JAC : A Journal Of Composition Theory ISSN : 0731-6755

A Study on Production and Marketing of Poultry Eggs in

Tamilnadu - India (With Reference to Namakkal District)

S. DHANASELVI, Dr.T.Gayathri,

Research Scholar, Assistant Professor in Commerce

PG & Research Department of Commerce,
Nehru Memorial College (Autonomous),
Puthanampatti-621007.

ABSTRACT:

The Indian poultry industry’s success story is uniquely exceptional. From a garden
business enterprise, it has made a quantum leap to come into view as a active business. Larger
than the last three decades, there have been important developments in the poultry business with
each decade focus on special sectors. The seventies saw a spurt in egg production; the eighties an
acceleration in broiler production; the nineties advances in poultry integration, automation and
provide for production. The current decade promise to exploit value additional goods and the
international operate avenue. India is a on the increase country primarily has a farming financial
system. If agriculture blooms, the country prospers. Agriculture is a diversify subject cover such
behavior as farming, forestry, animal husbandry and fishery as well as agro-based industries in
broader conception. Rural development improves the quality life of the weaker sections and
gives way for participation and involvement of the masses in the process of decision making in
economic and social life of society. They provide livelihood to and millions of rural households
in the sub marginal level both land less and small landholders. They prove to be the best way to
alleviate rural poverty and reduce income disparities. Manufacturing sector depends on
agriculture for their underdone material and related products. Hen and egg are popular food
articles of high food charge and so and main breakthrough have been achieved in egg
manufacture and broiler stock. This outstanding to included development of reproduction
feeding, marketing, health care and food etc. Poultry agricultural by as long as additional income
to the agricultures helps them to be paid further and helps the nation to extend without any wide
disparities in the income.

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Key words: Nutritional, farming, egg conservation, living, manufacture, rural.

INTRODUCTION

Overview of Indian poultry market: India’s animal wealth is huge in terms of its population of
cattle (204.5 million), buffaloes (84.2 million), poultry (800 million), sheep (50.8 million), goats
(115.3 million) and pigs (12.8 million). Compared with the rest of the livestock sector the poultry
industry in India is more scientific; it is well organized and progressing towards modernization.
The Indian hen industry's achievement story is exclusively excellent. From a garden business
enterprise, it has made a quantum leap to materialize as a active business. Larger than the most
recent three decades, there have been considerable developments in the poultry industry with
each decade focus on special sectors. The seventies saw a spurt in egg production; the eighties an
acceleration in broiler production; the nineties advances in poultry integration, automation and
feed production (Fig. 1). The nearby decade promise to develop value supplementary products
and the international job avenue. The increase of the poultry industry is so quick that genuine
statistics are unrelated by the time they are available. India is the fifth major manufacturer of
eggs and ninth major manufacturer of poultry meat in the world, producing 34 billion eggs and
about 600,000 tons of poultry animal protein in 1999 (Mehta, 2002). Poultry sector in India has
been growing at a much faster rate than other sectors of the Indian economy and accounts for
100 billion rupees to the Gross National Product (GNP).

Despite such amazing growth in last two decades, annual per capita consumption of egg
and poultry meat in India is disappointingly low with approximately 36 eggs and 0.7 kilograms
of poultry meat in 2001 (Mehta, 2002). These levels are too near to the ground as compare to the
world common of 147 eggs and 10.9 kilograms of poultry meat on a per capita foundation
(FAOSTAT). These low down level of per capita utilization of eggs and poultry animal protein
have been more often than not accredited to minor purchasing power (Gandhi and Mani, 1995).
However, purchasing power of Indians is likely to grow at a much higher rate in the future due to
strong economic growth, as a result of continued economic liberalization initiated in early 1990s.
Macroeconomic forecasters such as World Bank and usual and Poor's DRI are at the moment
projecting usual annual development of 6-8% in India’s real GDP in the subsequently decade. In
adding to burly income development, utilization pattern is also expected to be subjective by
population development, urban-rural population masterpiece and other demographic variables.

