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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

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

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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