Agribusiness, Agriculture, Veterinary Medicine, Cassava, Garri, food security, Agritech and the Red Meat Value Chain.
Sunday, December 20, 2015
POULTRY VALUE CHAIN: LESSONS FROM INDIA.
Broiler production in India is projected to increase by approximately 8% to 4.2 million tonnes in 2016 on rising demand from the growing middle class.Local estimates believe that demand for processed chicken meat is growing between 15-20% per year, according to a recent USDA GAINS report.The organised sector produces an estimated 80% of total chicken meat production, and is mainly concentrated in Tamil Nadu, Andhra Pradesh, Maharashtra, Karnataka, and West Bengal. The live poultry market constitutes 90 to 95% of total sales since most consumers prefer freshly culled chicken meat.
Within the last ten years, many broiler enterprises have vertically integrated their operations, especially in southern and western India. Approximately 60-70% of all operations use the integrator model, while the remaining are smaller backyard operations. Integrator' s own all the hatcheries, feed mills, and slaughter facilities, and contract with multiple smaller farmers who raise the chicks to slaughter weight primarily in open air sheds. One integrator may have as many as 20,000 contracted farms, however, in a few cases integrator's may sell chicks or feed without requiring a contract.
Some integrator's also provide credit, extension services, and veterinary medicine. At the end of the production cycle, the live birds either are purchased by the integrator's for slaughter and further processing, or by a middle man/wholesaler, eventually arriving at a live bird wet market for local sale.
For 2016, egg production is forecast at 80 billion eggs, up 5% from last year. In order to mitigate rising transportation costs and better maintain quality control, poultry companies are reportedly establishing more layer farms near highly urbanised areas.
The processed chicken meat sector is growing at a rate between 15-20% per year due to the growing middle class, which reportedly has positively affected sales not only in retail, but quick service restaurants and the hotel, restaurant, and institutional sector. A few major poultry companies have started expanding their slaughtering and processing facilities, and are beginning to offer a wider range of processed chicken meat products for the retail sector like frozen chicken burgers, salamis, nuggets, sausages, and tikkas. India's per capital 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. India's per capital consumption of eggs is estimated at about 62 eggs per year.
More and more people are shifting to poultry and poultry by-products,as a means of livelihood, employment opportunities and providing more protein for the nation.The sector provide various points of investment opportunities,which are very profitable.
portions of story from world poultry.
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