E-commerce gives a Boost to the Local or Global Business of Poultry Industry
January 28, 2021
E-commerce has bought about trends of doing a business differently, even for the poultry industry. Encouraged by growth in per capita income, changing customer behaviors, traditional retailers, freedom of ordering online, increasing use of internet and certainly the pandemic situation, e-commerce seems to be a viable option for all in poultry business. Chicken marketers can now align with consumers and retailers to successfully sell more to digitally connected shoppers. Poultry now has gained a permanent position in everyone’s cart.
Today India is world’s 5th largest egg producer and 18th largest broiler producer. As the growth of agricultural crops has increased at a rate of 1.5 to 2% per annum, the production of eggs and broilers has increased from 8 to 10% in India. The Indian poultry market consisting of broilers and eggs was worth INR 2,098 in 2019 and it is further projected to reach INR 4,340 Billion by 2024, growing at a CAGR of 16.2% from 2019-24. Indian poultry is constantly on a rise due to increasing use of modern techniques and changing from live bird to fresh chilled and frozen product market. Check out the poultry growth in India in the last year.
- The National Institute of Nutrition has strongly recommended 180 eggs and 11 kg of meat per capita consumption as compared to present capita consumption of 170 eggs in major cities.
- New trends have been introduced for poultry rearing and innovations for processed chicken meat, medicines, feed additives, health products, equipments, management and other technical services.
- Making availability of quality chicks. (Low input technology).
- Diversification programme has been introduced for emu, turkey, geese, guinea and fowl.
- Strengthening of feed quality monitoring wing.
- Training programme has been arranged for the service providers.
- Monitoring of centrally sponsored scheme “Assistance to State Poultry farms of Northern States”.
- Quail selection and breeding programme on meat type has been set s in order to achieve annual target fixed by the ministry from time to time.
- Several efforts in poultry science and technology have led to the development of genetically superior breeds capable of higher production, even under adverse climatic conditions that offer opportunities for overseas entrepreneurs to expand export and import of poultry products on a larger scale.
TRENDS IN E-COMMERCE POULTRY INDUSTRY
- Agribusiness industry: E-commerce provides the latest poultry and egg information all in one place, that is, on the website. This has become increasingly important as the industry faces rising demand and higher costs. Poultry Trends contains both regional and global statistics on poultry meat and eggs, covering production, consumption, trade, and the leading poultry producers and feed manufacturers worldwide.
- Demand and supply drive: Growth of the poultry industry has been both demand and supply driven. The factors that can cause the demand curve to shift outward are: (1) increases in income; (2) increases in the price of poultry substitutes such as pork or beef; (3) increases in the preference for poultry; and (4) decreases in the price of poultry complements.
- Free-ranging to confined poultry operations: Supply-side factors affect the global trends of the poultry sector where the technology change in the poultry industry has been very rapid. The move from free-ranging to confined poultry operations dramatically increased the number of birds that one farmer could manage.
- Technology change in the poultry industry: Technology change in the poultry industry, led by advances in breeding that improved animal size, fecundity, growth rate and uniformity, has enabled farmers to increase output per unit of feed, produce more birds per year, improve animal disease control and decrease mortality. This has led to improved quality of production to be sold online.
- Increased trade in poultry products: Increased trade in poultry products further increases demands on e-commerce trading. Broiler products dominate the international poultry trade the top five broiler importing and exporting countries or regions for2005, along with imports and exports as a share of production. The Russian Federation dominates in terms of broiler imports, followed by Japan and the European Union. Brazil and the United States of America dominate in terms of broiler exports. China is emerging as an active broiler exporter.
- Emergence of large-scale retailers on e-commerce: Emergence of e-commerce business in developing countries reflects a structural change that alters the way in which meat and dairy products are assembled, inspected, processed, packaged and supplied to consumers. As a result, livestock markets tend to be divided between the “wet” markets for fresh and warm meat and supermarket outlets for processed, frozen, packaged and branded meat.
- Awareness on purchasing power of households and individuals on e-commerce portals: The relative significance of each market segment is closely linked to the purchasing power of households and individuals, their demand for leisure of home-delivery, their preferences with respect to the form and texture of meat upon purchase, and the payment options has eased the lives of many
- Increased concerns over sanitary and phytosanitary (SPS) issues: Increased concerns over sanitary and phyto sanitary (SPS) issues and food safety Increasing international trade and globalization are also important drivers of change in the poultry sector. More precisely, they influence the relative competitiveness of producers and production systems in supplying the rising demand for poultry online products, particularly in international markets.
Compliance with standards and regulations: Increased and long-distance delivery requires compliance with standards and regulations and SPS requirements to ensure food quality and safety, as well as public intervention and investment and private costs. Food control and certification systems must be of a high standard which has been successfully implemented.