USDA review: Indian egg and poultry production

India has one of the world’s largest and fastest growing poultry industries, ranking third in hen egg production (FAOSTAT) and sixth in broiler meat production (USDA/FAS), according to a report by the USDA’s Agricultural Marketing Service.

Real Gross Domestic Product (GDP) grew 6.4% annually during 2000-2008, making India the second fastest growing major economy in the world (after China). India is expected to overtake China as the world’s most populous country in the coming decades, with middle-class households being the fastest growing segment of the population. About 20% of the population is vegetarian, but with increased incomes and urbanization people prefer to go for non-vegetarian diets.

According to the Ministry of Food Processing Industries, about 70% of poultry is in the organised sector and 30% is in the unorganised sector. Nearly 60-70% of the broiler industry is located in the southern states, as is much of the layer industry. Large integrated operations incorporate all aspects of production: raising grandparent and parent stock, contracting production, compounding feed, and wholesaling. Integration has resulted in lower average costs of production and lower retail prices for poultry meat.

Broiler production grew at an annual percentage growth rate of 8.35% from 2001 (1.25 million metric tons) to 2010 (2.65 million metric tons). Production is projected to grow 2% in 2011 compared to the previous year. Per capita consumption has grown from 1.22 kilograms in 2001 to 2.26 kilograms in 2010, an increase of 185%.

In 2010/2011 (March 2010 to February 2011) India’s egg production is anticipated to reach 61.5 billion eggs, up 68% from 36.6 billion in 2000/2001. Andhra Pradesh and Tamil Nadu are the top fowl egg producing states; West Bengal is the top duck egg producing state.

India’s poultry exports are mainly shell eggs and egg products. Exports of poultry meat are limited by high production costs, inadequate meat processing facilities, and intermittent outbreaks of avian influenza. According to FAOSTAT data, since 2005 India has mostly exported dried eggs. In 2008 India’s top three markets for dried eggs were Germany, Denmark and Indonesia. Angola was the top market for liquid eggs.

Full report with tables and figures can be viewed here.