Poultry industry revenue expected to grow 10% in FY 2025: CareAge report

The revenue of Indian poultry industry may increase by 8-10% in the current financial year. According to a report by rating agency Care Edge Ratings, the operating profit margin of the domestic poultry industry may increase by 180-220 basis points in the financial year 2024-25. The agency estimates that the coming year will also be favorable for the poultry industry.

The report said that by 2024, India has made significant progress in egg and broiler meat production, and will produce more than 140 billion eggs and about 4.5 million tonnes of chicken meat annually. Demand for eggs and chicken has increased due to urbanization and rising incomes, leading to rapid growth of the industry. The industry is also benefiting from stable input costs, better feed management and government support. Additionally, demand for meat and eggs increases during festivals and winter, further boosting the industry.

The report further mentions that egg and meat production in India has increased steadily over the last decade, playing an important role in meeting the protein needs of the country. In the food sector, meat, fish and seafood meet about 31-34% of the total protein demand. Egg production is expected to increase by 7-8% and meat production by 5-6% in the coming years.

During the COVID-19 pandemic in 2020, the poultry industry suffered significant losses, leading to reduced income and revenue. However, earnings for major poultry companies improved in 2022, although rising corn and soybean prices pushed up production costs in 2023 and 2024. Corn and soybeans are primary components of poultry feed, and their prices increased due to supply issues. Nevertheless, prices have now stabilized due to a good harvest and government support.

Major challenges for the industry
Fluctuating Input Costs: The poultry industry relies heavily on corn and soybeans, which account for about 65–70% of total feed costs. In the 2024 financial year, stabilization of feed prices has improved industry profits. Large companies are addressing this challenge by focusing on improved breeds and feed conversion ratios (FCR).

Effect of diseases: Diseases such as avian influenza negatively impact industry profits by reducing sales and increasing the cost of preventive measures. Major companies in the industry are working to develop vaccines and disease-resistant strains.

Feed Conversion Ratio (FCR): FCR is important for profitability in the poultry industry. Increasing FCR through improved breeds and fodder quality can increase profitability.