Factors contributing to the growth of the Poultry Processing Market in India

At present, the poultry industry is one of the fastest growing segments in Indian agriculture. The Indian poultry industry has transformed from being a mere backyard affair to a major commercial activity. India is the fifth largest producer of eggs in the world, and 70% of its output is contributed by the organized poultry sector and the rest comes from the unorganized sector.
 

Indian farmers have also moved away from rearing non-descript birds to hybrids to ensure faster growth, good feed conversion, and profits to the rearers. The poultry industry in India has undergone a change in both structure and operation.

Several factors put together have contributed to the growth of the Poultry Processing Market in India.

1.  Increasing scale of production: There has been an increase in the size of the poultry farm. Today units with 5,000- 50,000 birds per week cycle is common where earlier, there were units with around 5, 000 birds. Small units are being dismantled as they incur high feed and transport costs, expensive vaccines, and credit issuance problems.
2. Increase in per capita disposable income and rise of the middle class: Growing urbanization, increasing employment levels, rising per capita disposable income, a growing demand for ready to eat products, and an increase in the number of quick-service restaurants has massively favored the poultry processing market in India. The middle class in India, which consists of a staggering 1.3 billion people, demand for a more wholesome source of economic friendly protein that is chicken meat.
3. Increase in private investment and assistance by the Govt.: Though independent, small-scale raisers are responsible for a bulk of the production, the integrated large-scale private firms look into all aspects, from raising of flocks, looking into the feed, providing veterinary services and final poultry transportation and sale. Government assistance in the form of a tailored GST AD 100% FDI boosts the Poultry Processing Market in India.

Lack of advanced technologies, gaps in the supply chain management, social and cultural rejection of chicken meat and egg consumption among certain communities, and the higher price of processed poultry meat are some deterrents to the growth of the Poultry Processing Market in India.