Indian Feed Industry to double in next 5 Years.

Indian Feed Industry to double in next 5 Years. 

India's animal feed industry which is currently a $15 billion , is poised to double and touch $ 30 billion in the next five years to cater to the growing protein requirements of the country , a report published by Yes Bank says.

The per capita meat and milk consumption is growing ,especially in China and India, and is projected to remain high in the European Union,North America,Brazil and Russia. With changing income levels and more people eating chicken ,fish and meat. there will be a higher requirement of  processed dairy,aqua and poultry products, which is in turn will result in higher feed requirement, the report says.

The report suggests  stronger growth in demand of poultry sector from integrator in regional pockets of  Andhra Pradesh, Karnataka & Tamil Nadu .

As the poultry industry has been expanding beyond the boundaries of these states , there is a huge opportunity for stand alone feed players.

With multinational companies eyeing he lucrative Indian markets , the animal feed industry in INDIA will have to increase the capacities keeping in mind their quality issues to leverage on the growing demand for compound feed . India's feed industry is growing at a CAGR of 8% with poultry ,cattle and aqua feed sectors emerging as major growth drivers .According to estimates b leading industry sources , the demand for animal protein and dietary products in India will increase the compound       feed consumption volumes to million tonnes by 2017-18.

In India, at present cattle industry accounts for 7.5 million tonnes, aqua industry consumes 1 million tonnes while the poultry industry consumes around 13 million mt of the feed , with soy meal and corn being the prime consumables . In volume terms , at present , an estimated  22 tonnes of feed is required in the country . Policy measures also needed to be taken to improve the productivity of cattle which stood with 10 liters against 15-20 liters globally .Good feed was one of the ways achieving this .

The feed sector in India is at an inflection point with the emergence of modern dairies ranging from 50 animals to upwards of 500 animals ,aqua products.

State wise bifurcation 

Tamil Nadu has the largest poultry feed requirements of 1.38 million tonnes from the broiler and 1.97 million tonnes from layer sector , followed by Andhra Pradesh which requires 1.27 million tonnes for broilers and 3.09 million tonnes for layers , where as Maharashtra required 1.23 million tonnes for broiler and 3,60,000 tonnes of feed for layers .
West Bengal states requires 1.12 million tonnes of feed for broilers and 1,20,000 tonnes feed for layers ., while Haryana & Punjab state requires 8,80,000 tonnes of broiler feed and 1.49 million tonnes of feed for layers.

Source : The Financial Express