Sri Lankans have been increasing their chicken and egg consumption in the past three decades with the per capital consumption of 1.5 kg. of chicken and 40 eggs per year in the 1980s rising to 4 kg of chicken and 80 eggs currently, the major player in Sri Lanka’s poultry industry has said.

Ceylon Grain Elevators Ltd. said in their annual report for 2007 that the poultry industry was the largest sub-sector of the livestock segment in Sri Lanka with an estimated annual output of approximately 1.6 billion eggs and 77.8 million kg of chicken meat.

The report said that urban areas account for the largest consumption of chicken with 11.94 kg of chicken meat consumed in such areas being close to consumption levels in Thailand and Philippines.

But in the rural areas, consumption remained at a mere 1.3 kg of chicken per capita and the gap between rural and urban consumption was largely attributable to poverty.

"These volumes are expected to change with economic growth," the report said.

The industry provides direct and indirect employment to approximately 300,000 people and accounts for Rs. 21.8 billion or about 1.2% of total GDP, CGE said.

It reported that as a result of "uncontrollable cost factors" feed prices were up 39% last year from the year before and this was "an unprecedented phenomenon in the history of feed milling in Sri Lanka."