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PRESENTATION ONLIVESTOCK,DAIRY AND POULTRY

SECTORPRESENTED BY:

GROUP-4

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Livestock sector

Includes animal husbandry, dairy,and fisheries

sectors as major sectors

Plays important role in national economy and

socio-economical development of the country. India has highest livestock population in the

world

Contribution in GDP- 4(2008) Contribution in Agricultural GDP- 27%

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Livestock population

According to 17th census of livestock, existing

population is 529.70 million

Livestock population in India by species (FAO STATproduction data-2008) in million

Species India World

Cattle 199 1372

Buffalo 105 185

Sheep 65 1086

Goat 126 865

Camel 0.6 25

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production

livestock Present production (000 tons)

Beef 1462

Buffalo meat 1443

Sheep meat 232

Goat meat 470

Pig meat 612

Poultry 1401

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Value of import of livestock &livestock products

Imports(2008)

particulars Quantity(

tonnes)

Value (

Lakh Rs)

Livestock 200000 5381

Meat &

meat offal

201 543

Animal

fodder &feed

249178 86185

Raw wool

& animal

hair

74774 117535

Exports(2008)

Pariculars Quantity(

tonnes)

Value ( lakh

Rs)

Livestock 78585000 8013

Meat &

edible meat

offal

545731.19 624531

Animal

fodder &feed

4861112.14 819168

Raw wool &

animal hair

18860.35 56169

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Dairy sector overview: Global vsIndia

India accounts for more than 13% of total world

output

More than 57% of total Asias production

Top 5 milk producing countries of world:

1. India

2. USA

3. Russia4. Germany

5. France

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Dairy sector

Year Milk production (mt) Milk availability(gm/day)

2004-05 92.5 233

2005-06 97.1 241

2006-07 100.9 246

2007-08 104.8 252

2008-09 108.5 258

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Milk flowchart

Milk production

98 Mt in 2006-07

Liquid milkProcessed

and packed

in rural/

urban areas

7.84 Mt (8%)

Value

added milk

product by

organizedsector

8.8 Mt(7%)

Liquid milk

sold in

urban areas

18.62 mt

(19%)

Unprocessed liquid milk

sold in rural

areas

43.12 Mt

(44%)

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Organized versus unorganized

40-50% of milk produced is retained at producer

level.

Organized sector 12-15% and remaining 35-

38% handled by unorganized sector In organized sector cooperative societies play

major role

Presently there are 70000 village dairycooperatives across the country

170 dist. Milk producer union

22 state cooperative federation

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Industrial overview

Presently only 12% of milk market is represented by packaged andbranded pasteurized milk, valued at Rs 8000 crores

Market growing at rate of 4% per annum in volume terms

Penetration of different milk products:-

Butter/ Margarine(4%)- Rural-2.1% , Urban- 9%

Ghee -37.2%( highest) Milk powder and condensed milk(4.7%)

Major players in market

Vijaya : (A.P)

Saras:( Rajasthan)

Gokul: (Maharashtra)Sudha::(Bihar)

Anchal:(Uttarakhand)

Mother dairy:( Delhi)

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Strengths

Abundant raw material

Reasonable margins

Professionally trained manpower

Large no. of animals

Strong marketing channel

Monopoly in buffalo milk production

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weakness

Large quantity of milk (70-75%) of marketable

surplus goes through informal channel

Poor quality

Lack of competition in cooperatives Scattered milk production

Lack of long term policy for improving indegenous

breed

Weak extension system

Timely unavailability of credit & low risk bearing

ability

Perishable nature of product

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Opportunities

Largest population of livestock in the world(16%cattle, 57% buffalo, 17% goats,5% sheep

Only 37% milk in India is processed so opportunityin processing

As a signatory of WTO, India has vast potential toimprove position in the world trade of dairy market

Potential for exports due to low production cost

Entry of large corporates into retailing

Increased consumer sophistication & awarenessfor quality packaged products

Cooperatives socities strong only in few states

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Threats

Carelessness for milk quality by large section of

consumers

High price sensitivity so people are not willing to

pay for quality Low productivity and scattered production

High transportation cost

Emphasis on milk fat & not on SNF contentmaintaing relatively lower price opening

Major portion of dairy sector is in unorganized

sector

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Government Regulations

Milk and milk products order (MMPO),

1992

Introduced in 1992 by government of India

Acc. To this act if any entrepreneur is to

establish/operate a dairy business ,in

India, he has to register under MMPO.

