POULTRY INDUSTRY OF INDIA-CHALLENGES & SOLUTION

Status of Poultry Industry in India————

India with a population of 1.30 billion people is highly focussing on “Development” i.e. Good Food, Better Health & Living conditions for everyone. With the increase in the incomes, people can now afford better nutrition and hence, since last two decades the demand for eggs and chicken is growing.

The recent data of the year 2018 states that the egg production in India is 88.139 billion eggs (3rd in Egg Production) • (Approx. 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.

In coming years, poultry production and consumption in India is predicted to grow due to various factors such as a shift in food habits, urbanization, increasing awareness of balanced nutrition etc. The broiler meat consumption pattern shows that around 62 percent of meat is consumed in major 10 cities and rest of the consumption comes from other cities with a smaller percentage from villages.

India’s broiler production for 2019 is projected to increase by 7.5 percent to over 5.5 million tons. Demand for processed chicken meat is projected to grow between 15 to 20 percent every year. Layer production is forecast at 95 billion eggs, up 5 percent from the previous year

India is leading with 10 percent in the poultry growth followed by Brazil with 7 percent, the USA with 2.1 percent and China with 2 percent.

Recommendation of National Institute of Nutrition suggests per capita consumption should be 180 eggs and 11 kg meat while actual consumption is 71 eggs and 4.1 kg chicken meat.

There are many challenges like transportation, waste management, use of green energy, disease diagnosis etc. that might affect the further growth of the sector. Land scarcity is another major issue in India while some Animal Welfare Organizations are proposing a ban on cage rearing, Indian poultry farmer finds it difficult to rear the birds in open range units.

Major challenges faced by the Indian poultry industry————-

Challenges———-

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.

• The proximity of the birds to their waste and other birds increases risk of agents such as salmonella for consumers.

NB—

Besides the above mentioned factors ,The challenges for Indian poultry industry are multiple. Raw material availability and prices are already an issue. Considering that about 1 kg of corn is required to produce 1 kg of broiler (based on FCR = 1.65 and 60% corn in feed), it means that, for broiler production only, and depending on the different forecasts, an additional 3 to 5 million tonnes of corn will be needed in the next years.

Poultry farms in India are facing pressure on their profit margins due to a sharp increase in feed prices and their inability to pass them on to the consumers, despite a peak demand season. The government’s effort to protect farmers through sustained increase in the minimum support prices (MSP) has seen a rise in prices of maize and soybean. The two are used as feeds, and take up half the cost of chicken and eggs. Owing to the feed price increase, the cost of eggs and broiler chicken production has gone up by 15-16 per cent in the last few months. But, prices of chicken and eggs have not gone up proportionately. In fact, prices of poultry products are flat, resulting in pressure on profit margins. Meanwhile, the increased cost of production has not been passed on to the consumers due to the fear of consumers shifting to value-based purchase instead of volume-based ones.

Another challenge or issue is the fact that production is not evenly distributed in the country. More than 60% of broilers are produced in 5 states (Andhra Pradesh + Telengana with 20%, Karnataka, Maharashtra, Punjab and West Bengal) while more than 60% of eggs are produced in 5 states (Andhra + Telengana , Haryana, Maharashtra, Punjab and Tamil Nadu). This creates logistic and quality issues related to transport.

The third challenge that India needs to overcome if it wants to continue expanding its poultry production is a lack in education and access to technology. For instance, most of poultry farms use open buildings, which means no control of climate and high risks related to potential poor biosecurity. On the positive side, this means production costs are reduced. India poultry producers also have to deal with a lack of genetic diversity. Two breeds, namely Vencobb and Babcock, represent respectively more than 70% of birds in broilers and 80% in layers. This means a potential rapid spread of diseases across the country. However, these breeds are well adapted to Indian conditions and ensure optimum performance. Last but not least, India currently lacks skilled manpower. There are not enough managers, veterinarians, nutritionists, or researchers, to ensure a top quality management in each operation.