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While it is really significant to appreciate the expectations utilization expansion in

poultry animal protein and eggs both from policy and_ industry viewpoint, it has received little
attention from the researchers (Sharma and Yeung, 1985; Sinha and Giri, 1989; Gandhi and
Mani, 1995) both in India and abroad. However, most of these studies except Gandhi and Mani
(1995) have ignored how difference in the consumption behavior across income groups is likely
to evolve in the future with the rise in income. Constant Gandhi and Mani (1995) predictable
split income elasticity for diverse income groups both in the city and country area; they didn’t
lengthen their analysis in projecting opportunity demand for livestock and its products. The
Value of Output and Gross Domestic Product from Livestock Sector in India is estimated at Rs.
156.08 thousand crore and Rs. 120.94 thousand crore respectively (Basic Animal Husbandry
Statistics, 2004, GOl). The share of livestock sector in the country's GDP remained more or less
constant at around 5.5%> since 1995-96. The share of meat (17.4%) in total value of livestock in
India has been found to be much less as compared to that of milk and milk product (66.9%). In
the state of Uttar Pradesh, the share of meat in total value of livestock has been found to be very
low (less than national average) at 3.95%o0.

The share of milk products in total value of livestock in Uttar Pradesh is as high as
89.5%) (Central Statistical Organization, GOI, 2004). The broiler manufacture in the country is
expected at 1000 million numbers. In the recent years, the poultry farming has made rapid strides
from a family occupation to a progressive industry. The share of poultry meat in total meat
production has increased from 19.79% in 1981 to 30.14% in 2002 at world level and from 4.46%
in 1981 to 12.10% in 2002 in India. The enlargement rates in poultry meat manufacture in India
have been very far above the ground as compare to that at the world level (Table 1). Study
(Economic Research Service, USDA, 2004) point to that the poultry meat is the greatest
increasing constituent of international meet demand. In India, the poultry sector expansion is
being driven by rising incomes, jointly with the appearance of perpendicularly included poultry
producers that have concentrated customer prices by lowering manufacture and marketing
expenses. Integrated production by way of combining breeding, feed milling, contract rearing; a
market transition from live birds to chilled and frozen products and policies that help ensure
supplies of competitively priced domestic or imported com and soybeans are keys to future
poultry industry growth in India and in other developing countries. Poultry is usually construct to
mean, Eggs and chicken meat from side to side its area is vast and diverse.

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What was once a product of the backyard of and poultry has achieved phenomenal
growth with a high rate of productivity with adoption of the latest technology. India is perhaps
the only country in the developing world that can boost up a self sufficient breeding capacity
with sophisticated spf (specific pathogen free) Technology and full fledged research operations
combined with training facilities comparable to the best in the world. The manufacture
technology adopt by the poultry industry is far above the ground grade with a an yearly
production of 17,000 million. India is the major egg manufacturer in the world. There are about
60,000 families in a straight line needy on the poultry undeveloped with partially of a million
occupied in hold operation like hatcheries and food mills, vaccine and medicine laboratories.
transport. Distribution and retailing of poultry meat. The national institute of nutrition has
recommended that a balanced diet should contain 30 gms of eggs and 30 gms of meat per head
per day which mean an yearly per capita utilization of 180 eggs and 10.8 kg of meat. This calls
for tenfold increase in the layer sector and a various increase in the broiler sector. In the poultry
sector, there are dissimilar areas which offer enormous opportunity for increase like quick food.
There is huge range for sell overseas lot table eggs, day-old chicks, poultry breeding stock,
process chicken meat products, vaccines, medicines and such additional necessities to the other
requirements to the other developing countries. The poultry sector the capacity to grow with in a
short span and at a low cost. It is one of the most effective tools to fight mal-nutrition and
unemployment. What is required now is support and encouragement by the government.

Poultry:

Youthful student listing defines poultry as, Birds raised for their animal protein and eggs
are called poultry. Chickens, Ducks, geese, guinea’ fowl, pheasants and pigeons can all be
poultry birds.

Objectives of the study:

(a) To give a detailed profile of the poultry farmers in Tamilnadu.

(b) To analyze the profitability of the poultry farmers.

