March 3, 2009

India Poultry Weekly: Despite top global spot, India broiler and egg exports still insignificant (Week ended Feb 28, 2009)
 
An eFeedLink Exclusive
 
 
Price Summary
 
There was a positive upward trend in the egg sector. However, in case of broilers there was a mixed response.
 
In broiler sector, out of 12 stations, five stations were in the minus, six in the positive and this time Hyderabad is the only one station remained stable in the last concluding week.
 
Palladam (Tamil Nadu & Kerala) were the maximum loser stations with Rs.11 per kg, NECC Namakkal with Rs.7 per kg followed by Bhopal and Kolkata, witnessed Rs.2 per kg respectively as compared to last week's prices of Rs.50, Rs.48, Rs.46, Rs.65 per kg each respectively.
 
The maximum gainers were Delhi with a steep upward trend and settled at Rs.76 as compared to last week's price of Rs.65 per kg.
 
The second in upward range were Bangalore and Surat (Gujarat) with Rs.3 per kg each and traded at Rs.46 and Rs.53 per kg followed by Mumbai, Pune and Nashik, which were settled at Rs.46, Rs.46 and Rs.45 per kg respectively.
 
However, this time Hyderabad witnessed the stability and remained settled at Rs.45 per kg.
 
Eggs maintained upward trend again this week as prices in the third successive week received a boost with a range of Rs.6 to Rs.30 per 100 eggs except the Kolkata (Brown variety), which remained stable in the concluding last week. 
 
Kolkata (White) was the maximum gainer in the last concluded week with Rs.30 per 100 eggs and settled at Rs.237 followed by Hyderabad and NECC Namakkal with a jump of Rs.25 and Rs.23 respectively.
 
Delhi also witnessed the positive trend with an upward of Rs.13 per 100 eggs and traded at Rs.223. Barwala was also in the limelight with increase of Rs.6 per 100 eggs and settled at Rs.207.
 
Kolkata (Brown variety) remained stable and were traded at last week's price of Rs.240 per 100 eggs.
 
Parent stock remained stable with a price range of Rs.4, 000 per 20 pieces of birds and traded at same price in comparison to last week's price of Rs.4, 000 per 20 birds' lot.
 
Similarly, layer stock also moved up and settled at Rs.750 per 20 birds as compared to last week's price of Rs.700 per 20 birds.
 
Price of chicks fluctuated in the last week and available between Rs.11 to 15, Rs.2 to Rs.6 down in comparison to last week's price of Rs.17 per chick.
 
 
Market Analysis
 
New height in purchase of farm eggs at Rs.2.27, there is a cause of concern amongst the poultry farmers of Namakkal, an egg hub of India.
 
Repercussions among the poultry farmers of this area are on two main issues: reduced egg production due to summer season and the continual increasing of feed costs.
 
Another reason for decreased egg production is an odd situation in the market on account of reduction of chick replacement.
 
Even poultry farmers are not happy with the current market situation as the production cost of their eggs came to Rs.2 each. Besides this, the poultry farmer has to pay Rs.0.11 per egg as interest on the loan amount taken to run the layer farm.
 
V.S. Balasubramanium, coordinator for National Egg Coordination Committee (NECC) Namakkal Zone, confirmed that this zone produces 0.238 million eggs per day and there is a loss of production at the rate of 12 percent. However, demand from North India has not reduced and purchasing is still strong.
 
He also said that after February 15, every year, "demand from North India goes down but this time demand has not decreased."
 
"Major constraints for export from India of broiler meat are Lack of export driven chicken processing plants; Viral out break threats; Limited support from Government for livestock sector; High cost of logistics/transport; Poor infrastructure of cold storages and Increase in cost of soybean meal and corn feed ingredients mainly due to export."
 
This was narrated in eFeedLink's exclusive interview by the Consultant of American Soybean Association and Treasurer Poultry Federation of India (PFI) while discussing the problems faced by the exporters while competing in the world market.
 
Being the Treasurer of Poultry Federation of India commonly known as PFI, Ricky Thaper was on a move to visit the poultry farmers in Haryana state while discussing the parameters for the benefit of farmers.
 
Thaper disclosed that aside from earning more than Rs.200, 000 million, India's poultry industry is growing annually at seven to eight percent, in which growth of broiler segment is above 11 percent and layer with little above five percent, contributing eight percent of the value of livestock and 25 percent of total agriculture products.    
 
