Poultry Industry in India - An Overview

Transcription

1 Chapter 3 Poultry Industry in India - An Overview 3.1. Introduction Economic development of India depends to a considerable extent, upon the development of Indian agriculture. About 64 per cent of the people are dependent on agriculture and allied activities. Agriculture and allied activities provide a major contribution to the country's national income. As a part of agriculture, livestock sector/ animal husbanchy plays an important role in the development of the economy. It offers throughout the year, irrespective of seasons, employment to agricultural labourers, small and marginal farmers. Further, it provides supplementary income to the rural households. Poultry farming is now recognised as one of the most suitable agro-industries in the world. It is an industry with lots of potential for intercropping from trees to other animal husbanchy activities. Poultry in the present scenario of India is a powerful tool to fight poverty by creating job opportunities for rural farm rs/ land less farmers or small to marginal landholders or weaker section of people in rural areas. It is one of the sources of getting cheap and easily accessible nutritious protein. Poultry farming is an ancestral small-scale agricultural operation in our country and from backyard practice; it has now developed as industry.

2 Poultry Farming The term 'poultry', though now exclusively used with reference to chicken breeding, is really a word that encompasses a wide number of avian species such as duck, turkey, geese and guinea fowl domesticated for economic purposes. The word 'Fowl' is used to refer to poultry in general and is used with reference to domestic chickens both hens and cocks. Young Student Encyclopaedia defines 'poultry': "Birds raised for their meat and eggs are called poultry, chickens, ducks, turkeys, geese, guinea fowl, pheasants and pigeons can all be poultry birds." 1 The Central Avian Research Institute, Izatnagar defined poultry operations as: - "(i) Purely breeding programmesbroilers, layers, (ii) Grand parent operations for broilers and layers, (iii) Hatcheries producing one-day old chicks of Grand parent, Parent and Commercial, (iv) Commercial farms producing eggs and broilers, and (v) Poultry operation also consists of breeding, hatching and producing eggs and chicks of other avian species like turkey, quails, ducks, guinea fowls etc. "2 The Working on a poultry unit depends on the type of poultry farm. On commercial point of view, the poultry farm can be divided into three types viz., Breeding farms, Broiler farms and Layer farm.

3 Breeding Farm (Production of Day-Old-Chicks) Breeding farm is meant for the only purpose of hatching and raising poultry for sale to other farmers. Breeding farms are also called hatcheries Broiler Farms (Production of Poultry Meat) The evolution of broiler fann is correlated with to trend for chicken meat production. Almost 86 per cent of all poultry meat is chicken meat and remaining percentage is contributed by the production of turkey, duck, goose meat and other kinds of poultry meat. Broiler birds are a young chicken reared for the purpose of meat production. Broiler birds has 1.5 to 2.0 kilogram's weight with tender meat, soft, smooth textured and flexible breast. It is also known as 'frayer. In broiler farms, farmers procure one-day-old chicks (broiler); reared up to the age of six weeks and finally disposed in the market Layer Farms (Production of Eggs) Layer farms are meant for the purpose of egg production. The layer birds produces eggs for a number of months up to the age of 20 months or less. Layer birds start production when they attain 22 weeks of age and it rises sharply, reaching a peak at about weeks of age, and after that the same declines gradually. When the laying capacity of layer birds deteriorates, they are sold off for the purposes of meat. The system of poultry fanning can be. categorized into two types viz., free-range system and intensive system. The free-range system is. the traditional method of rearing birds in which the birds are finding its

4 59 own food and require no proper care and no proper time scheduling of food. It is also called 'Backyard System', followed by the household sector in the rural areas. When the poultry rearing is confined in particular area and well fed with proper balanced and timely diet is called as Confining poultry or Intensive system. In India, the commercial production of eggs (layer farm) and meat (Broiler farm) is conducted under the Intensive system. 3.3 Brief Historical Background of the Industry The history of poultry industry in India is of 5000 years old. There is no clear-cut evidence regarding the time first chicken captured and domesticated. An early written record is found in a Chinese Encyclopaedia compiled from ancient document, which reveals the fact that "fowls are creatures of the west". The Archaeological surveys indicate that fowls were domesticated in China as early as 1400 B.C.3 In India, reference to the existence of poultry farming is availed of Arthshastra of kautilya during the Mauryan Empire in 300 B.C. The seals and toys bearing the picture of fowls were excavated from Mohenzodaro, indicating that people of Indus valley knew fowl domestication. 4 Till the beginning of 19th century the fowl were maintained mainly for game of cock fighting and sacrificing to worship God and Goddess. It was in the early 19th century that chicken were raised for their fancy appearance, attractive body forms, plumage colour and comb type. Least attention was paid to their growth and egg production potential. During this period, the commercial poultry production was practically non-existent and poultry farming was limited to low productive domesticated fowls maintained under backyard system.

