India is now the world’s second-largest egg producer and among the largest producers of broiler meat. The sector turns over roughly ₹2.7 lakh crore a year, accounts for about 16 per cent of livestock output, and supports close to five million livelihoods.

For a business that began as a rural side activity, it has become one of the fastest-compounding parts of Indian agriculture — poultry’s share of agriculture and allied output has climbed from 2.9 per cent in 2011–12 to 5.0 per cent in 2023–24.

A record price season
The headline numbers are strong. On 5 September, the National Egg Coordination Committee’s average declared rate stood at ₹5.64 per egg across 34 markets, ranging from ₹4.90 in Hospet to ₹6.20 in Kolkata. Delhi was quoted at ₹6.00, Barwala at ₹5.43 and Ludhiana at ₹5.48. That is a comfortable band for layer farms that were selling below ₹5 through much of last year.

Broilers have swung harder. Farm-gate live bird prices in the Delhi region touched ₹140 a kilogram in July against roughly ₹90 a year earlier, while retail chicken moved from about ₹240 to nearly ₹300 a kilogram. Prices have since cooled as the monsoon supply cycle normalised — north Indian integrators were quoting live bird in the mid-₹90s per kilogram in late August — but the annual average is still tracking well above FY25. Care Edge Ratings estimates broiler realisations recovered about 5 per cent year on year in FY26, with live bird averaging ₹99 a kilogram in February–March 2026, more than 20 per cent above the bird-flu-depressed fourth quarter of Fy25.
Data Box 1 · Necc Egg Rates, 5 September 2026 (₹ Per Egg)

Why the margin is not where the price is
Feed accounts for 65 to 70 per cent of the cost of producing a broiler and roughly 68 to 70 per cent of the cost of producing an egg. In a business with that cost structure, a 15 per cent move in feed wipes out a 10 per cent move in output prices. That is precisely what has happened this year.

Compound poultry feed is now selling at about ₹4,400 a quintal against roughly ₹3,600 a year ago. Maize, the energy backbone of the ration, has moved from ₹18–19 a kilogram in April to ₹27–28 a kilogram. Soybean is ruling near ₹6,900 a quintal, well above the ₹5,708 minimum support price for the 2026–27 season.

Data Box 2 · The Cost Side

Two structural forces are behind the maize spike. First, ethanol. Grain-based distilleries have become a large, price-insensitive buyer of maize, and poultry feed mills are now bidding against a sector backed by a national blending mandate. Nearly 60 per cent of India’s maize output already goes to livestock, with poultry alone accounting for roughly 47 per cent of livestock maize consumption. Second, soybean meal. India is short by an estimated 1.5 million tonnes ahead of the new crop, and soybean acreage this kharif is down 4.5 per cent year on year at 10.6 million hectares.

“India is short an estimated 1.5 million tonnes of soybean meal before the new crop arrives — and soybean acreage this season is down 4.5 per cent.”

The policy knot: imports, GM corn and a farm lobby
The livestock and feed industry have asked the Centre to permit imports of about 1.5 million tonnes of soybean meal to bridge the gap. The soybean processing industry has opposed the move, arguing that domestic supply is adequate and that imports would discourage farmers from expanding oilseed acreage. It is a familiar standoff: the same protein deficit, the same two lobbies, a different year.

Poultry industry representatives have also pressed for approval of genetically modified corn, on the argument that higher-yielding maize would give both the feed and ethanol industries cheaper raw material. Under this year’s trade arrangement with the United States, India retained protection on corn and soybean — both predominantly GM crops there — while agreeing to allow imports of distillers’ dried grains and red sorghum for animal feed. That is a partial valve, not a solution. DDGS can replace part of the energy component of a ration; it cannot replace the protein that soybean meal supplies.

For business readers, the policy question is simple to state and hard to settle: India cannot simultaneously run an aggressive ethanol programme, protect oilseed growers from imports, and supply a poultry sector growing at 7 to 8 per cent a year with cheap feed. Something has to give, and so far, the adjustment has been borne by poultry farmers and, downstream, by consumers.

Volumes keep climbing anywayRemarkably, none of this has slowed production. India produced 149.11 billion eggs in 2024–25, second only to China, with commercial farms accounting for about 84.5 per cent of output and backyard poultry the rest. CareEdge estimates egg output at around 155 billion in FY26, rising to roughly 163 billion in FY27, with total meat production moving from about 11 million tonnes to 12 million tonnes over the same period.

Data Box 3 · Production Trajectory

Poultry India puts broiler production growth at 6 to 7 per cent a year for 2026–27, concentrated in Andhra Pradesh, Tamil Nadu and Telangana, with the layer segment expanding more moderately on the back of productivity per bird, automation and value-added products. Andhra Pradesh alone accounts for 18.4 per cent of national egg output, Tamil Nadu 15.6 per cent and Telangana 13.0 per cent; the top five states together produce 64.4 per cent of India’s eggs.