While discussing and providing details about the layer part, Thaper told that with 48 billion of eggs per annum, India is rated as fourth largest egg producer in the world. Moreover, the business of layer market is of more than 100 billion rupees providing employment to around two million people directly or indirectly. Besides, per capita consumption in India was only around 20 to 21 percent as compared to European Union or the United States consumption of eggs, which is around 230 eggs per person per annum, he added.
 
Comparing the ranking and percentage share of India's export, Thaper expressed concerns as the total daily production of 150 million eggs was meagrely four percent compared to EU, US and Brazil exports. Eggs are usually bound to Oman, Kuwait, UAE, Angola, Qatar and Bahrain. He categorically confirmed that out of total export of rupees 3, 160 million in 2006-07, around 90 percent of egg export was from South India.  
 
Speaking on the export of eggs, Thaper said that egg price remained volatile throughout the year with increasing poultry feed costs. Threat of viral out break; poor infrastructure and lack of storage facilities; high taxes on egg powder including state sales tax 10 percent, inter state sales tax of 4 percent and excise duty of 12.5 percent were the main constraints for exports, despite the fact that India is number four in production. Moreover, the fact is that no outbreak of bird flu was seen in South India but the export from that part is highly affected due to the havoc of bird flu in that zone.
 
Cost of production of broiler meat is second lowest in the world after Brazil, but still the export of broiler is negligible and other countries dominated 11 times higher than India including countries like USA, China, Brazil and European Union. Even consumption of broiler meat per capita in India is very low and is only 2.4 kilogram per person per annum. Per capita consumption of broiler meat has grown at 10 percent in last 15 years and this growth is likely to continue, he added.

The PFI has appealed to the Ministry of Agriculture to ban export of corn and soymeal to support poultry industry, Thaper said.
 
On the other hand, culling of birds in bird flu affected area of Sarnamati village in Jhapa district in eastern Nepal will begin Sunday.      
 
According to Dr. Dilip Sapkota, Chief of the Jhapa District Livestock Office, the slaughter was scheduled for Saturday but it could not be started due to the incompletion of preparation. Area of Saranmati village has been declared aviation influenza affected zone.
 
At least, five Rapid Response Teams (RRT), have been mobilized on Saturday in bird flu emergency area to destroy poultry and poultry products following the second detection of bird flu virus H5N1 in the village, sources confirmed. 
 
 
Market Forecast
 
Rates of broiler will be on a downward trend for another five to six weeks due to fasting being observed by a particular community in South India.
 
Otherwise, the market is not gaining momentum except Delhi, which will come down in the current week.
 
Egg prices may again fluctuate, but is seen downward in the coming week. 
  
CORN:
 
Increasing supplies from growing regions is likely to lower corn prices in spite of rising demand from poultry industry from East India.
 
Harvesting is in full swing in Maharashtra and Tamil Nadu under clear weather.
 
Dry weather over the northern plains and Andhra Pradesh is favourable for harvesting of the kharif crop. 
  
SOY:
 
Soy prices continue to be grim last week due to less export and dull domestic demand from millers of soy meal.
 

Weekly transacted prices of broilers in India for 2009

Cities

Prices as of Feb 21, 2009
(Rs./kg live weight)

Prices as of Feb 28, 2009
(Rs./kg live weight)

Price change
(Rs./kg live weight)

     1.  Mumbai                       45                       46                   +    01 
     2.  Pune                       45                       46                   +    01
     3.  Nashik                       44                       45                   +    01
     4.  Surat (Gujarat)                       50                       53                   +    03
     5.  Delhi                       65                        76                   +    11 
     6.  Kolkata                       65                       63                   -     02 
     7.  Hyderabad                       45                       45                   Stable
     8.  Bangalore                       43                       46                   +    03
     9.  PalladamT.Nadu                       50                       39                    -     11 
     10.  Palladam Kerla                       50                       39                   -     11
     11.  Namakkal                       48                        41                   -     07
     12.  Bhopal                       46                       44                    -     02 
Prices are representative and for reference only.
US$1 = Rs. 51.70(Mar 3, 2009)

Note: The 12-city average includes Mumbai, Pune, Nashik, Surat, Delhi, Kolkata, Hyderabad, Banglalore, Palladam (Kerala & Tamilnadu), Namakkal, & Bhopal.


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