Relationship between Industrialization and Animal Agriculture | Animal Husbandry & Veterinary Science Optional for UPSC PDF Download

Big Investments Lead to Big Returns

• To make animal agriculture more impactful in the Indian economy, it needs to transform into an industry.
• Massive inputs and specialized methods are essential for significant returns, similar to how industries operate.

Evolution of Animal Agriculture

• In the past, farmers used to have a small number of animals and sell their produce locally.
• Today, animal agriculture is shifting towards industrialization, with larger operations and specialized focuses.

Poultry and Dairy Leading the Way

• Poultry and dairy farming are examples of this industrial shift, with large-scale operations replacing traditional small-scale setups.
• Poultry units now handle thousands of birds, and dairy farming involves cooperatives with thousands of members.

Technological Advancements

• Modern techniques like using mammoth incubators for hatching chicks and large-scale processing of milk have replaced traditional methods.
• Industrial practices, such as processing and marketing, are becoming standard in these fields.

Impact of Industrialization

• Small-scale farmers are no longer individually selling their produce; instead, cooperatives collect, process, and market the products.
• Milk cooperatives and poultry units are prime examples where industrial practices have significantly influenced the sector.

Future Trends

• While dairy and poultry are rapidly evolving into industries, other areas like sheep and goat husbandry may take more time to follow suit.
• The overall trend is towards larger, more organized, and industrialized approaches in animal agriculture.

Poultry Industry's Growth

• Dr. Piet Simons, President of the World Poultry Science Association, notes that the poultry industry is rapidly expanding globally.
• Poultry meat contributes to 27% of the world's total meat consumption and is expected to reach 45% in the next 20 years.
• Poultry is becoming more popular due to its affordability, suitability for fast food, low fat content, and lack of religious restrictions.

Importance of Poultry in Developing Countries

• Poultry is crucial in developing nations as it offers an affordable source of animal protein, addressing nutrition security.
• Poultry's high feed conversion efficiency makes it a preferred choice in these regions.
• The industry is expected to revolutionize with advancements in feed formulation.

Dairy Industry Transformations in India

• The Indian dairy industry is undergoing significant changes due to government liberalization policies.
• Private sector involvement is increasing, aligning with global trends and fostering integration with the world market for milk products.

Rise in Indian Milk Production

• India's milk production, stagnant at 20 million tonnes from 1950 to 1970, has surged to over 81 million tonnes, surpassing the USA.
• Despite being the largest producer, per capita milk consumption in India is lower than the world average.
• The Nutritional Advisory Committee recommends 210 grams per day, but studies show uneven distribution, with the top 10% consuming 30% of the milk.

Positive Trends in Per Capita Milk Availability

• Per capita milk availability in India increased by 40% during the 1980s, despite a 20% rise in population.
• The present availability of 226 grams per day is higher than the regional average for developing countries but still below the world average.
• It's important to note disparities in milk distribution, with the top 10% consuming a significant portion compared to the bottom 30%.

Significant Contribution of Animal Husbandry and Dairying

• Despite low livestock productivity, animal husbandry and dairying contribute significantly to India's economy.
• In 1995-96, the gross value of livestock accounted for around 25% of the total agricultural output.

Importance of Milk Production

• Milk is India's most valuable agricultural commodity, with an annual output value of Rs. 24,000 crore in 1996, now increased to Rs. 1,00,000 crore.
• The demand for milk and milk products is expected to rise due to increased purchasing power in urban areas.

Role of Organized Sector in Dairy

• The organized sector in dairying, comprising cooperative, public, and private sectors, handles about 15% of the total milk output.
• Since 1910, the organized sector's share has grown from 0.5% in 1960 to 15-18% in the 1990s.

Potential of Dairying for Foreign Exchange

• Dairying has the potential to become a major foreign exchange earner.
• With the GATT accord, global trade in dairy products is expected to open up, making the industry more competitive.

Export Opportunities and Challenges

• India's share in global dairy trade is low despite producing 14% of the world's milk.
• The country can initially focus on exporting to neighboring SAARC countries and West Asia.
• Quality improvement and developing suitable dairy products for export are essential for India's success in the global market.

Challenges in Global Acceptance

• The main challenge for Indian milk products is convincing the world about their hygiene and quality standards.
• Collaborating with multinational companies can help overcome this challenge.

Mismatch in Product Demand

• The current basket of Indian milk products does not align with global demand.
• While India prefers liquid milk and ghee, the world mainly demands processed cheese and milk powder.

