Chicken prices on the rise
Rising per capita incomes, growth in quick service restaurants are other key reasons for growing demand and consumption of meat in India, it said. Consumption of chicken is likely to go up by 35-40% , it said.
“Poultry wholesale price index has also risen over 22% while that of beef and buffalo meat has declined about 3 % between May 2014 and March 2017,“ the analysis by Assocham's Economic Research Bureau (AERB) said.
Production of poultry meat, mainly chicken has been steadily growing at a CAGR of about 10-12%, while its consumption has been clocking a CAGR of 15-18% over the past few years.
In contrast, between June 2013 and May 2014, there had been an increase in wholesale price levels of over 10% in beef and buffalo meat while that of poultry chicken declined by about 9%.
Controversies related to beef and animal slaughter “have surely come as a blessing in disguise for poultry firms in states like Andhra Pradesh, Haryana, Karnataka, Kerala, Maharashtra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and other key regions“, an Assocham spokesman said while releasing the findings of the chamber's analysis.
“The government needs to encourage poultry farmers to give them a level playing field against developed countries in terms of export import market,“ the chamber suggested.
“India also provides a huge opportunity for foreign direct investment (FDI) in poultry especially in areas like breeding, medication, feedstock, vertical integration and processing, as such these areas should also be exploited,“ it recommended.
Assocham conducted a quick survey of about 100 poultry shops in these states where majority of the respondents said that demand was picking up despite the onset of summer.
Currently, there is about a 15-20% rise in prices which might go up to 25% and beyond.
Most respondents said that though both poultry demand and prices usually drop during summer, it was not so this year due to the beef controversy.