5 Development of Commercial Poultry Farming The real beginning of the commercial hatchery industry in modern times came in 1802 when Joseph. D. Wilson made the first long-distance shipment of baby chicks, sending them to Chicago. In the late 1890's,} :. there was a great developme_nt of poµltiy and egg-packing plants in the mid-western United States. The operators of these plants began storing eggs in refrigerated warehouses. In 1924, Prof. James G Halpin and coworkers at the University of Wisconsin announced the part vitamin D plays in the poultry ration. This knowledge brought about rapid development of the commercial feed industry. The 1940's saw the greatly expanded use of mechanical and labour-saving equipment in both the production and marketing fields. Multi-story poultry houses, radiant heat, caged hens; great strides in poultry disease control and prevention are just a few of many other developments in specialised poultry practices in the mid 20th century. The credit of the pioneering action of commercial poultry farming in India should be given to a few Christian missionary organisations and to some British people who brought some superior exotic breeds in the beginning of the 20th century for establishing their own poultry farm by crossing and improving the indigenous stock. The major step towards scientific poultry management in the country was the establishment of the Poultry Research Division at the Indian Veterinary Research Institute (IVRI) named as Imperial Veterinary Research Institute in March The farm was stocked with birds of exotic breeds and crossed type to improve egg production. The evolution of an effective vaccine against Ranikhet disease by the IVRI in 1942 and a number of poultry units were established by the Government. Because of these developments a number of model poultry farms were established in the forties by

6 61 different state Governments for demonstration, training and multiplication of improved poultry stock. During the Second World War, the demand of the army for egg and table birds increased to double the number. To meet this demand the military authorities set up a number of poultry farms with exotic stock. The cumulative effect of these different activities was of a greater appreciation by the Central and State Government regarding the possible advantages of poultry development. The demonstration and extension work carried out by different poultry farms created interest among farmers of localised rural areas in rearing poultry of superior quality as their subsidiary occupation for economic benefit. The production of broiler on a commercial scale commenced in the early sixties with the introduction of hybrid strains from poultry breeding farms in the United States, England and Europe. Sixties proved to be the turning point in the history of poultry production in the country. The concept of backyard poultry keeping shifted to poultry farming as commercial enterprise. First commercial chick was hatched in November 1962 at the Delhi-based Rani Shaver Poultry Breeding Farms Pvt. Ltd. Commercial Production of balanced compounded feed, modem veterinary medicines and vaccines, the indigenous production of equipment for hatching and incubation, feed mixing and commercial housing were also started at the same time. Introduction of Intensive Poultry Development Project (IPDP), deep litter system of management, import of high quality stock, mass preventive vaccination against common avian diseases, income tax exemption for the poultry sector were major contributing factors of this development. Under the IPDP, all the required inputs and services such as good quality birds and equipment, training of farmers, effective disease control measures and improved management know-how were made available to help farmers to start poultry units and provide facilities to

7 62 market their outputs with an assured and a reasonable profit. As a consequence of the concerted drive, poultry production started increasing and gaining momentum. Scientific poultry breeding programmes were launched during this period in the central poultry farms as the first step towards attaining self-sufficiency in the production and supply of high quality chicks. The training programme for the farmers was extended. Financial assistance for supply of poultry house materials and rearing equipment at concessional rates and subsidy for purchase of incubators were extended. To process a large number of broiler chicken quickly, several dressing plants of different capacities were established at various places. As the country made si gn ificant progress in poultry farming in the eighties the emphasis was generally laid on promoting poultry production mainly through the weaker sections of the people and bringing about qualitative improvement in the services required for poultry farming. Additional efforts were made in streamlining the infrastructure already developed. The history of the poultry farming in India reveals the fact that poultry husbandry is an old art. The story of the evolution and development of the poultry industry shows that poultry husbandry is comparatively a new science as it is only within the present century that special attention has been given to raising poultry as a commercial venture Production of Poultry Items The poultry industry is mainly concer.ned with the production of eggs and meat. Hence, it is quite relevant to examine the present position of production of eggs and poultry meat before going in to the other details of the industry.

8 World Production of Poultry Items The production of poultry meat and eggs has shown tremendous development in the last 20 years. As per the FAQ statistics the world poultry population, which stood at 10.6 million (Nos.) in 1990 increased to 14.4 million (Nos) in During the developing nations have shown an increased share in egg and chicken meat production in world's market, from 32.9 per cent to 64 per cent against developed nation. World production of eggs and broiler meat from 1997 to 2001 is furnished in Table 3.1. The world production of eggs, which stood at Million Nos. m 1997 in_creased to Million Nos. in Likewise, the production of broiler meat, which was Metric Tonnes in 1997 increased to Metric Tonnes in As per the data on 2001, China is the largest producer of eggs in the world accounting per cent of the total production followed by the USA (10.68 per cent) and Japan (5.27 per cent). In the case of broiler production, USA is the largest producer in the world accounting per cent of the total production followed by the European Union (14.32 per cent) and Brazil (13.79 per cent). In the case of egg production, the share of China was per cent in 1997 and it increased to per cent in The share of USA in the production of broiler meat was per cent in 1997, but it reduced to per cent in 2001.India is the fourth largest producer of eggs and got eighth largest producer of broiler in the world. The share of India in the world was 4.30 per cent in egg production and 1.42 per cent in broiler production in1997. It increased to 4.79 per cent in egg production in But, in the case of broiler production it decreased to 1.24 per cent in 2001.