Exports remain a modest but real business. India shipped poultry products worth USD 317.79 million in FY26, with the UAE, Oman, Maldives, Indonesia and Japan the leading destinations. Against a sector of roughly USD 31 billion, exports are still a rounding error — which is itself the opportunity, constrained mainly by disease-free-zone certification and processing infrastructure.

The demand headroom argument
The most persuasive case for investing in Indian poultry is not this year’s price cycle. It is the consumption gap. Per capita egg availability is around 100 to 105 eggs a year against the National Institute of Nutrition’s recommended 180. Per capita chicken consumption is roughly 5 kg a year against a global average close to 17.5 kg. Industry estimates suggest that a one-kilogram rise in per-person chicken consumption would add about 1.43 million tonnes of annual demand.

That headroom is being converted by three commercial forces rather than by policy: quick-service restaurants, organised retail, and the shift from live-bird wet markets to chilled and frozen products. Vertically integrated producers — who own the hatchery, the feed mill, the contract farms and increasingly the processing plant — have been the main beneficiaries, because integration is what buffers a business against the feed-price whiplash described above.
The value-of-output data makes the compounding visible. Poultry meat and eggs generated about ₹56,200 crore of output in 2011–12. By 2023–24 that figure was ₹2.67 lakh crore — a growth rate of 9.3 per cent a year for meat and 6.1 per cent for eggs, against 5.3 per cent for milk and 2.1 per cent for cereals.

“Poultry’s share of agriculture and allied output has risen from 2.9 per cent to 5.0 per cent in twelve years. Few segments of Indian agriculture have compounded faster.”

The recurring tax: disease and weather
Avian influenza remains the sector’s single largest tail risk, and 2026 has been an active year. India reported eleven H5N1 outbreaks on farms in Kerala in December, killing roughly 54,100 birds. In February, about 6,000 birds were culled at a research centre in Patna, with movement restrictions imposed across a nine-kilometre surveillance zone. In March, more than 22,000 birds were culled in Bilaspur district of Chhattisgarh, and in April Karnataka reported its first case of the year at a farm near Bengaluru.

The direct culling loss is rarely the biggest cost. The bigger hit is the demand shock: consumers step away from chicken for several weeks after every widely reported outbreak, and prices in unaffected states fall alongside those in affected ones. Q4 FY25 was a textbook case, and the strong February–March 2026 realisations look impressive partly because they are measured against that depressed base.

Weather has compounded the problem this season. A prolonged heat wave followed by a delayed and unevenly distributed monsoon raised bird mortality and cut egg production in several states, adding to the cost per marketable bird. For layer units, higher mortality in an inflated-feed environment is a double penalty: the feed has already been consumed before the bird is lost.

The industry’s answer, so far, is largely defensive — stronger vaccination protocols, farm-level biosecurity training and surveillance, alongside a push for indigenous vaccine development that would reduce cost for small and mid-sized farms.

What the ratings agencies see
For all the noise, the credit view is constructive. CareEdge describes FY26 as a year of stabilised operating performance — healthy production growth, resilient demand across retail, institutional and food-service channels, improved supply-demand balance and a recovery in profitability with a strong finish in the fourth quarter. Its FY27 outlook for the sector is stable.
The distinction worth drawing is between the organised and unorganised halves of the industry. Integrators with feed-buying scale, forward contracts and processing margins have ridden the cost cycle. Independent broiler and layer farmers, who buy feed at spot and sell birds at spot, have absorbed it. That gap is quietly accelerating consolidation — the most consequential structural trend in the sector right now, and one that will show up over the next few years in contract-farming penetration and in capital-market activity among the larger integrators.

Public support remains focused on the entrepreneurial end. The National Livestock Mission continues to offer a 50 per cent capital subsidy for parent farms, rural hatcheries and brooder-cum-mother units, aimed at small and rural producers rather than at large integrators. It builds capacity; it does not address the feed-price problem that is currently setting margins.

What to watch for the rest of FY27
• The soymeal decision. Whether the Centre permits the 1.5 million tonne import the livestock industry has requested is the single biggest swing factor for margins this year.
• New-crop maize and soybean arrivals. A good kharif arrival could pull feed back toward ₹4,000 a quintal; a poor one locks in current costs through the festive season.
• Ethanol demand for maize. The structural competitor for feed grain is not going away and will keep a floor under maize prices.
• Winter avian influenza. Outbreak seasonality peaks between December and March. Watch for demand shocks rather than culling losses.
• Festive and winter demand. Egg consumption typically strengthens from October, which should support NECC rates even if feed stays elevated.
• Consolidation and capital. Cost pressure is a filter. Expect more contract farming, more integration, and more interest in the sector from public and private capital.

