A STUDY ON POULTRY INDUSTRY

An Industry Analysis Report Submitted to

JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, KAKINADA

In partial fulfillment of the requirement
For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

B . GANESH
(REG.NO. 19761E0004)
Under the guidance of

Mr. Dr. A. AADI SESHA REDDY , M.B.A.

PROFESSOR,

SCHOOLOF MANAGEMENT STUDIES

LAKIREDDY BALI REDDY COLLEGE OF ENGINEERING

(Approved by AICTE. New Delhi Affiliated to J.N.T.U. Kakinada

MYLAVARAM, KRISHNA DISTRICT

 DECLARATION

I here by declare that the Project Report entitled “A STUDY ON

POULTRY INDUSTRY” is a record of independent research work and has been
carried out by me during the period of my study at LAKIREDDY BALI REDDY
COLLEGE OF ENGINEERING (AUTONOMOUS), Mylavaram under the

guidance Of Mr. Dr. A. AADI SESHA REDDY, MBA, Professor in

SCHOOL OF MANAGEMENT STUDIES, and has not been submitted

elsewhere for any degree either in part or whole.

( B. GANESH)
Reg. No. 19761E0004
 LAKIREDDY BALI REDDY
COLLEGE OF ENGINEERING

(AUTONOMOUS)
(Approved by A.I.C.T.E., New Delhi &Affiliated to J. N.T.U, Kakinada)
L. B.Reddy Nagar, Mylavaram, Krishna Dist., A.P, India. PIN: 521230

Date: 15/07/2020

CERTIFICATE

This is to certify that the Project Report entitled “A STUDY ON POULTRY

INDUSTRY” is submitted by Mr. B. GANESH in partial fulfillment of work award of the
MASTER OF BUSINESS ADMINISTRATION submitted to J.N.T.U, Kakinada has been
completed under my supervision and guidance.

This project has not been submitted earlier for the award of any degree or diploma
of J.N.T.U, Kakinada or any other university.

Head of the Department Project Guide

Dr. A. Aadisesha Reddy Dr. A. Aadisesha Reddy

M.B.A.; M.Com; Ph.D. M.B.A.; M.Com; Ph.D.

Professor, LBRCE Professor, LBRCE

 ACKNOWLEDGEMENT

I express my profound sense of gratitude to Mr. Dr. A. AADI SESHA

REDDY for giving me this opportunity, and for his valuable guidance, help and
inspiration throughout the Industry Analysis Work

I would like to convey my respectable thanks to Dr. A. ADISESHA

REDDY, Head of the Department, SCHOOL OF MANAGEMENT STUDIES, for
extending his cooperation in the beginning of the training program.

It gives me great pleasure to acknowledge my indebtedness to my parents

for their moral support and encouragement in my studies.

My special thanks to my friends to helped me in completion of Industry

Analysis Work.

(B. GANESH)
(Reg. No.19761E0004)
 INDEX
CHAPTER – I

1.1 Introduction

1.2 Need Of Study

1.3 Objectives of Study

1.4 Research Methodology

1.5 Limitations of Study

CHAPTER – II

2.1 Origin of the Industry

2.2 History and Evaluation of Industry

2.3 Changing Trends in Industry

2.4 Top 10 Industries in World

2.5 Top 10 Industries in India

CHAPTER – III

3.1 Strengths of the Industry

3.2 Weakness of the Industry

3.3 Opportunities of the Industry

3.4 Treats of the Industry

3.5 Findings and Suggestions

3.6 Conculsion

BIBLIOGRAPHY
 THE POULTRY INDUSTRY

"Poultry" can be defined as domestic fowls, including chickens, turkeys, geese and

ducks, raised for the production of meat or eggs and the word is also used for the flesh

of these birds used as food. The Encyclopædia Britannica lists the same bird groups but

also includes guinea fowl and squabs

NEEDS OF STUDY
The study would look into the various economic aspects of broiler production. The study

covers the broiler production units under Suguna Poultry Limited, which are run on

contract basis in Coimbatore District. The survey has been conducted for the period

2011 - 2015 and the interview has been conducted between June, 2018 and May, 2019.

The Coimbatore District has been purposively selected as it alone accounts for more

than 30% of total broiler production in India. Coimbatore also reflects the agricultural

oriented rural life where people have started taking broiler production on commercial

basis to supplement their income. This study also explores the causes for the farmers to

enter into contract farming system and evaluates the performance of vertically

integrated broiler contract farming system on farmer‟s income. The study also helps to

identify the problems in poultry farming and provide suggestions to overcome the same

and improve their profits

OBJECTIVES OF POULTRY INDUSTRY

1.Making availability of quality chicks. (Low input technology).

2. Diversification programme- emu, turkey, geese guinea fowl.

3. Strengthening of feed quality monitoring wing.

4. Training programme.

5. Monitoring of centrally sponsored scheme “Assistance to State Poultry farms

Northern States”. (Punjab/ Haryana/ Himachal Pradesh/ Uttrakhand/ Jammu &

Kashmir/ Bihar & Jharkhand)

6. Quail selection and breeding programme on meat type

RESEARCH METHODOLOGY

Response Surface Methodology (RSM) is an experimental procedure for exploring and

examining the nature of responses obtained from the simultaneous variation of
quantitative factors. The method has been used only to a limited extent in poultry
research.Statistical procedures were discussed for fitting a response surface to
experimental data. An outline was made of the mathematical process for finding the
stationary point, yield at the stationary point and nature of the response surface.A
poultry example was given which involved the investigation of the protein and energy
requirements of Japanese quail. The advantage of RSM was shown when it was
determined by RSM procedures that the optimum response for body weight was out of
the exploratory region covered in the first trial. A second trial was then conducted based
on the levels of protein and energy predicted to give an optimum body weight. Optimum
responses were shown for both body weight and feed conversion. Examination of the
responses by three dimensional figures and computer plotting of contours was
shown.The RSM procedure appears to offer an efficient method for examining the
requirements and relationships of nutrients for poultry .