9 Table Ell'lls UPI Countries 1997 Eus Broiler Ell2'8 Broiler Broiler EllllS Broiler Eaz:rzs Broiler USA (11.64) (33.13) (11.49) (31.13) (10.88) {31.56) {10.83) (29.92) (10.68) (29.46) Brazil (1.88) (12.05) (1.96) (11.17) (1.94) (12.72) (2.01) (13.05) (2.06) (13.79) European Union (10.90) (13.15) (10.64) (16.87) (9.81) (15.23) (9.61) (14.52) (9.28) (14.32) Russia * * * * * (4. 78) (4.74) (4.33) (4.30) (4.29) China (42.34) (4.04) (44.26) (8.57) (47.93) (10.13) (48.44) (11.02) (48.88) (10.92) Mexico (4.22) (4.03) (4.30) (3.94) (4.25) (4.10) (4.27) (4.22) (4.22) India (4.30) (1.42) (4.23) (1.34) (4.01) (1.28) (4.07) (1.25) (4.79) (1.24) Japan (6.38) (3.03) (6.05) (2.72) (5.50) (2.48) (5.36) (2.38) (5.27) (2.25) Other countries (13.50) (19.05) (12.29) (24.15) (11.31) (23.22) (11.14) (23.58) (10.48) (23.63) Total (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00} (100.00} (100.00} *Included in the group of other countries. (P) Provisional Source: Counsellor and attache reports, official statistics and results of office research, United States Department of Agriculture, Foreign Agricultural Service Commodity and Marketing Programmes Dairy, livestock, and poultry Division Figures in parentheses are percentages of their respective totals (4.34) 64

10 Poultry Population in India The composition of poultry population in India includes fowls, ducks and other types of poultry such as turkey, geese and guinea fowl etc. The Table 3.2 furnishes the composition of poultry population of India as per the various censuses from the years 1977 to Table 3.2 Composition of Poultry Population of India as per Various Livestock Census (in Million Nos.) Composition Compound of Poultry Growth Rate (%) Fowls (92.91) (90.48) (91.17) (92.48) Ducks (6.28) (8.87) (8.54) (7.20) Others (0.81) (0.65) (0.29) (0.32) Total (100.00) (100.00) (100.00) (100.00) Source: Statistical Pocket Book-India, 1999, Central statistical Organisation, Department of Statistics, Government of India Figures in parentheses are percentages of their respective totals The Table 3.2 reveals that India has witnessed significant growth in the poultry population over the 15 years under review. The poultry population which stood at 1607 Million (Nos) in 1977 has increased to 3071 Million (Nos) in 1992, recording a compound growth rate of 4.41 per cent. The composition of poultry population in 1992 shows that fowls constitutes a major share in the poultry population i.e., per

11 66 cent of total poultry population. The ducks and other types of poultry share the remaining portion in the poultry population. The population of fowls in 1977 was 1493 Million (Nos), which increased to 2840 Million (Nos) in 1992, recording a compound growth rate of 4.30 per cent. In the case of ducks, the population 101 Million (Nos) in 1977, which increased to 221 Million (Nos) in 1992, showing a compound growth rate of 5.30 per cent. However, the population of other types of poultry shows a declining trend i.e., 13 Million (Nos) in 1977 reduced to 10 Million (Nos) in The details of state wise poultry population in India are furnished in the Table 3.3. In the case of poultry population as per the livestock census 1992, the state of Andra Pradesh ranked the first, accounting to per cent of the total poultry population in the country. The percentage of the growth rate over the previous census is in the state. The state of West Bengal ranks the second position. However, the state witnessed significant fall in the percentage share of population. It was per cent (first rank) in 1987 census, but it got reduced to per cent out of the total population in The percentage of growth rate in the previous census is in the state. In the state of Kerala, the percentage share of poultry population, which stood at 6.53 per cent in 1987, increased to 8.35 per cent in In Tamil Nadu, the percentage share of poultry population, which stood at 7.83 in 1987 slightly increased to in 1992.