To allow expansion, efforts are needed to change the way poultry products are offered in India. Less than 5% of eggs are processed, and about 90 % of poultry meat in India is consumed in fresh form, as many consumers prefer to buy live poultry and get it dressed in their presence. This has several consequences: it is difficult to transport non-processed products from one region to another one, and high mortality and shrinkage rates due to transport of live birds are observed. Also, prices are determined by daily local supply and demand, which encourages volatility.

More efforts are needed to improve supply and distribution of poultry meat in India. Indeed, poultry dressing facilities are usually manual and lack sanitary measures. This does not ensure a hygienic and scientific slaughter, and proper utilization of by-products. There is also a shortage of adequate and cost effective infrastructure, leading to poor distribution and risks on quality. Cold storage facilities are lacking, which is a serious issue because meat and egg demand vary a lot over the year, due to different religious rituals. Last but not least, adequate quality control standards need to be implemented. For instance, large eggs are sold at same price as small ones, which do not encourage producers to deliver quality. In summary, investments in infrastructures (slaughter houses, processing plants, transportation, warehousing and cold storage), as well as quality certification systems, are necessary to ensure growth of the Indian poultry industry. One should, however, keep in mind that same needs are required for imported products.

• Of the total processed poultry products only about 1% undergoes processing into valueadded products (ready-to-eat/ready-to-cook).

• The dominance of the live-bird market restricts the movement of poultry because of the high mortality associated with transporting live birds.

• Growth in the retail segment is being encouraged by new approaches from poultry integrators, including establishing integrator owned or franchised chilled/ frozen poultry shops, opening sales counters in existing food shops, and home delivery services.

• The modern poultry processing sector in India consists of approximately 20 firms as of 2017-18, which are mostly operated by poultry integrators located in or near major urban areas.

Market Drivers-———-

The changing lifestyles and demographic profiles of Indian households. Consumers are exposed to Western lifestyles, cuisines and cooking and expect the same from Indian markets also.

• Indian Consumers are becoming more health conscious and are willing to spend more towards healthy and clean food.

• The rapid growth of Quick Service Restaurants such as McDonalds, KFCs, Nando’s, Marrybrown and various such outlets are fuelling the growth of processed poultry.

• The recent emergence of Modern Trade such as supermarkets and shopping malls is also supporting growth in the retailing of chilled and frozen poultry products. The investments in the cold chain by these modern retailers are creating channels for the growth of processed poultry.

• To streamline the meat and poultry processing industry and the production of hygienic meat, the government of India launched the National Meat and Poultry Processing Board.

Market Challenges-————

• Absence of policies governing from farm to the consumer plate for the development of the processed poultry.

• Low domestic standards as compared to the international standards for processing industry.

• Environmental pollution issues created by slaughterhouse waste materials, especially in large cities and towns.

• Lack of uniform and effective national meat quality testing systems and laboratories.

• Unavailability of training institutes for workers, technicians and managers in meat processing industries.

• Insufficient initiatives from the government in creating and promoting Indian brands of healthy poultry products.

Recommendations———————-

The central government should therefore come up with clear guidelines declaring the poultry as agriculture activity, thereby extending all the benefits of farming to poultry farmers.

• Central government should frame user support policy to encourage bio plants for poultry and to move organic mass of the country.

• Government should earmark funds for awareness generation through “Social Awareness Campaigns” which could sensitize the communities and population at a large on major aspects related to poultry including,

• Hygienic rearing, slaughtering and storage of poultry to ensure food safety and quality.

• Health benefits of poultry products and nutritional value it offers.

• Prevention measures for poultry from various diseases and infections.

• There is a requirement of national geographical zoning to avoid adverse effects on the overall economy in the case of an outbreak of bird influenza in any part of the country.

• Infrastructure development is key for viability and sustained growth of poultry sector especially the cold chain and processing units as there are fluctuations in poultry consumption round the year owing to religious and cultural factors.

Reference-on request