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Helen Houghton
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Acknowledgements
The Nuffield Poultry Study Group would like to thank all those who helped to make the 2010 Study
Tour to India such an enjoyable visit.
We are very grateful to Clive Frampton, Hayley Wilkins, Mark Williams and Stacey Joyce for their
contribution towards organising the visit.
The group was sponsored by Elanco, ISA, Venkys and Merial. We would like to thank them for their
financial support as well as all our hosts for their kind hospitality.
Contents
Page
Acknowledgements
Introduction
Itinerary Overview
Visit reports
5 10
Conclusions
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Introduction
In November 2010 the Nuffield Poultry Study Group visited India to gain an understanding of the
Indian poultry and egg markets and to obtain a flavour of Indian culture.
42% of Indias vast population are vegetarians, the rest are omnivores and some eggetarians
(vegetarians that eat eggs). It is a fresh bird and egg market that is not yet self sufficient but also there
are no poultry imports. As an important protein source for an ever growing Indian population the
poultry industry needs to expand at the same time as improving transport and distribution of poultry
products.
Despite the demand in the home market egg products are exported, India is the third largest supplier of
yolk powder into the UK.
The majority of Indian poultry production is in the South whilst the majority of the egg consumption is
the North.
Itinerary Overview
Thursday 18th November
Travel to Delhi
Arrive in Delhi
Return to UK
India is an emerging Agricultural market with outside companies looking to invest in Indias
poultry sector
Culturally, 42% of Indians are Hindu and are vegetarian, but many are beginning to eat eggs in
baking products. For non-vegetarians and eggetarians poultry is very important source of
protein.
India consumes 45 eggs per capita, with a population of 1.18 billion people. India has 26 states,
627K villages and 62% of population live in hamlets with a population of <2000. For egg
consumption there is more demand than supply, but imports are too expensive.
The poultry industry has changed from mostly egg production in the 1970s, to broiler
production in the 1980s, increased automation was seen in the 1990s. From 2010 onwards the
emphasis will be on processing and packaging.
The Indian Government is giving some funding for private farmers approx 30 rupees per chick.
India does export dried egg powder to Oman, Malaysia, Quatar and the EU and has food trade
agreements with Japan and the EU.
India has 5 major layer companies producing 250 million layers/yr. 3.2 million tonnes of
poultry meat produced per year, costing 150 200 rupees/kg meat. Rural consumption of
poultry meat is 0.25Kg per capita and 1.25Kg per capita in urban areas.
Fish consumption is similar to poultry, goat meat is very expensive and pork is not consumed
as it is viewed as not safe although pigs were seen in villages.
Retail in India is through small road side stalls and shops, 97% of poultry meat is sold as live
birds. The Indian Government has a policy to prevent major supermarkets killing small
businesses. 48 billion eggs and 2.5 million tonnes poultry meat is sold/year.
India expects 8.5 9% growth in GDP each year for the next 5 years, the IT business boom has
come and gone, the next major investments will be in agriculture.
Many Indians study in the UK and USA but are returning to India as the business opportunities
are viewed as better than EU or USA.
The black market is a massive problem in India and it is thought that more money is held in
Swiss Bank Accounts than in circulation in India
Cheap labour is available, but there are very strong unions, minimal wage is 120 rupees per
day, 30% income tax, 40% of Indians are middle class.
Multi-aged unit of 300K birds, 2 rearing open sided houses of 50K and 4 laying houses.
All white eggs produced by the BV 300 breed owned by Venkys.
315 - 320 eggs per crop over 72 76wks, no moulting of birds unless egg prices drop or feed
prices increases July/August 2010 25% flocks moulted.
Feed costs starter 18 rupees/kg, peak 14 rupees/kg and end 11 rupees/kg on a par with the
UK
Manure worth 9 rupees/bird.
All birds all in cages, stocking density 387 sq cm/hen and 7 birds/cage.
Summer high temperatures 47oC use sprinklers and fans for cooling.
4-5% mortality in rear up to 20 wks, 6 8% mortality in lay.
Vaccination Mareks HVT+SB1 at hatchery, IBD, IB, Coryza, ND, Pasteurella, Fowl Pox on
farm
Severe debeaking with hot blade at 13 days.
No red mites.
Transportation of eggs accounts for 0.5 1% breakages.
