts for more than 65 per cent of total expenses, leaving farmers exposed to international price fluctuations.

Bangladesh's approximately 6.2-million-tonne feed industry depends heavily on imported maize and soybean meal.

Global commodity price volatility, exchange-rate depreciation and supply-chain disruptions therefore translate directly into higher poultry production costs.

Khaled said small farmers were particularly vulnerable because they had limited financial capacity to withstand market shocks.

Multiple layers of market intermediaries also capture a substantial share of retail margins, according to the WPSA-BB. During periods of oversupply, farmers frequently sell birds below production cost, even as consumers continue to face relatively high market prices.

Recurring outbreaks of avian influenza and Newcastle disease further threaten farm profitability, particularly where biosecurity measures are inadequate. Unregulated antibiotic use also raises food-safety concerns.

Against this difficult backdrop, Khaled sees rooftop solar as an important instrument for reducing costs and ensuring uninterrupted farm operations.

Asked whether solar power could be practical for poultry farms of all sizes, he said it had considerable potential but required proper research to determine the appropriate system for each category of farm.

"We need reliable research to determine the required solar capacity for different farm sizes, battery costs, return on investment and suitable financing models," he said.

A system designed for a large commercial farm cannot automatically be replicated on a small poultry operation because investment capacity, production systems and electricity requirements differ significantly.

He called for field-based research, practical demonstrations and transparent financial assessments to establish economically viable solar solutions for different farm sizes.

Under Bangladesh's Net Metering Guidelines 2025, eligible poultry farms can install rooftop solar systems and supply surplus electricity to the national grid, receiving bill credits for excess generation.

"Appropriate hybrid inverters, battery storage and dependable backup systems are essential. Life-support ventilation systems must never depend on an unreliable electricity supply," he said.

The issue is particularly critical during extreme summer temperatures, when ventilation failure can rapidly increase heat stress and mortality among poultry birds, causing substantial financial losses.

To examine the economic potential, a WPSA-BB research team assessed the benefits of combining solar power, biogas and energy-efficient technologies across broiler farms of different sizes.

The findings indicate that integrated renewable energy systems could generate significant savings, although investment requirements vary considerably, Khaled explained.

For a small farm accommodating 2,000 birds per batch, an estimated investment of Tk705,000 in biogas facilities, LED lighting and a 2-kilowatt-peak solar system could generate annual savings of around Tk162,000, with a simple payback period of approximately four years and four months.

Nearly two-thirds of the projected savings would come from biogas utilisation.

For a medium-sized farm accommodating 20,000 birds per batch, an investment of approximately Tk5.1 million could generate annual savings of Tk1.05 million.

A large farm with a capacity of 100,000 birds per batch could require an investment of around Tk85 million while potentially generating annual financial benefits of Tk20.6 million.

Actual returns, however, would depend on farm conditions, equipment prices, energy consumption and operational efficiency.

Khaled said such investment requirements highlighted why affordable financing and technology suited to different farm sizes were essential. For small farmers, an investment exceeding Tk700,000 is a major financial commitment, particularly when incomes fluctuate with feed and chick prices, disease outbreaks and market conditions.

Maintenance is another concern. Solar panels require regular cleaning, inverters need servicing and batteries eventually require replacement. Without skilled technicians, spare parts and dependable after-sales services, even an economically attractive system could become difficult to operate.

"We need joint research, affordable financing and appropriate technologies to overcome power supply challenges and promote sustainable production," he said.

The industry's future growth potential remains substantial. Annual per capita consumption currently stands at approximately 137 eggs and 10.7 kilogrammes of poultry meat. Industry projections suggest this could rise to 165 eggs and 15 kilogrammes of meat by 2030 as incomes increase and dietary patterns change.

“We are targeting $1 billion in new investment, taking total industry investment to around $4.2 billion, while seeking to expand employment beyond 10 million by the end of the decade”, Khaled said.

But achieving these ambitions will require more than expanding production capacity. Reliable electricity, affordable financing, modern technology and stronger farm management will be critical to sustaining growth, he noted.

Khaled's central demand is clear: the government must make renewable energy investment accessible to farmers of every size rather than allowing the benefits to be captured only by large enterprises.

For Bangladesh's poultry industry, experts say rooftop solar could become a significant source of cost savings and production security-but turning that potential into reality will require a coordinated package of affordable credit, targeted incentives, technical support and dependable power backup.