“The bottom line for anyone with capital in this business: India’s poultry demand story is intact and structurally under-served, but 2026 has demonstrated that returns in this sector are set on the input side, not the output side. The operators who will do well over the next eighteen months are not the ones betting on higher chicken prices. They are the ones who have solved for feed.”

References are available on request.

Moisture Optimization and Mold Control:
An Integrated Approach to Improving Feed Quality,
Shelf Life, and Feed Mill Profitability in Tropical Climates

Dr. Maloshrie Bora, Senior Program Manager – Feed Safety, Trouw Nutrition South Asia

Across India and South Asia, feed manufacturers today face a common challenge: producing safe, stable, high-quality feed while navigating increasingly variable climate conditions, fluctuating raw material quality, rising production costs, and greater demands for feed efficiency.

Among the many factors that influence feed quality, moisture management remains one of the most underestimated. Yet moisture directly impacts pellet quality, nutrient preservation, feed hygiene, shelf life, production throughput, and overall profitability. Improper moisture management can result in shrinkage, spoilage, mold proliferation, nutrient losses, increased fines, and reduced mill efficiency. Conversely, optimized moisture control can generate significant economic returns while improving feed quality throughout the supply chain.

The Hidden Economics of Moisture Loss
During feed manufacturing, moisture is lost at several stages, including grinding, conditioning, pelleting, cooling, storage, and transportation. Industry observations indicate that feed mills can lose between 0.5% and 1.5% moisture during production, resulting in direct shrinkage and reduced profitability. A feed mill producing 500 tonnes per day can lose approximately 5 tonnes of saleable product for every 1% moisture reduction. In an industry where margins are constantly under pressure, minimizing process losses represents a substantial opportunity for value creation.

Why Adding Water Alone Does Not Solve the Problem
A common industry practice for compensating moisture losses is the addition of water during feed processing. While this may appear straightforward, water possesses high surface tension and does not distribute uniformly throughout the feed matrix. Instead, free moisture often remains on the surface of feed particles, increasing water activity and creating favourable conditions for microbial growth. The challenge for the modern feed industry is therefore not simply increasing moisture content, but ensuring moisture is effectively distributed and retained throughout the feed while maintaining microbial stability.

Mold Growth: A Feed Quality and Profitability Threat
Molds are among the most significant biological threats to feed quality. Beyond visible spoilage, molds consume valuable nutrients, reduce energy content, affect feed palatability, shorten storage life, and create conditions favourable for mycotoxin production. The economic implications can be significant. Raw materials often constitute up to 80% of total feed production costs. Any reduction in nutritional value, shelf life, or feed volume directly impacts both manufacturers and producers downstream.

Emerging Scientific Approaches to Mold Inhibition
Advances in feed preservation technology have moved beyond conventional organic acid applications. Modern solutions increasingly combine multiple modes of action to optimize efficacy under practical feed manufacturing conditions. These technologies typically integrate:
Organic acids
– Buffered acid systems
– Moisture management agents
– Surfactants and emulsifiers
– Synergistic bioactive compounds
Such approaches improve moisture distribution, enhance contact between active ingredients and microbial cells, and prolong preservation effectiveness throughout storage. This scientific evolution reflects the industry’s transition from simple preservation strategies toward integrated moisture and microbial management systems.

Commercial Validation: Integrating Moisture and Feed Hygiene
Research and commercial evaluations have demonstrated that moisture management and mold control must work together. In one reported study, the addition of plain water alone reduced feed shelf life by approximately 33%. However, when moisture was combined with an integrated mold inhibition program, shelf life improved compared to untreated feed while preserving feed quality and stability. Additional commercial applications have shown benefits including:
– Improved feed mill throughput
– Enhanced pellet durability
– Reduced reprocessed fines
– Better moisture retention
– Improved production efficiency
– Greater feed stability during storage
These findings highlight that effective moisture optimization depends on simultaneously managing microbial risks

A Modern Approach for South Asia
Recognizing the unique challenges faced by feed manufacturers in tropical climates, Trouw Nutrition has developed integrated solutions specifically designed to optimize moisture management and feed hygiene.

Among these solutions is the Fylax® portfolio, which combines organic acid technology, moisture management agents, surfactants, and the proprietary ActiProp® technology platform. The objective is to improve moisture distribution, enhance mold inhibition, preserve nutrient value, and support feed mill efficiency within a single integrated program. ActiProp® technology works by increasing mold cell wall permeability and improving access of active ingredients to microbial targets, resulting in enhanced preservation performance compared with conventional approaches. At the same time, moisture-management components facilitate more uniform distribution of moisture within the feed matrix, helping improve operational efficiency and shelf-life outcomes.

