Even before India reported its first case of COVID-19 last year, rumors of poultry being a vector for the novel coronavirus had started to circulate on social media in the country, knocking demand for chicken meat strongly, especially during the month of February.
Clarifications issues by central and state government agencies and industry association that eating chicken was safe largely re-assured consumers, however, the nationwide lockdown then hit the industry hard disrupting the entire supply chain.
The sector incurred huge losses at the start of the year. Both demand and supply were hit, and liquidity throughout the value chain from farmers and feed producers through to retailers became precarious. Small farmers were particularly hard hit due to having limited resources, encouraging many to move into contract farming as a means of survival.
Supply of poultry products was declared an essential service, allowing them to be shipped throughout the country and, by June, the situation had changed markedly
Improved conditions
With medical advice that consuming protein rich foods may protect consumers against COVID-19, demand for poultry meat and eggs began to rise sharply.
This was facilitated by a major percentage of the working population working from home. As restrictions were lifted, the demand for quality products from hygienically raised birds continued to grow and favored, in particular, online retailers, able to ship product directly to consumers’ doors.
Demand for eggs has also been strong and 2020 saw many consumers who were previously vegetarian starting to consume poultry meat and eggs.
In 2019, poultry production in the country stood at 4.6 million tons, according to data released by the country’s Department of Animal Husbandry, and the next few months should see the industry return to pre-cOVID-19 operating levels.
Sensing opportunities, many poultry players have set up new processing plants and, with such a huge spike in demand, the industry could see a growth rate of 8-10% annually.
Looking to the future
While the Indian poultry industry may have changed over the last 12 months, further change is needed to become more robust and to fully restore consumer confidence.
There needs to be integration throughout the value chain to ensure quality, and to build trust and confidence amongst those active along it. The focus needs to be on quality products, while ensuring biosecurity to protect both workers and birds.
Poultry meat is still primarily sold in fresh markets in India. In a post-COVID era, the industry must ensure that that Standard Operating Procedures are in place for markets and small retailers, ensuring that establishments are clean, and that consumer trust is restored.
The industry must also focus on promoting processing and modernizing transport and cold storage facilities. This would help to bring an end to seasonal price fluctuations. More extensive processing would also help to integrate the sector with online retailers of other meat products.
Investment in research into feed conversion would also help to make the sector more efficient, while investment in marketing would help to make the sector more visible. The industry must focus on building consumer trust through all media channels and monitor social media to ensure that inaccurate information is dealt with swiftly.
