As we near the end of 2024, the Indian animal feed industry finds itself at a critical juncture, grappling with significant challenges—most notably the dwindling availability of maize. This essential grain is vital for nourishing billions of poultry and millions of livestock, making the potential threats to its supply particularly concerning. The rapid growth of the ethanol industry, which increasingly draws from India’s maize production, adds further complexity to the situation, affecting both the feed and starch sectors.
Historically, Indian livestock farming has undergone a remarkable transformation, evolving from traditional cattle and poultry practices into dynamic sectors such as dairy, aquaculture, and poultry. This evolution has significantly increased the demand for high-quality raw materials, including maize, soy, rice bran, edible oils, vitamins, and minerals, all of which must remain affordable. However, recent government policies aimed at industrialization and enhancing farmers’ incomes have inadvertently created new challenges for the livestock sector.
The livestock industry is uniquely positioned as the only sector in India experiencing double-digit growth, providing livelihoods for millions—from the unemployed to countless farmers. However, despite India’s capacity to produce surplus grains for human consumption, a disconnect persists between the livestock sector and key stakeholders, including the Departments of Animal Husbandry and Dairying, Agriculture, Commerce, and various farmer and industry associations. This misalignment hinders the timely supply of grains to the livestock sector, further exacerbating an already critical situation.
The need for coordinated action has never been more pressing. Stakeholders must unite to evaluate supply and demand dynamics and formulate a comprehensive 10-year plan focused on sustainability. This plan should prioritize addressing maize availability, enhancing production efficiency, improving product quality, effectively managing waste, and evaluating the quality of by-products suitable for livestock use.
According to the NITI Aayog report, India produced approximately 330 million tonnes of food grains, 221 million tonnes of milk, 317 million tonnes of fruits and vegetables, 16 million tonnes of fish, and 10 million tonnes of meat in 2021-22. While the per capita availability of food grains was around 568 grams per person per day in FY 2023, per capita meat consumption remains relatively low at about 5 kilograms per year. The dairy sector has shown stronger performance, with per capita milk availability reaching 459 grams per day—exceeding the global average of 322 grams. However, milk prices have frequently fallen below production costs throughout the year. It is crucial for the government and all stakeholders to address the challenges faced by dairy farmers to encourage improvements in both capacity and quality.
As highlighted in the NITI Aayog report, input costs for livestock—such as maize and edible oil—are expected to experience shortages in the coming years. This trend could result in decreased availability of milk and meat until 2047, the target year set by our Prime Minister for India to become a developed nation. To effectively address these challenges, all stakeholders must begin planning now to ensure the sustainability of the sector.
Despite encouraging indicators, the nation faces a significant protein deficiency, with more than 80% of the population unable to meet their daily protein requirements. Addressing this issue requires not only an increase in livestock production but also ongoing efforts to improve the quality and availability of feed.
The time for mere dialogue has passed; it is crucial for all stakeholders to come together and implement a sustainable model. Government agencies, policymakers, and industry leaders must take proactive steps to promote collaboration. Organizations such as FICCI, CII, and ICC should actively advocate for policy changes that support both the livestock and feed industries.
To move forward, a multifaceted approach is essential. This includes investing in research and development to increase maize yields and explore alternative feed ingredients, improving infrastructure for the efficient distribution of raw materials, and promoting practices that enhance the overall sustainability of livestock farming.
by Amiya Dharmapada Nath, JAPFA Comfeed
