Dr Jeevan Sonawane | Director, Novelvet Farmsolutions

India is one of the fastest growing countries in terms of population, economy, infrastructure, information technology and other segments, yet grappling with persistent challenges like poverty, malnutrition, and nutritional insecurity. Among these, protein malnutrition is a silent crisis affecting millions. Despite being the world’s second-most populous country, over 80% of Indians fail to meet their daily protein requirements. While 75% of the population identifies as non-vegetarian, most consume meat only occasionally—on weekends, festivals, or special occasions. A survey by IMRB revealed that 73% of Indians are protein deficient, and a staggering 93% are unaware of their daily protein needs.

The misconception that protein is essential only for bodybuilders and athletes has left the general population unaware of its fundamental role in overall health. This lack of awareness has far-reaching consequences for individuals and the nation.

How Serious Is Protein Malnutrition in India?
Protein-energy malnutrition (PEM) is a significant public health issue in India, with devastating effects on children and adults alike:
– Global Hunger Index: India ranks 101 out of 116 countries.
– Undernourished Population: India has the highest number of undernourished people globally.
– Child Malnutrition: 35% of children under five are malnourished, and 48% suffer from stunted growth.
– Infant Mortality: 33 of every 1,000 children born in India die before their first birthday.
– Anaemia: 68% of children and 66% of women are anaemic.
– Protein Deficiency: 73% of Indians lack adequate protein intake.

Double Burden: Alongside malnutrition, obesity and non-communicable diseases like diabetes and heart disease are rising due to poor dietary habits.

How Much Protein Are Indians Eating?
The Indian Council of Medical Research (ICMR) recommends 0.8 to 1 gram of protein per kilogram of body weight daily, but the average Indian consumes only 0.6 grams per kilogram. Globally, average protein consumption stands at 68 grams per day, while India lags behind at 47 grams per day.

A survey across 16 Indian cities found that 85% of people believe protein causes weight gain, highlighting the widespread misinformation. Moreover, cereals, which are poor protein sources, dominate Indian diets, contributing 60% of protein intake. Pulses, legumes, meat, and poultry, the richer sources of protein, account for only 11% of dietary energy.

Protein deficiency

Why Are Indians Protein Deficient?
Several factors contribute to protein deficiency in India:
1. Cereal-Dominant Diets: Poor digestibility and incomplete amino acid profiles of cereals make them inadequate protein sources.
2. Shift in Food Habits: Increased consumption of fast foods and processed foods has reduced dietary quality.
3. Poverty and Food Insecurity: Many families cannot afford protein-rich foods.
4. Social Misconceptions: Myths about certain food categories lead to reduced protein intake.
5. Lack of Awareness: Misinformation and myths, especially among women who are key decision-makers in household nutrition, exacerbate the problem.
6. Inadequate Infant Feeding Practices: Poor early nutrition has lifelong consequences.

The Impact of Protein Deficiency
Protein is vital for growth, development, immunity, and repair. Its deficiency has severe consequences:
– For Children: Stunted growth, poor cognitive development, and reduced school performance.
– For Adults: Loss of muscle mass, impaired metabolism, and increased susceptibility to illnesses.
– For the Economy: Reduced productivity, poorer educational outcomes, and long-term economic losses.

How to Mitigate Protein Malnutrition in India
The Indian government has launched programs like the Public Distribution System (PDS), Integrated Child Development Services (ICDS), and mid-day meals. However, these largely focus on cereals. To combat protein malnutrition effectively, we need:
1. Increased Awareness: Massive campaigns to educate the public on protein’s importance and daily requirements.
2. Inclusion of Protein-Rich Foods: Adding affordable protein sources like eggs, milk, and chicken to government nutrition programs like mid-day meal in schools
3. Affordable Protein: Subsidizing protein-rich foods to make them accessible to all.
4. Dietary Education: Promoting balanced diets that include pulses, legumes, and animal proteins.
5. Focused Intervention: Prioritizing nutrition in the first 1,000 days of life, from conception to a child’s second birthday.

How Eggs and Chicken Can Help
Eggs and chicken are among the most affordable and accessible protein sources, offering immense potential to combat malnutrition:
1. Abundance: India is the world’s third-largest egg producer and fourth-largest chicken producer.
2. Complete Protein: These are high-quality protein sources containing essential amino acids not found in many plant-based foods.
3. Nutritional Powerhouses: Eggs are rich in vitamins, minerals, and good fats, while chicken supports muscle strength, immunity, and stress relief.
4. Versatility and Affordability: Easy to prepare, eggs and chicken can fit into any meal plan.

Need for Collective Action
To overcome protein malnutrition, we must act together. Poultry producers, government agencies, social influencers, medical practitioners, and organizations like NECC, Vets in Poultry, PFI, CLFMA, INFAH, IPEMA, ICMR, IMA and NIN must join hands. By promoting chicken and eggs through awareness campaigns, partnerships with health organizations, and inclusion in nutrition programs, we can:
– Educate Consumers: Bust myths and promote protein-rich diets.
– Drive Demand: Inspire families to make eggs and chicken regular dietary staples.
– Strengthen Programs: Enhance government initiatives with animal protein sources.

Fighting protein malnutrition is not just a health issue; it is a mission to secure India’s future. Let’s ensure every child has the opportunity to grow, thrive, and contribute to a healthier, stronger nation. Together, we can make protein malnutrition a challenge of the past.

Maintaining product quality during the slaughter and defeathering stages is vital for profitability and brand integrity. Damage to carcasses can lead to expensive downgrades and yield losses.

Efficient Stunning for Immediate Unconsciousness
Proper handling of live birds is key to ensuring high carcass quality while prioritizing animal welfare. Utilizing effective stunning methods, such as electrical water-bath stunning or Controlled Atmosphere Stunning (CAS), is crucial to render birds unconscious and pain-free prior to slaughter. The BAADER Water Stunner 032 excels in delivering high stunning efficiency, allowing birds to be quickly stunned as they enter the electrified water bath. Optimizing the relationship between current, voltage, and resistance achieves immediate unconsciousness.

