Rising consumer demand for eggs and chicken over the past decade has catapulted India to the second position in egg production and the 5th position in broiler production in the global poultry production chart.
Currently, the layer population is about 300 million, the annual broiler population placement is expected to be 5 billion, and the broiler breeder placement is about 45 million. Rural poultry is estimated to be around 30 million.
Per capita egg consumption is about 103 eggs per person per year, and per capita chicken consumption is about 7.4 kg per person per year. This is several times less than the global average of 16 kg of poultry meat. This shows that there are immense possibilities for growth in this sector.
The entire Indian agriculture value chain is about to change dramatically, and food processing will be one of the country's main industries in the next 3-5 years. In terms of market size, the Indian food market is expected to cross $750 billion in 2024. This sector is consistently growing at around 8-10 percent annual rate.
In the coming years, Indian consumers are expected to shift from 'wet market' to 'dressed chicken' market due to better hygiene, reliable supply and reasonable prices. There are opportunities to set up processing plants, cold chain facilities, sale counters to reach final consumers.
At present we have a requirement of about 32 mmt of poultry feed. The expected layer population in 2025-26 will be 327 million and 5.5 billion broilers, for which there will be a requirement of 35 mmt of feed. With other uses of feed ingredients, these may not be available at reasonable prices in the coming years.
Any volatility in poultry feed prices impacts chicken and egg prices. According to the Ministry of Agriculture, the maize production estimate for the 2022-23 crop year (July-June) is 34.6 MT. India's maize yield is around 3 tonnes per hectare, while the global average yield is 5.8 tonnes per hectare.
Another key challenge is that soybean productivity has stagnated to a large extent in the last few years. Initiatives should be taken by the government to permit GM corn and GM soybeans/soybean meal. This will ensure stability in prices.
According to a report by Expert Market Research (EMR), the value of the Indian poultry market is more than 30 billion US dollars. Helped by the growing popularity of online services and growing online food delivery channels, the market is expected to grow at a compound annual growth rate (CAGR) of 8.1% during 2024-2028 and is estimated to cross US$ 45 billion by 2030.
Perspectives, Challenges to Overcome and Opportunities for the Poultry Industry This Year Poultry producers and processors are streamlining supply chain operations to minimize waste and ensure timely distribution. Advanced logistics and transportation management systems facilitate the efficient movement of poultry products from farms to consumers. Improvement in transportation of birds should be done so that mortality can be reduced. For the processing industry, availability of refrigerated vans as well as cold storage facilities at the retail level will lead to improvement in the quality of poultry products available in the country.
Growing awareness about health and wellness is further driving the demand for protein-rich diets. Shift in demand from live bird to fresh chilled and frozen poultry product market has been slow. Availability of frozen chicken and other processed forms of poultry products is low due to limited presence of poultry processing in India. At present, about 8% of the poultry meat produced in the country is processed, which has the potential to grow to 20% in the next few years. Opportunities to expand processing facilities for poultry meat will also see huge growth as consumers demand ready-to-eat products delivered at home.
Government Support to Indian Poultry Industry
The Government of India is supporting the growth of the poultry sector through several initiatives, such as dedicated funds for setting up units, providing support for disease surveillance and ensuring supply of animal feed to the sector. The World Organization for Animal Health (WoAH) has approved India's self-declaration of highly pathogenic avian influenza (HPAI) in specific poultry compartments. To support the livestock sector, the government has initiated several measures. Animal Husbandry Infrastructure Development Fund (AHIDF) is being implemented. The objectives of the scheme are to fulfill the protein-enriched quality food requirement of the country's growing population and prevent malnutrition. Support is also provided for meat processing and value addition infrastructure and establishment of animal feed plants including poultry feed. NATIONAL LIVESTOCK MISSION KA DEVELOPMENT OF ENTREPRENEURS IN RURAL POULTRY.
Export of Poultry Products by India
According to Agricultural and Processed Food Products Export Development Authority (APEDA) data, India exported 2,55,686 tonnes of poultry products, valued at Rs 435 crore ($58.7 million). Traditional export destinations have been Oman, Maldives, Indonesia and Vietnam. Although there has been growth in both quantity and value of processed poultry products exported in the last few years and efforts have been made to increase poultry exports from India, the trade is very small in comparison to global trade. The global poultry market is expected to grow to USD 493.21 billion in 2026, with a CAGR of 8.9%. Exports are only concentrated in certain clusters like Middle-East and South-East Asia.
Further Growth of Poultry in India in Coming Few Years
Increase in production of poultry meat can be achieved by expanding coverage of poultry farms, modernizing existing facilities and adopting efficient production practices. The growth of the sector will depend on factors like change in demand pattern, technology adoption, favorable government policies, feed availability among others.
The need of the hour is to develop efficient distribution with large investments in high-capacity processing plants and cold chain infrastructure of international standards. Integrated production, market transition from live birds to chilled and frozen products, and policies that ensure supply of competitively priced corn and soybeans will drive future poultry industry growth in India. That is Neev.
Apart from soybean meal, the poultry sector also uses maize as a component of poultry feed. However, the government wants to produce ethanol from maize instead of AM rice and sugarcane, which may result in a shortfall in domestic supply, which will meet the demand of the poultry as well as bio-fuel sector. India needs to focus on increasing domestic production along with allowing imports of GM maize as demand from poultry, starch industry as well as biofuel sectors is steadily rising.
Chicken meat and eggs are considered to be healthier alternatives in comparison to red meat, thereby increasing demand. Poultry products are often more affordable in comparison to other protein sources, making them accessible to a broader segment of the population. In the post-Covid-19 pandemic phase, there has been a sharp increase in demand for protein-rich foods such as poultry meat and eggs.
In the next few years, as the poultry industry grows at a rate of 7-9%, to reduce the poultry feed cost, we will require GM soybean meal and GM corn from other countries at competitive rates.
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