A Proposed Agile Based Supply Chain Model for Poultry Based Products in India

The poultry industry in India represents a major success story. With rapidly changing lifestyles, affluent culture and a conscious need for general wellness, Indian consumers are now opting for a more protein-rich diet. From a plot scheme, it has made a quantum leap to become as a dynamic industry. The present decade promises to exploit value added products and the global trade avenue. This paper explores the existing supply chain model of poultry-based products in India. The study is focused on two contexts: the issues faced by poultry farmers in selling the products and retailers’ perspective on the other end. In the current Supply Chain model there is no transparency between the stakeholders which leads to high yield losses, increase in price and uncertainty in the supply and demand analysis. Poultry farmers are paid very less for their product whereas consumers pay huge amount for the same product and there is a lack of technology and financial support for the poultry producers. In our proposed model, we introduce “Agile Based Supply Chain Model for the Poultry Based Products” which will integrate and increase the transparency among the stakeholders in the supply chain and eliminate the mediators and meet out the market demand. Poultry farmers details are updated in the e-commerce platform and these details are transferred to the retailers by the agile team. Support group for poultry farmers and retailers are the two ends of Supply Chain coordinated by agile team.

Poultry plays an important role in the Indian economy. Annual per capita consumption in India is only 42 eggs and 1.6 kg of poultry meat, which is below the levels recommended by the Nutritional Advisory Committee 180 eggs and 10.8 kg of poultry meat. Egg being an excellent source of proteins is fast becoming a favorite among urban Indians. The layer segment in India is all set to grow and is currently estimated at Rs. 10,000 Crores (INR 100 billion). According to the Ministry of Agriculture, India’s egg production is estimated at 47.3 billion eggs per annum. Today, with more and more ‘Eggitarians’ on the rise, egg consumption is growing at 8-10% annually. Egg production at the end of Ninth Plan (2001-02) was 38.7 billion as compared to 21 billion during 1990-91. India, with 46.2 billion egg production in 2005-06, ranks third in the World as per FAOSTAT. India’s egg production was 51 billion and rank fifth in production of chicken meats during 2006-07 (BPI, 2014). In India the poultry sector 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). In spite of such astonishing growth in last three decades, in India use of 28 eggs and 0.8 kilograms of poultry meat annual per capita in 2000 is low as compared to the world average of 147 eggs and 11.1 kg of poultry meat on a per capita basis (FAOSTAT). As per Business Portal of India (BPI) report the layer and meat consumption rate is increased to 55 eggs and 2.8 kg of meat on a per capita basis in 2012 in India. The year wise details are shown in Table 1 and Fig. 1.
Supply chain management and poultry business
The paper mainly focuses on existing supply chain management in Indian poultry and its challenges. Supply chain management is the flow of goods, services, information and money from the source materials all the way to the consumer (ShriHarun, 2012; Qi Yi-nan and Chu Zhao-Fang, 2009). Food chain logistics is a significant component within logistics system as a whole. The food sector plays a significant role in economy, being one of the main contributors to the GNP of many countries, particularly in developing countries (Girma Gebresenbet and Techane Bosona, 2012). It has been observed that there is a wide divergence between the farm gate prices and retail prices of various food items, where the producer sells for one rupee becomes one rupee thirty paise when it reaches the final customer, its due to the presence of intermediaries (ShriHarun, 2012). There is a lot of demand for poultry products in the country and due to the various pitfalls sensed at various states of supply chain, the demand could not be fulfilled and thus the supply chain plays a major role in the poultry process.