LIMITATIONS OF STUDY

1. You still need to have capital in place to start a poultry farm in the first place.

If you want to begin a large-scale commercial operation for your poultry farm, then you

are going to need about $250,000 available that you can use to build structures,

purchase chicks, hire help, and secure whatever licensing you may require. Then there

are the processing costs to consider before you can start selling your first birds. That is

why most poultry farmers start with a family operationIf you start raising poultry in your

backyard, then the cost per bird typically ranges from$3 to $30 over the lifetime of the

animal. You will need to add a coop of some type, which might not cost anything if you

build it yourself, but it could also run between $500 to $2,000 depending on the features

you want. The cost for feed is about $15 per month for 3-6 birds, while your other costs

are about $10 per month.

2. It is possible to lose an entire batch of chicks with poultry disease.

Although the diseases that spread through poultry are typically easy to manage, you do

not have any control over this process until the chicks or birds are in your possession.

There are six common health problems in chickens, for example, that you can resolve

by improving their overall nutrition. Fowl cholera, coccidiosis, avian flu, fowl pox,

Newcastle disease, and salmonellosis will happen at some point during your time as a

poultry farmer. If you know how to respond and offer the correct nutritional content in

the feed of your birds, then managing this issue isn’t as much of a disadvantage as it

could be.
3. There is a slight risk of bird-to-human transmission of the avian flu.

The avian flu strain that the World Health Organization is concerned about is called

H5N1. It is a highly infectious and severe respiratory disease that is found in birds.

Transmission from an infected bird to a human is difficult, but not impossible to achieve.

Even spreading it from human-to-human after receiving the virus from an animal is a

rare occurrence. The mortality rate for this strain when it spreads to people is

consistently around 60%. If you are running a backyard operation, this risk of this

disadvantage of poultry farming is virtually zero.

4. Some birds do not excel in some environmental conditions.

You can theoretically start a poultry farm almost anywhere on the planet. The problem

that you face is when the weather becomes too hot or cold for the birds that you intend

to raise. There can be health issues with some species when there is too much or too

little humidity in the air as well. Before you decide to begin operations, it is a good idea

to look at the optimal conditions for each species that you want to raise.

Some birds, such as geese and turkeys, can thrive in a variety of conditions without

much care beyond access to food and water. If you want to raise broiler chickens for

profit, then you may need to install specific resources on your property to support those

activities. Most farms work the best when the poultry and the environment work together

for a successful result.

5. There are zoning issues that you may need to follow before starting your farm.
If you work with a processor for your poultry (and most jurisdictions require that you do
so unless you are licensed as a butcher, slaughterhouse, or processor), then you must
provide evidence that your farm meets all of the current zoning and licensing regulations

for your geographic area.

Perdue Farms specifically states that they require farmers who raise poultry to adhere

to all federal, state, and local regulations that involve their work. That includes zoning

requirements and environmental stipulations that might be present. There may also be a

set of best practices that you are asked to follow as part of your operations. If you do

not provide evidence that you are in compliance or you fail an inspection, then you can

lose your potential for profit just as quickly as you created it.

6. You must provide your birds with adequate feed to be successful.

Even if your goal is to raise free-range birds that are largely self-sustaining, you must

provide supplemental feed that supports the natural growth of the animal. The amount

of feed that is necessary to negate this disadvantage depends on what you decide to

raise. Some chickens can eat up to 0.25 pounds of food each day. Layer hens require

more than this, while broilers might eat between 0.6 to 1 pound to support their

development.\Geese, turkey, ducks, and other poultry species have their own unique

feedrequirements to consider as well. If you do not provide food that contains calcium,

Vitamin D, and other essential minerals, then the quality of the meat or eggs that you

produce may not reach the required minimum standards for sale.

7. Poultry farming requires the presence of non-acidic, clean water.

You must have the quality of your water tested periodically if you decide to start a
poultry farm, even if you live in the suburbs and use tap water for this need. When the
acid levels are too high, then there are multiple negative impacts that can affect the

livelihood of the birds. Poultry must have access to drinking water that is colorless,

odorless, clear, and tasteless to be beneficial to the farming process.

If you have cloudy water, then there may be clay or silt that could create adverse effects

on your flock. Red coloration in the water can indicate an excessive level of iron. Blue

coloration indicates the process of copper, while a rotten egg smell is evidence that

hydrogen sulfide is present. Even if there are salts in the water, the poultry may find the

liquid to be bitter and refuse to drink it.

8. There is the issue of antibiotic use to consider with poultry farming.

Because bacterial disease can quickly sweep through large-scale commercial farms, it

is not unusual to treat the birds with antibiotics to ensure that they stay health. Some

farmers even resort to the proactive use of these drugs to minimize the impact of poor

health on their profit margin. Not only does over-medication impact the quality of the

meat, but it might also be an unreliable option if farmers try to purchase these items

outside of their veterinarian.

Humans that eat chicken meat that consume regular antibiotics are at a higher risk of

developing antibiotic-resistant gastrointestinal infections. There is the potential for more

urinary tract infections as well. Even if you have an illness in your flock, the concerns

with drug use are so high with processors that any antibiotic use might prevent you from
being able to send your birds to market.

