Poultry firms see promising future ahead over subdued feed prices

Subdued feed prices to keep margins elevated in next few quarters, despite stable chicken and egg prices

After nearly four years of downturn, the outlook seems promising for India's poultry companies, on expectations of supply deficit and rising consumer demand for chicken and eggs.

Profit margins of poultry firms (primarily producers of fresh chicken meat and eggs) were under pressure for four years due to a sharp increase in feed prices. Worried at a consumer shift to alternative sources of protein intake, they did not pass on the feed price hike. Even during supply deficit days, poultry firms raised their product prices only marginally.

Now, lower feed prices have offered a cushion to their margins. While egg prices have