(c) To review the factors influencing the growth, instability and profitability of the poultry
farmers.

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Hypothesis:

(i) The size of the firm is not depending on profit.

(ii) Profitability is not influenced by the educational qualifications of the respondents /

farmers / entrepreneurs.

(iii) The source of capital (ie: owned our borrowed) has no significance over the profit.

(iv) The size of the family has no relation with profit earned.

(v) Ancillary occupations/business has no affect on the business.

Methodology:

This study is an empirical study based on survey method. The data composed for the
study both main and less important data together from journals and magazines. Primary data
were collected directly from the farmers through personnel interview method aided by a
schedule.

Field work:

The pasture occupation was accepted out through Jun- Dec 2010. Each interview took
about half-an hour to one hour. Approximately 200 poultry farm entrepreneurs were interviewed
for collecting data. The interview was conversational in style and respondents were made to feel
at home and easy.

Limitations:

Judgment of the whole profit/loss for the before years was complicated. Most of the
farmers do not keep correct accounts of their receipts and expenditures or any other statistical
data. Most of them are given by the respondents only from their memory which may not be
accurate. On the other hand, each attempt has been full by in cooperation researcher to gather the
data as correct as potential.

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Research methodology

Data collection: After identifying and defining the research problem and determining specific
information required solving problem, the researcher’s task is to look for the type and sources of
data, which may yield the defined results. Usually, the researcher in a straight line away
alternative to review method for data collection. i.e.: they go for most important data.

Primary data: Primary data may be relevant to socio- economic individuality of the industrialist
attitude and opinions, their responsiveness, knowledge and other associated aspect, in the vein of
learning, review expenses etc.

Data collection method: Sources of data are primary data, which is gathered by the researcher
with the help of questionnaire. The respondents are belonging to poultry farm farmers.

Sampling techniques: The researcher selected probability-sampling method. Under which

stratified techniques was used. As the poultry farm being huge, the project time being
inadequate, it was determined to desire this exacting procedure. In stratified sampling, the
sample units are selected either proportionately or disproportionately. At this time the researcher
adopt unequal stratification by select 25 samples from all.

Data analysis tools: Interpretation and analysis of data was conducted by means of percentage
and chi-square test.

Percentage: Proportion refers to a particular variety of proportion. Percentages are used in

making comparison between the or more series of data. Percentages are used to describe
relationships. In view of the fact that the percentages decrease the whole thing to a ordinary base
and there by tolerate significant comparison to a ordinary base and there by agree to meaningful
comparison to be completed.

Chi-square test: The quantity Chi square describes the magnitude of discrepancy between
theory § and observation. With the help of chi square test we are ina position to find whether to
change or whether it results from the inadequacy of the theory to fit the observed fact.

Bar diagram: Bar diagram is the the majority ordinary type of diagram used in put into practice.
A bar is a broad line whose width is exposed just for concentration. When the number of piece is
big, lines may be haggard in its place of bars to economize liberty.

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Pie diagram: This type diagram is used to show the partitioning of a total into component parts.
The pie chart is so called because the entire graph entire graph look like pie and the components
resemble slices cut fromPresent scenario of the Indian poultry industry: India has 150 million
laying hens and 650 million broilers. It is the fifth largest producer of eggs (40 billion eggs/year)
and ranks 18th in world broiler production Economics and Statistics, 1992). The poultry industry
is one of the fastest growing sectors in the country. The in general increase rate of the poultry
industry is 15-20 percent per annum. At in attendance the sum earnings of the Indian poultry
industry is Rs.90 billion (2 billion US$) and the industry has set a aim for achieve a sum turnover
of Rs.270 billion (6 billion USS) by the year 2005. The government's policy initiative under
different five-year plans has generally helped this transformation in the poultry sector, but cannot
claim to have propelled the poultry industry to its existing heights.