9. It can still be a lot of hard work for your family.

If you are only managing a handful of chickens, then this disadvantage may not apply to

you. When you start working with a couple dozen birds, you might find that nighttime

predators start to scope out your property. The presence of coyotes, wild dogs,

opossums, raccoons, and others could create additional safety risks for your family.

There will also be more rodents around your property as mice and rats steal any leftover

feed that you leave out. You must be proactive in managing this issue to prevent loss.
The origins of poultry farming

The origin of what we know today as poultry farming can very probably be traced to
South East Asia.Charles Darwin believed that present-day hens come from a wild species
of fowl known as “Gallus Bankiva”, which originated in a broad area of Asia extending
from India to the Philippines, and which was first domesticated 7,000 years ago.

“Preparing Ducks”, scene from the Tomb of Nakht (Theban Necropolis, Egypt), 15th century BC.

Fowl are the domestic animals which appear most often in written history. In fact, there were
references to them in Chinese documents as far back as 1,400 BC.  

In 400 BC Aristotle wrote that the Egyptians even practised “artificial” incubation of hens’ eggs
using dung heaps. Greek writers such as Aristophanes also mention hens in 600 BC and
the Romans considered them to be an animal sacred to Mars, the God of War.
The first treatise in which there is a reference to poultry farming practices is the one by Cato
(200 BC) which describes the fattening of hens for meat production.

The Muslim Abu Zacaria Iahia, who lived in Seville (Spain) during the twelfth century,
dedicated a chapter of his "Book of Agriculture" to poultry farming.
 

Expansion of poultry farming (20th Century)

It was at the end of the 19th and the beginning of the 20th century that, thanks to advances
in genetics and nutrition, poultry farming became an expanding livestock activity.
 
 Antique hatchery for 1,000 eggs with separated cavity for births.

The popularity of chicken meat and eggs generated a continuous demand that resulted in the
creation of a real industry.
Chicken meat is not subject to any type of religious restrictions, it is healthy and can be
produced anywhere. This is why consumption and production of chicken is the highest, higher
even than pork.

Poultry farming today

Currently, almost 60,000 million chickens are fattened every year and 4,500 million hens lay
more than 300 million dozen eggs a day.

  

An industry of this type requires a high level of technology, both in the genetics of the birds
themselves, and in their nutrition.

Against this background, the control of diseases affecting poultry is of the

essence: Newcastle, Gumboro, Bronquitis, Pneumovirus, Salmonella and Coccidiosis inte
r alia, are the diseases that the industry has to deal with.

In addition, in recent times, the need to combine animal welfare measures and antibiotic-free

production has changed the production process significantly, especially prevention strategies.
At HIPRA, research is a top priority.

16% of the HIPRA team and 10% of annual turnover are dedicated to R+D and

registrations.

HIPRA is the reference in prevention and this vision leads us towards the most
important therapeutic areas and especially those which are most relevant in terms
of antibiotic-free production.

For example, vaccines against coccidiosis (EVALON® e HPRACOX®) that allow

chickens to be produced without the use of coccidiostats in the feed, vaccines against
the pneumovirus, an agent that predisposes animals to other respiratory disorders,
and a broad range of vaccines against Newcastle disease, one of the most serious
diseases on the planet.

Diagnostic service (HIPRA Diagnos) and tracing of our products on the farm

and continuous training (HIPRA University) are also essential tools within our
philosophy of prevention
HISTORY AND EVOLUTION OF POULTRY INDUSTRY IN INDIA

A HISTORICAL RETROSPECT Poultry is one of the fastest growing as well as the

ailing industry in India today. While the production of agricultural crops has been risin

g at a rate of 1.5 to 2 percent per annum, the production of eggs and broilers has been

rising at a rate of 8 to 10 percent per annum. India is now ranked as the world's fourth

largest egg producer and the eighth largest producer of broilers. Driving this expansion

is a combination of factors - growth in per capita income, a growing population and

innovative management practices. Despite growth prospects the industry faced a deep

crisis in 1996, pushing many farmers to close down their operations. As a counter,

some companies initiated integration strategy. Since then integration has become one

of the hot topics for discussion in business circles.

EVOLUTION

The history ofpoultry in India is some 5000 years old. The poultry sector in India has undergone

a paradigm shift in structure and operation. It has transformed from a mere backyard activity

into a major commercial activity. This transformation has involved sizeable investments in

breeding,hatching, rearing and processing. Farmers in India have moved from rearing non-

descript birds

to rearing hybrids such as Hyaline, Shaver, and Babcock, which ensure faster growth, good

livability, excellent feed conversion and high profits to the fearers. The industry has grown

largely due to the initiative of private enterprise, government intervention, and considerable

indigenous poultry genetics capabilities, and considerable support from the complementary

veterinary health, poultry feed, poultry equipment, and poultry processing sectors. India is one
of
the few countries in the world that has put into place a sustained Specific Pathogen Free (SPF)

egg production project.

