PRESENTATION ON LIVESTOCK,DAIRY AND POULTRY SECTOR

PRESENTED BY: GROUP-4

Livestock sector
Includes animal husbandry, dairy,and fisheries sectors as major sectors Plays important role in national economy and socio-economical development of the country. India has highest livestock population in the world Contribution in GDP- 4(2008) Contribution in Agricultural GDP- 27%

Livestock population
According to 17th census of livestock, existing population is 529.70 million
Livestock population in India by species (FAO STAT production data-2008) in million
Species Cattle Buffalo Sheep Goat Camel India 199 105 65 126 0.6 World 1372 185 1086 865 25

production
livestock Beef Buffalo meat Sheep meat Present production (000 tons) 1462 1443 232

Goat meat
Pig meat Poultry

470
612 1401

Value of import of livestock & livestock products

Imports(2008) particulars Livestock Meat & meat offal Animal fodder & feed Raw wool & animal hair Quantity( tonnes) 200000 201 249178 Value ( Lakh Rs) 5381 543 86185 Pariculars Livestock Exports(2008) Quantity( tonnes) 78585000 Value ( lakh Rs) 8013 624531

Meat & 545731.19 edible meat offal Animal fodder & feed 4861112.14

819168

74774

117535

Raw wool & 18860.35 animal hair

56169

Dairy sector overview: Global vs India

India accounts for more than 13% of total world output More than 57% of total Asias production Top 5 milk producing countries of world: 1. India 2. USA 3. Russia 4. Germany 5. France

Dairy sector
Year 2004-05 2005-06 2006-07 2007-08 2008-09 Milk production (mt) 92.5 97.1 100.9 104.8 108.5 Milk availability( gm/day) 233 241 246 252 258

Milk flowchart
Milk production 98 Mt in 2006-07

Liquid milk Processed and packed in rural/ urban areas 7.84 Mt (8%)

Value added milk product by organized sector 8.8 Mt(7%)

Liquid milk sold in urban areas 18.62 mt (19%)

Unprocesse d liquid milk sold in rural areas 43.12 Mt (44%)

Organized versus unorganized

40-50% of milk produced is retained at producer level. Organized sector 12-15% and remaining 3538% handled by unorganized sector In organized sector cooperative societies play major role Presently there are 70000 village dairy cooperatives across the country 170 dist. Milk producer union 22 state cooperative federation

Industrial overview
Presently only 12% of milk market is represented by packaged and branded pasteurized milk, valued at Rs 8000 crores Market growing at rate of 4% per annum in volume terms Penetration of different milk products: Butter/ Margarine(4%)- Rural-2.1% , Urban- 9% Ghee -37.2%( highest) Milk powder and condensed milk(4.7%) Major players in market Vijaya : (A.P) Saras:( Rajasthan) Gokul: (Maharashtra) Sudha::(Bihar) Anchal:(Uttarakhand) Mother dairy:( Delhi)

Strengths
Abundant raw material Reasonable margins Professionally trained manpower Large no. of animals Strong marketing channel Monopoly in buffalo milk production

weakness
Large quantity of milk (70-75%) of marketable surplus goes through informal channel Poor quality Lack of competition in cooperatives Scattered milk production Lack of long term policy for improving indegenous breed Weak extension system Timely unavailability of credit & low risk bearing ability Perishable nature of product

Opportunities
Largest population of livestock in the world(16% cattle, 57% buffalo, 17% goats,5% sheep Only 37% milk in India is processed so opportunity in processing As a signatory of WTO, India has vast potential to improve position in the world trade of dairy market Potential for exports due to low production cost Entry of large corporates into retailing Increased consumer sophistication & awareness for quality packaged products Cooperatives socities strong only in few states

Threats
Carelessness for milk quality by large section of consumers High price sensitivity so people are not willing to pay for quality Low productivity and scattered production High transportation cost Emphasis on milk fat & not on SNF content maintaing relatively lower price opening Major portion of dairy sector is in unorganized sector

Government Regulations
Milk and milk products order (MMPO), 1992 Introduced in 1992 by government of India Acc. To this act if any entrepreneur is to establish/operate a dairy business ,in India, he has to register under MMPO.