Effective electrical water-bath stunning

Unconscious birds are easier to shackle and experience no stress or discomfort

The BAADER Killing Machine 2320 offers a variety of adjustment options

Controlled Atmosphere Stunning (CAS) for Improved Welfare
CAS is becoming increasingly popular for enhancing both animal welfare and meat quality. In this method, birds are stunned in their transport equipment using gas mixtures that induce an anaesthetic state, ensuring they remain unconscious throughout shackling and slaughter. The commercial appeal of CAS lies in its ability to minimize pre-slaughter stress, thereby reducing the risk of quality loss. Stress-related issues like wing flapping can cause injuries that lead to downgrades, whereas CAS significantly reduces these risks, including damage that may occur with electrical stunning.

BAADER offers two CAS systems: above ground and below ground. Both are designed to stun birds effectively while minimizing discomfort. In the CAS Pit System, birds are gently lowered into a pit where CO2 levels gradually increase. The Above Ground CAS features a dual-lane tunnel divided into chambers that slowly expose birds to elevated CO2 levels, with oxygen and clean air introduced to keep them calm until they are unconscious.

Adjustable Equipment to Ensure Quality
To maintain top quality, slaughter and defeathering equipment must be easily adjustable. This adaptability allows for precise control over processing times and product positioning, enhancing processing accuracy and profit margins.

The BAADER Killing Machine 2320 is designed with multiple adjustment options to optimize neck positioning and cutting, minimizing the risk of costly errors. Its design maximizes bleed-out and ensures rapid brain death, accommodating various flock sizes and line speeds.

Effective Scalding and Picking Techniques
Adjustable temperature control allows for precise regulation of the scalding water, considering factors such as stunning method, feather characteristics, local market requirements, and processing conditions. The flexibility and easy access to scalding setup enable processors to adapt to different products, ensuring an optimal scalding environment at all times. BAADER Turbo Scalder 1070 and Air Jet Scalder 1050 are both equipped with touch panels to maintain control of the scalding process, including water level and temperature control. Additionally, a timer function allows for programming daily production.

Turbo Scalding is a highly efficient scalding technique that protects product quality


The Tunnel Picker 284 is equipped with multiple adjustment features to best target the picking process

Wavy ridges on the rubber fingers optimize the picking process

Adjustability also plays a crucial role in effective picking. The BAADER Tunnel Picker 284 offers multiple adjustment features to ensure optimal picking performance while preserving product quality. Each picking row can be individually angled, and picking banks can be adjusted in terms of height and separation, allowing the picking fingers to follow the bird’s shape. Configuring various picking machines on the line enables different targeting approaches as picking progresses. This high degree of targeted picking also allows for dry picking.

Importance of Picking Fingers
The condition of picking fingers significantly affects feather removal efficiency. Regular inspections and timely replacements of rubber fingers are crucial to maintain performance. A mix of new and used fingers can enhance results, as worn fingers can reduce efficiency and foster bacterial growth. Prompt replacement of damaged fingers is essential for maintaining hygiene standards.

Poultry processing facilities can ensure an efficient and hygienic picking process by prioritizing the use of quality rubber fingers. Specially designed rubber fingers with wavy ridges, such as the Rubber Finger WAVE, facilitate multi-directional feather contact during picking, resulting in effective feather removal. Furthermore, the rubber’s special formula ensures long-lasting durability, providing optimal performance over an extended period.

Collaborate with BAADER
Given the complexities of slaughter and defeathering, investing in solutions that prioritize animal welfare, product quality, and efficiency is essential. Reach out to your local BAADER team for more information on how our slaughter and defeathering solutions can protect quality at every stage or visit www.baader.com.

We also invite you to visit the BAADER booth no. CC7 Hall 6 at Poultry India!

Dr. Narahari, Project Consultant – Meat and Poultry
Founder, NH ProPOWER Consultancy Services,
Bengaluru, Karnataka, +91 96633 76040, drnarahari@nhpropower.com

Introduction
The poultry industry makes significant contributions to our economy. It was the first livestock sector to industrialize. India is currently the third-largest producer of eggs (122 billion eggs) and the fifth-largest producer of chicken (4.4 MMT) (Gulati and Juneja, 2023). In the early days of the poultry business, the various stages and components, like feed manufacturers, hatcheries, grow-out farms, processing plants, and logistics, were functioning independently in markets while depending on each other to sell their products or services. Eventually, these related businesses within the poultry industry began to integrate and function as a single system. Vertically integrated poultry farming is a comprehensive approach that unifies all stages of poultry production (breeding, hatching, feed production, farming, processing, and distribution) under one umbrella.

Figure 1. Schematic representation showing typical operation of a vertically integrated poultry system+

Figure 1 shows the typical operation of a vertically integrated poultry farm and processing unit. The vertical integration model, which incorporated large industry players and small farmers through a contract farming approach, emerged in the middle of the 20th century. This type of contract approach catalyzed the sudden growth of the poultry industry. Integrating different stages of poultry production through strong and modern processes and technologies promotes sustainability, affordability, and economic growth while ensuring quality throughout the supply chain. Streamlining every stage of the supply chain, fostering innovations and technologies, and reducing reliance on external suppliers are the key components of a successful vertically integrated poultry farming system. This article discusses the significance and potential of vertical farming in providing high-quality animal protein at affordable prices to meet the increasing demand for protein sources without compromising sustainable production practices.

Promoting Ethical Standards
Promoting ethical standards in a vertically integrated poultry system is crucial for humane and eco-friendly practices. Adopting and maintaining ethical standards entails supervising each phase of production, from breeding to processing, to assure compliance with improved welfare standards. Humane treatment covers sufficient space, appropriate feed, and healthcare for chickens. Specifically, in the vertically integrated poultry business, large organizations are instrumental in various levels of interconnected activities. With corporations’ business-oriented approach, the rearing conditions of poultry at breeder farms and commercial farms will be more sophisticated, ensuring humane and environmentally friendly practices. In addition, these corporations adopt ethical standards as promotional tools for selling their processed products. Here, cage rearing of birds shifted to floor-rearing practices, keeping poultry birds in more spacious ground areas rather than in cages. This practice provides the birds ample space to express their behavioral needs, like stretching wings, foraging, dust bathing, and ample time to move around. This shift in rearing space improves the birds’ health. It reduces their stress, increasing the productivity of good-quality meat and eggs  . Maintaining bird density following European Union norms (33 kg broilers/m2) or Bureau of Indian Standards (floor space allocation, 0.3 to 1.0/square feet) reduces the risk of overcrowding and ensures the welfare of birds (Giersberg, Hartung et al. 2016).