DEVELOPMENT MILESTONES

The milestones in the development of poultry industry are presented here. A

Cottagetrural enterprise. Government backed massive grading program with supply of

exotic cocks. Late 1960's Establishment of government commercial farms, launching of

IPDP (Integrated Poultry Development Projects). Support fromworld food programmes

through supply of grains. Emergence of private sector hatcheries. Setting up of various

institutes in the field of breeding and health. 8 Emergence of farms in the line with small

scale industries (SSIs). Liberalized loans from banking sector. Emergence of support

industries e.g. Feed and Pharmaceuticals. A shift from government to privatesector with

ever increasing dedicated entrepreneurial ventures. Beginning of integrated approach

with entry of foreign technology. Emergence of corporate farms. Achievement of self-

sufficiency in breeding operation. Emphasis on cost control and efficiency through

automation in operation. Era of full-scale vertical integration coupled with entry into

export world. CONTRIBUTION OF

GOVERNMENT

The government's policy initiative under different five year planshave generally helped this

transformation in the poultry sector, but cannot claim to have propelled the poultry ifidustry to

the heights, where it is today. The government funds research activities related to the sector

either through research organizations like Agricultural '~niversities1Indian Council of

Agricultural Research or through trade regulatory bodies - APEDA (Agricultural and Processed

Products Exports Development Authority). The government also supports the industry by
extending technical expertise and loans through nationalized banks especially

ROLE OF NABARD

(National Bank for Agriculture and RRole of NABARD National Bank for Agriculture and

Rural Development (NAARD), as an apex institution in the counlry for all matters

pertaining to policy, planning and operation in the field of agricultural credit, provides

refinance assislance to banks for their lending io poultry sector. As part of its

development role, NABARD conducts training programmes/workshops on project

appraisal and monitoring for offers of financial institutions, prepares modeUinnovative

schemes and circulates among banks, conducts studies and supports research projects

of relevance from its R & D fund. The credit provided by banks along with refnanffi

support extended by NABARD has played a pivotal role for the poultry development in

the country. The cun~ulative refinance support provided by NABARD for pouluy, sheep

and pig sector upto 31 March 2001 was Rs. 1938 crore. NABARD refinance for

investment credit to pouluy sector declined from Rs 130.89 crore in 1995-96 to Rs 76.08

crow in 2000-01. The quantum of NABARD refinance was more in the states of Punjab.

Haryana, Andhra Pradesh and Tamilnadu. NABARD has recently formulated a scheme

for setting up of Agriclinics and Agribusiness centres by graduates in Agriculture and

allied sector mainly to accelerate transfer of technology, strengthen extension services,

supplement sources of input supply and also to provide self employment opportunities

to the professionals. Under the scheme, banks can extend credit required for veterinary

graduates to establish feed analytical laboratories, disease diagnostic laboratories,

residual testing laboratories along with veterinary clinics. Ceiling on project outlay for

individuals is Rs. 10 lakh and for a group of 5 professionals is Rs. 50 lakh. NABARD is
providing interest free soft loan assistance to banks upto a maximum of 50% of the

short fall in margin prescribed by the banks. A service charge of 3% p.a, is levied by

banks on soti loan assistance NABARD also provides lOP% refinance under the

scheme to hanks. NABARD is also implementing the Goal capital investnient subs~dy

xheme for cold storages. Banks invariably have financed for all segments of poultry

industry viz., commercial broilerllayer farms, associate hatcheries with parent stock

farms, pure line breeding farms, grand parent farms with hatcheries, processing plants,

feed plants etc. in the past with active NABARD refinance support. However, in the post

- WTO era, banks have to focus their attention on those investments which ensure

production in line with global standards, reduction in cost of production in line with

global standards, reduction in cost of production and improve production efficiency,

Some such areas requiring specific attention of credit institutions are given below.

Technology upgradation /new technoloties: Financing for upgradation of technologies to

existing units or proven, new and cost efficient kc~nologies to new units for improving

productivity, eg. Automatic feeding & watering systems and environment centrolled

sheds to pouly farms. Infrastructure: Establishment of cold storages with washing,

grading, labeling and packing facilities for egg exports and dry godowns in production

ceqtres need the attention of banks. Qualify adherence: As adherence to international

quality standards is essential for exports, banks have to finance for investments like

residue testing laboratories, feed analytical laboratories, disease diagnostic

laboratories, establihment of cold chain, etc, more in the'coming years. While financing

for processing activities, it is necessary to encourage the plants to get BIS certification

and adopt Hazard Analysis Criticial Control Point (HACCP) practices Value uddition:
Financing of units for manufacture of market demand driven value added products. r

Confracr fanning: Strive for banks - inhusy - farmers linkage through contract farming for

maize as this will help exporters to get assured supply of pesticide 1 chemical residue

free maize for manufacture of poultry feed and maize farmers, better technology, quality

inputs, increased production and assured market. Infegrafion of poulfry industry:

Modern large scale commercial pouly production requires very specialized management

skills, large volume of finance and fine tuning amongst supply of timely, quality inputs

and methods to dispose the outputs. In vertical integration system, different

unitdentrepreneurs (such as breedcr, hatchery, feed manufacturer, farmer - producer,

processing agency and marketing agency) are bound together by mutual contracts and

performance guarantees as well as incentives. This system is well established in

developed countries and has to be introduced in India if we have to take advantage of

the export market thrown open due to implcmentation of WTO. Establishment of such

vertical integration requires huge credit support from the banking system for various

players and for ensuring quality output. Private sector initiatives in implementation of

regional integrated projects for marketing of broilers also have to be extended

necessary credit support by banks. Working Capiful: The studies conducted by

NABARD on poultry units invariably revealed that the assessment of working capital

requirements by banks is conservative. Hence banks should properly assess and

provide adequate working capital for the agribusiness units. Export credit should also be

extended liberally to exporters. Improving systems and procedures: Simplification of

procedures, provision of adequate sanctioning power to branch managers and reduction

in time taken for decision making with regard to sanction of projects which require
attention of the banks. Capacity building: Continuous attention of the banks NABARD is

required on capacity building of branch level officials of banks on appraisal of various

types of projects. Exrension services: As awareness creation among poultry farmers

about global markets, quality standards, bio-security norms and latest technology are

important for acceleradng puly exports, banks should up of Veterinary clinics under