12 67 Table3.3 State-Wise Poultry Population in India as per 1987 and 1992 Livestock Censuses (in 1000 Nos.) State /Uts % of increase over the Population %Share Population %Share prevoius census Andra Pradesh 39, , Arunachal Pradesh 1, , Assam 11, , Bihar 15, , Delhi Goa , Gujarat 5, Haryana 5, , Himachal Pradesh Jammu & Kasmir 3, , Karnataka 15, , Kerala 17, Madhya Pradesh 9, , Maharashtra 24, , Manipur 3, , Meghalaya 1, , Mizoram , Nagaland 1, , Orissa 12, , Punjab 15, , Rajasthan 2, , Sikkim TamilNadu 21,567_ , Tripura 1, , Uttar Pradesh 9, , West Bengal 52, , Andaman & Nicobar Chandigarh Dadra & Nagar Haveli Daman&Diu Lakshadweep Pondicherry All India 275, , Source: Source: Statistical Pocket Book- India 1999, Central statistical Organisation, Department of Statistics, Government of India Figures in parentheses are percentages of their respective totals Totals may not tally, as data relating to some states are not available.

13 68., Production of Poultry Items in India The Table 3.4 exhibits the production of poultry items in India from the periods to Table 3.4 Production of Eggs (in Million Nos.) and Poultry Meat (in 1000 Metric Tonnes) in India Period Eggs Percentage Poultry Percentage increase over Meat increase over 10 years/ 10 years/ Annual growth Annual growth rate(%) rate(%) NA * Compound Growth Rate(%) *Provisional NA: Not Available 479 Source: Annual Reports, Department of Animal Husbandry & Dairying, Ministry of Agriculture, Government of India The Table 3.4 reveals that India has witnessed significant growth in the production of eggs and poultry meat from the period to The production of egg which stood at 1832 Million (Nos) in

14 has increased to Million (Nos) in , recording a compound growth rate of 6.10 per cent. In the case of poultry' meat production, which was metric tonnes in , increased to metric tonnes in recording a compound growth rate of 4.98 per cent. The value of poultry items produced in India from the periods to is furnished in Table 3.5. Table 3.5 Value of Poultry Items Produced in India (Rs. in Crores at Current Prices) Period Eggs Poultry Meat Total Value ,343 2,406 3, ,736 3,165 4, ,840 3,402 5, ,282 4,486 6, ,603 5,109 7, ,834 5,846 8, ,168 6,217 9, ,419 6,916 10, ,717 6,502 10, ,005 6,229 10,234 Compound Growth Rate(%) Sources: Statistical Abstract of India - various issues, Central statistical Organisation, Department of Statistics, Government of India.

15 70 The total value of poultry items produced in India, which was Rs crores in increased to Rs. 10,234 crores by , recording a compound growth rate of per cent. In the case of value of eggs produced which was Rs crores in increased to Rs crores by ; recording a compound growth rate of per cent. The value of poultry meat increased from Rs crores in to Rs crores in It recorded a compound growth rate of per cent. The details of state-wise production of poultry items in India are furnished in Table 3.6. In the case of egg production during , the state of Andra Pradesh ranked first accounting to per cent of total production in the country. It slightly decreased to per cent in With the production of 5924 million eggs during , Andra Pradesh accounts for one-fifth of the eggs production in the country. The per capita availability of eggs in Andra Pradesh is 58 eggs vis-a-vis 35 eggs for all India. The state of Tamil Nadu has second position accounting to per cent of total production in the country in , but it slightly increased to per cent in Other leading states in the production of eggs in India during the year are Maharashtra (9.96 per cent), West Bengal (9 per cent) and Punjab (8.92 per cent). The percentage share of Kerala, which stood at 7.37 per cent in , decreased to 6.93 per cent in

16 Table 3.6 State"Wise Production of Eggs in India (in Million Nos.) State I Uts 1994" " Production %share Prodcution %share Production %sabre Production %share Production %share Andra Pradesh ArunachalPradesh Assam Bihar i Goa Gujarat Haryana Himachal Pradesh f Jammu & Kasmir Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland

17 State I Uts Orissa J Punjab Rajasthan Sikkim Tamil Nadu f Tripura Uttar Pradesh West Bengal f Andaman & Nicobar Chandigarh Dadra & Nagar Haveli Daman& Diu Lakshadweep Pondichcrry All India Production %share Production %shnre l'roductlon %r.hare =,..... Source: Statistical Abstract- Indi , Central 5tatl5tlc:al Organl5ation, Department of Statl5tlcs, Ouvernment of India. Totals may not tally, as data relating to some 11tates are not avalhtble. l11 oductlon '/or.bare s s l'rodudlon m o/dbll'tl 2.S

