Broiler output seen up on poultry meat demand

INDIA - India’s broiler production is expected to grow by 16 per cent to 2.2 million tonne in 2006, due to increased availability of feed and a growing demand for poultry meat with more affordable prices and rising consumer income as contributing factors, according to a report by the US Foreign Agricultural Service.

A trend toward forward integration in poultry operations, growing farmer preference for birds with higher dressing yields, and price stabilisation measures initiated by the industry are also factors supporting production growth.

The broiler industry’s forward integration, which had been confined largely to southern India, is now spreading into northern parts of the country due to higher profits for entrepreneurs, stable income for growers, and better production controls.

Under this system, growers receive day-old chicks, feed, medicines, other services, and the assurance that their birds will be purchased at a contracted price.

Input costs are deducted from the payment to the grower, and they are given an incentive bonus if the feed conversion rate (FCR) or mortality rate is better than the contracted level.

This has encouraged a number of small farmers to enter the poultry business in order to supplement their income with a stable return on their investment, said the report.

Source: Business Standard
calendar icon 30 August 2005
clock icon 1 minute read
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