Next green revolution in eastern and northeastern India is bright prospect for livestock industry
Please share some of the challenges and opportunities for AB Vista in the Indian poultry market compared to developed markets?
Indian poultry industry is expected to grow at 7-8% in next ten years and it is a great opportunity for company like AB Vista to sell enzymes. As raw materials prices went up, feed millers and farmers realized the importance of using matrix value and they started buying enzymes as per benefits instead of focusing on price factor. But still many more feed millers, integrators, consultants and poultry farmers including layer farmers need to be made aware of the concept of superdosing and matrix values.
What changes have you witnessed in Indian Livestock industry over the course of your career?
In last two decades, Indian livestock industry has gone through metamorphosis. The poultry sector has undergone major structural changes during recent decades, due to variety of reasons like, the introduction of modern intensive production methods, genetic improvements, improved preventive disease control and biosecurity measures, increasing income and human population, and urbanization.
- Broiler feed is pelleted
- Poultry integration boosted the growth of industry
- Layer farming industry is more sophisticated with bigger farm size. Few states of India supplies eggs to the whole country
Indian is still a wet market although commercial eggs are exported, but in coming years, a lot of improvement is expected in poultry processing, marketing and exports.
Even the organized dairy sector has not grown as per the expectations. Today, only 20% of the total milk production is handled by the organized sector. Milk cooperatives need to adopt better practices for milk handling like cold chain, and help farmers to improve productivity.
Species change from Monodon to Vennamei is proved to be a life line for Indian shrimp industry . A decade ago, while I was working with American Soybean Association floating fish feed was introduced and today, around seven lakh tons of floating fish feeds is sold in the country.
According to latest Global Feed Survey by Alltech, India is 5th largest feed producing country in the world with a total production of 29.43 i.e. 3% of total feed production. Please share species-wise consumption trends in India and growth trajectory for the Indian feed industry?
Indian Poultry feed is the most organized industry compared to Livestock and Aqua feed industry with a production of approx. 12 MMT of broiler feeds and 8.5 MMT of layer feeds. Ongoing demand for chick mash, grower mash and layer feed concentrates from layer farmers has proved to be an opportunity for commercial feed millers. Last year around 5.5 lakh tons of shrimp feeds and around one MMT of fish feed (7 lakhs floating and 3 lakhs pelleted) was sold in the market.
Around 7.5 MMT of cattle feed was produced and in coming decade better growth and quality is expected. In a recent conversation, the Gujarat Milk Cooperatives have shared that raw material quality is the biggest challenge. Feed millers and raw material suppliers needs to come together to resolve these issues.
Antibiotic Resistance growing concern in India? How do you think it may influence the market?
Compared to earlier decade today consumer is more educated and concerned about nutrition. FSSAI and consumer organizations are becoming more alert about excess use of antibiotics and its negative impact. Our industry also should seriously consider it and prevent the use of antibiotics as growth promoters. We need to invest in consumer awareness which should also include policy makers, NGOs, Medical doctors, etc. In coming decade, food safety will be a major challenge and also marketing tool for the industry.
Industry has seen a mismatch between the feed ingredient prices which keep on varying and end-product prices which remains constant throughout the year. Your comment.
Industry cannot control the prices of feed ingredients. If imports are allowed during lean period, it will support the industry to keep feed prices in control. Standards laid out for feed ingredients for quality assurance need to be implemented in an effective manner. Alternate feed sources can also provide better profitability and it can also be fetched by processing, branding and marketing the end products. Penetrating the untapped rural Indian market is another way. Exports of end products is always a big opportunity. However, to improve exports, the quality of the end products also need to be improved, to meet international quality standards.
Technological advancements is the key for development of any market. How do you look at genetically modified feed market in India?
Coming decade presents huge scope for technological advancements and efficiency in Indian agriculture. Government is providing funds for speeding up the process. Next green revolution in eastern and northeastern India is a bright prospect for livestock industry as well. The industry needs to focus their investment on these states.
Water is going to play an important role in the future success of agriculture. Genetically modified foods is one of the technologies with a potential to improve productivity. But organic farming is a niche sector and farmers need to adopt scientific approach to improve their farming efficiency. Skill development is another area that needs a lot of improvement. Livestock sector will serve as the best and sustainable option for Indian agriculture and the farming community.
Considering the present challenges, what might the status of Indian feed industry look 10-20 years down the road? What do you visualize as the game changer for Indian feed industry?
Poultry feed will continue to be a leader but Livestock and aqua feed will be the game changer. Continued growth of Indian industry is expected in the coming decades, mainly due to increase in domestic demand for milk, egg, meat and aqua products. Therefore, future of compound feed industry is bright. Compound feed industry is expected to produce around 54 million tons of all types of feeds, excluding 10.4 million tons of layer feeds which is prepared at farm level. The oilmeal requirement for producing this feed is approximately 15 million tons. It is also required for direct feeding of dairy animals (30 million tons).