Agriclinics and Agribusiness centres scheme to fill this gap. Regional Poultry Farms

(RPF) To supplement the efforts in meeting the enormous requirements of exotic chicks

the several Regional Poultry .Farms of the Central Government were geared up all-

round for mass production of exotic chicks. Some of the RPFs (Regional Poultry Forms)

were able to produce layer stains with high production performance which proved their

merit at the RST (Random Sample Test) centres. However, due to lack of dynamic

salesmanship these could not enter the commercial circuit and largely survived by the

patronage of Animal Husbandry Departments. Training Institute Training facilities were

organized for technical staff from all states in all aspects of poultry development. These

RPFs (Regional Poultry Forms) were already involved in producing some high yielding

exotic layer strains based on imported germplasm and efforts in this direction were

further intensified. In view of the need for coping up with enormous strain involved in

training a large number of poultry specialists from all over the country, a Central Poultry

Training Institute was set up at Bangalore with the best facilities. The Government of

India was greatly helpful in providing training facilities abroad for a large number of

poultry scientists with help from friendly countries, which was a great blessing. At

Random Sample Testing centers, layer and broiler chicks from all commercial

hatcheries are tested for different performance parameters.

GROWTH OF POULTRY INDUSTRY

eggs and broiler meat are the major end products of the poultry sector in 1ndia.

Presently, production of eggs is estimated to number about 50 billion, that of broilers

450 million, and that of poultry meat 735,000 tonnes. The value of egg and poultry

production m India during 1985-2010 is given in Table 1.2. In addition, organized

facilities have been set up over the years for the manufacture of egg powder and frozen,

processed broiler meat essentially to cater to export markets and markets in the metr A

brief account of the growthin poultry industry in terms of production, employment, and

opolitan areas of India. In recent years, while the output of crops in the country is going

up at the rate of 1.5-2.0 per cent, the output of eggs is going up at the rate of 4-6 per

cent and broilers at 8-10 per cent per annum. According to some experts, the poultry

industry in India is expected to grow into a Rs. 27.000 crore industry by 2005 due to

increase in employment potential and income generation of rural poor and marginal

farmers. ural Development)

Employment

It is estimated that for every 1000 broiler birds sold per week there is an employment

potential for 15 persons and actually there is an additional opportunity for 10% growth

annually. Four decades ago, when egg and broiler production was 10 billion and 30

million, respectively, the total employment numbers in the poultry sector were not so

encouraging. As income and employment in the crop sector started diminishing, the

non-crop sector, which includes dairy and poultry, underwent a significant shift. With the
demand for poultry increasing and production reaching 50 billion eggs and 450 million

broilers. This sector now employs around 1.6 million people. At least 80 percent of

employment in the poultry sector is generated directly by these farmers, while 20

percent is engaged in feed, pharmaceuticals, equipment and other services required by

the poultry sector. In addition roughly 1.6 million personnel are engaged in marketing

and other channels servicing the poultry sector

Consumption

The consumption of the poultry products is less in India. Table 1.3 and Figure 1.1 show

the details. The per capita consumption of eggs in the country is only 36 eggs and

poultry meat 850. gms against a recommended consumption of 180 eggs and 10.8 kg

poultry meat per person per annum by the Nutritional Advisory Committee of India. Per

capita consumption of eggs is only 7.7 per annum in rural areas compared with 17.8 per

annum in urban areas. In seven states, per capita consumption is less than 3.5 per

annum. Similarly, per capita consumption of poultry meat is 0.24 kg. in rural areas and
1.08 kg. in urban

Region-wise growth

'here has also been a growing tendency for poultry units to be concentrated around

urban areas because of the existence of ready markets for the end products of poultry

production. The structure of India's poultry industry varies from region to region. Dividing

the country Into four regons, the growth of the industry is examined heRE
Northern region

It is not a surprise to find that the northern region has the highest per capita production

and availability of broilers over two times the national avcrage. This is because of the

higher income levels and a large proportion of people who prefer non-vegetarian food.

Even the current demand can be stepped up, but the prevailing weather is hostile to the

rearing of broiler parents with high summer and low winter temperatures.

Andhra Pradesk & Maharashtra

Andhra hadesh is the onll region having annual surplus of an

estimated 18 million broilers, which mainly feeds the Bombay areas of Maharashtra.

This region can produce a much larger number of commercial broilers on account of low

production cost, if given proper financial and marketing support. It may well become the

"chicken bowl of India compiementing its role as the country's egg basket". As regards

per capita availability, Maharashtra ranks second in importance. More over this state

leads the country in terms of modernization and sophistication of broiler production,

processing and marketing. With a largescale poultry processing plant here, a number of

commercial ventures have come up that offer chicken based fast food. Also, the sale of

dressed chicken is the highest here. Further, some of the largest broiler breeding and

commercial farms are located in the Bombay-Pune-Nasik belt. Bombay, India's

commercial capital, sustains an increasing, demand for all types of sophistication in

food delicacies.

Southern region Broiler consumption is evenly spread throughout

the region. The major production centres are Bangalore- Mysore- Mangalore and

Namakkal -SalemCoimbatore belts. A number of industrial town ships dot the region.