Furthermore, ensuring ample feed and water availability at all points in a poultry system is critical for maintaining the birds’ optimal health, growth, and productivity. According to standards set by organizations such as the National Research Council (NRC) and the World Organization for Animal Health (WOAH), poultry feed should be balanced with the necessary nutrients. The diet typically contains 18-20% crude protein for broilers during the starter phase (0-3 weeks) and 16-18% during the grower phase (4-6 weeks).
Additionally, the quantity of feed provided differs according to the age and type of rearing. It is observed that during the initial six weeks of the rearing period, broiler chickens typically consume around 1.8-2.2 kg of feed, while layers consume about 110-120 grams of feed per day once they begin laying (Pal, Prakash et al. 2020). Importantly, feed should be stored properly to ensure that it is free from contaminants and toxins, particularly mycotoxins, which are secondary metabolites produced by fungi, and can be detrimental to poultry health. Additionally, a vertically integrated poultry system ensures residue-free and microbiologically safe meat by adopting stringent prophylactic and therapeutic measures at both breeding centers and farm units. Also, regular biosecurity protocols, such as footbaths, controlled access to facilities, and stringent sanitation practices, are essential to prevent pathogen introduction and spread. Besides, it is crucial to provide nest boxes for natural egg laying in breeder rearing to maximize egg production and ensure the well-being of the birds. Nest boxes provide a regulated setting that promotes hygienic and secure egg laying, enhancing the quality of eggs and their potential to hatch successfully. Nest boxes must be at least 12 x 12 inches per hen and should be placed at a suitable height to prevent floor laying (Graham 2024). These boxes for laying eggs relieve stress, encourage innate instincts, and simplify the process of harvesting eggs. In addition, they enhance egg cleanliness and enable more effective health monitoring, hence increasing productivity and adhering to humane standards. Collectively, adoption of above-mentioned standards/measured ensure the health and productivity of chickens and pay way for the sustainable and ethical farming practices.

Streamlining Resource Allocation
Optimizing resource allocation in a vertically integrated poultry system improves operational efficiency, lowers expenditures, and enhances productivity.
The adoption of this system maximizes resource allocation by optimizing the utilization of feed, water, and energy, hence decreasing wastage. Centralized planning and a coordinated supply chain are integral parts of a vertically integrated poultry business. These allow better forecasting and a seamless flow of materials into and from the system, reducing bottlenecks and delays in delivery. Further, integration ensures efficient utilization of floor space in rearing units, by optimizing designs of poultry houses and layouts, while adhering to animal welfare guidelines. Feed management (nutritious feed in the right quantity at the right time) using advanced automated feeding systems with appropriate designs reduces feed waste and improves the feed conversion ratio (FCR). Furthermore, waste products from one stage of production can be repurposed for another use (byproduct utilization). Generation of biogas and fertilizer from poultry litter and animal feed ingredients (meat and bone meal) from all non-edible poultry offal from slaughter plants can be well utilized to reduce waste and create additional revenue streams. For instance, eggshells can be processed into calcium supplements for animal feed or as soil conditioners (Gul, Shoqer et al. 2024) , dead chicks and birds may be converted into protein meal for animal feed, or biogas can be produced using strict biosecurity protocols. Interesting, innovative practices such as in-ovo sexing can reduce the number of male chicks hatched, and those that are hatched can be used in feed production or other industries (Jia, Li et al. 2023). Appropriate treatment of effluents from poultry operations using advanced wastewater systems, and water recycling are inevitable in vertically integrated poultry firms.

Further, during chicken processing, sludge can be processed into organic manure, providing a valuable agricultural resource, and reducing waste disposal issues. Moreover, transitioning from water-based chilling systems to air-based ones considerably lowers water use. Air chilling preserves meat quality by minimizing the uptake of water. Previous reports suggests that air chilling potentially delay the dominance of spoilage organisms Pseudomonas spp as it pays way for diverse microbiome (Belk, Duarte et al. 2021). Additionally, implementing water-saving technologies and practices such as high-pressure, low-volume cleaning systems reduces the use of water resources in vertically integrated poultry farming. Besides, incorporating water-saving technology and techniques, such as high-pressure, low-volume cleaning systems, decreases the use of water resources during chicken processing. Thus, integrated systems push for energy-efficient technologies and invest heavily in securing those technologies, which reduce overall energy consumption. For example, radiant heaters, which deliver direct heat to birds, and Heat recovery systems that capture and reuse waste heat from ventilation, reducing the unit’s energy needs. Also, rooftop solar panels provide a renewable energy source, decreasing reliance on non-renewable electricity. Also, automated feeding and drinking systems ensure precise feed and water delivery, reducing waste and energy consumption. Next, the utilization of centralized collected data, predictive analyses, and internet technologies facilitates data-driven decision-making, hence enhancing the business intelligence of a vertically integrated business model. The utilization of centralized collected data, predictive analyses, and internet technologies facilitates data-driven decision-making, hence enhancing the business intelligence of a vertically integrated business model. In addition, staff skill upgradation and education play a critical role in sustainable farming and production. Thus, educating staff on proper bird, product handling, and hygiene improves resource efficiency. Additionally, bulk purchasing, shared infrastructure, quality standards, traceability, and sustainability initiatives lower capital and revenue costs. Therefore, the adoption and upgradation of energy efficient technologies, data-driven decision-making, and waste management contribute to more eco-friendly and cost-effective poultry operations.

Delivering production efficiency and nutritional excellence
Vertical integration in poultry farming and processing promotes the production of superior animal protein that is accessible to consumers at reasonable prices. Here, the approach greatly reduces the life cycle of chicken products, reducing the time from breeding to market-ready chicken. This acceleration is essential for satisfying consumer demand, maintaining a steady supply, and preserving product freshness. Basically, it facilitates efficient resource management, shortens the life cycle of poultry, reduces overhead charges, achieves economies of scale, ensures consistent quality control, enables the adoption of new technologies and processes, and streamlines the distribution channels. This approach controls all stages of production, where it reduces bottlenecks and the wastage of resources like feed, water, and energy. Also, its centralized planning, efficient operations, and the procurement of inputs in large quantities result in reduced production costs, enabling the protein to be offered to customers at a more affordable price. For instance, vertical integration ensures that chickens reach market weight more quickly, typically within 35 to 42 days, compared to longer periods in less integrated operations (Wilcox, Sandilands et al. 2024) . Also, FCR can be improved to as low as 1.5 to 1.7 (Gulati and Juneja 2023 . Further, organizations with vertical integration can efficiently process up to 13,000 birds/hour. This efficient processing capability guarantees that chickens are slaughtered and processed promptly upon reaching their optimal weight, decreasing the time it takes them to go from the farm to the table. This type of shorter life cycle allows for more frequent production cycles and faster response to market demand. Moreover, the vertically integrated approach is defined by large-scale operations, which allows it to take advantage of economies of scale, reducing the cost per unit of production. This comprises reductions in expenses related to feed, equipment, labor, and other associated costs. Besides, it eliminates the obstacles of multilevel middlemen and assists in streamlining logistics (Begum 2005, Bamiro and Shittu 2009).