In today’s feed industry, moisture management can no longer be viewed simply as a processing parameter—it is a critical driver of feed quality, feed safety, and profitability. As feed manufacturers across India and South Asia face increasing challenges from humidity, raw material variability, and shelf-life pressures, an integrated approach that combines moisture optimization with effective mold control is becoming essential. By preserving nutrient value, reducing shrinkage, improving pellet quality, and enhancing microbial stability, modern feed hygiene solutions can help mills achieve greater operational efficiency while delivering safer, more consistent feed to livestock producers. Ultimately, successful feed preservation is not just about preventing spoilage—it is about maximizing value throughout the feed-to-food chain.

In this exclusive interaction with Mr. Ricky Thaper discusses the critical issues shaping India’s poultry sector, including feed security, ethanol mandates, regulatory reforms, import policies, and sustainable strategies for future growth and competitiveness.

Poultry Creations: With the rapid modernization of India’s poultry sector, how do you foresee domestic feed-grain demand evolving in direct competition with ethanol mandates?

Ricky Thaper: At present, the Indian poultry industry, which has seen 7% to 8% annual growth in the last decade is valued at over $ 30 billion. The industry has transformed itself from following conventional farming practices to a modern commercial production system. However sustained supply of feed ingredients remains a key challenge. Poultry feed mostly consist of Maize (corn) 50-55% and Soybean Meal 20-25% and rest other feed ingredients and feed additives & nutrients.

Stating that there has been increasing diversion of maize towards industrial use and ethanol production, Confederation of Indian Industry (CII) in the vision document for poultry sector in 2047 had also stated “the current growth level of maize and soybean production in the country will be insufficient to meet the demand of the poultry industry.” The CII has urged the government to allow imports of genetically modified (GM) maize and soybean because of ‘unprecedented increase’ in feed prices.

The demand supply situation has entered a new phase especially maize, a key ingredient, has become India’s single-largest feedstock for ethanol. With growing demand for maize following the government’s future plans to expand ethanol blending program, may result in lesser supplies for poultry, dairy and aqua feed.

Poultry Creations: What regulatory alignments are most critical right now to ensure stable, cost-effective grain supplies for the growing poultry and livestock industry?

Ricky Thaper: To meet the growing needs of the livestock feed, the government needs to have an open import policy for sourcing maize and soybean meal from the various countries, irrespective of whether the crops are GM variants or not. With the competing demand from ethanol, starch and other sectors, feed ingredients imports should be open without any restrictions. In August, 2021, the government had relaxed import rules to allow the first shipment of 1.2 million ton of genetically modified (GM) soybean meal to support the domestic poultry industry after a record spike in feed prices. Poultry industry has urged the Government repeatedly to allow both import and cultivation of GM maize and soybeans to fulfil the requirement of these two major feed ingredients in the coming years. The sustainable supplies of feed in coming years would be crucial for the growth of the poultry industry.
Currently annual animal feed production is estimated close to 56 million tons which includes dairy feed 16.5 million tons, aqua feed 2.5 million tons and poultry feed 37 million tons. The feed ingredients are mostly maize and soybean meal About 60-65% of the output of maize is used as poultry and livestock feed while rest is used for industrial use.

In the 2025-26 crop year (July-June), the agriculture ministry has estimated maize production at 52 million tons while output estimate by trade is around 48 million tons. As per industry estimate, poultry industry used around 26 million tons of maize in feed while around 5.5 million tons used for dairy feed while around 6 million tons was used by starch industry and only 1.5 MT is used for human consumption. 1 million tons in alcohol and about 1 million tons in seed and wastage. Balance 8-10 MT of maize was diverted for ethanol production.

Poultry Creations: How can corporate agribusiness interests and national trade policies better synchronize to protect poultry margins during periods of commodity price spikes?

Ricky Thaper: The poultry sector is a vital sector of the livestock industry which provides employment to over 6 million people. While industry is witnessing a steady pace, sustainable feed supplies at reasonable prices would be crucial for the growth of the sector as feed prices constitute over 65% to 70% of the cost of production. Any increase in feed prices hit the margins of poultry farmers. The government has been focussing on growth of agriculture and allied sectors. There are several industries which require maize at their key raw material so the government should focus on. The current growth level of maize production in the country will be insufficient to meet the demand of the poultry industry in coming years.
The soybean production cycle in India for the year 2025–26 has seen a notable downturn compared to the 2024–25 season. As per the data from the Ministry of Agriculture & Farmers Welfare (MoA & FW) or the Soybean Processors Association of India (SOPA), the consensus is clear: production fell sharply due to a combination of lower acreage, extreme weather and falling yields.

