India’s Poultry Industry is estimated to be worth INR 90000 crores. The compound annual growth rate of egg and meat production is around 8% to 10%, so this industry indeed adds a lot to the country’s economy.
Let us have a look at the economic aspects surrounding Poultry farming.
A study on the cost of poultry production (Tamil Nadu) indicates that feed is the critical component of total expenditure, followed by other things, such as one-day-old chick costs, medication costs, and labor costs. Large scale production is profitable and positively affects economic efficiency.
The marketing channel is well organized and works in a reasonably competitive atmosphere. There is a precise alignment between wholesale and retail markets in the commodities market, and price fluctuations in one market are completely transferred to other markets.
Because of the poultry industry’s commodity nature, declining supply would also increase prices and profitability as products like boneless, skinless breast meat are scarce and have limited availability. Consumers would be willing to pay more for such items.
Supply’s flip side is demand. The market demand for poultry meat ranges from cut to cut and several seasonal trends have been observed while studying consumer behavior. Although the expectation of a rise in seasonal demand can or may not pan out, it leads to optimistic thought.
However, when the Avian Flu hit India’s birds, consumers resisted seafood, poultry, and egg intake, etc. Because of the decline in demand, the wholesale price of chicken plummeted by around 70%.
Growth in exports positively affects the economic condition of the industry.
Lower costs of input inspire farmers to grow more as they get a better profit margin now. Since feeding accounts for about two-thirds of broiler production costs, minor declines in feed rates will significantly raise profit margins. An extra advantage is dropping oil prices.
Expanded jobs and facilities in the industry are attractive to job seekers and businessmen. Companies recruit and construct, remodel, or extend facilities amid optimistic ecosystems.
In the Indian government’s economic plans, the funds allocated for poultry farming production under the different plans have been minimal. However, development targets have been satisfactorily accomplished by the poultry industry.
Poultry farming has been included in numerous projects funded by the central and state governments, such as the Integrated Rural Development Program (IRDP), the Special Livestock Production Program (SLPP), the Tribal Development Program (TDP), etc., to popularize rural poultry farming. The production of produced poultry, however, did not succeed at the desired stage.
The growth stage of poultry farming in various states is unequal as the majority of the total demand is fulfilled by few states. There is significant poultry production in just a few states, such as Andhra Pradesh, Maharashtra, Haryana, Punjab, Tamil Nadu, and Gujarat.
Management plays an essential role in coordinating and integrating all the factors for running an organization profitably. One of the main reasons for success in all types of production, including agriculture and poultry farming, is good management.
To thrive as producers, farmers need to devote a great deal of their time and pay attention when making management decisions such as farm design, breed selection, feed types, and other essential things.
Production in agriculture has improved and is getting modernized. Therefore, with a higher degree of effectiveness, specialization, and constant introduction of new technology, production skills have to be expanded.
Investment in the industry will be accelerated given the Investment opportunities in Poultry Industry in India.
Farmers need to build and equip themselves with all the management skills to cope with these innovations and improvements in agricultural production. They must also remain aware of the economic factors influencing the industry for full-fledged growth.
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