Nutritionally, poultry products are rich in high-quality proteins with fewer calories than red meat products. They contain essential vitamins like A, D, E, K, C, and B and minerals such as iron, calcium, magnesium, zinc, potassium, and Selenium. These nutrients are readily absorbed by the body, enhancing the nutritional value of the poultry products. Proteins in chicken products are easily digestible animal protein compared to other livestock proteins. It contributes to muscle growth and overall health in humans. Vertical integrated companies maintain consistency in their products by overseeing breeding, feeding, processing, and distribution, thus increasing consumer trust and satisfaction. Moreover, precision nutrition by adequate feed formulation based on the specific needs of poultry at different growth stages and environmental conditions enhances feed efficiency, reduces waste, and ensures products are rich with nutrients. Vertically integrated firms effectively oversee their existing distribution networks, allowing direct delivery to a large number of retailers and direct customers. Comprehensive supply chain management minimizes distribution expenses, lowers the price increases linked to middlemen, assures a consistent flow of products, and improves the effectiveness and dependability of the supply chain. Therefore, implementing vertical integration within an existing business offers chicken products of exceptional quality at competitive prices.

Catalyst for local economic development, job opportunities and investment
The poultry industry began evolving in the 1930s and adopted a vertically integrated style of contract farming in the 1950s. Later in the 1980s, horizontal integrations were introduced, resulting in regional monopsonies in the poultry business (Constance, Francisco et al. 2013) . However, by integrating the different stages of production, the integrators reduced costs by coordinating the production capacity of each stage or component of the production system. The chicken industry has grown to a higher magnitude today by combining production stages into large vertically integrated firms that can take advantage of rapidly changing technologies and innovations. Generally, vertical integration involves contract farming or breeding, where large organizations contract local farmers to breed/raise chickens, providing them with chicks, feed, veterinary support, and technical guidance. This system creates a stable income source for farmers, who benefit from reduced market risk and guaranteed prices for their produce. By reducing the need for farmers to invest in costly infrastructure, such as feed mills or processing plants, vertical integration makes poultry farming more accessible and profitable for local communities. In India, 70% of poultry farmers engaged through contract farming are small farmers with a flock size of 3,000-10,000 birds; 20% are medium-scale farmers with 10,000- 50,000 birds, and only 10% are large-scale farmers with 50,000-400,000 birds (Khire and Ryba 2024). Additionally, the presence of vertically integrated poultry companies stimulates local economies through job creation. These companies require a workforce for hatcheries, feed mills, processing plants, and distribution networks, creating employment opportunities beyond the farm level. Investment in local infrastructure, such as roads and utilities, often accompanies these operations, further benefiting the community. This significantly increases the cash flows to rural areas. This provides a stable and profitable source of income within their communities, where individuals can maintain their agricultural heritage while incorporating poultry farming. This dual income stream enhances financial stability for rural families, encourages the retention of agricultural knowledge, and sustains the social fabric of rural areas. The poultry industry is characterized by shorter cash flow cycles, ensuring farmers receive timely payments. This reliable income stream supports the day-to-day financial needs of rural families, enhancing their quality of life and enabling them to invest in education, healthcare, and other essential services. Income predictability also allows for better financial planning and reduces economic uncertainty for rural households. Additionally, jobs in transportation and logistics, further boost the rural economy. Other support services such as laboratories, workshops, warehouses, professional training, and other ancillary services create a diverse range of jobs in rural areas. Thus, vertical integration in poultry farming and processing significantly enhances the economic resilience and prosperity of rural areas.

Production sustainability
The concept of sustainability in a vertically integrated poultry business is regarded as multi-dimensional. The term sustainability encompasses economic, environmental, social, and institutional governance aspects  . The output of sustainable production is maximizing the delivery of safe and nutritious food per unit of input resource without increasing pressure on land  . Implementing energy-efficient technologies and practices at every production stage reduces overall energy consumption. For example, LED lighting, energy-efficient ventilation systems, and high-efficiency heating systems can lower the energy required for poultry housing and processing. Renewable energy sources, such as solar energy, wind energy, biogas, etc., can provide a significant portion of the energy required in the poultry industry. Installing solar panels on farm buildings and processing facilities, installing wind turbines to generate electricity for farm operations (in areas with consistent wind patterns), and utilizing agricultural by-products and waste materials as fuel for boilers and heating systems reduces waste and reliance on conventional fossil fuels. Apart from these, space utilization is optimized by setting up advanced housing systems, including multi-tiered aviaries. These systems enable the housing of a greater number of birds in a single location without compromising animal welfare, thereby reducing the overall land footprint of poultry operations. On the other hand, adoption of nipple drinker system reduces water wastage by preventing spillage and evaporation. Additionally, the transition from immersion to air chilling during refining enhances energy efficiency and reduces water consumption. Additionally, air chilling offsets the risk of cross-contamination and improves the quality of the final product by preserving a more natural flavor and texture. Similarly, vertical integration involves adopting water reclamation systems to decrease water consumption and heat recovery systems that harvest waste heat produced during processing and redeploy it to heat water and power equipment or maintain facility temperatures. Together, these practices in vertically integrated units reflect the organization’s commitment to environmental stewardship while maintaining high productivity and economic sustainability (Figure 2).

Figure 2. Schematic representation of sustainable practices employed in vertically integrated poultry farms and processing units. The figure highlights solar and wind energy use to meet energy needs across poultry farms, breeding units, hatcheries, and processing plants. Litter from poultry farms is converted into bioenergy and byproducts like manure, feather meal, and meat and bone meal, reducing environmental pollution. In processing, sludge is managed through organic composting, biogas production, and animal feed creation. Water management includes using nipple drinker systems and water reclamation, while energy-efficient processing methods like shifting from immersion to air chilling and introducing HVAC systems are employed to conserve energy and water resources.