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POULTRY:INDIAN OVERVIEW

Worlds second largest market

Growth rate - 12-15%p.a.

5th in egg production in the world .

53000 million eggs & 3.2 MT of poultry meat p.a.

produced.

0.5% contribution to world exports.

Per capita consumption 42 eggs/year and ICMRrecommendation 180 eggs/year

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Organised sector Unorganised sector

Constitute of 70% sector

Production of genetically

superior breeds.

Modern farming

techniques.

Good manufacturing

facilities .

Availability of medicines

and vaccines.

Production of low cost

broiler meat .

Lack of knowledge aboutfeed ingredients used.

High mortality inlocal

chicken breeds.

Less supply of vaccines &medicines .

Supply of live chicken is

more .

Management practicesare not followed properly.

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INDUSTRIAL OVERVIEW

Per capita availability of meat is 1.6 kg.

Per capita availability of egg is 1.8 kg or 42

eggs.

The broiler industry and layer industry isdominated in southern with 60-70% & 70 %

total output respectively.

Presently about 800 hatcheries are operating

in the country.

Provide employment to 3 million farmers and

15 million agrarian farmers & contribute about

Rs 26,000 crore to the national income.

M j l i i I di

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Major poultry companies in India:

I. Venkateswara Group, Pune

II Suguna Poultry Farms Ltd, Coimbatore

III Pioneer Poultry Group, Coimbatore

IV Godrej Agrovet Ltd, Mumbai

V Sky Lark group, North India

V Jafa com feed

100% Foreign Direct Investment (FDI) is permitted in

the food processing sector.

. The growth of the industry with steady production of1,800 million kg of poultry meat, 40 billion egg per

year and employment generation of about 3 million

people indicates the future prospects for the industry.

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Per capita eggs consumption

Sr. no. Country eggs

1 UAS 300

2 Europe 280

3 Taiwan 358

4 Japan 346

5 Mexico 304

6 India 42

Source-

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Per capita consumption of poultry meat-Sr.no.

Country Meat(kg)

1 USA 49.8

2 Canada 34.8

3 UK 28.4

4 France 26.0

5 UAE 40.2

6 China 9.7

7 Taiwan 34.0

8 India 1.67

Source-FAOSTAT

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SWOT - Analysis

STRENGTHS Low cost of production and marketing

Availability of the labourer

Effective poultry integration and poultry contract farming.

India is only country which self reliant and technology driven. Greater availability of raw feed material

WEAKNESSES

Less exporting quantities.

Lack of cold chain facilities .

Wet market

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OPPORTUNITIES

Increasing per capita income offers huge market

demand.

Transition from back yard poultry to integrated poultryfarm.

Integration of poultry supply chain.

Poultry meat is the fastest growing protein food.

THREATS

Lowering of import duties on poultry products offer stiff

competition to the domestic poultry industry.

The poorly defined Sanitary requirements in the

domestic market.

The rate of growth of production have had a downward

trend

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GOVT. REGULATIONS Encouraged 100% FDI .

There are no restrictions on exports of poultry andpoultry products.

The government provides some transportationsubsidies (Rs 3-15 per kg) for its exports.

Encouraged NATIONAL MEAT AND POULTRY

PROCESSING BOARD (NMPPB) to produce goodquality meat .

Reduction in the excise duties .

Funds of Rs.1095 crore for poultry developmentduring the 11th Plan and Rs 30,000 crore for the entirelivestock sector under various schemes of the GOI.

Breeding Policy for Chicken:

Breeds mainly covers the species suitable for backyard poultry and low investment poultry.

Breeds for commercial poultry involve import ofgermplasm and parent line.

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Back Yard Poultry Development SchemeUnder the Backyard scheme where low inputtechnology bird of colored strain but diseaseresistant type are supplied to the farmers of thestate at Rs. 14/chick of 2, 3 weeks age to preventthe early mortality.

National Egg Co-ordination Committee, controlquality and price.

National Meat and Poultry Processing Board would

serve as a 'single window service provider. Four regional centre have been restructured on the

principle of one window service to farmer.