The government funds research activities related to the sector either through research
organizations like Agricultural Universities/Indian Council of Agricultural Research or through
trade regulatory bodies - the Agricultural and Processed Products Exports Development
Authority (APEDA). The government also supports the industry by extending loans through
nationalized banks especially the National Bank for Agriculture and Rural Development
(NABARD) and through technical expertise. On the other hand, the Indian poultry industry is
conquered by the private sector (World Bank, 1996). Despite the exceptional growth — in
commercial poultry unindustrialized, many pastoral households go on to raise original breeds in
their backyard. The backyard poultry units, though not the main income producer for country
producers, are called ‘walking banks’ since their crop are sold to meet urgent situation operating
cost. Furthermore, they contribute substantially to the family’s food and nutrition. In city areas
the poultry goods from ‘desi birds’ (indigenous birds) are sell at a best rate for their exceptional
flavor and taste. This uniqueness is due to the scavenging nature of the birds. In addition,
chickens, ducks, quails, turkeys, geese and guinea fowl are only reared in a few pockets of the
country. Eggs and poultry animal protein are naturally marketed in clean form.

On the other hand, with the arrival of cold storage space services and the entry of
recognized food products, the utilization of processed/preserved products is ahead impetus.
Further, with the city family size receiving smaller, housewives are look for chicken in small and

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suitable packs. In adding, the rapid growing of fast food chains and increasing reliance on
expediency foods means the poultry sector is suspended for a quantum jump.

Consumption: The per capita availability of poultry products is currently estimated atleast 30
eggs and 400 grams of poultry meat per year. Judged by any yard stick, this level of consumption
to and predominantly Buddhist neigh boring country like Srilanka with per capita consumption is
about 40 eggs and china about 100 eggs. The economic problems facing most of the developing
countries are almost similar in terms of rural brand awareness, low purchasing power and
inadequate marketing infra-structure. As a large amount as 75 to 80 of al eggs and broilers
shaped in the country find their way for the most part into town markets, thus cookery to some
25% of the people. The existing distribution channels and weighed infavour of four metro cities
and a fewer larger towns, where demand is high. A vast hinder land of rural is neglected because
of their widely scattered demand.

Export opportunities: A New avenue for poultry exports has opened with the setting up of
processed and further processed poultry units, which have made available a wide range of
INDIAN - style chicken based delicacies and dressed chicken. There is sizeable market for such
products international. So, the sell overseas market is there, as also the poultry item for
consumption, what is missing is the proper climate to tap the growing demand overseas. The
setting up of the new ministry for food processing industries at the center gives hope for boosting
of poultry exports. Industry sources estimate that poultry exports can for India RS 400 crores a
year with in the next five years. Among positive steps that can be immediately taken in this
direction includes the provision of cash incentives and logistics support.

Input industry: Poultry in India has come a extended way since the first commercial chick was
hatched in November 1962 in the Delhi based ran shaver poultry reproduction Ltd., At the
identical time was ongoing the commercial manufacture of impartial compounded feed as well as
modern lacto-vegetarian medicines and vaccines so very necessary for winning of gear for hatch
and _ incubating, feeding, integration and marketable housing.

Today and network of over 500 commercial provide for mills, veterinary pharmaceuticals
and tools manufacturer has made poultry farming and dynamic agri-business. Theses commercial
behavior has been duly support by research and growth up from education and research

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institutions. The infra arrangement base is receiving wildered in response to the increasing
demand for an assortment of inputs wanted for extended concentrated poultry manufacture.
Settlement of poultry farming:

The poultry agricultural is extremely versatile agro-business; it can be adopt below any
situation to offer many reimbursement like:

(1) It was source of high quality human food. Egg is not only supports in nutritive value, nut
also it is very easily digested and cab be served indifferent ways. Of this also used in many
ways like binders and levering agents in baking and furnishes” richness” in ice-cream,
sauces, curlards and candues.
(2) Poultry farming is highly adaptable under various conditions. For example it fits well in
mixed farming system to provide continuous income to the farmers during their lean periods
and also helps to engage their family labor profitable throughout the year. It provides
employment avenues. There are a lot of diversify type of business related poultry
undeveloped like egg production, broiler manufacture. Each and every one these businesses
can be urban as rural industry which will have many avenue of employment of country side
mainly in the middle of cultured un employed and under-employed people.