Government Estimate is 12.60 Million Tons and the Industry Estimate (SOPA Ground Survey) | is11.03 Million Tons The Government numbers track total theoretical agricultural output, while SOPA’s numbers heavily filter for commercial availability, market arrivals and clean seed weight available to crushing mills.

Three main factors compressed the 2025–26 harvest compared to the previous year:
1. Reduced Cultivation Acreage – Farmers actively shifted some of their land away from soy due to weaker market-yard prices observed mid-2025, from 118.31 Lakh Hectares (2024–25 Acreage) to 112.14 Lakh Hectares (2025–26 Acreage), a decline of roughly 5.2%

2. Depressed Yields per Hectare – Climate abnormalities took a heavy toll on the plants during critical growth phases. The national average crop yield dropped from 1,089 kg per hectare in 2024–25 down to 983 kg per hectare in 2025–26.

3. Weather Anomalies and Crop Disease – Excessive & Uneven Rains: The monsoon brought flash water-logging in low-lying areas during the initial phase, causing localized washouts that required re-sowing. Later, prolonged heavy rains during the critical harvesting time damaged crop quality, yielding smaller grain sizes and higher moisture content. Pest Pressures: Key growing belts saw infestations of Yellow Mosaic Virus and aerial blight, which severely stunted pod development.

Because total commercial availability for crushing fell dramatically to10.40 Million Tons (compared to over 12.32 Million Tons in 2024–25), the domestic crushing industry has faced severe supply shortages. This raw material deficit is the primary driver behind the rocketing local meal prices and the collapse of the export trade.

Another major challenging area is the dried distillers’ grains with soluble (DDGS) from maize, a key by-product of ethanol production, are not of desired quality for feed and the toxins levels are high. The challenge is that this toxin affected DDGS when used in feed will set into food chain.

Poultry Creations: What sustainable growth models are proving successful in insulating the Indian poultry sector from global supply chain shocks?

Ricky Thaper: The poultry industry, like other agriculture sectors, is subject to the supply and demand scenario, market structures and Government policies. An open import policy on animal feed ingredient would go a long way meeting the demand of livestock and poultry feed. Several south Asian countries including Pakistan, Bangladesh, Nepal and Sri Lanka have allowed imports of GM Maize and GM soybean / soymeal. The GM soybean / soybean meal and Maize imports should be allowed with a fixed quota during off or non-harvesting season here so that it does not adversely impact the farmers’ price realisation. Reduction in import duties on these feed ingredients in the poultry feed should be announced soon.

As the demand and supply gap between consumption and production of feed grows, liberalised imports of soybean meal and maize would mitigate the problems and keep the prices under check. With the competing sector demanding maize supplies, liberalising policy on import is of paramount importance for sustainable growth of the poultry sector which is growing at a steady pace with the rising demand of protein enriched food.

Importance of Livestock and Poultry Sector in India

India’s livestock sector plays a crucial role in the country’s agricultural and economic landscape, supporting the livelihoods of millions by providing employment, income and nutritional security. Poultry and livestock sector provides essential inputs for sustainable farming practices, ensuring the country’s food security. India’s poultry industry is currently valued at $ 30 billion which engages over six million people (both directly as well indirectly) and the poultry industry has grown rapidly over the past decade. Indian poultry industry is now one of the most efficient producers of broiler meat and eggs globally, due to well established integrated companies, contract farming and a strong domestic market.

Rising Growth and Feed Demand Imbalance
The livestock sector – dairy, poultry, fisheries and allied sector is witnessing a much faster growth than the agriculture crops (Soybeans & Maize), there is apprehension that domestic feed production may not be able to ensure steady supplies while exposing the sector to price volatility. The Confederation of Indian Industry (CII) in its vision document 2047 for the Indian poultry sector has also mentioned that the sector is growing at a healthy rate of 8% annually and could see further acceleration. Availability of good quality feed ingredients and their prices are major challenges for manufacturing of good quality compound feeds.

Role of India–US Interim Trade Agreement
Under the recently announced India-US interim-trade, the decision to eliminate or cut duties on a range of items from the US including dried distillers’ grains (DDGs) and red sorghum, is likely to ensure steady supplies of animal feed in coming years. Commerce minister Piyush Goyal had stated that India will provide quota-based duty concessions on DDGs to the US under the deal. Feed demand is projected to grow faster than domestic supply, making large scale imports necessary by the early 2030s. Domestic production of energy sources like maize and protein sources like soymeal often fall short of growing demand of the poultry, dairy and fisheries sector.

Feed Cost Pressure and Need for Imports
Domestic feed supply is increasingly constrained by limited arable land and productivity gaps. The feed costs constitute 60% to 65% of the cost of the production of the animal husbandry sector any volatility in the feed prices lead to rise in cost of production and subsequent rise in prices. Thus, feed imports, especially of reduced or zero duty imports of soybeans / soybean meal and maize, can help bridge the demand-supply gap. Imports from established origins such as US soy can provide consistent, high-quality protein during periods of domestic tightness. When used judiciously, imported soy can help smooth feed costs, improve formulation consistency, and enable feed manufacturers to meet the quality benchmarks demanded by large integrators and processors.

