Transformation of India’s Broiler Chicken Industry

Context:

India’s broiler chicken industry has undergone a significant transformation, evolving from traditional, small-scale farming to a highly organized and vertically integrated agri-business. This shift has been pivotal in enabling smallholders to participate effectively in commercial poultry farming. As a result, there has been a notable increase in both productivity and profitability within the sector, demonstrating the positive impact of modern agricultural practices and business models on traditional farming communities.

Relevance:

GS III: Agriculture

Dimensions of the Article:

1. Current State of India’s Poultry Industry
2. Key Growth Drivers
3. Challenges Facing the Poultry Industry in India
4. Proposed Solutions

Current State of India’s Poultry Industry

• India is currently the third-largest producer of eggs and the eighth in meat production worldwide.
• Egg production has surged from 78.48 billion in 2014-15 to 129.60 billion in 2021-22. Similarly, meat production increased from 6.69 million tonnes to 9.29 million tonnes over the same period.
• The country produces approximately 5 million tonnes of broiler meat annually.
• In 2022, the total poultry feed production in India reached 27 million metric tons.
• The sector has witnessed an average annual growth rate of 8% in meat production and 7.45% in egg production from 2014-15 to 2021-22.
• The Indian poultry market reached approximately Rs. 2,099.2 billion in 2023, with projected growth at a CAGR of 8.9% from 2024 to 2032.
• During 2022-23, India exported poultry products to 64 countries, generating revenue of USD 134 million.
• The top egg-producing states include Andhra Pradesh, Tamil Nadu, Telangana, West Bengal, and Karnataka.

Broiler Chickens

• Broilers are chickens specifically bred for meat production, characterized by rapid growth and large breast muscles.
• These chickens convert feed into meat efficiently, making them economically viable for commercial production.

Key Growth Drivers

• Contract Farming: Utilization of contract farming models provides resources such as day-old chicks, feed, and technical support, enhancing control over the supply chain.
• Modern Facilities: The use of environmentally controlled (EC) sheds with automated feeding and climate control systems has improved growth efficiency and reduced mortality rates.
• Breeding Advances: Improved breeding techniques have led to faster growth rates and better disease resistance.
• Urban Demand: Rising urban populations and shifting dietary preferences towards processed and ready-to-eat poultry products have increased demand.
• Government Support: Initiatives and subsidies, along with enhanced infrastructure for transportation and cold storage, have spurred sector growth.
• Financial Support: Loans and credit facilities from financial institutions have also supported investments in poultry farming.
• Export Potential: There is significant potential for exporting poultry products to international markets, though this is influenced by global market conditions and competition.

Challenges Facing the Poultry Industry in India

• Environmental Impact: The confinement of chickens in high-density battery cages leads to poor air quality, significant waste management issues, and increased greenhouse gas emissions.
• Regulatory Compliance: Poultry operations with over 5,000 birds are classified as polluting industries, necessitating stringent regulatory compliance as mandated by the Central Pollution Control Board (CPCB).
• Feed Price Volatility: The profitability of poultry farming is heavily impacted by fluctuations in the prices of key feed ingredients like corn and soybean, making it crucial to ensure a stable supply and explore alternative feed sources.
• Animal Welfare Concerns: Inhumane practices prevalent in industrial poultry operations, such as mutilation, starvation, and overcrowding, directly violate the Prevention of Cruelty to Animals (PCA) Act, 1960.
• Financial and Operational Challenges: Farmers face substantial financial pressures due to large debts, reliance on informal facilities, and the complexities of contract farming arrangements, often leading to significant losses.
• Competition from Alternative Proteins: The rising popularity of plant-based proteins poses a competitive threat to the poultry market.
• Supply Chain Inefficiencies: Challenges in transportation, cold storage, and distribution networks can lead to significant wastage and negatively impact the quality of poultry products.
• Environmental Pollution: The industry contributes to environmental degradation through the emission of pollutants like methane, CO2, and through water effluents and solid waste that lead to soil and water pollution.
• Excess Manure: Accumulation of manure beyond the land’s capacity for absorption creates pollution and breeds disease vectors like flies and mosquitoes.

Proposed Solutions

• Improving Business Environment: There’s a need to improve the ease of doing business by enhancing the export framework and integrating informal sector units into the formal economy.
• Investment in Research and Development: Boosting investment in R&D could drive innovation and lead to significant advancements in the poultry sector.
• Stricter Environmental Regulations: Enforcing stringent environmental regulations is crucial, especially given the CPCB’s classification of the poultry industry as a high-polluting sector.
• Adherence to One Health Principles: It’s essential that India’s environmental laws and regulations embody the One Health principle, which integrates human health, animal health, and environmental sustainability.
• Public Health and Welfare: Strengthening the linkage between animal welfare, public health, and ecosystem integrity should be prioritized to foster sustainable practices.
• Public Awareness Campaigns: The government should fund campaigns to raise public awareness about the crucial aspects of poultry farming, aiming to inform and sensitize the wider community.

-Source: Indian Express