18 Per Capita Consumption of Poultry Items in India In India majority of the poultry items such as eggs and meat is marketed and consumed in fresh form. Poultry meat consumption constitutes around 22 per cent of the total meat consumption in the country. Egg powder manufacturers consume around 1 % of the total egg production in the country. There is wide gap existing between urban and vast rural areas in the consumption of poultry items. As per the report of Department of Animal Husbandry and Dairying, Government of India, the urban population accounts for around 75% of the total poultry consumption in the country. In urban areas, the per capita consumption is 100 eggs and 1200 gms of poultry meat per annum while in rural areas it is 15 eggs and 150gms per annum. The annual per capita consumption of poultry items in India from the period of 1961 to 2000 is depicted in the Table 3.7. Table 3.7 Annual Per Capita Consumption of Eggs and Poultry Meat in India Year Per Capita Availability Eggs (Nos.) Poultry Meat (gms) Source: Annual Reports, Department of Animal Husbandry & Dairying, Ministry of Agriculture, Government of India

19 74 In the case of annual per capita consumption of eggs and poultry meat in India during the year 2000 is around 35 eggs and 575 gms of poultry meat, which is far below the minimum nutritional standards as recommended by the WHO (180 eggs and 10.8 Kg meat per person per year). But, the country has made significant improvement in the consumption of poultry items over the past 40 years. In 1961, the per capita consumption of eggs and poultry m.eat was around 7 eggs and 188 gms of poultry meat increased to 35 eggs and 575 gms of poultry meat in Marketing of Poultry Items The introduction of modern marketi11g in poultry industry gave emphasis on consumer-orientation and profitability of organisation as well. The significance of marketing in poultry further increased in view of the fact that the poultry products are perishable commodities and hence require a quick disposal. In the absence of proper marketing facilities, a high degree of wastages may be the fate of the producers of poultry products. The market for poultry items may be in the form of export or internal market World Export of Poultry Items Poultry items are one of the important items traded in the international market. Country-wise export of poultry items in the world market is given in Table 3.8.

20 Table 3.8. Country-wise Classification of Exporters of Eggs (in Million Nos.) and Broiler Meat (in 1000 Metric Tonnes) in the World Market Countries (P) Broiler E22s Broiler E22s Broiler E22s Broiler Eees Broiler USA (37.28) (45.00) (32.24) (40.50) (27.29) (40.48) (29.24) (39.81) (26.69) (44.96) E22s Brazil (0.27) (13.82) (0.08) (12.16) (0.33) ( 14.59) (0.42) (15.93) (0.46) (22.13) European Union (23.03) (12.11) (32.15) (16.13) (35.87) (14.86) (26.98) (13.60) (30.99) (12.80) Thailand * 192 * 274 * 288 * 328 * 425 China 957 (4.08) (5.61) (5.85) (7.57) (5.60) Canada (13.04) (10.65) (6.61) ( 10.88) (7.29) (13.95) (8.28) (13.55) (8.72) India (4.40) 260 ( 1.19) 1 (4.50) 315 (1.08) 50 (6.38) 267 (0.91) 26 (8.50) 285 (0.98) 84 (8.50) 305 (1.23) * (7.44) (3.54) (0.02) (3.86) (1.02) (3.75) (0.50) (1.49) (3.99) Other countries (18.42) (16.31) (16.11) (17.86) (15.46) (15.69) (16.83) (12.38) (15.79) (6.60) Total (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Source: Counsellor and attache reports, official statistics and results of office research, United States Department of Agriculture, Foreign Agricultural Service Commodity and Marketing Programmes Dairy, livestock, and poultry Division (P): Provisional. *Included in the group of 'Other countries'. Figures in parentheses are percentages of their respective totals. 75 (4.04)

21 76 In the case of export of eggs, USA is the largest exporter in the world market. However, its percentage share declined from per cent in 1997 to per cent in European Union ranks the... second accounting to the percentage share of per cent in 1997, increased to per cent in India is also one of the exporters of poultry items, but the percentage share in the world market is very low. The percentage share of India in export of egg was 3.54 per cent in 1997, which slightly increased to 3.99 per cent in In the case of export of broiler meat also, USA is the largest exporter in the world market. Its percentage share was 45 per cent in 1997and slightly decreased to per cent in Brazil ranks the second in the export of broiler meat, recording a significant increase in the percentage share of market. In 1997, its percentage share was only per cent, but it increased to per cent in The percentage share of India in broiler export is very negligible i.e per cent in 1997, which increased to 1.49 per cent in Export of Poultry Items from India India has only marginal role in the highly competitive world of international trade of poultry. The export earnings from poultry are very low. The value of export of poultry item from India from 1991 to 2000 is presented in Table 3. 9.

