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Mrs. Anuradha J. DesaiChairperson,

Venkateshwara Hatcheries Private Limited

Current scenario and growth prospects for poultry

and raising Indias share in global markets

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Current scenario and growth prospects for poultryand raising Indias share in global markets

The big four nutritional deficiencies in India

Protein energy malnutrition among pre-school children

Vitamin A deficiency among children

Iron & Iodine deficiency anemia among children and

pregnant women

Anemia in Pregnant women

(Ref: Indian Council of Medical Research)

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Advantage Poultry

Most economical source of animal protein

No religious taboo

Acceptable to all non-vegetarian population

Highest Rate of Returns on Capital & land invested75% of non-vegetarian food consumed

in India comes from poultry products

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Advantage Poultry

Providing employment to 2.6 million persons

Increase of

one egg or50 gms of poultry meat

in per capita consumption

26,000Additional employment

opportunities

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Per capita consumption in select countries

EggsUSA 300Europe 280Taiwan 358Japan 346Mexico 304India 42

NIN recommendation 180 eggs

Current scenario and growth prospects for poultryand raising Indias share in global markets

Source : FAOSTAT

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Poultry Meat (kg)USA 49.8Canada 34.8UK 28.4France 26.0UAE 40.2China 9.7

Taiwan 34.0Australia 32.4India 1.67

NIN recommended

consumption 11 kg (all meats)

Current scenario and growth prospects for poultryand raising Indias share in global markets

Per capita consumption in select countries

Source : FAOSTAT

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Current scenario and growth prospects for poultryand raising Indias share in global markets

8.0130Developingcountries

25.3232Developedcountries

11.7152World

Poultry meat (kg)Eggs

Average per capita consumption (2002)

Source : FAOSTAT

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Projected scenario by 2010

Egg production 77.7 billionPoultry meat production 5.98 million tons

Per capita consumptionEggs 65Poultry meat 4.9 kg

Contribution to GNP Rs 60,000 croreEmployment 5 million

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Projected scenario at NIN recommendedper capita consumption

Egg production 234 billionPoultry meat production 12 million tons

Per capita consumptionEggs 180

Poultry meat 9.0 kgContribution to GNP Rs 125000 croreEmployment 9.4 million

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Padmashri Dr. B. V. Rao Father of Indian Poultry Industry

Current scenario and growth prospects for poultryand raising Indias share in global markets

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World class production infrastructureGenetic research and Breeding

Vaccines and Animal Health Products

Specific Pathogen Free eggs

Farm & Hatchery automation systemsPellet feed

Egg & Chicken processing

Well network Disease Diagnostic Laboratories

Entrepreneurial development and training

Unique Disease Surveillance & Monitoring Model

Current scenario and growth prospects for poultryand raising Indias share in global markets

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World class productivity

320 eggs Hen Housed

Broilers

Body weight of 1.8 kg in 6 weeks

Feed conversion ratio of 1.7

Energy level in feed 2800 K/cal

Current scenario and growth prospects for poultryand raising Indias share in global markets

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World production & Indias share (2003)

Chicken Meat

Eggs 3.9 %2.2 milliontons

55.83 milliontons

3.0 %2 million tons65 million tons

Indias sharein world

production

Indiasproduction

Worldproduction

Current scenario and growth prospects for poultryand raising Indias share in global markets

Source : FAOSTAT

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Top 10 egg producing countries - 2003

12301Slovakia

10207UK

43800India

40072Japan

15703France14440Brazil

12658Italy

12510Germany

12492Spain

74478USA

Production (in million)Country

Source : International Egg Commission

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Top 10 Chicken Meat producing countries - 2003

1.03Russian Federation

1.13France

1.21Japan

1.22Thailand

1.29UK

1.92India2.15Mexico

7.76Brazil

9.52China

14.85USA

Production (in million tons)Country

Source : FAOSTAT

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Poultry products exported from India

Table eggsHatching eggs

SPF eggsEgg powder

Parent breeding stock Chicken Meat

Value added chicken Meat products

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Indias share in international trade in poultry products (2003)

0.46%58.1212487.70.56%0.0569.875Total

0.04%4.8210837.150.05%0.0048.62ChickenMeat

5.6%23.39411.554.65%0.010.215Eggproducts

2.4%29.911234.04%0.0421.04Eggs

Indiasshare

IndiaWorldIndiasshare

IndiaWorldValue (mill $)Quantity (mill tons)

Source : FAOSTAT

Current scenario and growth prospects for poultryand raising Indias share in global markets

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International Competitiveness Ranking Dr Geoff Fairhurst

India No 1USA No 4China No 15Netherlands No 36

Source : World Poultry magazine Jan 2005

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Road blocks to exportsSubsidies by developed countriesSanitary and Phyto-sanitary conditions

Increasing cost of production-inputs ascompared to competing nations

- Feed grains- Vitamins- Equipment etc.

