Shanthi Poultry Analysis

Topics: Poultry farming, Poultry, Broiler Pages: 19 (4204 words) Published: March 31, 2012
1. Introduction
1.1 Industry Profile
India ranks top in animal and cattle population. The meat and meat processing industry is still to come up. Some top players in the meat processing industry like Venkateswara Hatcheries, Godrej Agrovet, Vista Processed Food, Al Kabeer, Allanasons etc., with modern state-of-the-art slaughter and processing plants, have changed the entire scenario, making the industry grow at almost 10%. There is a huge scope for expanding exports, especially in buffalo and poultry meat, eggs and dairy products. India's poultry product exports are mainly confined to eggs and egg powder, which are growing due to cost competitiveness and logistical advantages. Poultry meat exports are negligible due to high costs, inadequate meat processing facilities and infrastructure bottlenecks. In recent years, some South India-based integrators have been exploring the possibility of exporting poultry meat to the Middle East and South-East Asian markets. Presently 100% Foreign Direct Investment (FDI) is permitted in the food processing sector. Also FDI in food retailing, covering dairy, poultry, marine, vegetables and fruits might help the entire food processing industry grow. Poultry farming in India has transformed from a mere tool of supplementary income and nutritious food for the family to the major commercial activity generating the required revenue. The growth of the industry with steady production of 1,800 million kg of poultry meat, 40 billion egg per year and employment generation of about 3 million people indicates the future prospects for the industry. Changing food habits, rising income of the middle class Indian, presence of private players, rising market demand of the Indian poultry produce in the export market are some of the contributing factors to the growth of the industry. 1.1.1 Growth

A major constraint affecting the growth of the poultry industry in India is the lack of basic infrastructure such as storage and transportation, including cold chain. As a result, there are wild price fluctuations in the prices of poultry products, i.e., eggs and broilers. Another constraint to growth is an inefficient marketing system. The presence of so many market intermediaries harms both the producer and the consumer. A third problem relates to the price availability of feed resources. Maize or corn plays a major role in broiler production, as it constitutes 50 to 55 percent of broiler feed. As the broiler industry is growing at the rate of 15 percent per annum, the demand for maize is thus likely to increase. Presently India grows only 11 million tonnes of maize and only 5 million tones are available for poultry, which is not sufficient if the current growth rate of the industry is to be maintained. 1.1.2 Present Stage

Poultry farms are increasing steadily. Many government agencies are encouraging poultry farming and even short term training courses are organised regularly. Such farms have generated considerable employment opportunities in semi urban and rural areas. Marketing of poultry birds is expensive and death of birds during transit is the main bottleneck. This compels most of the poultry farms to concentrate on nearby markets even if it means less prices. Instead, if these birds are processed after dressing and packed in tins then transportation is easier, shelf life of the product goes up and the product is more hygienic. 1.1.3 Future

The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of poultry processing. This model report will serve as guidance to the entrepreneurs on starting up such a new project and basic technical knowledge for setting up such a facility. Number of non-vegetarians is steadily increasing year after year and because of changing social structure, eating non vegetarian food is no more a taboo. Even amongst the non vegetarians, various food and snack preparations made from chicken are very popular....
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