Broiler meat demand will continue to grow at 5-7%: Icra

Domestic broiler meat demand will continue to grow at 5-7 per cent, while demand for eggs will rise at 4-5 per cent in the long-term due to efficient distribution system and increasing acceptability of frozen chicken, rating agency Icra said today.
In value terms, growth is expected to be higher at over 10 per cent, a report by Icra said.
The transition of the poultry industry from a predominantly live bird market to a frozen market would be crucial for future growth of the domestic market as well as increasing presence in international trade where India currently has a negligible presence, it said.

Developing efficient distribution system and increasing the market acceptability of frozen chicken are also going to be key industry drivers in the long-term, it added.
Poultry industry growth moderated in 2014-15, with base effect catching up and planned supply control measures being adopted by the industry to control supply glut in the broiler market.
For Icra's set of 10 large poultry integrators, the annual revenue growth in 2014-15 was at 11 per cent after four consecutive years of more than 20 per cent.

Further, Icra said broiler volume growth is expected to remain modest in near term though long term demand prospects continue to remain healthy.

This is mainly due to favourable factors like low per capita consumption (currently at 3 kg per annum), regional preference for chicken meat, year-round easy availability across country, increasing disposable income, changing food habits, increasing health awareness, and poultry being one of the cheapest source of protein, it added.
The current fiscal started strongly for the poultry industry with record high realisations during the first quarter, though realisations moderated in second and third quarters while feed prices continued to remain high, it said.
Maize prices, after moderating in 2014-15, rose to record highs in current fiscal, taking average broiler production costs back to 2013-14 levels, while average realisation levels remained at Rs 67-68 per kg for first nine months of this fiscal.

Same is expected to continue to put pressure on profitability of poultry integrators in near term, though broiler realisations are expected to improve in fourth quarter of 2015-16, Icra added.