2nd Farm
Key points:
240K commercial layers
A small cage of cockerels were kept to act as an alarm clock to wake the hens up
Hand feeding
Hand collection of egg, pullet eggs weighing 40g, no grading of eggs occurred.
A layer chick costs 21 rupees, a spent hen at 76wk is worth 58 rupees,
Set up costs 400 rupees/bird
NECC Officals
We visited the National Egg Co-ordination Committee - My egg, my price, my life
Key points
NECC does not undertake any political lobbying as it is not necessary due to the Indian
government being very favourable to agriculture.
Egg price rocketed in 2008 2009, in 2010 egg price of 230 rupees per 100 eggs
Major egg production centres (million eggs per day) Vjayawada -20, Namakal 18,
Ambala/Ludhina 17.5, Hyderabad 15, Sangli/Pune 8.
A third of Indias 1.18 billion population is below the poverty line, 62% of population live in
villages <2000 inhabitants.
Indias poultry industry provides employment for 5 million housesholds. 48,000 crores per
annum.
17 crores of eggs are transported to 600,000 villages. 47-48 billion eggs transported per year.
The majority of poultry meat sold as live whole birds.2.5 million tonnes of poultry meat.
Eggs sold in small retail outlets, there are very few supermarkets and these are viewed as
expensive. Eggs, milk and vegetables are bought every day and fruit 2 3 times a week.
India is the worlds third largest egg producer and exports eggs and egg powder. Consumption
48 eggs per capita and 2kg poultry meat per capita.
The NECC is involved in egg promotion mid day meals at schools, video van campaigns in
villages to improve home consumption, TV campaigns
The NECC expects that Indias layer industry will grow by 7-8% per year and broiler 15% per
year for next 10 years.
Seasonal variation in egg production occurs, during the winter (Oct 15th Feb 15th) a 20%
higher production than summer months. Fluctuations of supply and demand are seen.
Surplus of eggs are often kept in cold rooms for 3-4 months until egg price improves
GM soya not wanted in India and non GM soya v expensive
Country is self sufficient in soya
DR B V Rao had a Babcock franchise in 1970 and in 1971 changed his business into total
poultry support and is now the largest company in India with aspirations of becoming a global
company.
Layer chick production own pure lines for BV300 with Isa Babcock in 1980
Broiler Chick production own pure lines for VenCobb with Cobb in 1980
SPF egg business for vaccine production business as Venkys experienced problems in
obtaining SPF eggs
VR equipment James Way incubators, Roxal Belgium feeding and watering systems
Venkys feed producing pelleted feed
BV Feed Supplements
Biosecurity systems with Biocentury USA
Poultry vaccine production plant with a USA company started in 1970 (now wishing to
expand into cattle and human vaccines)
Egg powder production business producing yellow and white powders
Poultry meat processing business producing chicken nuggets and sausages
Bromark co-operative shops selling broilers either as live or as hygienically killed and
dressed.
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The 15 year old feed mill produces feed for broilers and broiler breeders.
10K tonnes feed is produced per month all in bags 8K for internal customers, 2K for external
customers
350 400 tonnes feed produced per day, feeding 600 broiler breeders/wk and 250K
broilers/wk
A major feed ingredient is home grown maize from 2 harvests a year. 1415K tonnes maize
storage can be stored for 3 months. Maize husk bi-product is used as litter for broilers
Soya is harvested once a year. 900 tonnes soya is stored in bags which is then poured into silos
(Sneha have their own Soya processing plant)
Privately owned trucks distribute the feed
Uses maize, soya, rapeseed meal, de-oiled rice bran, maize gluten, calcium carbonate,
dicalcium phosphate, meat and bone meal to make the feed. Raw materials are weighed, placed
into grinder hoppers, 2 tonne mixer hoppers where add premixes and medicines, then pelleted
at 85 -90oC for 90s to kill Salmonella etc. The mill produces 3mm pellets and mash (which
receives no heat treatment) and fed to broiler breeders.
The mill produces 10 tonnes feed/hr running 3 x 8 hours shifts 6 days a week, 15 people
working at the mill per shift, 35 people unloading and loading feed per shift.
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Sampling of raw materials occurs i)instant maize moisture, maize rejected if moisture >14%
(up to 50% of maize presented to the mill is rejected during the rainy season. The rejected
maize will go to another mill where moisture checks are not made ii) Fungi/mould: a visible
test on 100g and look at grains if >3.5% of grains have fungi the lorry is rejected iii) Thiram a
herbicide test in lab taking 5min.
