Key challenge for the industry: To develop feed milling technologies and investment on pellet making says G.B. Sundararajan, MD-Suguna Foods

Indian animal industry
KFAR HAROEH, ISRAEL - MARCH 30: Dairy cows feed on fodder at the Jacobs' family dairy farm on March 30, 2008 in Kfar Haroeh, central Israel. World food prices are soaring in the face of what some analysts are describing as a perfect storm of circumstances; increasing demand from developing economies in Asia, rising fuel prices, severe weather impacting recent harvests and an economic shift to biofuel production. All this leaves the consumer paying more for basic staples such as bread and milk and is likely to have its hardest impact on poorer nations. (Photo by David Silverman/Getty Images)

Suguna Foods Limited, a division of Suguna Holdings, is India’s largest poultry company. Suguna operates in an innovative contract farming model with a network of 20,000 farmers. In an interview with Mr. G.B. Sundararajan discuss about the challenges faced by Indian Feed Industry. Excerpts from the interview.

Suguna, with a turnover of INR 5200 crores, achieved no. 1 position in the Indian broiler production. What next for Suguna?
We would like to expand broiler business in new geography like Madyapradesh. Focusing on productivity, connecting customers by way of offering value added products.
Investing on technologies like EC sheds, Pellet feed milling, processing plant etc.

An overview of Indian animal feed industry?
Poultry feed is growing by around 7%, aqua feed and cattle feed growth is much faster.
India is capable of producing low cost feed since we have enough Maize and Soya production. We are export surplus country in terms of Soya DOC.

What are the key challenges faced by the industry and how is it effecting the industry?
Though we are surplus country for maize and soya but the prices is challenged by international market.

  • Agri produces storage facilities is not enough hence the same to be focused
  • Feed Milling technologies and investment on pelleting etc may have to be developed.
  • Logistics and transport facilities like rack movement, bulk handling is the challenge
  • GM seed for Soya is the another challenge
  • Un organized animal protein processing industry to be organized
  • Shrinking in the acreage of maize and soya cultivation and depends on natural rainfall and monsoon

Current requirement for poultry feed is about 22 MT* only 55% is met through compound feed. How this huge demand-supply gap can be covered? (*Rabobank report-August 2014)
Tailored made formulation is made at every region by every integrators.
There are concentrates available in the market through that small integrators they are producing feed which may not be considered as compound feed.

Prices of the key ingredients are rising at a fast pace while the end-product prices are not. Your comment.
Broiler live bird prices and egg prices are depends on demand supply gap. The data available production statistics are not organized way and there is not control on production, however excess production leads to drop in prices.
Maize and soya prices are driven based on monsoon and international prices.

Please share your views on genetically modified soya for feed.
When the prices of soya is exposed to international market, hence the same production shall be made available in India. If we allow import of GM seed then we can increase the production yield and there will be level playground for Feed industry.
When we allow many GM products why not soya also.

Driven by growth in demand for animal protein and dairy products compound feed consumption is on rise in India (8% CAGR). Poultry industry has seen the largest growth but aqua feed has experienced strongest growth rate. What are the Suguna plans to cater aqua and livestock feed industries?
We are having plan to develop and grow both in the poultry feed and cattle feed. In case of Aqua feed we need many trial and technology.