Conclusion
In conclusion, implementing a vertically integrated poultry business model offers a sustainable, efficient, and cost-effective strategy for producing high-quality animal protein and products according to consumer preferences. This strategy involves centralized control over all phases of poultry production, from breeding and raising birds to processing and packaging the final products. By maintaining oversight at every step, companies can ensure that resources such as energy, water, and feed are used efficiently, minimizing waste throughout the production chain. Moreover, it integrates ethical practices and ecologically sustainable methods into production. Ethical practices include providing humane living conditions for the birds, such as adequate space, proper nutrition, and veterinary care, which collectively enhance animal welfare. Sustainable practices involve reducing the carbon footprint by using renewable energy sources like solar and wind power and recycling waste products into bioenergy or organic fertilizers. By focusing on these ethical and sustainable procedures, the poultry sector improves the overall health and well-being of the animals and enhances the quality of the products. Consumers receive higher-quality poultry products that are produced in an environmentally responsible manner, supporting both animal welfare and the health of the planet.

References are available on request.

Poultry Processing for a Profitable Broiler Business- India Perspective

Dr. Narahari, Project Consultant – Meat and Poultry, Processing and Meat Retail at NH ProPOWER Consultancy Services, Bengaluru, Karnataka

Dr Narahari a seasoned professional in the space of Meat and Poultry processing industry in India and has spent over 32 years working with reputed organizations in India and Middle east and held Middle and Senior positions. Graduated from Bangalore veterinary college during the year 1989 and completed PG diploma in Animal Husbandry from ITCPH, Philippines under Netherlands fellowship programme. His organization NH ProPOWER Consultancy services, Bangalore offers end to end solutions for Meat and Poultry processing, Further processing, Retailing and QSRs, currently doing projects in India, Middle East and Africa.
For more information contact: drnarahari@nhpropower.com Mobile: 9663376040

Introduction
The Indian broiler poultry industry, like the global industry, relies on innovations in the entire value chain of the broiler business. Unfortunately, the poultry processing sector faces innovation gaps crucial for ensuring the production of safe and hygienic chicken products to the general public from farm to table. The broiler industry in India has witnessed remarkable growth and transformation over the past few decades, positioning itself as a vital component of the country’s food production and economic landscape. The broiler industry is projected to contribute INR 1.5 lakh crores to the Indian economy. India ranked fourth in poultry meat production and second in egg production worldwide. As per the latest report by the Department of Animal Husbandry and Dairying (DADF), chicken meat accounts for an estimated 6.37 million tons, or 60 percent of total meat production, and is increasing at 6.86 percent annually. The substantial increase in production can be attributable to favorable climatic conditions and geographical diversity, which enable continuous production throughout the year. The demand for chicken products in India, especially broiler meat, is rising and fueling the industry’s growth and modernization. Recognizing the need and potential, the Indian government actively promoted expanding broiler industry by implementing several policy measures and helped to enhance competitiveness and sustainability of poultry farming operations. Still, the broiler industry in India holds immense potential for further expansion and diversification, driven by favorable market dynamics and evolving consumer preferences. Hence, by prioritizing innovation, sustainability, and inclusivity, the sector can sustain its success and significantly contribute to the nation’s animal husbandry, food security, and economic prosperity.

Breaking Down the Numbers: Why Poultry is the Fastest Growing Agro Industry
Agro-industries, including fisheries, poultry, horticulture, and dairy, are integral components of India’s agricultural landscape. In recent years, the poultry industry stands out for its rapid expansion and impressive scalability. Recent data indicates that there has been a growth of 66% in grain, 128% in fruits and vegetables, 170% in milk, and 173% in fish over the past two decades. Amazingly, in the same period, the growth in poultry meat production has surged by a staggering 950%.

Table 1. Data showing poultry production in comparison to other agricultural products
Source: World Bank Database, Ministry of Agriculture and Farmers Welfare, Basic Animal Husbandry Statistic, Horticulture Board of India.
The data show a remarkable growth compared to other food products and this growth is driven by factors such as changing dietary preferences, population growth, and economic development. Also, ease in poultry industry’s adaptability, efficiency, and scalability have positioned it as a key player in food production. However, after a record increase in production, it’s time to redirect attention towards poultry processing to satisfy the current generation’s desire for superior products. Moreover, poultry meat consumption per capita is expected to rise from 5.3 kg in 2022 to 9.1 kg in 2030 ‘ . Therefore, to cater to the needs of future demand, product type, and consumer preferences, one needs to scale up the poultry processing industry.

Sow, Grow, Reap: Healthy investment proposition in Value Chain Infrastructure Investment
The agricultural sector of India offers a highly attractive prospect for investment in the value chain infrastructure of poultry, covering poultry processing. In tandem with a growing urban population and urbanization, the demand for poultry products has increased steadily. Yet, the industry sector faces challenges in terms of efficacy, standards of hygiene, and distribution infrastructure. The “Sow” phase represents the foundational aspect of poultry farming and processing. With a population exceeding 1.43 billion, India presents a vast market for poultry products, including eggs and broiler meat. Specifically, broiler farms and processing plants could create up to 55% investment opportunity initially. As poultry production and processing advances to the “Grow” stage, opportunities for value addition and diversification become increasingly apparent. For instance, integrated poultry farming models, incorporating hatcheries, feed mills, and processing facilities, enable stakeholders to capture added value along the supply chain.

The “Grow” stage will be supported by a healthy investment proposition in the value chain of poultry infrastructure in India, given the current state of consumption trends, the imperative for modernization, and the need to enhance efficiency in order to meet the demands. The strategic utilization of these elements, investors can capitalize on the growth opportunities and make a positive contribution to the expansion of a sustainable and resilient poultry industry. Finally, “Reap” the opportunities for vertical integration or strategic alliances, where stakeholders can expect to obtain significant returns on their investments in the Indian poultry sector. The coming decade so will provide plenty of opportunity for the sector to realize the returns on investment.

Figure 1. Pictorial description on meat eating population in India.
The data indicate the potential growth for chicken eating population in India.

