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Indo-Saudi poultry venture eyes larger exports
Thursday, 11 March 2004, 20:30 IST
NEW DELHI: A major Indo-Saudi poultry venture in Tamil Nadu is raising its chicken processing capacity to cater to its growing demand in the Middle East, particularly after a ban on supplies from avian flu-affected countries.
Set up in 2002, the Supreme Suguna Foods Ltd is a 50-50 joint venture of Coimbatore-based Suguna Poultry Farm Ltd (SPFL) and the Saudi Arabian chicken concern, Supreme Foods Company Ltd (SFCL).
One of the six chicken meat processing plants in the country, Supreme Suguna has been flooded with orders from the Middle East in the wake of the avian flu being detected in 10 Asian countries, and death of around 20 people in Vietnam and Thailand.
"Though India remained free from avian flu, the processing capacity in the country is not enough to capitalise on increased export demand," said B. Soundararajan, managing director of Suguna Poultry Farm Ltd. and president of All India Poultry Breeders Association.
In the case Supreme Suguna, "We were only able to raise the processing capacity by a small quantity to 35,000 chicken per day from 30,000. We are in the midst of raising our processing capacity to 100,000 chicken per day to meet increased export demand in the Middle East," Soundararajan told IANS.
The capacity enhancement would require putting in an additional 
40 million to the 130 million initial investment.
Currently, the company is supplying most of its 40 containers shipment, equivalent to 1,000 tonnes worth 50 million every month mostly to the Saudi Arabian market.
"In three months our capacity would be enhanced to cater to the demand not just in Saudi Arabia but also other Middle East countries," said Soundararajan.
There is more demand for Indian products with the ban on poultry meat imports from Thailand by many countries.
Unlike growing demand overseas, Soundararajan and his fraternity are worried about the low demand within the country due to fear of avian flu.
To counter the low domestic demand, which has adversely affected prices only at farms, poultry industry officials admitted that considerable stock is now being processed to cater to the demand at a later date.
In India, unlike in the West and in other major global markets, the demand for processed poultry products is very negligible. Soudararajan is hopeful that this would change, paving a way for greater investment in poultry processing industry.
He revealed that while some of the other processing companies are also planning capacity enhancement or acquiring quality certification to cater to global market needs, more processing plants are being planned - including one in Chandigarh in north India.
Source: IANS
40 million to the 130 million initial investment.
Currently, the company is supplying most of its 40 containers shipment, equivalent to 1,000 tonnes worth 50 million every month mostly to the Saudi Arabian market.
"In three months our capacity would be enhanced to cater to the demand not just in Saudi Arabia but also other Middle East countries," said Soundararajan.
There is more demand for Indian products with the ban on poultry meat imports from Thailand by many countries.
Unlike growing demand overseas, Soundararajan and his fraternity are worried about the low demand within the country due to fear of avian flu.
To counter the low domestic demand, which has adversely affected prices only at farms, poultry industry officials admitted that considerable stock is now being processed to cater to the demand at a later date.
In India, unlike in the West and in other major global markets, the demand for processed poultry products is very negligible. Soudararajan is hopeful that this would change, paving a way for greater investment in poultry processing industry.
He revealed that while some of the other processing companies are also planning capacity enhancement or acquiring quality certification to cater to global market needs, more processing plants are being planned - including one in Chandigarh in north India.
Source: IANS