The Hindu Business Line : Poultry exporters expanding processing capacities to enter new markets

MAJOR poultry exporters are expanding their processing capacities to address new markets, especially Japan, which recently opened its doors to Indian products.

They also hope to cash in on the opportunities arising due to the spread of the avian flu epidemic in several countries including China, as the Indian poultry is considered safe and unaffected by avian influenza.

Exporter Venky's India Ltd recently increased its production capacity by 250 per cent to slaughter and process around 50,000 birds per day, said Mr V.R. Tijare, General Manager.

"We have received several enquiries from Japanese importers and upgraded our processing plant by increasing capacity to meet their requirements with regard to product specifications and quality standards," he said.

Japan consumes about 2.2 million tonnes of poultry meat and meat products per annum, of which about 1.5 million tonnes is produced within the country.

About 0.7-0.9 million tonnes is mainly imported from Brazil, the US and Chile, and a small quantity from Philippines, China and Argentina.

"Though Venky's has not exported any significant volumes to Japan, the potential for export of poultry meat and products from India is good," Mr Tijare said.

Coimbatore-based Suguna Poultry Farm Ltd is also doubling its plant capacity to tap the newfound opportunity. "We plan to double our output and are enhancing our capacity by investing Rs 6 crore," said Mr B. Soundararajan, Managing Director of Suguna Poultry Farm Ltd.

Suguna is upgrading its export plant capacity for processed chicken to double output from eight lakh birds a month, Mr Soundararajan said.

Mr Soundararajan said Indian poultry was unaffected by the avian flu epidemic and this could be a blessing in disguise. The current global situation, wherein there is a mismatch between demand and supply in the backdrop of avian flu, offered an opportunity for Indian exporters to get a foothold in the international market, Mr Tijare said.

The prices of processed chicken have also shot up in the global market from about $1,200 a tonne to $1,450 in the wake of the avian flu. Exporters expect the prices to stay firm for some more time.

With increased prices, exporters such as Venky's and Suguna are confident that their export revenues would increase significantly this year. Venky's, which clocked an export turnover of Rs 70 crore in the last financial year, expects it to increase at least by 50 per cent in the current fiscal.

"With the anticipated export of poultry meat, meat products, coupled with the increase in export of hatching eggs and egg power, we expect our exports to increase by at least 50 per cent," Mr Tijare said. Suguna also expects exports of Rs 50-55 crore this year, Mr Soundararajan said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page