Poultry misuse is an exceptional foundation of organic manure, which can be utilize for
rising field crops. It is predictable that of the poultry fertilizer is utilizing properly, it can
manufacture other food grains them the birds munch through as feed. It serves as source of raw
materials for industrial products. Eggs have a lot of industrial use in grounding of vaccines,
polished printer land, soap and clean etc. Eggshells are used as minerals in animal feed.
Endocrine glands of birds are old for grounding of hormones and any additional biological
arrangements. Among the total respondents contacted 7 respondents spend up to Rs. 20,000
monthly, 35 respondents spend between Rs. 20,000-40,000 and 53 respondents spend Rs. 40,000
to 60,000 and outstanding 23 use above Rs. 60,000. The operating cost consists of charge such as
food, lighting, injection and other operating cost. If it is said in percentage 8% of them are in
class Rs. 20,000-40,000,Rs. 40,000-60,000 and higher than Rs. 60,000 in that order.

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Findings:

The hen study area in Namakkal district just 50% is cultivable. As farming bring them a
smaller amount income due to lack of good irrigation system and non-fertility of land, the
populace of this area have conventional poultry agricultural as an ancillary profession.

Among the 200 respondents interviewed, only 60 respondents were illiterate, where as
remaining 140 respondents are literate.

Majority of the respondents have taken poultry farming as ancillary occupation. Only
36% do poultry farming as main occupation. Reasons for ancillary occupation are the farmers get
manure to agricultural land.

Though the farmers get reasonable income from the sale of eggs, they have to incur
expenses for the maintenance of the farm such as vaccination, lighting, feed etc., as a result of
which they get a comparatively lesser net income.

Services like free transport, medical aid, feeds in swap over of eggs etc are known feed
suppliers/Dealers and they do it in appropriate point in time.

From the industry data in Namakkal district, it is evident that number of farms closed in
the period 1995-2001 is 1200 and new farms opened in the same period is 150. The reason
behind that small size farms unable to with stand the rise in feed cost and other working capital
expenditures. Where as for large size farms, even though they get a price increase of eggs for a
short period of time, they get good amount of profit, which enables them to run the farm
traders/supplied. They produce the feeds of their own by purchasing the raw materials from
market, which reduces the feed cost much. This is the major basis big size farm can able to live
and earn profit in the in attendance scenario.

From the profitability analysis the following findings are drawn:

(a) The size of firm is depend on profit

(b) The relationship between profit and education is not significant

(c) Number of members in the family is not significant in the profit earning capacity.

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(d) Sources of capital whether owned or borrowed have insignificant relation with profit.

(e) Nature of occupation (ie: whether ancillary or main) has no consideration to profit.

REFERENCES

1. Basic Animal Husbandry Statistics, 2004. AHS Series Year 2006.

2. Central Statistical Organization, GOI, 2004. Ministry of Statistics and Programme

Statistical Year Book, India, 2004. implementation. int. J. Poult. Sei, 17 (3): 237-242, 2072

3. Directorate of Economics and Statistics, 1992. New Delhi, Ministry of Agriculture,

Government of India. Economic Research Service, 2004. U.S. Department of Agriculture,
USDA PS&D database.

4. Gandhi, V.P. and G. Mani, 1995. Are livestock products rising in importance? A study of
the increase and performance of their utilization in India. Ind. J. Agric. Econ., 50: 283-293.

5.Mehta, R., 2002. WTO and Indian hen Sector, instruction from circumstances hold events
in choice countries, RIS conversation Paper # 31/2002.

6. Sharma, J.S. and P. Yeung, 1985. Livestock Products in the Third World: Past Trends
and Projections to 1999 and 2000. Research Report 49, International Food.

7. Sinha, P. and A.K. Giri, 1989. Consumption of Livestock Products-Analysis and

Comparison of Data of NSS 32nd and 38th Round. Domestic animals Economy of India, Oxford
and IBH publish Co. Pvt. Ltd., New Delhi.

8. World Bank, 1996. Private sector joint venture in poultry manufacture and promotion in
India. Case study, Tamil Nadu. India, Tamil Nadu Veterinary and Animal Sciences University.

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