GATT Opportunities and Changes Needed

• To benefit from GATT opportunities, India needs to evolve a new export basket to match global preferences.
• Only about 2% of India's milk is converted into cheese, and a new approach is required to seize the GATT advantage.

Private Sector's Role

• Since the delicensing of the dairy development sector in 1991, the private sector has actively entered the field.
• Private companies are competing with the government and cooperative sectors in supplying milk to urban consumers.

Examples of Private Initiatives

• Milk Specialities in Punjab is setting up facilities to process three lakh litres of milk daily for various products.
• Amruths Foods and Beverages in Bhubaneshwar has a plant producing butter, cheese, milkshake, instant coffee, and tea.
• Heritage Foods has expanded its milk processing capacity with a new unit in Andhra Pradesh, costing Rs. 185 crore.

Investments and Collaborations

• Various companies, like Cepham group and Indana Dairy Specialities, are investing in milk product ventures.
• Collaborations, such as Indana's partnership with Coffee Corp of Australia, aim to set up export-oriented units for specific products.

New Dairy Projects in India

• Several companies are venturing into the dairy industry, expanding their milk processing capacities across different states.
• These projects aim to produce a variety of dairy products like ghee, butter, cheese, milk powder, and more.

Diverse Dairy Products Production

• Companies like J.K. Dairy and Foods, Khaitan Agro Industries, and Modern Steel are setting up plants to produce diverse dairy products such as ghee, butter, cheese, and milk powder.
• These products will be introduced in the Indian market for the first time, offering more choices to consumers.

Expansion in Poultry Industry

• The Indian poultry industry is experiencing significant growth, with companies expanding their operations.
• Poultry farming, once a backyard venture, now involves advanced genetic research, modern machinery, and scientific methods.

Indian Poultry Industry Statistics

• India is the fifth-largest egg producer globally, producing nearly 32 billion eggs annually, and ranks 19th in broiler (chicken) production.
• Andhra Pradesh, Tamil Nadu, Maharashtra, Punjab, and West Bengal contribute significantly to poultry production.

Per Capita Consumption Challenges

• Despite high poultry production, the per capita availability of eggs is only 29 per year.
• The per capita availability of broiler meat is less than 500 grams, indicating the need for increased production to meet demand.

Factors Driving Poultry Industry Growth

• Poultry farming has grown due to increased awareness of a balanced diet, with even vegetarians accepting eggs as part of a meal.
• The rise in people's purchasing power and the comparatively lower price of chicken, especially as mutton and fish prices increase, contribute to the industry's popularity.
• The low cholesterol content in chicken also adds to its appeal.

Low Per Capita Consumption in India

• Developed countries have a much higher per capita consumption of eggs (300) and poultry meat (15 kg) compared to India.
• The main hindrance to increased consumption in India was not vegetarianism but the limited availability of eggs and meat.

Challenges in International Market

• In the international market, India's share is minimal (0.05%) due to subsidies enjoyed by European nations, making Indian products less competitive.
• GATT recommendations are expected to reverse this situation, leading to increased demand for ready-to-eat and cook poultry meat products.

Shift to Large Farms and Integrated Projects

• Rising input costs and disease-related challenges have led to a decrease in the number of small farms.
• Integrated broiler projects, covering breeding, hatching, growing, distribution, marketing, and exporting, are becoming more crucial for viability.

Need for Marketing Strategies

• The demand for poultry meat is concentrated in urban areas, requiring effective marketing strategies.
• The entry of fast-food giants is expected to boost broiler production and consumption.

Shift Towards Processing and Convenience

• Changing lifestyles, increased women employment, nuclear families, and higher purchasing power drive the preference for small, convenient poultry packs.
• Processing plants with cold chain facilities at the retailer level are emerging to meet this demand.

Export Opportunities and Government Support

• India's low production cost attracts multinational companies to set up export-oriented egg processing plants.
• The government has liberalized schemes like EPCG and ECGS, providing support for poultry exports.

Poultry Industry's Growth and Infrastructure

• India's poultry industry is growing, supported by infrastructure developments in breeding, feed, health care, marketing, and processing.
• Neatly packed poultry products are now available in supermarkets, reflecting the changing trend in meat consumption.

Future Trends in Livestock Farming

• As purchasing power increases, sheep, goat farming, and piggery are expected to transition to industrial-scale operations.