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Indian poultry industry heading towards crisis, experts warn

The poultry industry in the Indian sate of Andhra Pradesh is heading for a major slump with thousands of marginal and big farmers incurring huge losses, The Times of India is reporting.

The rise in feed costs, particularly soyabean and maize, along with production costs in the last three months, have led experts to suggest there may be negative growth for the poultry industry in the coming months.

The production cost for broiler chicken has gone up from Rs 30 to Rs 50 per kg but the market rate has decreased from Rs 100 to Rs 70 a kg. "Skinless chicken is available at Rs 102 a kg, the dressed chicken at Rs 86 and live bird for Rs 50," A Gopal Reddy, executive director of a private hatchery, pointed out. The production cost was Rs 42 per kg a few months ago and the market rate of Rs 100 per kg was economically viable for the breeders.

One tonne of soyabean now costs Rs 16,000 as against Rs 12,000 in October/November last year. Similarly, a tonne of maize costs Rs 12,000 as against Rs 9,000 a year ago. The poultry farm owners also have another worry with the rates of 50 types of imported varieties of feed like amino acids and vitamins to breed chicken going up. Frequent power cuts have also plagued the industry.

Industry sources say as a result of increase in production costs, 14,000 poultry breeders and 95 hatcheries across the state are facing desparate times. Andhra Pradesh produces about three crore broiler chicken every month but with the industry facing a rough patch, the production could decline. Telangana is the worst-hit with 60% of the breeders belonging to the region.

Industry observers said the situation is grim in Medak (with 1,387 breeders), Ranga Reddy (826), Nalgonda (1,140), Mahbubnagar (1,140) along with Chittoor (1,191), West Godavari (658) and Krishna (772) districts which account for the majority poultry breeders in the state. As a solution to tide over the crisis, breeders want the government to ban forward trading in maize and soyabean immediately.

Source: The Times of India

Editor WorldPoultry


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    Raghavan V.Dr

    The best way is to overcome losses is to trim down aged flocks and create a shortage of chicks in the market and prices will go up.For feed look for alternate sources of local materials and use new enzyme technologies.Thirdly many politicians have echoed helping farmers with incentives--try and see whether you can get it or not.

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    kamal nath

    There is no doubt that consumption is increasing steadily.But breeding companies expanding their breeders capacity invariably.Market leaders should restrict their breeding farm capacity, otherwise we will face huge crisis in poultry industry.

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    dr pravin m lunagariya

    1. Culling flock early age, make grower and breeder in gaining position.
    2. Good control over total no. of parent to be distribute.
    3. Ban on forward trading of the feed ingredients.
    4. Scientific use of enzymes, probiotics, and other supplements.
    5. scientific feed formulation, not only the economical

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    This bad situation is mainly due to rise in price of maize and other major ingredients, also the over production of Hatchable eggs, day old chicks and result in more broilers. This may be maneged by culling of flocks and destruction of hatching eggs on national level.

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    Professor Dr.M.H.Rahman

    Impact of global warming is the reason as to why soybean price is going up. Thus, drought tolerant and as well as high protein alternative legume like sweet lupin may an answer. Lupin grows on acid soil and on fallow land and could be a choice as a novel source of protein for both poultry and and as well as humans. In India and other SAARC countries this legume hasn't received attention as yet and thus, we must work to make lupin as a new source of protein for poultry to reduce the cost of production. I have been trying to grow L.angustifolius (sweet lupin) of Australian and German origin hust plauged with root rot problems. More funding and research priority is needed to develop this legume.

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    Dr D.Narayan Reddy

    Most of the hatchery owners are rearing the broilers and their birds are sold with extraordinary rates .The farmers are tempted to rear the chicks with highcost.By the time the farmers birds come to the market the rates are going down.This should be rectified by hatchery owners or farmers should become united to bring the chick cost to a reasonable rate by the hatchery owners

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    Last year they have placed 26 lakh parents in the region, where the said crisis rported. suddenly they have increased the capacities to 40 lakh parents. For the last 5 years, the individual farmers have closed their own farms and leased their farms to integrators. integrators have doubled their capacities depending on the demand from other states. Now other states have also expanded and reduced their dependability. that is the soul reason for excess production. The Indian poultry industry has taken a shift from layer oriented to broiler orientation. broilers need more feed and hence demand for feed also increased. hatcheries also are planning to cull their parents from 58 -60 weeks instead 70 weeks to reduce production. Inspite of all the remedial measures, we see the crisis. The solution is the reduce further the capacities. But another 100 applications are pending with basic breeders for sanction of new hatcheries. unless and until the industry looses further crores of rupees the leaders don’t realise the sacrifices they have to do for industry.

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    Mr MNRAO you interpreted it the most correctly. Situation is going to deteriorate further. Poultry has shifted to Broiler farming - True, reason marginal farmers have found it easy source of employment, less capital is involved and return is fast. This is perception.The whole process will take time before market itself adjust to cost of production and selling price. There will be many and more who will have to sacrifice.

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    g.b.murali krishna

    the only solution to retain the market is to cut down the parent flocks. and major focussing point is that the big players in the industry should come forward to panel of body and try to do the that open farmer community may increase, and demand supply chain maintained

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