22 77 Table 3.9 Value ofexport of Poultry Items from India (Value in $1000) Year Eggs Poultry Total Annual Growth Rate Meat Value oftotal Value (%) Compound Growth Rate (%) Sources: FAO Year Book The export of poultry items from India in terms of total value has shown significant increase from the year 1991 to The total value of export, which stood at $ in 1991, has increased to $ in 2000, recording a compound growth rate of per cent. However, the annual growth rate in the total value of export shows a fluctuating - trend during the period. The highest annual growth rate is recorded ( per cent) in The value of egg export also witnessed significant increase over the period. Its value of export, which stood at $

23 in 1991, has increased to $ in 2000, recording a compound growth rate of per cent. However, the value of poultry meat export shows significant fall from$ in 1991 to$ in World Import of Poultry Items The Table 3.10 exhibits country-wise classification of import of poultry items in the world market. It (Table 3.10) reveals the major importing countries of eggs in the world market, Japan comes in the first position, accounting to per cent of the total import during 1997, slightly increased to per cent in2001. Hong Kong is the second largest importer of eggs accounting per cent of total import in 1997, slightly decreased to per cent in In the case of broiler meat import, Russia ranks the first, accounting to per cent in 1997, increased to per cent in Japan is the second major importer of broiler meat in the world market. Its percentage share was per cent in 1997, which increased to per cent in The percentage share of China, which stood at per cent in 1997, declined to per cent in Among the importing countries, India has only a negligible share in the import of eggs in the world market i.e per cent in 1997 slightly increased to 0.74 per cent in 2000.

24 Table 3.10 ' ', Countries (P) Ee:es Broiler Ee:e:s Broiler Ee:e:s Broiler Broiler Eees Broiler Russia (0.98) (27.21) (0.93) (28.69) (0.93) (23.33) (1.30) (23.40) (1.48) (29.17) Japan (34.46) (11.67) (31.93) (16.59) (37.03) (16.73) (37.73) (17.89) (35.57) (16.16) European Union (10.05) (3.25) (7.02) (4.69) (6.31) (4.96) (8.25) (7.42) (6.34) (9.51) 409 E!!!!S Middle East * 406 * * 481 * (9.51) (11.50) (12.06) (11.38) (11.88) China * 750 * 427 * 591 * 608 * 473 (17.58) (12.01) (14.82) (15.09) (10.77) Mexico (4.29) (2.64) (5.07) (3.20) (4.71) (3.27) (3.51) (5.35) (5.09) Hong Kong (29.47) (19.10) (28.14) (7.56) (28.22) (9.80) (26.99) (5.93) (29.34) (5.32) India (0.53) (2.44) (2:54) (0.74) Canada (13.18) (1.68) (14.86) (1.54) (1.55) (11.71) (1.71) (12.84) (1.66) Other Countries ( 4.31) (7.32) (8.77) (12.28) (4.72) (11.98) (6.24) (11.71) (7.72) (10.13) Total (100.00) (100.00) (100.00) {100.00) (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Source: Counsellor and attache reports, official statistics and results of office research, United States Department of Agriculture, Foreign Agricultural Service Commodity and Marketing Programmes Dairy, livestock, and poultry Division. (P): Provisional. *Included in the group of 'Other countries'. Figures in parentheses are percentages of their respective totals. 55 (13.77) (5.43) 73 79

25 Changing Scenario in the Indian Poultry Industry During the last three decades, poultry has made great strides, and form a backyard activity, but now it has sprung up to Rs crores industry and is expected to go up to Rs crores by the year This sector has been growing at an average rate of 8 per cent in egg production and about 15 per cent in broiler production. It is the fastest growing segment of the agricultural economy. The poultry industry in India is undergoing many changes. The important among them are briefly explained in the following pages. 3.6.l.Market IntegrationI Contract Farming Market integration is a kind of business, which appeared in the poultry farming in 1960's among the farmers in USA. In India, it emerged in the broiler farming business in the beginning of 1990's and popularised among the broiler farmers. In India, various big hatcheries and feed manufacturers are engaging contract-farming operation with broiler farmers... Under this system, the farming operation is carried out on the basis of a contract between farmer/grower., and firm. The firm may be independent contractor, large scale processors, feed company or other party. The contracting finn generally assumes most or all of the price risk in connection with marketing of the products produced by the farmer and provides the day-old-chicks, feed, medicine/veterinary care and supervision. The farmer has to provide the facilities of land, housing, equipment, fuel and power, labour and daily management of birds. As a return, the contracting firm will make payment in the form of commission to the farmer/grower on the basis of feed convertibility ratio or set amount per bird and incentive for better quality and weights of bird produced. The calculation of commission may include charges or deductions for mortality, condemnation, hauling charges and medicinal.