Finished Feed Analysis phosphorus levels measured by spectrometer, meat and bone meal
(cattle/bison origin) sterilised by heat treatment before arriving at the mill, Crude Protein,
Moisture, Calcium, Ether Extract oil, Crude fibre, Sand and silica (looking for presence of soil
contamination), Free Fatty Acids (looking for rancid fats). Salmonella testing occurs in the
Microbiology lab, detect a positive feed will be re- heat treated but apparently never get a
positive to Salmonella, but they do see Clostridium positives from soil contamination.
The soya was of very good quality approx 50% protein. Rapeseed was low in glucosinolate as
a double zero variety is grown. Feeds are approx 3% rapeseed De-oiled rice bran 14% CF,
1.2% oil, Maize gluten 65% CP, meat and bone meal 5% oil, Limestone 37.5% calcium
Pre-mixes bought from another company
Permitted medicines in feed Liver tonic (a herb), CTC from Alpharma, Enzyme Phytase (not
required to declare levels), Probiotic lactobacillus and yeast, Coccidiostats Salinomycin,
clopidol.
Only 17 processing plants exist in India as 95% of poultry meat is bought as fresh live whole
birds in local retailers and 5% chicken is processed for MacDonald (87 restaurants) and KFC
Chicken (70 stores) which moved into India in 1995
Processes 2000 birds/hr, all meat is sold to MacDonalds. Processing will increase to 15 20K
in January 2011. Broilers 20% from own company and 80% outsourced
Own company provides day old chicks, feed, vaccines, disinfectants and transport of birds to
factory. Producers get paid on FCR.
Automatic evisceration, but rest of the processing chain is manual. Factory works 6 days a
week and only runs at night so the birds are easier to handle.
Factory employs 78 staff.
Problem that Indian broilers are not >2kg in weight. Birds with 2.25Kg live produce 0.6kg
breast tissue.
Broiler breeders are all kept in cages with artificial insemination resulting in high fertility
results
Broilers on deep litter systems no hock burns
The day was concluded with dinner at the Courtyard Marriot hotel courtesy of Venkys.
All layer breeders are kept in cages and artifical insemination carried out resulting in high
fertility.
Eggs are cleaned on farm with disinfection , the eggs are stored at the hatchery for a maximum
of 3 days before setting.. Eggs are disinfected with formaldehyde at the hatchery.
Multi age setters and hatchers are run full with manual transfer. No papers are placed in the
hatcher metal boxes.
Eggs are candled at 4 days and again at 18 days.
93% hatchability of fertile eggs, 43.5% of female eggs set
Chicks manually placed into cardboard boxes with coconut husks as bedding (80 per box in
winter, 60 per box in summer)
All chicks are yellow and so are vent sexed at a rate of 1K per hour
Manual vaccinating of Mareks vaccine subcutaneously at the back of the neck with HVT+SB1
vaccines.
Female chicks sold for 20 rupees per chick. Male chicks may be collected and grown for meat
or drowned at the hatchery. At present broiler chicks are more expensive than layer chicks at
25 rupees per chick.
16 18 staff work at the hatchery, 4 days hatch to produce 100K female chicks per week.
The poultry show was held in a modern conference facility with 3 halls occupied by a variety
of equipment, feed and breed company stands.
Venkys Group had a prominent position and a professionally designed stand.
Conclusions
India has a vast population but has a very small egg and poultry meat consumption per capita.
Although many Indians are vegetarian there is an increase in the consumption of eggs.
All Broiler and layer breeders are produced in open-sided cages using artifical insemination.
All layers are produced in openside cages and all broilers on dirt floor systems.
Poor infrastructure and long transport distances on badly maintained roads is the biggest
hindrance to egg consumption in India
Most eggs are bought on a daily basis from local retailers, there are very few supermarkets in
India
Many eggs are processed for egg powder products which are exported. There is no home
market for processed eggs
95% of poultry meat is bought as whole live broiler birds in wet markets, some will be killed
and dressed by the retailer. A small bird 1.2Kg is favoured by the Indian market
5% of poultry meat consumed is processed at one of 17 processing plants and sold to
MacDonald or KFC which have been in India since 1995.
Costs of feed and building resources are on a par with the UK, it is the very cheap labour costs
where India has the advantage
The Indian poultry industry has enormous potential for growth both in terms of home
consumption but it also is looking to become a significant player in the global poultry market.
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