India's Suguna Poultry Farm Ltd.: Can it Go Pan-India with its Current Business Model?
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Code :BSM0051
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Region : India
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Indian Poultry Sector: Structure and Performance India has a cultivable land of 184 million hectares, which helps in producing various items. Despite the boom in the service sectors (software and IT), agriculture is still considered as the backbone of the Indian economy with more than half of the population associated with it. The percentage share of agriculture in GDP was 18.5% in 2006–2007. Out of the agriculture sub sectors, livestock is one of the major contributors. The contribution of livestock sector to agricultural GDP grew from 22.51% in 1999–2000 to 24.72% in 2004–2005. The contribution of livestock output to the country's GDP was 6% in 2003–2004... Phases in the Evolution of Poultry Sector The traditional system of farming was regarded as a 'backyard business', where small-scale farmers raised the fowl (poultry birds) for self-consumption and occasionally sold the surplus at neighbourhood/local markets. Farmers were disenchanted with agriculture due to irregular (uncertain) income, erratic climatic conditions, inadequate irrigation facilities, limited credit sources and increased debt burden. Farmers, it was argued, were gambling with monsoons. As a result, the farmers took active interest in non-crop sector (poultry and dairy)... Consumption Patterns Consumption levels in India have been rising. The per capita consumption of poultry has beenmoving at a Compound Annual Growth Rate (CAGR) of 10% in the last 15 years (1991—2006). Parallel to the increase in the per capita consumption of poultry meat, its production has also increased tremendously. The escalating production has created employment to 1 million people directly and 4 million people indirectly. Increase in per capita consumption of one egg or 50 grams of poultry meat can create 26,000 additional employment opportunities... |
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