India is one of the largest producers of eggs and chicken in the world, but it suffered a huge blow due to the coronavirus pandemic. It is now working on rebuilding and is seeking expertise from the Dutch poultry sector.
India is the third largest egg producer worldwide (after China and the US) and the fourth largest chicken producer globally (after China, Brazil, and the US). The Indian government has now announced measures to rebuild the poultry sector. According to the agricultural counselors at the Dutch embassy in New Delhi, such a recovery operation offers opportunities for Dutch involvement.
The poultry sector in India is large and still growing. Egg consumption per capita has risen over the past five years from 30 to 68 eggs per year. In the same period, chicken consumption increased from 400 grams to 2.5 kg annually. In Western countries, consumption is nearly ten times higher. Indian nutritionists recommend a minimum of 180 eggs and 10 kg of chicken per year, a fivefold increase, which means the Indian poultry market is full of growth potential.
The Netherlands Business Support Office (NBSO), the Embassy in New Delhi, Topsector Agri & Food and RVO are currently exploring possibilities to work with India to reduce antimicrobial residues in the poultry chain. Furthermore, they see a need for expertise, support, and financing for cold chains and refrigerated transport, skills and training, additives and premixes, supply machinery, and new technologies for farm maintenance.
The Indian poultry sector took such a heavy hit because at the very start of the coronavirus period, superstition prevailed in rural India that the coronavirus was spread by birds and chickens. Poultry meat sales dropped by as much as 80 percent and prices for poultry meat were halved. More than a million small poultry farmers and over half a million people working in the sector lost their jobs. This also affected feed producers.
Poultry is the most organized livestock sector in India, valued at €14.5 billion. Broiler meat production was 4.2 million tons per year in 2015-16. Demand for processed chicken meat is growing by 15-20% annually. Eggs and chicken were classified as "agricultural products" a few years ago, but are now regarded as "food products." This is one of the signs that food safety has become a priority.
The final food products, such as eggs and chicken, are not exported in large quantities because there is a huge gap between demand and supply in India. Between the early 21st century and 2050, animal protein consumption in India is expected to double. During Poultry India 2019, Dutch experts and the Dutch embassy invited Indian experts to discuss housing systems and animal welfare.
The main challenge in recent weeks was logistics and keeping stores open. Currently, the logistics problem is being addressed in at least 60% of the country. The poultry sector is expected to somewhat recover by the end of this year, though capital for new investments may remain limited for some time.
Therefore, the current setback can, according to the Dutch agricultural counselors, be seen as an opportunity to create new markets and expand existing ones. It should not come as a surprise that the Indian government recently announced a new infrastructure fund worth $2.1 billion to provide private players with interest subsidies of up to 3 percent for setting up dairy, poultry, and meat processing units.