POST COVID 19 REJUVNATION OF POULTRY INDUSTRY IN INDIA
K.P. Singh*1 and Praneeta Singh2
Government Veterinary Hospital, Deoranian, Bareilly,
Department of Animal Husbandry, Uttar Pradesh, India
1: Veterinary Officer, Government Veterinary Hospital, Deoranian, Bareilly, Uttar Pradesh Email: drkpsvet@rediffmail.com
2: Assistant Professor, Department of Livestock Products Technology, C.V.A.Sc., GBPUAT, Pantnagar, U.S.Nagar, Uttrakhand Email: vet_praneeta12@rediffmail.com
*Corresponding Author: Veterinary Officer, Government Veterinary Hospital, Deoranian, Bareilly, Uttar Pradesh Email: drkpsvet@rediffmail.com
In spite of several constraints poultry farming in India has progressed considerably during the last decade. The total poultry in the country is 851.81 million in 2019, registered an increase of 16.8% in the total poultry (as per 20th livestock census). The backyard poultry has increased by around 46% as compared to previous Census. The total birds in the backyard poultry in the country is 317.07 million. The total Commercial Poultry in the country is 534.74 million in 2019, increased by 4.5% over previous Census. The present paper has been undertaken to examine various aspects related to the growth and development of poultry production in the country and impact of covid 19 on poultry industry. Poultry production in India was confined to backyards till recently. Local breed of birds were reared for the supply of eggs and meat. The increasing demand for poultry products necessitates augmenting the supply by importing improved breeds of poultry. In 1961, the proportion of hybrid populations in the total population of poultry was about 2 percent. Within a couple of decades, these birds have dominated the market side lining the indigenous birds. The technological advances have revolutionized the role and the structure of poultry industry in India. It became one of the most specialized enterprises in many parts of the country. A general confidence has been created among the people that green revolution has ushered an era of self-reliance in the food grain production. The rapidly growing population has created some doubts in the said hypothesis. In fact, crop production alone may not solve the food problem of the country. The advances in cereal technology, of course, can fill the empty stomach, but it may not help in the balanced growth of the human body. The chief ingredients of balanced diet also comprise proteins, fats, minerals and vitamins, which are essential for growth. The supply of these items can easily be increased through increased production of livestock products. Introduction In a short period, in the livestock sector poultry is the most efficient enterprise for increasing the supply of Desi red proteins, fats, minerals and vitamins.
Poultry is one of the most important and fastest-growing sectors of agriculture sectors today in India. The poultry sector majorly maintains the requirements of protein and nutrition. India today is one of the largest manufacturers of eggs and broiler meat. The poultry industry in India has endured an exemplary transformation in structure and operation during the last two decades and modified into a mega-industry with the presence of a huge number of workers from a mere backward poultry farming that appears to be very fast.
Current Scenario of Poultry Industry
- India is the world’s 3rd largest egg producer and 6th largest producer of broilers.
- The recent data of the year 2018 states that the egg production in India is 88.139 billion eggs (3rd in Egg Production)
- 75% of egg production is contributed by commercial poultry farms, remaining comes from household/backyard poultry billion and the broiler production is: 4.9 million MT (4th in Broiler Production).
- The growth rate of layer market is 6-7 percent per annum and broiler market is 8-10 percent per annum.
- Total poultry feed production of the country stands at 24 million tonnes. The Indian poultry sector is valued at INR 1.25 lakh cr or USD 18.5 bn.
- It has undergone a paradigm shift in structure and operation and what was largely a backyard venture before the 1960s has been transformed into a vibrant agribusiness with an annual turnover of INR 30 000 crores. Presently, India is the third largest egg producer in the world following China and the USA.
- In India, poultry sector growth may be attributed to many factors like rising incomes and a rapidly expanding middle class, together with the emergence of vertically integrated poultry producers that have reduced consumer prices by lowering production and marketing costs.
- Integrated production, market transition from live birds to chilled and frozen products, and policies that ensure supplies of competitively priced corn and soybean are keys to future poultry industry growth in India. Further, disease surveillance, monitoring and control will also decide the fate of this sector.
- Concurrently, India’s unorganized and backyard poultry sector is also one of the potent tool for subsidiary income generation for many landless/ marginal farmers and also provides nutritional security to the rural poor.
- These achievements and growth rates are still being sustained despite the ingress of avian influenza which was a severe setback for the industry, showing the resilience of the subsector, perseverance of the private sector and timely intervention by the Government.
- To assess the future trends, we have to review the past planning and present scenario to extrapolate the future. The externalities and variables are often unprecedented and sudden. Both empirical and statistical methods need to be accounted for while making any predictive assumptions
Constrains and Challenges of Poultry Industry
- Outbreak of diseases like Avian Influenza (Bird Flu) causes culling of poultry, scrapping of orders and price rise which hits the industry hard.
