Indian Poultry industry Trends, Growth and Challenges

Pashu Sandesh, 14 Jan 2022

Dr V. Rajendra Prasad

The Indian Poultry industry is 5000 years old. The poultry industry in India has undergone a major shift in structure and operation during the last two decades transforming from a mere backyard activity into a major industry with the presence of a large number of integrated players. Looking forward, the Indian poultry market is expected to grow at a CAGR of 15.2% during 2021-2026.

India is having a population of around 1.40 billion people. With increased income, people crave better nutrition and there will be more demand for eggs and poultry meat in future. In India, Egg production is around 114 billion per annum during 2019 -2020 with a growth rate of 6 -7%. Southern states produce nearly 70% of egg production.

Broiler production is 4.3 million tonnes for annum during 2019 - 2020 with a growth rate of around 8-10%. Around 60% of total output comes from southern states. Poultry meat consumption is expected to rise as consumers are attracted due not only to lower prices but also product consistency and adaptability as well as higher protein / lower fat content. While disease outbreaks, sanitary restrictions and trade policies will impact the evolution and dynamics of the world meat market, interestingly, poultry can respond more quickly to market signals due to shorter production cycles as compared with ruminants.

Poultry feed production is around 25 million tons with a growth of 6 to 8 %. The  Indian poultry sector is valued at around Rs 2 lakh crores. The organised sector of the Poultry industry contributes around 80% and unorganised around 20%. Our country is 3rd largest producer of eggs and 5 the largest producer of poultry meat in the world.

Challenges faced by the Poultry industry at present:

a) The growth of the country’s poultry sector is not going to be without challenges.

b) Volatility in feed prices cannot be wished away.

c) Rising feed costs can potentially raise the overall production costs in a price-sensitive market.

d) Using commodity derivatives and non-conventional feed ingredients to hedge feed price risk is another option.

Other challenges to the poultry industry:

a) Poultry immunity, health, and production are several factors that challenge the future growth of the poultry industry.

b) Non-infectious agents that affect poultry health include weather conditions, hygienic status, house structure and density, water and feed hygiene, and poultry farmers’ knowledge and qualifications.

c) Consumer confidence, product quality and safety & acceptance of processed chicken and value-added products.

d) emergence and re-emergence of diseases will continue to be major challenges to the current situation and the strategic future of the industry.

e) the most common poultry diseases are Avian influenza, Newcastle disease, Gumboro, infectious bronchitis, infectious laryngotracheitis (ILT), Mycoplasma, Infectious Coryza, and Coccidiosis.

f) Genetic improvement of birds which includes increasing skeletal growth, heart and lung capacity.

g) The pressures of genetic selection and other meteorological and husbandry factors may negatively affect animals' health status, with an emphasis on the rate of growth and bone and blood supply essential for the development of supporting structures.

h) Some birds may be selected that show reduced cardiopulmonary capacity compared to traditional lines and, consequently, impaired heart and lung function.

New technology will help to solve key supply and social challenges, While compliance with food safety norms is critical, to ensure robust and consistent demand growth.

Large Unpenetrated Market in India:

The annual per capita consumption of broiler meat and eggs remains one of the lowest in the world and is significantly lower than many emerging and developed markets. Poultry meat is preferred over other meat products as it is considered more hygienic and is available throughout the year across the country at relatively lesser prices than fish/mutton.

It is necessary for the industry to win customer trust, especially through constant communication to educate consumers. We are truly blessed to have been born in times when poultry is so much developed because we can enjoy the best of the food at affordable prices, whenever we wish to.