POULTRY:INDIAN OVERVIEW
Worlds second largest market Growth rate - 12-15%p.a. 5th in egg production in the world . 53000 million eggs & 3.2 MT of poultry meat p.a. produced. 0.5% contribution to world exports. Per capita consumption 42 eggs/year and ICMR recommendation 180 eggs/year

Organised sector
Constitute of 70% sector Production of genetically superior breeds. Modern farming techniques. Good manufacturing facilities . Availability of medicines and vaccines. Production of low cost broiler meat .

Unorganised sector
Lack of knowledge about feed ingredients used. High mortality inlocal chicken breeds. Less supply of vaccines & medicines . Supply of live chicken is more . Management practices are not followed properly.

INDUSTRIAL OVERVIEW
Per capita availability of meat is 1.6 kg. Per capita availability of egg is 1.8 kg or 42 eggs. The broiler industry and layer industry is dominated in southern with 60-70% & 70 % total output respectively. Presently about 800 hatcheries are operating in the country. Provide employment to 3 million farmers and 15 million agrarian farmers & contribute about Rs 26,000 crore to the national income.

 Major poultry companies in India: I. Venkateswara Group, Pune II Suguna Poultry Farms Ltd, Coimbatore III Pioneer Poultry Group, Coimbatore IV Godrej Agrovet Ltd, Mumbai V Sky Lark group, North India V Jafa com feed 100% Foreign Direct Investment (FDI) is permitted in the food processing sector. . The growth of the industry with steady production of 1,800 million kg of poultry meat, 40 billion egg per year and employment generation of about 3 million people indicates the future prospects for the industry.

Per capita eggs consumption

Sr. no.
1 2 3 4 5 6

Country
UAS Europe Taiwan Japan Mexico India

eggs
300 280 358 346 304 42

Source-

 Per capita consumption of poultry meatSr. no. 1 2 3 4 Country USA Canada UK France Meat(kg) 49.8 34.8 28.4 26.0

5
6 7 8

UAE
China Taiwan India

40.2
9.7 34.0 1.67

Source-FAOSTAT

SWOT - Analysis
STRENGTHS Low cost of production and marketing Availability of the labourer Effective poultry integration and poultry contract farming. India is only country which self reliant and technology driven. Greater availability of raw feed material

WEAKNESSES

Less exporting quantities. Lack of cold chain facilities . Wet market

OPPORTUNITIES Increasing per capita income offers huge market demand. Transition from back yard poultry to integrated poultry farm. Integration of poultry supply chain. Poultry meat is the fastest growing protein food.

THREATS Lowering of import duties on poultry products offer stiff competition to the domestic poultry industry. The poorly defined Sanitary requirements in the domestic market. The rate of growth of production have had a downward trend

GOVT. REGULATIONS
Encouraged 100% FDI . There are no restrictions on exports of poultry and poultry products. The government provides some transportation subsidies (Rs 3-15 per kg) for its exports. Encouraged NATIONAL MEAT AND POULTRY PROCESSING BOARD (NMPPB) to produce good quality meat . Reduction in the excise duties . Funds of Rs.1095 crore for poultry development during the 11th Plan and Rs 30,000 crore for the entire livestock sector under various schemes of the GOI. Breeding Policy for Chicken: Breeds mainly covers the species suitable for back yard poultry and low investment poultry. Breeds for commercial poultry involve import of germplasm and parent line.

 Back Yard Poultry Development Scheme Under the Backyard scheme where low input technology bird of colored strain but disease resistant type are supplied to the farmers of the state at Rs. 14/chick of 2, 3 weeks age to prevent the early mortality. National Egg Co-ordination Committee, control quality and price. National Meat and Poultry Processing Board would serve as a 'single window service provider. Four regional centre have been restructured on the principle of one window service to farmer.