Growing Demand for Protein and Feed
With increase in income and urbanisation as demand for dairy and poultry products increases, according the United States Department of Agriculture (USDA) in its report titled ‘The Growing Demand for Animal Products and Feed in India’ has stated that at the current growth in the productivity of maize and soybean, would not be able to meet rising demand of feed. Feed demand is projected to grow faster than domestic supply, making large scale imports necessary by the early 2030s. “By ensuring a timely and cost-effective supply of these essential feed ingredients, the government is directly addressing the challenge of feed inflation. This will not only stabilise production costs for farmers but also ensure that high-quality protein remains affordable,”

Industry Concerns Over Feed Availability
Several National and State level Poultry Associations in a recent communication to Shri Rajiv Ranjan Singh, Union Minister of Animal Husbandry, Dairying and Fisheries, Government of India, has raised concern about availability and rising price of soybean meal in the country which pose risk to poultry production. The sector fears a crisis, which can severely affect livestock production and consumer prices. With nearly seven months until the next harvest of domestic soybean products, sustaining poultry production at viable cost will be difficult, directly impacting egg and chicken prices and overall inflation. Even maize prices have witnessed volatility as demand for the grain is rising not only because of rise in animal feed demand but also its being used for making ethanol and other industrial use.

Future Demand Projections (2047 Vision)
India’s population is around 1.4 billion and is projected to be approximately 1.53 billion by 2047. This increase in population directly correlates with the higher demand for food including eggs and chicken. Per capita poultry meat and eggs are expected to be 15 kg and 200 eggs annually by 2047. Around 38 million tonne (MT) of broiler feed and 34 MT of layer feed will be required in 2047. At 30% penetration rate, cattle feed requirement will be around 90 MT in 2047. Fish and shrimp feed required will be around 7 MT in 2047.

Way Forward: Ensuring Sustainable Feed Supply
Ensuring sustainable feed supplies in coming years would be a key challenge for the sector. By ensuring cost-effective supply of animal feed ingredients, the government can directly address the challenge of feed inflation. This will not only stabilize production costs for poultry, dairy and aqua farmers but shall also ensure that high-quality protein remains affordable for the consumers. The interim deal with the US provides a window of opportunity for allowing feed ingredients imports which is expected to boost the sustainable growth of the India’s poultry sector in the coming years.

Most grains used in feed are susceptible to mycotoxin contamination, causing severe economic losses all along feed value chains. As skyrocketing raw material prices force producers to include a higher proportion of economical cereal byproducts in the feed, the risks of mycotoxin contamination likely increase. In this article, we review why mycotoxins cause the damage they do – and how effective toxin-mitigating solutions prevent this damage.

Mycotoxin contamination of cereal byproducts requires solutions
Cereal byproducts may become more important feed ingredients as grain prices increase. But also from a sustainability point of view and considering population growth, using cereal byproducts in animal feed makes a lot of sense. Dried distiller’s grains with solubles (DDGS) are a good example of how byproducts from food processing industries can become high-quality animal feed.

Figure 1: Byproducts are a crucial protein source (data from FEFAC Feed & Food 2021 report)
Still, research on what happens to mycotoxins during food processing shows that mycotoxins are concentrated into fractions that are commonly used as animal feed
(cf. Pinotti et al., 2016.) To safeguard animal health and performance when feeding lower-quality cereals, it is essential to monitor mycotoxin risks through regular testing and to use toxin-mitigating solutions.

Problematic effects of mycotoxins on the intestinal epithelium
Most mycotoxins are absorbed in the proximal part of the gastrointestinal tract. This absorption can be high, as in the case of aflatoxins (ca. 90%), but also very limited, as in the case of fumonisins (< 1%); moreover, it depends on the species. Importantly, a significant portion of unabsorbed toxins remains within the lumen of the gastrointestinal tract.

Importantly, studies based on realistic mycotoxin challenges (e.g., Burel et al., 2013) show that the mycotoxin levels necessary to trigger damaging processes are lower than the levels reported as safe by EFSA, the Food Safety Agency of the European Union. The ultimate consequences range from diminished nutrient absorption to inflammatory responses and pathogenic disorders in the animal (Figure 2).

1. Alteration of the intestinal barrier ‘s morphology and functionality
Several studies indicate that mycotoxins such as aflatoxin B1, DON, fumonisin B1, ochratoxin A, and T2, can increase the permeability of the intestinal epithelium of poultry and swine (e.g. Pinton & Oswald, 2014). This is mostly a consequence of the inhibition of protein synthesis.

