Chicken prices in many parts of the country have started rising and are expected to soar by 25–30% amid the controversy over beef consumption, industry body Assocham has said.
Drivers of Rising Demand
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%.
ASSOCHAM AERB projects 25–30% chicken price rise; consumption to climb 35–40%
Wholesale Price Index — +22%
"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."
— ASSOCHAM Economic Research Bureau (AERB)
Production & Consumption CAGR
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%.
Beef Controversy — A Blessing in Disguise
Controversies related to beef and animal slaughter "have surely come as a blessing in disguise for poultry firms" across key regions.
— Assocham spokesman
The government should encourage poultry farmers and provide competitive advantages against international markets, the chamber suggested. India offers significant FDI opportunities in breeding, medication, feedstock, vertical integration and processing sectors.
~100 Poultry Shops Surveyed
Assocham surveyed approximately 100 poultry shops where respondents reported demand was increasing despite summer seasonality. Current price increases of 15–20% may reach 25% or higher. Most noted that typical summer demand drops were not occurring this year due to the beef controversy.