The transformation of poultry farming into a highly organized and integrated agribusiness in India has been driven by advances in technology, research, investment, and market dynamics. This shift has made poultry farming a lucrative venture, attracting many farmers due to the potential for significant profits and lower risks. Unlike traditional backyard poultry farming, which was unorganized and small-scale, modern poultry farming is a large-scale, capital-intensive operation.
Key Statistics and Industry Scale
- Chick Production: Every week, 14 crore (140 million) day-old chicks (DOCs) are placed in organized poultry farms across the country, amounting to around 728 crore (7.28 billion) chicks annually.
- Production Volume: After accounting for mortality, the total annual production of broiler chickens is approximately 1,300 crore kg (1.3 billion kg).
- Market Value: With an average retail price of ₹200 per kg, the poultry industry in India generates over ₹2.5 lakh crore (₹2.5 trillion) annually.
- Farmer Income: Farmers involved in poultry farming earn around ₹15,000 crore per year in the form of Growing Charges (GC) for raising DOCs to market-ready broilers.
Farming Infrastructure and Operations
- Environmentally Controlled (EC) Farms: These farms use advanced computer-controlled systems to manage temperature, humidity, air circulation, feed, and water supply, optimizing conditions for the growth of chicks.
- Automated Systems: EC farms are equipped with automated feed and water lines, exhaust fans, cooling pads, and lighting systems to ensure optimal growth conditions for the birds.
- Capital Requirement: While the land requirement is minimal, a significant capital investment is necessary to set up and maintain these farms.
Integration with Companies
- Integrator Companies: Farmers typically work with integrator companies that supply DOCs, feed, medicines, and other essentials. The integrator also handles the marketing and sale of the broiler chickens, allowing farmers to focus solely on farm operations.
- Digital Integration: Companies use apps to connect farmers with traders, streamline data management, and provide real-time information about marketable birds.
Major Players in the Industry
- Leading Companies: Key players include Suguna Foods, IB Group/ABIS, Venkateswara Hatcheries (VH) Group, Baramati Agro, Premium Chick Feeds, and Shalimar Group.
- Production Capacity: These companies have extensive operations, with some supplying up to 1-1.1 crore DOCs per week.
Genetic Stock and Breeding
- Broiler Genetics: Most broiler chickens in India are of foreign pedigree, such as Ross, Hubbard, and Cobb, which are well-suited to Indian conditions. Suguna Foods has developed its own breed, ‘Sunbro’.
- Backward Integration: The industry is highly backward integrated, with companies controlling every stage from breeding to hatcheries and feed production.
Future Outlook and Forward Integration
- Current Phase: The poultry industry is in a similar phase to where the dairy industry was in the 1980s, with strong backward integration but limited forward integration.
- Need for Forward Integration: Experts believe that increasing forward integration, similar to the dairy sector, could enhance profitability and benefit both farmers and consumers by enabling the sale of more value-added products.
In summary, the poultry industry in India has evolved into a highly organized and profitable agribusiness, with significant opportunities for growth, particularly in the area of forward integration.