Poultry processing and its influence on circular economy
The poultry processing industry in India is of significant importance in influencing the circular economy structure, as it offers a sustainable approach for utilizing resources, managing waste, and promoting economic development. As the poultry industry is expected to expand, driven by rising demand for poultry products, it is essential to understand the impact that poultry processing has on the circular economy. One of the key aspects of poultry processing lies in its utilization of by-products and waste streams. Poultry processing plants generate significant quantities of by-products such as feathers (7.5%)5%), heads (2.75%) (, blood (2.6%), feet (3.75%), gizzards, intestines, and glands, which, if managed effectively, can contribute to a circular economy model. These by-products can be transformed into value-added goods, such as animal feed, fertilizers, or bioenergy with anaerobic digestion, which helps minimize waste generation, reduce environmental impact, and create additional revenue streams. For instance, the gasification of poultry wastes could generate enough heat (up to 4.15 MJ/Nm3) that is sufficient to maintain the energy needs of poultry sheds. This allows the farm to switch from fossil fuels to a local renewable resource. This strategy can generate significant additional revenue through the sale of biochar by-products (INR 20000/ton) while circumventing disposal expenses of INR 3000/ton  . Likewise, multiple strategies such as anaerobic digestion, pyrolysis, hydrolysis, enzymatic treatment, and others play a substantial role in augmenting revenue generation and reducing waste production in the poultry processing industry.
Moreover, poultry processing is crucial in generating employment opportunities and promoting economic growth, particularly in rural regions. The development of processing facilities not only generates direct employment in processing operations but also encourages ancillary businesses such as transportation, packaging, and equipment production. Thus, by adopting sustainable practices and utilizing innovative technologies, the poultry processing business can exemplify circularity, highlighting the potential to achieve environmental stewardship and economic prosperity.

Rewards for industry from the organized processing
Organized poultry processing offers multiple advantages for the poultry industry, including enhanced market competitiveness, increased operational efficiency, and improved sustainability. Organized poultry processing operations significantly influence the optimization of the complete poultry value chain, thus offering the industry numerous advantages. Specifically, organized poultry processing plays a crucial role in de-commoditization, fostering sustainable growth, operational efficiency, market competitiveness, and ensures year-round predictability of business operations irrespective of seasonal variations. Additionally, it supports generating employment opportunities, aids authorities in monitoring the production line for improved management and contributes to marketing strategies led by technology and digitalization.

Rewards for consumers from the organized processing industry
The organized poultry processing industry provides consumers with a range of benefits, including convenience, variety, improved quality, and food safety. In light of consumers’ growing perception regarding the products they buy, organized poultry processing facilities are in an exceptional position to satisfy and surpass their expectations, delivering tangible benefits. Ideally, well organized industry provides traceability of the product, quality, quick logistics, value for money, and enhanced product experience prior to purchase. These added benefits redefine the perception on the poultry products and their quality. Also, consumers sense that organized poultry processing places a higher value on them, as it has the potential to offer a wide range of products that appeal to the majority of society.

Figure 2. Potential rewards for industry and consumers from the organized poultry processing

Current challenges in India’s broiler industry
Current challenges in India’s broiler industry include unexpected production, biosecurity lapses, workforce issues, waste disposal issues, and pollution. Besides inadequate infrastructure, lack of cold chain infrastructure, and market volatility all disrupt the development of the industry in India. Furthermore, these obstacles threaten profitability and sustainability, demanding stakeholders to work together to effectively tackle them and ensure a resilient and thriving broiler sector in India. For instance, to manage unexpected production, poultry processing capacities can be expanded by extending operational hours or investing in improved storage capacities. In this specific issue, The ability to adapt and devise strategic plans are critical factors in effectively managing variations in broiler production volumes. Next, it is crucial to strictly follow stringent biosecurity measures to address biosecurity lapses in the broiler business. This involves implementing controlled access measures, disinfection protocols, and strict hygiene practices to avoid the entrance and transmission of infections. Conducting regular training and awareness programs for farm workers is crucial to ensure adherence to biosecurity protocols. Moreover, employees at the processing plant have a crucial role in managing the challenges that develop. Investing in training and skill development programs is critical in improving the knowledge and competency of poultry farm and processing employees. Competitive wages, benefits, and a safe working environment can help attract and retain skilled labor in the broiler industry. Collectively, addressing these challenges requires a holistic approach that integrates challenges and provides solutions collaboratively. The collaboration of industry stakeholders, regulatory bodies, and research institutes is essential for developing and implementing broad solutions that safeguard the long-term viability and sustainability of the broiler industry.

Navigating the volatility in the broiler and processing business
Navigating the volatility in India’s broiler industry, one must adopt a multifaceted approach involving strategic planning, risk management, and agility in response to market dynamics. A crucial approach is diversifying product offerings and markets to decrease dependence. Also, expanding into value-added products or exploring export opportunities helps navigate difficult times. Occasionally, these measures leave a permanent mark as a solution for future growth. Furthermore, it is crucial to acknowledge the significance of adaptable production or processing methods that can swiftly accommodate fluctuations in supply and demand. Optimizing production or processing schedules and implementing robust supply chain management are essential to mitigate the impact of volatility in business. Apart from these, building robust relationships with customers, suppliers, and industry partners is essential to navigate the volatility effectively. These relationships offer valuable insights into the volatility by which one can understand risks, opportunities, and resource availability.

Conclusion
In conclusion, poultry processing for a sustainable broiler industry in India requires a concerted effort from all stakeholders. By embracing innovation, implementing robust biosecurity measures, investing in workforce development, and adopting sustainable waste management practices, the industry can overcome current challenges and pave the way for a more resilient and environmentally responsible future. India’s broiler business has the potential to thrive effortlessly in the future as to the expected demand for processed chicken products, provided that careful planning, cooperation, and adherence to established standards are implemented. The industry’s overall growth greatly contributes to food security and nutritional security. Poultry products fulfil the protein needs of today’s youth and help them achieve their aspirations in diverse spheres, including sports. Lastly, it campaigns for food production through environmental sustainability.

Figure 3. Adoption of multifaceted approach to navigate the market volatility in the broiler industry.

MR. ALOK RAJ
PRINCIPAL CONSULTANT, APTEC

Mr. Alok Raj, the principal consultant at Aptec, unveils a career journey that commenced in 1977 with ICB Ltd, specializing in chemicals, bulk commodities, and mining. With a wealth of experience in agro-processing, oil-seeds, refining, and roles at Meyn Food Processing Technology, Mr. Alok Raj’s expertise culminates in pioneering insights. His 2009 venture, Aptec, stands as a testament to his prowess in diverse processing industries. His extensive knowledge base and hands-on experience continue to be instrumental in driving innovation and pragmatic solutions within the ever-evolving landscape of processing technologies.