26 81 The market integrators can minimise the cost of production by way of self-owned infrastructure facilities of hatcheries, feed mixing unit and transportation system. They have wide area of marketing network and avoid unnecessary intermediaries in the marketing channel. The main advantages of this system are (1) guarantees regular returns to the farmers without bothering about the price fluctuation in the market (2) the amount of working capital required would be less and (3) reducing the risk and uncertainty in the farming operation. However, the market integration has the following drawbacks also viz., (1) affects the entrepreneurial ability and skill of the farmer for exploiting maximum return from business by way of risk bearing (2) low return on investment (3) inadequate amount of commission (4) exploiting farmers with terms and conditions of contract and (5) lack of feasibility for the small scale unit Globalisation and Poultry Liberalisation of the national economy under GATT has opened up opportunities and challenges for Indian poultry industry. The agricultural sector including poultry will have no legal and constitutional barriers of entry to India for any company in the world. With the implementation of GATT, the Government's subsidy programmes and Counter Veiling Duty (CVD) will also be forced to remove. The other side of the coin would be the entry of multinationals into the poultry industry. This brings in the concept of mergers, acquisitions, joint ventures and business alliance. India has already removed Quantitative Restrictions on import of frozen and cut chickens with effect from April Since, the Government of India has decided to lift the quantitative

27 82 restrictions on import of poultry products, the customs duty on import of poultry meat and meat preparations has increased from 35 per cent to 100 per cent. This action is taken by the Government as per the request of National Egg Coordination Committee (NECC) for the purpose of protecting the domestic poultry industry against uneven competition by developed countries. The liberalisation policy also permits import of grand parents and allowing substantial reduction in import duty. The import duty on all equipments; plant ai1d machinery; and specified capital goods for food processing including poultry has been brought down. It is hoped that under the above agreements, subsidies provided, by advanced countries will become much more competitive in the international market Export Potentials The poultry industry in India is capable for exporting the poultry items in the international market. The entire poultry export scenario is now shifting in favour of India's exports. At present, some of the major Tamil Nadu-based integrated poultry farms are capable of meeting the standards for the export of poultry product. Countries like West Asia, Russia, Hong Kong and Japan are potential markets for Indian poultry products. The wide spread foot and mouth disease (FMD) in European countries has resulted in many meat consuming countries like Iran, Russia, Iraq, Indonesia and China to consider India as an alternative market, since in India the outbreak of the disease is reported to be confmed only to certain states. Indian poultry industry has to search for facilities for observing Hazard Analysis and Critical Control Point (HACCP) to produce safe products for human consumption.

28 Automation in Poultry Management System With the sophistication and commercialisation of poultry and move towards, modem automatic systems have been introduced in poultry houses that would make routine operations lees dependent on manual labour and more on mechanization. A beginning has already been made in the field of automated watering, feeding and environment control system. The use of plastics in the manufacture of equipments has solved the maintenance problems. Improvements are taking place in hatching and incubation equipments;and computerised feed plant units. 3.6.S.Poultry Processing Industry In western countries, 100 per cent chicken is processed, out of which 80 per cent of this is sold as value-added products in the form of cut-portions and boneless, further processed and branded. The Venkateshwara Hatcheries Group set up the first poultry processing plant in India more than a decade ago, but still the processing industry continues to be at an infant stage. The development of modern poultry processing industry in the country is regarded as a major thrust area in the growth of broilers. In India about 550 million chickens are processed per annum. Today only two per cent of poultry is processed in modern plants. The trends in the market for poultry products in India attached more significance to the poultry processing industry in India. They are: -

29 84 1. Poultry meat is emerging as the most affordable and widely acceptable for non-vegetarians. 2. Eggs are widely being accepted by the vegetarians in their menu. 3. Fast food chains serving chicken- based recipes are adding to the growing demands of poultry products. 4. Demand for poultry products in rural areas is increasing as people have more purchasing power. The future of poultry processing in India is enormous, as it can target about 40 per cent of the urban and semi-urban population. The sector for egg processing has opened up new export avenues. India already has a plant for egg powder with small plant capacity in the Central Avian Research Institute (CARl), Izatnagar. Processing plant with modern technology will improve the product quality and food safety to consumers. More processing firms interested to enter into this sector for exploiting the domestic and export potentials in coming periods in the changing scenario of world export market. Many multinationals are investing in the projects in view of enormous growing potential in terms of population size of Indian market, changing eating habits and demand for hygienically produced safe products. The Venky's India Ltd planned to start Quick Service Restaurant (QSR). The plant for the boneless chicken, CfM (chicken-in-minutes) products and QSR products has a slaughtering capacity of 4,000 birds per hour. Agro Corpex India Ltd is to establish an egg washing, grading, packing and cold storage unit at a cost of Rs million at Hyderabad.

