Animal Feed Industry

Underdeveloped; with Potential for Growth

Sep. 2016

2015 HyPro Group

www.animalhealthindia.com

Animal Health Multiple Opportunities

Da

Confluence of Opportunities

Largest milk producer as well as liquid milk

consumer in the world (>16% of world
production; growing at 4% CAGR)
Growing population with rising income
levels, demand for animal proteins (milk and
meat)
Nuclear families fuelling growth in
companion animals segment
Abundance of entrepreneurial spirit
supported by easing of policies and enabling
environment
2015 HyPro Group

4 Fold Opportunity

Dairy Industry
2nd

largest cattle
population
>51% worlds buffalo
population

Aquaculture
2nd largest aqua
market
Largest exporter of
shrimps

Poultry Industry
4th in Broiler meat
production
3rd in egg production

Companion
Animals
Fastest growing
segment at >14%
annually
Source: Press Reports; AHI Analysis

www.animalhealthindia.com

Animal Health Potential for Growth

Low Animal Protein & High Reliance on Cheaper Plant
Proteins

US

45%

Brazil

38%

China

India

19%

13%

35%

6%
0%

36%

49%

3%

Similarly with rising incomes,

consumption of processed milk
and meat products increases

62%

12%
10%

With the increase in per capita

incomes proportion of animal
and milk protein increases in
monthly baskets

82%
20%

30%

40%

50%

60%

Animal

Milk

Plant

70%

80%

90%

100%

Narrowing price gaps between

plant and animal proteins

Source: BCG Analysis, Word Bank, Ministry of Agriculture, Int. Egg

Commission; Press Reports; AHI Analysis

2015 HyPro Group

www.animalhealthindia.com

Animal Health Headline Numbers

Poultry Population (Million)

Dairy Population (Million)

Buffaloes Productive

Breeders

51

Buffaloes Total

109

Cattle Productive

25

Layers

260

39

Cattle Total

191
0

50

100

150

Aqua Production (Million Tons)

3,400
0

200

Dairy Cattle: ~ 70 to 90 Million Productive Animals

Shrimp Production

Broilers
1,000

2,000

3,000

4,000

Per Capita/ annum

World Avg

India

Eggs

168 Nos

62 Nos

Chicken Meat

14.2 Kg

3.1 Kg

1.01

Exports (US $ Billion)

Fish Production

9.57
1.47

10

Shrimps
5.05

Fish

Source: DAHD Annual Report; Press Reports; AHI Analysis

2015 HyPro Group

www.animalhealthindia.com

Animal Health Multiple Opportunities

160
140
120
100
80
60
40
20
0

Production MMT

146.3
132.4 137.7
127.9
112.2 116.4 121.8

Milk production growing at around 4% annually

Milk demand reportedly increasing at around
5% annually
Demand may exceed Supply by 2020-21

Milk Production (000 Kg/Lactation)

14

12

Lowest per animal productivity

12
9.8

10

8.6 8.5 8.0

7.7 7.4 7.4

Genetics and Nutrition are the only

recourses for better per animal
productivities

6.4 6.0 6.0 5.8

5.0

4.0
1.6

2
0

Source: NDDB; Press Reports; AHI Analysis

2015 HyPro Group

IL

CA DK KR

JP

UK NO DE CH

AT

FR AU SA

NZ IND

www.animalhealthindia.com

Animal Feed Industry 3 Sources; 3 Figures

Annual Feed Consumption (Million Tons);
Rabobank Report 2015

Total Market:
~ 22 Million
Tons

Annual Feed Consumption (Million Tons);

Yes Bank Report 2015

Total Market:
~ 23 Million
Tons

9.4

7.5

Layer

10.0

7.5
3.0

2.5
Broiler

Dairy

Aqua

Broiler

Layer

Dairy

Aqua

Annual Feed Consumption (Million Tons);

Alltech Survey 2016
1.1
Total Market:
~ 31.5 Million
Tons

8.3

Reality lies in
between

11.6

9.3
Source: Rabo Bank Feed Report; Yes Bank Feed
Report 2015; Alltech Global Feed Survey 2016
2015 HyPro Group

Broiler

Layer

Dairy

Aqua
www.animalhealthindia.com

Animal Feed Industry Scope for More

Category
Growth Rate

Segment

% Adoption

Additional Potential

Broilers

90%

~ 1 Million Tons

Layers

~ 5%

~ 11 Million Tons

Dairy Animals

~ 12%

~ 57 Million Tons

~ 4%

Aquaculture

~ 15%

~ 6 Million Tons

~ 9%

Current Market ~ 23 Million Tons

Additional Potential ~ 75 Million

Tons

~ 7 -8%
~ 5%

Dairy and layer segments yet to adopt commercial, compound feed

Majority of layer farmers home mix feed
Aquaculture feed growing but requires strong R & D
Source: Rabo Bank Feed Report; Yes Bank Feed Report 2015; Alltech Global Feed Survey 2016; AHI Analysis
2015 HyPro Group

www.animalhealthindia.com

Animal Feed Opportunities & Challenges

Current low levels of compound feed
adoption except Broiler segment

Fluctuations in prices of major

commodities used

Poor productivity in dairy animals

warrants aggressive and extensive
usage of compound feed

Poor quality of available commodities

and curbs on import of maize and soya

Entry of international companies such as

Cargill etc for increased awareness

Lack of awareness in small and

marginal dairy farmers
Lack of remunerative prices of dairy
milk impacting adoption of commercial,
compound feed
Low cost, home mixers / chakki
mixers

2015 HyPro Group

www.animalhealthindia.com

Questions / Comments

www.animalhealthindia.com
info@animalhealthindia.com

2015 HyPro Group

www.animalhealthindia.com