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Strategy required to boost exportsStep up production

Transport assistance @ 25% of freight on export of poultry meat

EU subsidy on export of poultry meat Rs 27.50 per kgUS subsidy on export of poultry meat Rs 29.00 per kg

India No assistance

Exert pressure on developed countries for reductionin subsidies as per WTO agreement

Industry focused approach towards potential markets

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Strategy required to boost production

Status of agriculture for poultry farming

Current scenario and growth prospects for poultryand raising Indias share in global markets

Central government is clear in its policy that

poultry is an agricultural activity ;whereas

State governments should also follow this &extend all benefits applicable to agriculture to

poultry also .

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Current scenario and growth prospects for poultryand raising Indias share in global markets

Impact of VAT on poultry

Meat is exempt from tax under VAT

No clarity on whether Meat includes poultry meat

Vitamins an essential feed ingredient

Varied taxation structure poultry equipment under

residual category of taxation

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Current scenario and growth prospects for poultryand raising Indias share in global markets

Impact of VAT on poultry

Kerala VAT Act exemptsAll meats except poultry meat

All livestock except poultryLive poultry & poultry meat taxed at 12.5%

Trade in broilers & poultry meat has come to a stand still in Kerala

Tamilnadu farmers may be forced to destroy lacs of broilers

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Impact of VAT on poultry

Current scenario and growth prospects for poultryand raising Indias share in global markets

7 % increase in feed cost results in86 % drop in farmers profits

12.5 % tax on vitamins, live poultry & poultry meat

will wipe out entire profit margin of farmers

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Current scenario and growth prospects for poultryand raising Indias share in global markets

Exemption of processed poultry from Excise Duty

Less than 3% of broiler production is processed

High incidence of duties & taxes

major obstacle for growth

Cumulative impact of Excise Duty & local taxes

25% to 35.3% of MRP

To boost growth, processed poultry products

should be exempted from excise duty

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Cumulative impact of Indirect Taxes onprocessed poultry in Various countries

Other Nations Singapore 5 %

Australia 10 % Mexico 15 % Sri Lanka 15 %

China 17 % UK 17.5%

In India The cumulative burden

of Indirect taxes is upto

28-44 % of cost of Production, includingthe excise & customduties.

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Quarantine measures for imported productsExemption of poultry products from VATInclude eggs in the Mid Day Meal program

Exemption of processed poultry products from Excise Dutyand other taxes.Credit facility to poultry farmers as per agriculture normsEncouragement in quality maize & Soyabean productionInduction of minimum support price system to protect

small farmer.

Current scenario and growth prospects for poultryand raising Indias share in global markets

Strategy required to boost production

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Quality control

Standards / GMP for manufacture of Veterinary drugs & Biologicals

Establish independent Veterinary Drugs AuthorityEstablishment of quarantine infrastructure for live

chicks to strengthen disease control systemConsistent disease surveillance & monitoring system

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Quality control

National Reference Laboratory for

Testing of domestic / imported Veterinary Biological products

Sanitary and Phyto-sanitary certification

Pesticide / insecticide / residual determination

Easy & economical access to farmers for such facilities.

Current scenario and growth prospects for poultryand raising Indias share in global markets

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USA Export SubsidiesExport Enhancement Program (EEP)

Market Access ProgramForeign Market Development Program

Emerging Market ProgramCredit Guarantee ProgramQuality Samples Program

In 2004, $ 4.6 million was given to various poultry associationsunder these programs in addition to direct payments under EEP

Current scenario and growth prospects for poultryand raising Indias share in global markets

Source : FAS, USDA

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Production subsidies by USA & EU

$ 1.0 billion per day

Equivalent to 53% of Indias GDP

US subsidy - $ 26500 per farmer

50 times greater than Indias per capita income

Current scenario and growth prospects for poultryand raising Indias share in global markets

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Current scenario and growth prospects for poultryand raising Indias share in global markets

US export of chicken leg quartersUS Wholesale price

Breast / Breast meat $ 3.85 to $ 4Leg quarters $ 0.44 to $ 0.6

In 2003 USA exported -> 1 million tons of chicken legs

Subsidy on export 67 cents per kg

Exporters were compensatedwith the entire cost & more by way of subsidy

f

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Current scenario and growth prospects for poultryand raising Indias share in global markets

In a Nut shell

Indias production technologies & productivityat par with the best in the worldStatus of agriculture & other policy / fiscalsupport requiredQuarantine & testing facilities at all ports of entry

Exert pressure at WTO forums forRemoval of trade distorting subsidiesCreation of level playing field

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Indian Poultry is poised to transform

animal-agriculture, if regulations,infrastructure facilities & sectoral

promotion programs are brought inpractice with basic thrust towards export

opportunities

Thank you