Bangalore has the unique distinction of being the fastest growing metropolis in the

country. A number of fast food projects in this region are in different stages of

implementation.

(iv) Eastern region One highly deficit area in the country is the eastern region. Its

percentage of non-vegetarian population is higher than even the northern region and

hence the potential for growth is enormous. But it suffers from constraints of high cost of

production, inadequate long distance public transportation and strong trade union

activities. Further, fish competes' with the chicken in the region and scores over it, when

parity in retail prices exists. The vast hinter land of Assam and other eastern states

cannot be served because of poor transport links, Kolkatta is the Mecca of all markets in

the eastern region, but tends to develop transport bottleneck in the absence of

adequate linkages with hinterland it serves.

Central region

The region is most disappointing with almost half of the country's population, it accounts

for less than 10per cent of the total broiler production. With easy availability of feed

ingredients and low labour costs, this region has an enormous scope to meet the deficit

of broilers in the neighboring areas mainly in the north and in the east. Moreover, the

number of towns with population above one million in this region would be 14 - Bihar

four, Gujarat, Madhya Pradesh and Uttar Pradesh three each and Rajasthan one. In the

coming decades, this region promises to see a spectacular growth. Table 1.4 presents
egg production in India region-wise during 2003-04. The four southern states - Andhra

Pradesh, Karnataka, Kerala and Tamil Nadu - account for more than 50 percent of the

country's egg production, with a per capita consumption of 57 eggs and 0.5 kg of broiler

meat. The eastern and central regions of India account for about 20 percent of total egg

production, with a per capita consumption of 18 eggs and 0.13 kg broiler meat. The

northern and western regions of the country record much higher figures than the

eastern and central regions with respect to per capita availability of eggs and broiler

meat. Table - 1.4 Poultry Industry Differences: Region - wise Source: Wiebe Van der

sluis, Limited Scope for attracting foreign funds the Indian Poultry sector, World Poultry,

vol. 19, No. 17, 2003. Aspect Poultry meat consumption (in mn kg) Dominant meat

Concentration of industry Integration Variables costs Rsikg of live bird Small producers

and large integrators While independent and relatively smal1:scale producers account

for the bulk of production, integrated large-scale producers do account for a growing

share of output in some regions. Integrators include large regional fis that incorporate all

aspects of .production, including the raising of grandparent and parent flocks, rearing

day old chicks, contracting production, compounding feed, providing veterinary services,

and wholesaling. West 175 Mutton, poultry

Exports

Exports of poultry products from India comprise table eggs, meat, live birds and value-

added products such as egg powder and frozen yolk. According to APEDA, the major

markets for poultry exports are as under

: Live poultiy: Sri Lanka (50%), Bangladesh (32.5%), Nepal (8.2%) Hatching eggs

: UAE (38%), Oman (26.8%), Kuwait (5.4%) Table eggs

: UAE (72.8%), Kuwait (8.3%), Oman (8.3%) Egg powder

: Japan (16%), Poland (14.5), UAE (8.9%), Belgium (5.54%) Frozen eggs

: UAE (83%), Oman (5%), Kuwait (3.9%)

India's share in the poultry exports is very low, accounts for only 2% of the world
market.

Scale of operation

The growth of the poultry sector in India is also marked by an increase in the size of the

poultry farm. In earlier years broiler farms had produced on average a few hundred

birds (200-500 chicks) per cycle. Today units with fewer than 5,000 birds are becoming

rare, and units with 5,000 to 50,000 birds per week cycle are common. Similarly, in layer

farms, units with a flock size of 10,000 to 50,000 birds have become common. Small

units are probably finding themselves at a disadvantage because of high feed and

transport costs, expensive vaccines, and veterinary care services and the non-

availability of credit. Some small units are reported to' be shifting from layer to broiler

production because output in broiler units can be realized in six weeks.

Uncontrolled Expansion

Expansion of the broiler industry at all levels, from the GP pureline projects down to the

small farmer, has been totally uncontrolled and uncoordinated. The growth of the broiler

industry has been at a compounded annual rate of 20% for the past few years. All the

big players in the industry based their growth plans on 20% in an attempt' to keep up

with the expected market growth and increase their market shares. The newer grand

parent (GP) operations in the country carved out a market for themselves, while the

older ones threatened by this competition, tri'ed to maintain and increase their growth by

sheer force of numbers. Farmers, who had received profitable end prices for their

products were happy to expand their operations.

The larger farmers producing over 50,000 broilerlmonth, keen of bigger slice of the

cake, set up small hatching operations,which brought hatching eggs from breeders.

These hatcheries catered to their captive requirements and the surplus chicks were

supplied to small and neighboring farms. This surplus slowly and insidiously increased.

By mid 1996, it is estimated that there were over 600 broiler hatcheries in the country

producing broiler chicks far in excess of the demand. In an attempt, to recover, at least

direct costs, breeders started discounting hatching egg prices and hatcheries, chick

prices. A stage was reached when hatching eggs and chicks sold at lower than 50% of

their normal prices. Credits were given to broiler farmers in order to avoid destruction of

day-old chicks. This added to the surplus. on the market. Feed suppliers, not faced with

the problems of flocks in lay eggs in incubators, cut off credit supplies of feed to farmers

and the situation turned into an unalloyed mess. It is estimated that broiler farmers have
lost up to Rs 10.00 (28 cents) per kg of live broiler weight produced by them during this

period. In the meanwhile, the layer industry.in India had been through a slump since late

1995.

