Association says India’s poultry industry to cross $26.9B by 2015

With domestic demand for broiler meat and eggs into an overdrive, the Indian poultry industry is likely to cross Rs 1.32 lakh crore ($26.9 billion) mark by 2015, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Growing at about 20% annually the domestic poultry market is currently estimated at about Rs 49,000 crore, highlights a study Trends In Domestic Poultry Segment undertaken by the organization.

“Driven by rising purchasing power, changing food habits, contract poultry farming and rapid urbanisation are certain key reasons for this constant upswing in this niche poultry sector,” said secretary general D.S. Rawat.

“But sporadic bird flu outbreaks in different parts of the country, a lack of storage and processing facilities and rising prices of feed stocks including soymeal and maze have severely hit the poultry exports.”

Maze accounts for over half of total production cost of poultry feed and the poultry sector consumes over 50% of total maze production in the country.

Broiler meat and table eggs account for most of the domestic poultry market as India is the third largest egg producer and fourth largest broiler meat producer in the world.

The Indian poultry sector has meanwhile shifted from a live-bird market to a chilled/frozen-product market.

Nearly three million tons of broiler meat and about 2.86 million tons of eggs are produced annually in India, according to the study.

Southern India accounts for majority of total poultry production and consumption in the country.

Andhra Pradesh, Karnataka, Kerela, Tamil Nadu and Maharashtra in the west and Haryana, Punjab in north are key regions in this aspect.

The key reasons for growth in egg and meat production include breakthrough in poultry science and technology, breeding of genetically superior birds capable of high production, and manufacturing of equipment.

There are a plethora of opportunities for foreign direct investment (FDI) in the poultry sector in areas such as breeding, medication, feedstock, vertical integration and processing.

However, the lack of infrastructure such as power and transportation hinders FDI activities.