Twice a year we at Aptec publish a status report on poultry processing in India. This report is available for anyone to download, read and reference, free of cost. Projecting for March 2025, we have the following scenario – 61 plants in the organised sector (i.e. plants with capacities of 1000 birds per hour or more) scattered in a highly skewed pattern across the Country. This scatter pattern does not represent location of chicken-consuming populations – it reflects other factors. The scatter needs to be uniform over the Country because that is exactly how chicken consumers are distributed. In another study we have also found that non-availability of properly processed and packed poultry is one factor that has kept consumption down to as low as 42% of its potential. You will find more details on all these claims on our website – https://aptec.in/

Fig. 1 : Location of organised sector poultry slaughterhouses in India, Industry Report uploaded in October 2023.
For a detailed study visit our website at https://aptec.in/Reports

Three questions ought to arise in the reader’s mind: how big is the poultry processing industry, what relationship it has with the wet market and what is its growth rate vis-à-vis farming output of broilers. We have conducted studies on these. By March 2025 the overall installed capacity of organized sector poultry processing will be 1,65,400 birds per hour (BPH) and together with smaller slaughterhouses processed poultry output in India will be approximately 15% of the total – the rest will come from the wet market. Between 2002 and March 2025 the growth of capacity addition in the organised poultry processing sector has been calculated by us at 12.25% CAGR. In contrast, the growth of broiler farming has hovered around 6% CAGR. Therefore, one can confidently conclude that over this period the wet market has been steadily diminishing, as it must, if India has to become a developed economy.

From the existing capacity of 1,65,400 BPH which constitutes a gross capacity expected by March 2025, processed poultry is expected to be performed efficiently and hygienically. Poultry coming from the wet-market route will constitute the balance (85% of the total) and is expected to be unhygienic, will be performed with waste of resources and be out of sync with poultry processing standards worldwide.

This 15% share must rise dramatically if this industry is to be brought at par with the developed world. We believe that when a country establishes capacity to process at least 70-80% of the number of broilers its farms produce, it can effectively shut down the wet-market. So, we may like to aim at 75% capacity processing by 2047 to reach that goal. Say 45% processing level by 2035 and 75% by 2047. To simplify our calculations, we will assume that neither the broiler farming sector nor the population nor the per capita consumption of chicken meat show any growth over these periods.

Using data available with us, we have calculated the additional number of poultry processing facilities of today’s average size that must be set up to reach these targets. The figures are:

Unfortunately, there simply are not enough suitable plant sites in India for so many poultry slaughterhouses.

How do we make such a claim? Because we have helped design and build nearly 50% of poultry processing capacity in India over the past quarter century, we have found identification of suitable land the most daunting part of the exercise. Our solution to this problem is in two parts – the first part requires investors in this industry to take the lead and the second part requires collective effort by industry and government.

We spoke of the principal problem challenging growth of poultry processing capacity in India, namely the unavailability of suitable sites for plants with the present average capacity of 2710 birds per hour (BPH). We do have a solution to this problem. It requires a two-pronged strategy. The first is based on a proper understanding of the process itself, based on which we can split or divide the processing activity into two stages, each of which can function at a separate location. We call this the Hub & Spoke Model of Poultry Processing.

The second strategy is an itemised scrutiny of each hurdle to the growth of this industry and suggest custom solutions. But this requires cooperation between industry and government. Let us take up the Hub & Spoke Model and while discussing it, we will have the opportunity to itemise these individual hurdles.

1. Split the Process and Plant – Use the Hub & Spoke Model
This model is based on a close examination of Nine features of the process listed and discussed below. Some of them emerge as hurdles while others appear to favour splitting the process into Hub and Spoke, these being two halves of the process, separated into convenient sections that may function independently at different locations.

Poultry processing produces whole or portioned chicken, with each being either blast-frozen for long term storage or fresh chilled for immediate consumption (within 4-5 days of processing if kept refrigerated). In the case of portioned chicken, the market has a long laundry-list of product specification starting from cuts and packing size to whether or not the portions have skin-on or are deskinned, whether marinated or not, and so on. It should be clear to us that there is no disadvantage in splitting the primary and secondary steps (identified in table 1) into two locations as Hubs and Spokes. In fact, there exist excellent reasons to split them.

Aptec developed this model during September 2020 and privately distributed a short note on it among poultry processing plant owners. Later, following an interview of this author conducted by Asian Poultry Magazine in October 2020, Aptec published a report on this model in the January 2021 issue of the Industry Report.

2. Intensity of Scale Economies
Poultry processing is highly scale sensitive. Machinery manufacturers now offer line speeds of up to 15,000 BPH. As you go up the capacity ladder, the specific processing cost per chicken falls significantly. And here we are, struggling at an average capacity of 2710 BPH in India! Imagine the scale economies the processing industry is losing! If only we could improve scale economies in processing, poultry meat could become cheaper across the board.

3.Capital Intensity
Poultry processing is also very capital intensive, requiring heavy investments. However, the bulk of the investment goes into primary processing. Table 2 shows this. Here you may note that the primary processing stage uses the bulk of the capital in processing equipment. Added to this is the need to invest large funds in refrigeration, waste-water treatment, rendering and electrical sub-station in primary processing, The capital needs of secondary processing is overall lower not only in processing machinery but also in connected load and refrigeration because much smaller capacities of these utilities are required. Besides, the secondary processing end needs neither rendering nor wastewater treatment nor complicated machinery.

4. Hunger for Resources
Poultry processing requires lots of water, generates need for a large effluent treatment facility and uses plenty of power for operation, mainly in refrigeration and rendering. But most of these resources are restricted to primary processing departments which include live bird hanging to whole carcass chilling with water and flake ice, freezing of carcasses and a primary weight-wise grading of carcasses. Blast freezing of whole carcasses can be undertaken at the Hub, helping to smoothen the mismatch between farm output and demand for chicken meat.

The Hub location could build large blast freezing capacities and frozen stores, thus qualifying them for MOFPI’s cold chain capital subsidy. This would enable them to benefit from periodic live bird price gluts. With adequate freezing and storage capacities, gluts would be progressively smoothened and poultry farming would become a low-risk activity, attracting more rural youth into contract farming.