As a result, there is an increase in the passage of antigens into the bloodstream (e.g., bacteria, viruses, and toxins). This increases the animal’s susceptibility to infectious enteric diseases. Moreover, the damage that mycotoxins cause to the intestinal barrier entails that they are also being absorbed at a higher rate.

2. Impaired immune function in the intestine
The intestine is a very active immune site, where several immuno-regulatory mechanisms simultaneously defend the body from harmful agents. Immune cells are affected by mycotoxins through the initiation of apoptosis, the inhibition or stimulation of cytokines, and the induction of oxidative stress.

For poultry production, one of the most severe enteric problems of bacterial origin is necrotic enteritis, which is caused by Clostridium perfringens toxins. Any agent capable of disrupting the gastrointestinal epithelium – e.g. mycotoxins such as DON, T2, and ochratoxin – promotes the development of necrotic enteritis.

3. Alteration of the intestinal microflora
Recent studies on the effect of various mycotoxins on the intestinal microbiota show that DON and other trichothecenes favor the colonization of coliform bacteria in pigs. DON and ochratoxin A also induce a greater invasion of Salmonella and their translocation to the bloodstream and vital organs in birds and pigs – even at non-cytotoxic concentrations.

It is known that fumonisin B1 may induce changes in the balance of sphingolipids at the cellular level, including for gastrointestinal cells. This facilitates the adhesion of pathogenic bacteria, increases in their populations, and prolongs infections, as has been shown for the case of E. coli. The colonization of the intestine of food-producing animals by pathogenic strains of E. coli and Salmonella also poses a risk for human health.

4. Interaction with bacterial toxins
When mycotoxins induce changes in the intestinal microbiota, this can lead to an increase in the endotoxin concentration in the intestinal lumen. Endotoxins promote the release of several cytokines that induce an enhanced immune response, causing inflammation, thus reducing feed consumption and animal performance, damage to vital organs, sepsis, and death of the animals in some cases.

The synergy between mycotoxins and endotoxins can result in an overstimulation of the immune system. The interaction between endotoxins and estrogenic agents such as zearalenone, for example, generates chronic inflammation and autoimmune disorders because immune cells have estrogen receptors, which are stimulated by the mycotoxin.

Increased mycotoxin risks through byproducts? Invest in mitigation solutions.
To prevent the detrimental consequences of mycotoxins on animal health and performance, proactive solutions are needed that support the intestinal epithelium’s digestive and immune functionality and help maintain a balanced microbiome in the GIT. As the current market conditions will likely engender a long-term shift towards the inclusion of more cereal byproducts in animal diets, this becomes even more important.

Trial data shows that EW Nutrition’s toxin-mitigating solution SOLIS MAX provides effective protection against feedborne mycotoxins. The synergistic combination of ingredients in SOLIS MAX mycotoxins from damaging the animals’ gastrointestinal tract and entering the blood stream:

In-vitro study shows SOLIS MAX’ strong mitigation effects against wide range of mycotoxins
Animal feed is often contaminated with two or more mycotoxins, making it important for an anti-mycotoxin agent to be effective against a wide range of different mycotoxins. A dose response evaluation of SOLIS MAX was conducted a at an independent laboratory in Spain, for inclusion levels of 0.10%, 0.15%, and 0.20% (equivalent to 1 kg, 1.5 kb, and 2 kg per ton of feed). A phosphate buffer solution at pH 7 was prepared to simulate intestinal conditions in which a portion of the mycotoxins may be released from the binder (desorption).

Each mycotoxin was tested separately by adding a challenge to buffer solutions, incubating for one hour at 41°C, to establish the base line (see table). At the same time a solution with the toxin challenge and SOLIS MAX was prepared, incubated, and analyzed for the residual mycotoxin. All analyses were carried out by high performance liquid chromatography (HPLC) with standard detectors.

The results demonstrate that SOLIS MAX is a very effective solution against the most common mycotoxins found in raw materials and animal feed, showing clear dose-response effects.

Mycotoxin risk management for better animal feed
A healthy gastrointestinal tract is crucial to animals’ overall health: it ensures that nutrients are optimally absorbed, it provides effective protection against pathogens through its immune function, and it is key to maintaining a well-balanced microflora. Even at levels considered safe by the European Union, mycotoxins can compromise different intestinal functions, resulting in lower productivity and susceptibility to disease.

The globalized feed trade, which spreads mycotoxins beyond their geographical origin, climate change and raw material market pressures only escalates the problem. On top of rigorous testing, producers should mitigate unavoidable mycotoxin exposures through the use of solutions such as SOLIS MAX – for stronger animal health, welfare, and productivity.

References are available on request.

