September 1, 2005

USDA: India poultry and products annual 2005

India's broiler production is forecast to grow by 16 percent to 2.2 million tons in CY 2006, due to the likely larger availability of feed and the growing demand for poultry meat in response to affordable prices and rising consumer income. 

A trend toward forward integration in poultry operations, growing farmer preference for birds with higher dressing yields, and price stabilization 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 India due to higher profits for entrepreneurs, stable income for growers, and better production controls. 

Heavy losses incurred in north India in 2004 due to the Asian bird flu prompted poultry growers in this region to embrace vertical integration to revive the industry. These poultry farmers have now started paying increased attention to FCRs and nutrition and quality standards for feeds. 

Post forecasts poultry meat consumption in 2005 at 1.9 million tons, or 1.8 kg per capita. It is the major meat consumed in India and has wider regional acceptance, given the high price of mutton, cultural restrictions on consumption of pork and beef, and fish largely being confined to the coastal regions. 

Lower retail prices, resulting from expanding vertical integration, have also stimulated consumption. 

Poultry receives far less government assistance than other agricultural sectors, a situation that limits the growth of the industry. It does not receive any government production subsidy. Poultry businesses are taxed at the same rates as industry, whereas agricultural income generally is tax-free. 

Table egg and egg powder exports from India are increasing due to cost competitiveness, improving hygiene standards, and logistical advantages. Poultry meat exports are relatively small, due to India's higher cost vis-a-vis Brazil, although several efficient poultry integrators are currently exploring the possibility of exporting to lucrative markets such as Japan, South Korea, and the Middle East. 

For the full USDA report, click here.