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)

 

Disclaimer: This is not a recommendation on any of the stocks mentioned above.

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Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/

 

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