Many layer farmers decided that egg production was too risky and decided to shift

to the safer broiler growing. This produced an unaccounted far extra growth in the

broiler-farming'.sector. When breeders in the country finally got together in November

1996 to try and remedy the situation it was discovered that the collective broiler parent

smcks placed in India was 50% higher than anybody's individual estimates. It was

realized that if the number of broiler chicks being put into the market continued, it would

spell cekn disaster for the industry. In a rare demonstration of concerted action,

breeders and hatchery men alike immediately curtailed production of hatching eggs and

chicks.

Strategies

Measures taken by firms included the following:

Some intelligent producers (farmers)have managed to open their own retail outlets (wet

market) where they sell their products directly and enjoy the profit of margin which has a

gulf of difference between the production cost and the price given by the end

consumers. Some corporate companies have entered into integration activities by

taking the help of the farmers.

They provide the farmers with day-old broiler chicks, feed, medicines and technical

know-how. They pay charges for rearing broilers on contract farming under the system

of integration irrespective of profit and loss to the corporate companies. The farmers

had united to form a strong society/associationlco-operative by themselves with the

mission "Self help is the best help". The most glaring example of such co-operative is in

Madhya Pradesh which is running successfully in the broiler market. In south India the

growth in the broiler market has been encouraged by creating a line of bromark shops

This is a new initiative where the farmers have been able to do away with middlemen by

putting the farmer and the retailer in direct touch. Another initiative was formation of

National Broiler Council

IMPORTANCE AND PRESENT STATUS

Poultry is now recognized as one of the most progressive and innovative field among

the agricultural industries of the country. The primary business of poultry keeping has

given rise to a number of supporting and allied industries like poultry processing,

compound feed, equipment. pharmaceuticals and biological units with a turn over of

more than Rs. 100 billion. The poultry sector contributes for growth in the following

areas: To combat malnutrition and ensure balanced and cheapest diet to the masses;
TRENDS IN POULTRY INDUSTRY

Market trends and challenges highlighted during Poultry Market Intelligence

Forum at 2020 IPPE

Today, the notion of ‘climate friendly diets’ is gaining substantial traction, especially

among youth. It is a brilliant opportunity to position chicken and eggs as being tasty,

convenient, climate-friendly, nutritious and affordable,” remarked Dr David Hughes,

professor at the Imperial College of London, during the Poultry Market Intelligence

Forum held at the 2020 International Production & Processing Expo (IPPE

In his presentation on “Global Consumer Trends: Implications for the Poultry & Egg

Industry Worldwide,” Hughes mentioned that poultry and eggs are the fastest growing

protein markets, predicting that during the first and second decades of this century, there

will be a 40 percent growth in protein consumption. Under the ‘protein umbrella,’ he

emphasized plant-based protein as the largest category and remarked that

“nontraditional” protein will have spectacular growth, while meat, eggs and dairy are in a

healthy growing condition.

The 6 largest poultry companies of WORLD

New Hope Liuhe

New Hope Liuhe is clearly the largest broiler company in Asia, according to 2017

figures, having slaughtered 1.3 billion broilers annually. It ranks fourth globally in terms

of broiler production, trailing only JBS, Tyson Foods and BRF. The company,

headquartered in Beijing, has 14 processing plants and 200 feed mills. New Hope Liuhe

is also involved in duck production.

Wen’s Food Group

Wen’s Food Group slaughtered 807 million chickens in 2017, making it Asia’s second-
largest poultry company. It ranks fifth worldwide among broiler companies. Based in

Yunfu City, China, Wen’s is a leading producer of poultry and pigs in China, having

consolidated 170 companies to encompass 53,000 family farms across China. It sells in

more than 20 provinces and municipalities. It is also involved in duck production.

CP Group

CP Group, also known as Charoen Pokphand Group, is Thailand’s largest poultry

company and ranks third among Asian broiler companies, having slaughtered 685.5

million chickens in 2017. Worldwide, it is the sixth largest broiler company. It also ranks

first globally among feed producers. It’s poultry operations include broilers, ducks and

table eggs.

Suguna Foods

Based in Coimbatore, India, Suguna Foods is Asia’s fourth-largest broiler companies

and the world’s 15th largest broiler company. It slaughtered 400 million chickens in

2017. It has 60 hatcheries, one slaughter plant and one processing plant. Its automated

feed mill is the largest in India.

Doyoo Group

Doyoo Group, of Zhengzhou City, China, is in a fifth-sixth tie among Asian poultry

companies and also ties with Sunner Development Co. for third place among those from

China. It slaughtered 380 million broilers in 2017.

Sunner Development Co.

Based in Guangze, China, Sunner Development Co. ties with Soyoo Group as the fifth-

sixth largest poultry company, slaughtering 380 million broilers in 2017. It has two

processing plants, three hatcheries and three feed mills

 TOP INDUSTRIES IN INDIA

1 - AMD Integrated Farms - Nagercoil

Varthaga Nadar Kudiirruppu, Kattimancode, Peruvilai. Nagercoil. Tamil Nadu.

AMD integrated Farms is one of the best Poultry Farm in Nagercoil, which Provides
Country Chicken, Guinea Fowl, Lovebirds, Turkey, Quail, Rabbits, Cow Milk, Goat's
Milk, Pigeons,…


2 - NAGARAJA ENGINEERING WORK SHOP - Erode
189, (OPP.G.H.) MODAKKURICHI, ERODE, Erode. Erode. Erode.

Chicken Lifting box ,chicken Loading box, broiler cage, transport crates & poultry
transport box manufacturer.. we are largest box manufacturing company in india.. we
specialist in…


3 - RS Cattle Feeds - Chennai
No. 97, Madhavaram High Road, Perambur, Chennai - 600011,
Perambur. Chennai. Chennai.

