December 28, 2023
Indian poultry industry forecasts 8-10% revenue growth
The Indian poultry industry anticipates a substantial 8-10% growth in revenue for the fiscal year 2023/24, propelled by robust volume expansion and improved realisations, according to rating agency Icra, Business Standard reported.
While the first half of the fiscal year witnessed strong realisations, a subsequent decline occurred due to oversupply. But demand recovery in the current fiscal has led to an upturn in average realisations, reaching INR 107 (US$1.29) per kg in H1 FY24.
Icra's report said that the festive season and colder weather conditions will further boost demand and realisations in the remaining fiscal year. The positive trend is supported by controlled supply, robust demand, and softened feed costs.
Feed cost components, such as corn and soyabean, experienced price declines, contributing to the improved earnings of poultry industry players.
Despite the favourable raw material pricing, concerns arise over potential spikes in feed costs. The contraction in soybean harvest during the kharif season and delayed sowing of maize may exert pressure on poultry companies' margins, warns Icra vice president and sector head Sheetal Sharad.
The report also notes limited occurrences of avian influenza or bird flu across the country in the current fiscal. Localised incidents reported in Kerala and Jharkhand did not escalate further, with the World Organisation for Animal Health approving India's self-declaration of being free from Highly Pathogenic Avian Influenza (HPAI) in specific approved farms in Maharashtra, Tamil Nadu, Uttar Pradesh, and Chhattisgarh in October 2023.
- Business Standard
