Poultry sector is one of the most important segments in agriculture sector of Pakistan. Despite growth in poultry sector, many new challenges including bird flu, fluctuating prices and higher cost of production have affected pace of development of this sector. The present study was conducted to evaluate the impact of various variables affecting supply of poultry birds and demand of poultry meat in Faisalabad, Pakistan. Cross sectional data were collected from 40 poultry farmers and 40 consumers selected randomly from Faisalabad city. Simple linear form of regression analysis was employed to estimate effect of major variables. Sale price of poultry birds, average cost of production and experience of the poultry farmers significantly (P<0.05) affected supply of poultry birds, whereas education of farmers and distance from markets had non-significant effect. Income of the consumers, family size and retail price of poultry meat were found significant variables, whereas age and education of consumers were non-significant variables affecting demand. A qualitative variable was used to capture effect of bird flu on supply and demand of poultry meat, which was found significant in both models. This finding establishes the serious implications of bird flu epidemic for poultry industry in Pakistan.

Key words: Bird Flu, Demand and supply functions, Poultry, Regression