Buoyed by a strong domestic demand and new production techniques by the hitherto conservative poultry industry, broiler meat production has increased over 30 per cent in the last four years.
Production increased 10 per cent from 2010 to 2.9 million tonnes in 2011. It is expected to scale further heights.
Further, the US Department of Agriculture has raised India's broiler meat output by 450,000 tonnes to a record 3.2 million tonnes (mt) this year.
“India's broiler production is revised upwards to a record figure based on a robust domestic demand fuelled by an expanding middle-class and changing tastes and preferences together with the emergence of vertically integrated poultry producers that support increasing production,” the Department said.
While the global broiler meat output has been cut to 82.1 mt (83 mt) on account of higher feed and operating costs, India stands out as the lone achiever challenging its closest rival, Mexico.
Domestic consumption was 2.8 mt in 2011. It is also likely to touch a high of 3.1 mt this year, the report said.
With these record projections, the Rs 47,000-crore poultry industry is set for an uplift as the domestic broiler-market demand is set to grow at 15-18 per cent while table-egg demand will increase at 5-7 per cent.
PRODUCTION RISES
“The poultry sector has grown at more than 15 per cent in the past three years. The production capacity has gone up with large integrated players taking up contract poultry-farming,” said Mr P. Selvaraj, Vice-Chairman, Broiler Coordination Committee, the apex body for country's broiler trade.
According to data available with the National Egg Coordination Committee, egg production has increased to 266.62 lakh a day in 2010-11 from a meagre 98 lakh eggs a day in 2000-01.
South India (led by Andhra Pradesh) produces over 45 per cent of the country's poultry output while another 20 per cent comes from the Western region (led by Maharashtra). Tamil Nadu leads in poultry consumption in the country, thanks to inclusion of eggs in various mid-day meal programmes.
EXPORTS DIP
While the USDA report has not mentioned any thing on Indian poultry exports, Mr Selvaraj said that shipments have taken a hit since 2006 due to the continual outbreak of bird flu in some pockets of the country.
“But we are optimistic about the ever-increasing demand on home turf outpacing supply. Industry players are keen on catering to the domestic market and some of them are drawing up plans to enter retail market in a big way,” he said.
India is more of a live-bird market and just 2-3 per cent accounts for the frozen market i.e., processed/dressed chicken. But all this numbers is set to change in a couple of years as consumption of dressed meat is growing at a slow and steady pace providing more chances for companies to develop products for the home market, he added.
SOARING FEED PRICES
However, all is not rosy for the industry. Seasonal uncertainties, geopolitical worries and soaring feed prices continue to mar the industry's prospects. Rising prices of maize, a major ingredient in the poultry feed that forms more than 60 per cent of the production cost, is a cause for concern for the industry. Soyameal prices which stood at Rs 16,200-16,300 a tonne last year has more than doubled to Rs 38,200-38,500 this year. Any monsoonal vagaries or policy changes in export of soyabean tend to hit the profitability of broiler farms which are sensitive to feed-price fluctuations.