RS Cattle Feeds is a Manufacturer, Supplier and Exporter of Animal, Cattle and Poultry
Feeds in Tamil Nadu, India. It was established in the year 2015 based on the concept of
animal…


4 - SAHS Lifesciences Pvt Ltd - Noida
First Floor, Plot No. 4 & 5, B-1/A, Sector 51. Noida. Gautam Buddha Nagar.

SAHS Lifesciences Pvt Ltd is one of India's leading manufacturer and supplier of poultry
feed and products. It also provides feed additives and medicines required for proper
growth…

5 - SHREE ENTERPRISES - Pune
SHREE-OM,Plot No. - 42, Indrayani Society, Rupeenagar, Nigadi, Pune -412114
MAHARASHATRA,INDIA. Email - shreefabco@gmail.com Web-
www.shreefabco.wetpaint.com, Pune. Pune. Pune.

dear sir/madam, a very good day to you. we do manufacturing, trading, supply of

equipments ,spares-parts and maintenance work in following segments. 1)
greenhouses,polyhouses,…


6 - AGHI GROUP - Karnal
14-15, Amar market, Near police post, Sector-9, Karnal, 132001, Karnal. Karnal. Karnal.

National poultries- manufacture ofall the poultry equipment Easy feed- manufacture
ofthe layer feed Easy food- manufacture of broiler rates Poultry today- All the poultry
eggs rates…


7 - Sunibm eggWorld - Gurgaon
N Building, Garhi Harsaru, Gurugram Haryana-122505, Garhi
Harsaru. Gurgaon. Gurgaon.

The Sunibm eggWorld has been produce and supplying eggs for our valuable
wholesaler, retailer, restaurants, hotels, and caterers across in india. We are an
exclusive distributor for…


8 - Quality Systems India - Mumbai
Commerce Center Building E-1, 5th Floor, Tardeo Road Above ICICI Bank Mumbai,
Fort. Mumbai. Mumbai.

Quality systems is a leading manufacturer of poultry equipments like poultry cage

system, poultry environment control system, egg collection & many more poultry
solutions

9 - SYMAGA, S.A. - Pune
PLOT 16, S.NO.282, RAISONI INDTL PARK, NEAR MAAN, TALUKA MULSHI,
Pune. Pune. Pune.

We offer you the best solution to animal well-being according to the new regulations at
the new cost. In our wide range of products we bring out: pre-manufactured buildings,
feeding…

10 - Pai Traders - Shimoga

BH Road, Vidyanagar, Shimoga, Vidya Nagar. Shimoga. Shimoga.

All items of poultry equipment, medicine and quality feed Authorised Dealer for Uttam
Feed, Rowin Poultry Equipment...

STRENGTHS OF THE POULTRY INDUSTRY

 The shared values of the project members with particular reference to teamwork,

commitment and perseverance

 The strong participative and democratic style of leadership demonstrated by the

members of the project

 The business management skills of the project members


 The managing members of the project are energetic, knowledgeable, creative
and enthusiastic

WEAKNESS OF THE POULTRY INDUSTRY

 The lack of advanced financial management skills

 The lack of a comprehensive understanding of the strategic planning framework
 Lack of trained human resource in the field of poultry farming and livestock
disease prevention and control
 The lack of a comprehensive marketing strategy and plan
 The lack of funding to procure equipment and other assets
 The low owners contribution as compared to the amount requested from
external funders

OPPORTUNITIES OF THE POULTRY INDUSTRY

 The opportunities in terms of ownership and procurement presented by AgriBEE

 The opportunities in terms of skills development by means of training presented
by AgrSETA
 The Utilisation of Information Technology to enhance the front Office and back
office operations as well as key areas such as processing, marketing and
distribution
 Technologies such as solar energy will be an opportunity for the project as there
is potential for a 24.8% increase in electricity prices by Eskom
 Access to funding programmes such as Mafisa and the National Empowerment
fund
 The increasing per capita consumption of eggs
 The increasing population of South Africa and double income families will be an
opportunity for the business
 The reduced interest rates will mean lower costs incurred as a result of borrowed
money
 Government support of the Poultry Industry as it is one of the industries that is
considered to be ‘feeding the nation’
 Increased emphasis on women and youth as demonstrated by financial and non-
financial support by agencies such as The National Youth Development Agency.
 Increased small business support as demonstrated by the increase in small
business support forums, Small Enterprise Development agency and many more
 The opportunity to supply government institutions such as prisons, collages,
departments and other government units will be an opportunity for the business

THREATS OF THE POULTRY INDUSTRY


Compliance with various acts and laws such as the Livestock Improvement Act,
Occupational Health and Safety Act, Labour Relations Act and the Basic Conditions
of Employment Act
 The threat from well-established competitors such as Chubby Chicks, Rainbow
Chicken and many more
 The threat from rising electricity prices. Eskom shall increase electricity prices by
at least 24.8%, this is a threat to the project as its operations will be more costly
and thus force the project to pass on the additional costs to consumers. This is a
threat to the project as it has potential to result in reduced sales and profits
 Indirect competition from distant emerging commercial and subsistence farmers
and other small players in the industry  
 The intensity of rivalry amongst players
 The threat from suppliers – in the case of feed, there is a threat of rising feed
costs
 The threat from substitutes or alternative protein rich food
 The threat from changes in customer preferences as well as the fact that eggs
are generic products that customers can buy from other food stores