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Indian Poultry Industry on a Growth Path

01 October 2014
Indbro - Research and Breeding Farms Private Limited

INDIA - The outlook for the growth of the Indian broiler and egg sectors should be good for at least another year, writes Dr Kotaiah of Indbro Research and Breeding Farms Private Limited.

Indian broiler production at 3.8 million tons is the fourth largest in the world after US, Brazil and China. The growth is continuing at 12 to 15 per cent. Contact farming with small farmers spread all over the place is a healthy growth involving millions of small landowners.

The broiler growing companies are becoming bigger and the feed mills are getting larger. More than 60 per cent of the feed is being processed unlike in the past. The marketing continues to be “live birds” with no signs of improvement towards processed chicken. Processed food vendors like KFC, Mcdonald, Godrej, C.P., Venkeys and Amrit are growing but slowly.

The layer farming with 220 million layers is growing at six to eight per cent and the egg prices are record high at this part of the year compared to any previous years at the same time.

The egg promotion agencies are doing a good job in promoting eggs in schools, hospitals etc. besides growing household consumption.

The news of good soybean and maize crops in the US is good for India because most of the global buyers will turn to US and India's small surplus stocks will be safe for local consumption.

The price line also will be low in the trading in accordance with the international market. The purchases for 15 October 2014 are already trading 20 per cent lower than what they were in the beginning of September.

The new corn crop due to come in October 2014 is not that bright this year in yield due to late monsoon but the plantation area had grown because of higher corn prices realized by the grower last year. As a result, corn prices on the stocks available are also looking downward.

Individual poultry producers are growing big and the concerns on health of chickens and humans are well addressed. The food handling and processing regulations, which are being grounded fast, should take the industry fast in to the growth.

With soybean and corn favourably priced and consumption going up steadily, the outlook for the growth of the Indian poultry industry should be good for at least another year.

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