With bright and cheerful expressions, Ambassador of the Netherlands to India, Marisa Gerards,
was joined by De Heus International Director Rutger Oudejans, company CEO Koen De Heus,
as well as Mr. Tanveer Malik, Country Director India, and Mr. Parveen Kumar, ASM,
in a memorable Lamp Lighting Ceremony with Chief Minister Bhagwant Mann.

Farmers in Punjab and Haryana, who have traditionally relied on cultivating traditional crops, are now seeking ways to diversify their agricultural practices. They aim to transition into horticulture, dairy farming, poultry, fishery, piggery, and other sectors to improve their earnings. De Heus, a top 10 global animal feed company based in the Netherlands, is offering hope to these farmers by investing in a state-of-the-art plant in Rajpura, Punjab, with an investment of Rs 142 crore. The plant will produce high-quality animal feed and promote best farming practices to boost farmers’ incomes.

During the foundation stone-laying ceremony of the Rs 142 crore De Heus animal feed plant in Rajpura, Punjab Chief Minister Bhagwant Mann unveiled the commemorative plaque, with the company’s CEO, Koen De Heus, standing beside him.

Chief Minister Bhagwant Singh Mann highlighted the state’s attractiveness to global business tycoons, attributing it to the relentless efforts of the state government. He emphasized that diversifying agricultural practices was crucial for the region, and De Heus’s investment would play a significant role in supporting this transition.

This investment marks the first major commitment by a Dutch company in Punjab. The Netherlands is renowned as the world’s second-largest exporter of agricultural products. The De Heus plant will produce a full range of livestock products, including compound feed, concentrates, base mix, and dairy mineral mixes. In the first phase, set to be completed by the first quarter of 2025, the plant will produce 180 kilo metric tons (kMT) of animal feed, with potential for expansion to 240 kMT. The factory will feature two dedicated production lines.

On this occasion, approximately 2,000 people, including farmers from the poultry, dairy, and pig industries, graced the ceremony with their presence. De Heus displayed exceptional hospitality throughout the program.

Chief Minister Mann reaffirmed his promise to attract investments to the state and highlighted the entrepreneurial spirit of Punjabis, which has gained recognition worldwide. He stated that the state government had successfully attracted investments worth Rs 50,840 crore, including significant commitments from companies like Tata Steel, Jindal Steel, Virgio, Class, Tafe, Hindustan Liver, and others, creating employment opportunities for 2.25 lakh youth.

The Chief Minister emphasized the state’s transformation into an industrial-friendly environment with a genuine single-window system. He underlined that the state government had shifted from signing MoUs with families to engaging directly with the state and its people, ensuring transparency and accountability.

Chief Minister Mann expressed his belief that the De Heus plant would serve as a catalyst for supplementing farmers’ income. He highlighted the industrious and resilient nature of both Punjabis and the Dutch, expressing optimism about their collaboration and the economic growth it would generate.

The Chief Minister envisioned the industrialists associated with this project as brand ambassadors for Punjab, turning the state into a global industrial hub. He assured a conducive environment for businesses in the state, emphasizing the availability of excellent infrastructure, power, skilled human resources, and a favorable industrial and work culture.

De Heus India, a wholly owned subsidiary of De Heus, will be responsible for establishing the plant. De Heus is a century-old company with a global turnover of 7 billion euros in 2022. The company specializes in providing nutritional products for animals and aims to support farmers in achieving optimal animal health and performance for better earnings.

Koen De Heus, CEO of De Heus, emphasized the company’s commitment to bringing progress to farmers and local communities. He mentioned that India is an essential market for De Heus, where they aim to contribute to sustainable farming practices and job creation while working with local suppliers and partners.

Mr. Rutger Oudejans, Business Group Director (Premix & Specialties) and Mr. Tanveer Malik, Country Director India; General Director India; and Mr. Amit Mittan, Commercial Director of De Heus India, provided insights into the company’s mission to support farmers through high-quality animal feeds and extensive knowledge in animal nutrition, husbandry, and science.

The investment in Punjab aligns with De Heus’s global expansion strategy to build a local presence, serve farmers with top-notch animal feeds, and provide practical farming advice. The company operates more than 60 production locations in over 20 countries, exporting its products to more than 50 countries across Europe, Asia, the Middle East, Africa, and Latin America.
Ms. Marisa Gerards, the Ambassador of the Kingdom of the Netherlands to India, Nepal, and Bhutan, expressed her enthusiasm for the collaboration between the Netherlands and Punjab. She suggested organizing a significant cycling event in Punjab, given the Netherlands’ reputation as a cycling-friendly country. She also highlighted the existing Indo-Dutch Centres of Excellence in potato seeds and floriculture in Punjab, with another centre focused on onions under construction, as examples of successful cooperation between the two regions beyond agriculture.