Indian Broiler Production Projected to Increase in 2016

INDIA - India's 2016 broiler production is projected to increase by approximately eight percent to 4.2 million tons as demand rises from the growing middle class, according to a report from the USDA's Foreign Agricultural Service.
calendar icon 14 October 2015
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Production methods have changed in the last ten years, as producers have embraced the integrator production model. The report says approximately 60-70 per cent of all operations use the integrator model, while the remainder are smaller backyard operations.

After the birds have been raised to slaughter weight, primarily in open air sheds, they are either bought by the integrators for slaughter and processing, or sold to middle men who sell them on at live markets.

The live poultry market constitutes 90 to 95 per cent of total sales since most consumers prefer freshly culled chicken meat. Chicken prices have slowly risen in the last few years due to increased feed prices and other costs.

Processed chicken meat constitutes about five to ten per cent of total chicken meat production, but the report estimates demand for processed chicken meat is growing between 15 to 20 per cent per year, as the middle class grows.

India’s per capita consumption of poultry meat is estimated at around 3.1 kg per year, which is low compared to the world average of around 17 kg per year. However, consumption is growing, with 2016 total chicken meat consumption forecast at 4.19 million tons, up by approximately
eight per cent over 2015.

The FAS expects 2016 layer production to reach 80 billion eggs, up five per cent from last year. India’s per capita consumption of eggs is estimated at about 62 eggs per year.

Chicken is the preferred meat in India due to its lower price than other meat sources, and is not subject to the same religious restrictions as other meats. The report says demand can fluctuate due to religious and cultural practices though, as chicken and eggs may be eaten less at different times of the year.

In 2015, India reported three highly pathogenic avian influenza (HPAI) outbreaks to the Organisation for Animal Health (OIE). FAS' industry sources believe that because the HPAI outbreaks were localised, the total poultry population was not largely affected, although demand for chicken meat allegedly fell for a temporary period in some states.

Poultry meat exports are small due to limited slaughtering and processing facilities and an underdeveloped cold chain.

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