- Shortage of raw material is another issue. Price of soybean meal, has increased, which has forced the feed manufacturers to compromise in terms of diet given to birds.
- Shortage of human resources is another problem because of the absence of veterinarians, researchers, in areas where expertise knowledge is required.
- Indian poultry sector is still unable to tap the benefit of international market. Lack of adequate cold storage, warehouses is the major factor affecting poultry sector in India.
- Majority of the production is by unorganized sector as backyard poultry for additional income.
- Increasing antibiotics level in poultry products are creating long lasting harmful effects like drug resistance in people.
- Lack of comprehensive regulating authority to maintain hygiene and granting of licenses to businesses.
- Poultry industry has witnessed fastest growth amongst agriculture and allied sectors in India. While the production of agricultural crops has been rising at a rate of 1.5 to 2 %t per annum, that of eggs and broilers has been rising at a rate of 8 to 10 % per annum. According to Basic Animal Husbandry statistics, 2019 released by the Department of Animal Husbandry, the poultry meat production was reported by 4.06 million tones in 2019-20, which is an increase of 7.8% increase from the previous year.
- Directly and indirectly this sector provides employment to over six million small and medium farmers, who are mostly engaged in contract farming system under larger integrators and there are around three million farmers engaged in backyard poultry as per 20th Livestock Census.
- The share of the poultry sector in the total Gross Domestic Product (GDP) is approximately 1% and 11.70% in the livestock GDP. According to the National Action Plan for egg and poultry – 2022 for Doubling Farmers’ Income by 2022 prepared by Department of Animal Husbandry, poultry sector in India is valued at about Rs.1,00,000 crore. Poultry sector in India can be broadly divided into two sub-sectors – commercial sector (80% of the total market share) and backyard poultry (20% of the total market share).
- India is the fifth largest producer of broilers. The increase in the average income and the urban population has led to a significant increase in the poultry demand and a steady increase in consumption over the years. Poultry meat is the fastest growing component of global meat demand, and India, the world’s second largest developing country, is experiencing rapid growth in its poultry sector. The emergence of vertically integrated poultry producers that have reduced consumer prices by lowering production and marketing costs. In 15 major India cities alone account for 62% of all poultry meat consumption.
Impacts of COVID-19 on Poultry Industry and its Rejuvenation
- Even before India reported the first case of COVID-19, the rumours of poultry birds as the likely carrier of the virus widely circulated in social media had led to reduced demand of the chicken meat in several parts of the country especially in the month of February, 2020. The clarification issued by different agencies that eating chickens is quite safe, however, could convince the consumers to a large extent. The poultry industry in India hit hard because of a nation-wide lock-down to stop the rapid spread of COVID19 virus. This lock-down has disrupted the entire supply chain.
- The poultry industry which had witnessed steady growth rate because of rising consumer demand for protein rich food especially in the last two decades or so, has incurred huge losses since the beginning of the 2020. The losses incurred by Indian poultry industry is mainly attributed to sharp decline in demand (because of supply disruption as well as fear of COVID19 virus spread), realization and profitability.
- The liquidity condition of all the stakeholders in the poultry value chain – farmers, feed suppliers and retailers had remained precarious. The drop in demand and supply chain disruption especially hit the smaller farmers and many of these units closed down. Till May, 2020, the industry was looking at a bleak future.
- To bring back the poultry sector into some short of normal operations, both the Central as well as the State Government provided policy support through declaring supply of livestock and poultry products under essential services, ensuring huddle-free interstate transport of poultry produce.
- The situation changed sharply since June, 2020 mainly because of rising demand of poultry meat and eggs as doctors advised people to take protein rich food for improving immunity against the COVID19 virus. As a major chunk of the working population continued to be Work from Home (WFH) mode, the domestic chicken consumption has seen a sharp rise. In the last six months or so, when all the COVID19 restrictions were removed, the demand for hygienic and quality poultry products grew sharply leading to a sharp spike in sales of online retail players.
Many new online retail players with their dedicated sourcing as well as modernised processing facilities offered quality poultry meat at the doorstep of consumers. Thus, many farmers went for ‘contract farming’ offered by many players. Even demand for poultry meat has been robust. Many who used to consume vegetarian food have commenced consuming poultry meat and eggs. The consumer demand for poultry meat and eggs started picking up from June and post Navratras & Onam festivals witnessed a sharp spike. The demand for poultry meat and eggs have been rising along with a rise in farm gate prices. The onset of winter months also pushed up the demand for poultry meat and eggs. - Sensing opportunities, many poultry players have set up new processing plants and the robust demand in the winter months would definitely see the poultry industry operating at a level witnessed prior to COVID19 emergence in the global scene. With the huge spike in demand and demand for quality products rising, the industry would soon witness growth in the range of 8 – 10% annually.
