INDIA - The Indian poultry feed market is expected to grow by seven to eight per cent in the next few years, a report released at the Global Grain & Global Feed event said.
The report attributed the poultry sector growth to stronger demand from integrators in regional pockets of Andhra Pradesh, Karnataka and Tamil Nadu.
As the poultry industry has been expanding beyond the boundaries of these states, there is ample opportunity for standalone feed players.
As an estimate, the current demand for poultry feed in India is around 22 million tonnes.
Poultry feed accounts for 58 per cent of the total feed market in India. The consumption of poultry feed also increased to 8 per cent during 2012-13, as compared to 7 per cent during 2007-08, the report said.
The report said that boiler industry has been considered the strongest driver behind the development of feed industry in India, benefiting largely from the presence of integrators (70 per cent of total industry) and a shorter production cycle. This has brought in feed based efficiencies and rationalisation in the industry.
India is the fourth largest broiler producer and third largest egg producer, with broiler production of 3.5 million tonnes in 2013 and egg production of 70.24 billion in 2012-13. 90 per cent of the broiler industry uses compound feed.
The use of the compound feed in the egg layer industry varies from 5 per cent to 25 per cent and is highly underutilised. Based in the current egg production total feed demand is about 11.6 million tonnes although the consumption is 2-3 million tonnes. In future the egg laying industry offers a promising potential for the growth of the feed industry, the report adds.
Considering the egg industry, the total feed demand is expected to be around five to six per cent. In the near term, significant opportunities exist in the egg industry for compound feed demand. With farms consolidating and growing in size longer term, egg layer farming will be integrated backward into feed millings.
The report also said that poultry consumption has seen a steady growth over the last few years due to increases in household incomes.
Growth in income is associated with an increase in animal-based protein intake. Being a white meat, broiler meat has an advantage of being a healthier choice compared to red meat like mutton, pork and beef, while also being cheaper than seafood, the report stressed.
As an estimate, India’s per capita consumption of broiler meat grew by a 7.4 per cent compound annual growth rate (CAGR) from 2009-10 to 2013-14, while egg consumption rose by 3.7 per cent CAGR.
These levels are however, much lower than the National Institute of Nutrition’s per captita consumption recommendation of 11 kg of meat and 180 eggs per year.
Over 2013-14 to 2017-18, per capita consumption of broiler meat is estimated to continue to grow by a slower 6 per cent CAGR, while eggs will improve slightly to 3.9 per cent CAGR, the report stressed.
Tamil Nadu has the largest poultry feed requirement of 1.38 million tonnes from broiler and 1.97 million tonnes from layer sector, followed by Andhra Pradesh which require 1.27 million tonnes for broiler and 3.09 million tonnes for layers, whereas, Maharashtra required 1.23 million tonnes for broiler and 360,000 tonnes of feed for layers.
West Bengal state requires 1.12 million tonnes of feed for broilers and 120,000 tonnes of feed for layers, while Haryana & Punjab state requires 880,000 tonnes of broiler feed and 1.49 million tonnes of feed for layers.
Poultry feed in India consists of grains like maize, wheat, sorghum, bajra, ragi and broken rice, grain by-products like rice polish, de-oiled rice bran and maize gluten meal; oilseed meals from soybeans, mustard, groundnut and sunflower; animal protein sources like fish meal, whole fish, meat and bone meal, poultry-by-product meal; vitamins, minerals and various feed additives.
The three day event was organised by Telfa’s and was supported by the Solvent Extractors Association of India (SEAI) and the Compound Feed Manufacturers Association of India (CLFMA) in Pune recently.
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