5. Labour Requirements
A typical 6000 BPH plant needs from 300 to 400 workers if both primary and secondary processing stages are combined at one location. Of this, only 60-80 workers are required in primary processing – the rest being needed in secondary processing. Besides this, labour in primary processing must be very skilled while labour in secondary processing generally needs just one or two weeks of training. Because labour and staff number are small for Hub facilities, and such facilities need to be located in up-country areas, plant promoters may provide on-site housing and other facilities to them. Spokes may be built close to towns on industrial estate plots or in existing industrial sheds taken on lease. There are always some unused plots or sheds in industrial estates near most towns and cities. Labour requirement for Spokes may be sourced from among young unemployed youth resident in the nearby towns. This means that the staff needs no purpose-built housing and may use existing mass transit networks for commuting. Were the Hub & Spoke model to be implemented, manpower problems could be solved by extending the Skill-India initiative to cover this sector. By way of social engineering, a team could periodically pick promising young candidates from existing wet market and give them on-the-job training in existing modern poultry slaughterhouses, to be later absorbed in Hubs.

6. Work Schedule
In an integrated slaughterhouse the primary processing shift operation begins very early in the morning to match the arrival of live birds at the plant. Transport of birds generally occurs at night to save them from heat stress and reduce dead on arrival birds (DOA). The primary shift starts at around 0600 hrs and ends at say 1500 hrs whereas the secondary shift starts at 1100 hours and ends at 2000 hrs or goes beyond it, depending on workload. The secondary shift is staggered because of a technological factor called maturation. For maturation whole carcasses are rested for 4-5 hours at between -1 and +4oC to make poultry meat more tender and juicier. This results in a natural separation in the overall poultry processing activity. If maturation is allowed to happen during transport of carcasses from Hub to Spoke, we can effectively increase the shelf life of fresh-chilled poultry by 4-5 hours. This will happen because we will have merged two serial value-addition activities, namely maturation and transport to market within that single time-slot.

7. Rendering
Slaughtering waste is generated in primary processing and to protect the environment, reduce the spread of avian diseases and recover valuable protein from waste, one requires to have a rendering facility attached to each slaughterhouse. Secondary processing, on the other hand, generates practically no waste, except some bones when it is required to convert portions into bone-less meat. If de-boning is performed at Spoke, these bones can be rendered along with slaughter waste if they are delivered into the intake hopper of the rendering plant at the Hub.

8. Land
For treatment of wastewater, primary processing needs a large plot of land. Given the condition that treated wastewater must be used for irrigation, primary processing must occur in the midst of up-country agricultural crop or plantation land. Secondary processing has very limited need of land as it generates no waste-water stream. It can therefore conform to industrial estate standards and be located near towns, closer to consumption centres.

9. Inventory Management
In a large processing plant, the preoccupation of managers in primary and secondary processing is very different. The manager of primary processing handles veterinary, technical and machine maintenance issues while the manager of secondary processing grapples with logistical, scheduling and inventory management issues. No doubt, there are several common concerns like biosecurity, hygiene and workers’ safety, but the difference in their focus is important.

Secondary processing can produce a large number of product types or SKUs. These are distinguished, one from another, by the size of packing, whether frozen or chilled, whether mixed portions (curry-cuts) or only one type of portions in a pack, whether skin-on or skin-off, whether bone-in or bone-out, whether edible offal or prime chicken portions, whether bulk-packed for institutions or small packs for consumers, whether marinated or not and so on. So, the larger his operation and the farther he is from the consumer, the harder does the inventory management job of the manager become and from time to time he may get burdened with unsold inventory, which he must get rid of, by offering discounts.

Emerging Market Conditions Suit the Hub & Spoke Model
In recent years a number of companies have sprung up as home-delivery outfits. From each centre they cater to a geographically small market which their delivery boys or small trucks can service directly. They hold an undifferentiated inventory of fresh-chilled whole carcasses which they source from existing poultry slaughterhouses and process them into the desired SKUs against orders received by mobile phones or over the internet. So, they do not have any dead inventory to carry.

As municipalities chased most of the wet-market vends out of cities and towns over the recent past, these operations went underground and become invisible. Some of them took a cue from the home-delivery outfits and climbed onto their band-wagon. In effect the municipal drive made the wet-market computer-savvy and their members set up web-based home-delivery platforms. Like the current phenomenon of cloud kitchens, we now have cloud-slaughterhouses as wet-market butchers no longer need to display the actual slaughter process. But this development fails in terms of product hygiene, biosecurity and sanitary disposal of processing waste. These clandestine operators continue to dump their processing waste onto landfills or into municipal drains.
If the processing industry sets up a sufficient number of Spoke units it may benefit from the home-delivery trend and together they may either improve processing conditions in these clandestine cloud slaughterhouses or cause them to shut down. The industry may also try promoting entrepreneurship among urban unemployed youth by including them in a franchise arrangement at Spoke establishments, just as reducing price volatility by Hubs may promote unemployed rural youth to take up contract farming.

For the processing industry to adopt this idea, large integrators should convert their existing plants into Hubs, operating large capacities to the tune of 12,000 BPH for 2 shifts, the better to utilise their assets. Simultaneously the industry should rapidly set up many Spoke facilities close to cities and towns. To sum up, by splitting the process into two steps, we contain pollution, better manage water and power requirements at fewer locations, where we can solve these issues more efficiently because the solutions themselves exhibit scale economies. Besides, by restricting pollution generation and abetment to fewer locations, better control and compliance may become feasible. The poultry processing industry can leverage recent market developments and adopt emerging business models to expand product distribution and encourage enterprise among youth.

Scale economies express how much more it costs to process one chicken is when it is performed in a plant running at 1000 BPH as compared to doing it in, say, a 6000 BPH plant. To obtain actual figures, download AptecApp from the Aptec website. This App allows you to choose from 5 different plant sizes, configure the product mix to your liking and it immediately generates the entire financial feasibility calculations. It also shows you how much a typical kilogram of marketable product costs to produce with your just-configured product mix and capacity settings. Maintaining the same product mix, switch to a different capacity choice and study the financials. You can read how much it costs to process at that capacity. This will illustrate the sensitivity of processing cost to scale of operation. Even within a single plant capacity setting you can choose a 20% over capacity or 20% under capacity operation and see the impact of specific processing cost.

 

A stock-keeping unit (SKU) is a scannable bar code, most often seen printed on product labels in a retail store. The label allows vendors to automatically track the movement of inventory. The SKU is composed of an alphanumeric combination of eight-or-so characters.