Chennai, March 4 (IANS) Credit rating agency ICRA expects a mild improvement in revenue growth for domestic poultry companies in FY2025, projecting a 5-6 per cent increase after a modest 3-4 per cent growth in FY2024. The growth will be driven by demand improvement, increasing organised players, and preference for value-added products.
ICRA stated, “While broiler meat realisations continued to be strong till 7M FY2024, they started tapering thereafter due to high placement and excess supply in key markets.” Q3 FY2024 witnessed a 10% QoQ drop in average realisations. Realisations improved following controlled supply and healthy demand, supported by softened feed costs. However, soybean prices started rallying since November 2023, exerting pressure on margins.
The agency also highlighted a potential spike in feed costs due to a significant contraction in soybean harvest during the kharif season and delayed sowing of maize. This is likely to impact the margins of poultry companies over the next few quarters. ICRA’s recent report suggests a gradual revival of realisations as the oversupply scenario corrects in the coming months.
Average maize prices decreased by about 9% from April to November 2023, while soybean prices softened in the current fiscal year. Despite the temporary dip in realisations, the outlook remains cautiously optimistic as market conditions are expected to stabilize. The poultry industry looks to bounce back with improved revenue growth in the upcoming financial year, driven by evolving market dynamics.
–IANS
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