India’s poultry industry is set to experience a robust revenue growth of 8-10 percent in the fiscal year 2023-24, driven by increased volume and improved realizations, according to a report from rating agency Icra. The report highlights the expected expansion of the domestic poultry sector, with organized players playing a significant role in the growth. While realizations were initially strong in the first half of the fiscal year 2023, they gradually declined due to excessive supply. However, demand has picked up in the current fiscal, resulting in an improvement in average realizations to Rs 107 per kg in the first half of the fiscal year 2024, compared to Rs 101 per kg in the previous fiscal year. The report predicts that the festive season and cold weather will further support demand and realizations for the remainder of the fiscal year. Additionally, decreased feed costs have supported players’ earnings, with prices of maize and soyabean, key components of feed, declining by 9 percent and 21 percent respectively in the first half of the fiscal year 2024. However, concerns arise regarding potential feed cost spikes due to soybean harvest contractions and delayed maize sowing during the kharif season. The report also notes that avian influenza or bird flu occurrences have been limited across the country in the current fiscal year. Although localized incidences were reported in Kerala and Jharkhand, they did not spread further. Any major outbreaks could temporarily impact demand and realizations in affected regions. Despite this, India’s self-declaration of freedom from Highly Pathogenic Avian Influenza in specific approved farms and the resolution of the long-standing poultry dispute with the US are expected to create new opportunities for Indian poultry companies in the global market. Looking ahead, the report anticipates favorable domestic demand supported by an increasing urban population and changing eating habits. It suggests that poultry companies invest in capacity additions for feed mills and move towards forward integration into meat processing plants to transition to higher-margin value-added products. However, the expected rise in input costs may keep debt levels high due to increased working capital requirements for feedstock.
According to a recent report, the Indian poultry industry is expected to witness a revenue growth of 8-10% in the fiscal year 2024. This positive projection is attributed to various factors such as increasing consumer demand for poultry products, rising population, and changing dietary preferences. Additionally, the implementation of government initiatives to boost poultry farming and the growing awareness of the nutritional benefits of poultry consumption are further contributing to this growth. With these favorable conditions, the Indian poultry industry is poised for a promising future, offering potential opportunities for both farmers and stakeholders.
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Indian poultry industry revenues predicted to increase by 8-10% in FY24, according to report.
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