Hello Sir,
Hope you are doing well.
Did you know - Last year was bad for poultry industry stocks because of exorbitant rise in feed prices.
Stocks are down 40% + from the peak.
There are a handful of poultry industry related listed stocks with the major one being Venky's India and now might be a good time to understand the industry a bit.
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Poultry Industry
- Poultry refers to rearing, hatching, breeding, and processing domesticated birds or broilers
- India poultry market size reached a value of Rs 1,74,990 Crores in 2021
- Consumption growth in meat and eggs was 5% and 4% at 4.3 lakh tonne and 120 billion in FY 22
- As per ET, revenue of the Indian poultry industry is seen rising over 30% to Rs 2,50,000 crore in FY 23
- The demand continues to be robust because of rising population, higher per-capita consumption of meat, and increasing preference for protein-rich diet
- The price of broiler meat is expected to average Rs 135-140 per kg this fiscal, a 30% year-on-year increase from the average price of Rs 104 per kg last fiscal. This is owning to ~35% increase in poultry feed prices
- Classification (on the basis of segments)
- Broiler (Used for only meat purpose)
- Eggs
- 5 major players (Suguna in Coimbatore, Venky’s in Pune, CP, Sneha, and Shalimar in Kolkata) constitute ~60 % of the Indian broiler meat market
- Sale of poultry products in various forms
- Sale of 1-day old broiler chicks which are further used only for meat purpose
- Sale of 1-day old layer chicks which are further used only for table eggs
- Sale of grown-up live broiler birds/chicken (for meat purpose)
- Sale of grown-up live layer birds/chicken (for egg purpose)
- Sale of eggs
- Sale of raw, processed and completely cooked chicken
- Sale of Poultry Feed & supplements
- Eggs come from hens raised specifically to lay eggs, but chickens that are raised for meat are called “broilers”
- These are typically white, and are bred specifically for optimal health and size
- Broilers in India are usually reared for 35-45 days to a wgt of 1.8-2.2 kg
- How much poultry meat does Indian consume? As per Economic Survey 2021-22, India ranks third in production of eggs and eighth in meat production in the world
- Egg production and growth rate
- Price trend of Broiler realization vs Feed cost? The price of broiler meat is expected to average Rs 135-140 per kg in FY 23, a 30% increase from the average price of Rs 104 per kg last fiscal FY 22
- Feed contributes to 80% of the total expenses that are there in the production of an egg and broiler
- Major ingredients in poultry feed are - Maize, Bajra, Jowar, Soybean Meal, Fish Meal, Meat & Bone Meal, Shells, Marble Powder, Marble Chips, etc
(End)
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Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
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