30 Poultry Technology Park The Punjab Agro Industries Corporation and private promoters have established India's first poultry technology park in the state of Punjab. The cost of the project is Rs.140 million and commenced the., operation by the end of the year The poultry technology park have a hi-tech automatic feed mill with a capacity of 100 tonnes per day, a cold store with a storage capacity' of 50 million eggs, a poultry medicine unit, a hi-tech poultry equipment production unit, an egg grading and packing station. The parks has fully automatic feed mill with a capacity to produce 100 tons of poultry feed everyday. Liquid medicines, hi-tech poultry farming equipment, including automatic drinking nipples, feeding systems and environment control system are manufacturing in the poultry technology park. An exclusive focal point for poultry in the park is that it provides private entrepreneurs an opportunity to set up fully automated poultry farms Insurance Coverage on poultry In India, the Oriental Insurance Co. Ltd established insurance coverage on poultry in Diseases and natural calamities may affect poultry industrial growth, which may strike despite preventive measurers resulting in losses. A standardised comprehensive poultry insurance policy which provides indemnity against death of birds due to accident including fire, flood, cyclone/storm/earthquake, strike, riots or diseases contracted or occurring during the period of insurance. The insurance coverage is available to commercial layer, broiler chicks, parent stock and grandparent stock. However, the insurance scheme on poultry is not well established among the poultry farmers in the country.

31 Development of the Poultry Industry under the Five Year Plans In all the five year plans, efforts for the development of livestock was towards the qualitative and productivity improvement of cattle, sheep, pig and poultry to meet the requirement of milk, meat, eggs, etc; specific emphasis was given to build up infrastructure required for accelerating the production programmes adopting advanced techniques in animal husbandry practices. A modest beginning towards commercial poultry farming was made during the First Five Year Plan ( to ), in which Rs. 2.5 crores was spent on poultry development. For the purpose of supplying improved breeds of chicken to interested farmers, thirty-three Poultry Extension Centres were established during the period. During the Second Plan Period ( to ), projects were initiated to encourage both backyard poultry farming in rural areas and the commercial poultry farming in urban areas. Organised poultry development began during the Second Five year Plan, when systematic efforts were made to promote poultry farming on commercial lines in the country. To develop genetically the superior stocks imported from foreign countries, four Regional Poultry Breeding Farms were established during the period. As a result of these, poultry feed and equipment industries were getting established. Approximately Rs. 2.8 crores was spent on poultry development during the Second Five Year Plan.

32 87 During the Third Five Year Plan Period ( to ), Rs. 8 crores was allocated for poultry programmes, but only Rs.4.5 crore was spent. A favourable ground for launching bigger poultry plan was developed during the time and national and international agencies like the United States Agency for International Development (USAID), Applied Nutrition Programme, Freedom from Hunger Campaign, United Nations Development Programmes also helped to boost up the poultry development programmes in India. As, a result, four franchise hatcheries with foreign collaboration were set up. About 10,000 pure line chicks were imported from Australia. Large-scale poultry processing plants were set up in Poona and Chandigarh. All these developments led to a rapid increase in the number of commercial poultry farms with improved stock. During the Fourth Plan Period ( to ), major emphasis was laid on the expansion of poultry marketing facilities. Further, the Government permitted private sector to establish commercial hatcheries during this plan. An out lay of Rs. 115 million was provided in this plan for the development of industry. Agriculture Universities also played an important role by providing well-trained personnel for poultry extension and research work during this period. In the light of the above, during the Fifth and Sixth Five Year Plans ( to and to ), steps were taken to improve marketing facilities in order to raise egg production from 7,740 million eggs to 15,000 eggs through commercial poultry farming. The out lay for Fifth and Sixth Plan were Rs.355 million and 426 million respectively. During the fifth and sixth plan period, the egg production has made annual growth rate of 3.5 and 8.4 per cent.

33 88 During the Seventh Plan ( ) a sum of Rs. 602 million was provided, which shows an increase of per cent than in the case of the Sixth Plans. During this period egg and broiler production registered a compound growth rate of 7.23 per cent and 18 per cent respectively. During the Eighth Five year plan ( ), the egg production which was at the level of 22 billion (Nos.) during increased to 28.2 billion (Nos.) during The p r capita availability of eggs increased from 25 to 30 eggs per annum for the same period. Poultry farming has been identified as one of the thrust areas for the Eighth Plan. The plan envisages an annual growth target of 7 per cent for eggs and per cent for broilers. The actual annual growth rate of egg production was 4.58 per cent. The development of poultry farming on cooperative basis will be given priority to help small rural farmers in the unorganised sector. A number of poultry estates is also being planned to set up in collaboration with NCDC, NABARD, State Governments and Non-Government Organisations for providing all the necessary facilities, including inputs, credit and marketing. It is also proposed to set up a National Poultry Development Board to promote and coordinate various activities concerning poultry and export of its products. During the Ninth Plan ( ), Animal Husbandry and Dairy development activities will receive greater attention, as this sector plays an important role in generating employment opportunities and supplementing the income of small and marginal farmers and land less labourers, especially in the rain fed and drought-prone areas. In order to achieve the objective of the Ninth Plan, the value of poultry products is targeted at annual growth rate of 7.5 per cent. The Plan for egg