The news of Al Watania’s potential sale comes amid significant activity in the region’s poultry sector. Earlier today, rival processor Tanmiah Food Company announced its acquisition of a poultry processing facility from Dajin Poultry Company. Tanmiah’s products are marketed under its brand name across the Gulf Cooperation Council (GCC) countries.

Additionally, in November, Brazilian meat producer BRF signed a binding agreement to acquire a 26% stake in Saudi-based Addoha Poultry Co., further signalling growing consolidation in the sector.

The potential sale of Al Watania, a major player in the industry, could reshape the competitive landscape in Saudi Arabia and beyond.

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The new legislation fulfils a key manifesto pledge to ban the export of live animals, including cattle, sheep, and pigs, for slaughter and fattening from Great Britain. It aims to prevent animals from suffering stress, exhaustion, and injury during long and unnecessary export journeys. The Act ensures that animals will be slaughtered domestically in high-welfare UK slaughterhouses, enhancing the value of British meat and supporting economic growth.

Steve Barclay, the UK’s Environment Secretary, stated, “We are proud to have some of the highest animal welfare standards in the world. Our new Act makes use of post-Brexit freedoms to deliver one of our manifesto commitments and strengthen these standards even further by preventing the export of live animals for slaughter and fattening, which we know causes animals unnecessary stress and injury.”

Chris Sherwood, Chief Executive of the RSPCA, expressed his delight, saying, “After more than 50 years of campaigning, we are absolutely thrilled to see that the live export of animals has been banned from Great Britain. This means that British animals will no longer be sent on gruelling journeys abroad for further fattening and slaughter in cramped and poor conditions with little or no access to food or water. As one of the first countries in the world to abolish this practice, this vital step for animal welfare sends an important message globally, and we hope to see other countries follow suit soon.”

The UK, ranked highest among G7 nations by the World Animal Protection’s Index, is committed to ensuring that all animals are treated well at all stages of life. The government has made it clear that animals should only be transported when necessary and should avoid long-distance travel for slaughter. Exceptions will be made for specific circumstances such as breeding and competitions, provided that animals are transported in line with legal welfare requirements.

The ban follows a consultation where 87% of respondents supported ending live animal exports for slaughter and fattening. It also aligns with the government’s Action Plan for Animal Welfare, which includes new statutory welfare codes for farm animals, a ban on conventional battery cages for laying hens, and mandatory CCTV in slaughterhouses. Other legislative efforts include recognizing animal sentience, increasing penalties for animal cruelty, extending the ivory ban, banning glue traps and shark fin imports, and restricting low-welfare activity advertising and sales abroad.

The government has committed to implementing the Kept Animals Bill measures individually, with legislative actions ongoing and some measures, such as pets as primates restrictions, already in law.

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In the plea, Dr. Ajay Deshpande, VIP President, underscores the urgency of the situation, highlighting the immediate threat to the poultry industry’s financial health. Poultry feed accounts for 80% of production costs, and the surge in local maize prices, compounded by inconsistent rainfall in major maize-producing states, is adversely affecting chicken production. Poultry farmers are selling chicken at Rs 65/kg, facing significant losses against the production cost of Rs 85/kg.

The letter reveals that the poultry sector alone consumes approximately 18 million tonnes of maize, out of the estimated 35.91 million tonnes of production for 2022-2023. India’s maize export of 3,453,680.58 MT further strains domestic availability. Deshpande argues that the current maize prices of Rs 25/kg throughout India are unsustainable for the poultry farming community.

Anticipating a further increase to Rs 28-30/kg by February 2024, the association foresees a worsening situation post that date due to uncertainties in Rabi maize production. To bridge the demand-supply gap, the industry relies on imports, but the existing 60% import duty on non-GMO maize is discouraging.

In response to the crisis, VIP urgently requests the government to consider reducing the import duty on non-GMO maize from 60% to either NIL or a maximum of 15%. Deshpande argues that previous instances of maize imports have not adversely affected local farmers; instead, they played a crucial role in stabilizing demand and supply, benefiting both farmers and the poultry industry.

Supported by a detailed calculation, the association demonstrates that reducing the import duty can significantly lower the price of non-GMO maize, contributing to a stabilized market. This adjustment aims to support the financial sustainability of poultry farmers and ensure affordable access to nutritious protein for the people of India.

Deshpande concludes the letter by acknowledging the delicate balance needed to safeguard local farmers while ensuring the economic viability of industries dependent on maize imports. He emphasizes that a strategic reduction in import duty is a necessary step to address the immediate challenges faced by the poultry sector, aligning with the broader vision of agricultural growth and the Prime Minister’s goal of doubling farmers’ income.

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Notably, chicken has emerged as the lone major food commodity displaying negative inflation rates during this period. Despite the usual dip in chicken consumption observed annually during Sawan, this year’s impact has been particularly severe. Market experts attribute this unprecedented price fluctuation to a cascade of factors.

Gulrez Alam, the Secretary General of the All-India Poultry Breeders Association, shed light on the situation, indicating that the drastic drop in chicken prices began in July, when rates at the farm gate plunged by nearly 50%, settling around ₹  55–60/kg after reaching a pinnacle of ₹120/kg in June. Consequently, farmers responded to the situation by scaling down their bird production. This decrease in supply has played a pivotal role in driving up prices once again, now averaging at ₹80/kg.

While fluctuations in commodity prices are not uncommon, the chicken market’s departure from the expected trajectory has raised eyebrows across the industry. Observers are keeping a keen eye on further developments to understand the underlying causes of this substantial dip and subsequent recovery.

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According to accounts, the firm receives animals for processing from farms all throughout Assam. The animals go through an examination known as an “antemortem” before being butchered to see whether they are fit to eat. It is wrong to kill animals that are unwell, young, or pregnant, yet alarmingly, this prohibition is often disregarded.

Following the slaughter, the meat is subjected to a “Post mortem” inspection to check for illnesses. If any are discovered, the infected meat is promptly thrown at a waste disposal facility. According to animal welfare standards, the killing process should be painless, with the carcass preserved in a refrigerated area for at least 8 hours.

However, this protocol is not always followed, resulting in unethical practices by unscrupulous butchers who slaughter animals regardless of their health state. The implications of such activities go beyond animal cruelty since other animals have been known to generate a fear chemical that is damaging to humans when they watch the slaughter.

Furthermore, the corpses’ remnants are haphazardly abandoned, creating a severe health and environmental risk. An officer with the Assam Livestock and Poultry Corporation exposed a troubling aspect of their business. The inspector noted that butchers must pay a normal cost of $60 for the appropriately processed meat.

However, people are abusing this option by purchasing the entire animal for that small sum. The officer further stated that they now earn 3 lahks per year, as opposed to 10 lakhs previously. “We ignored the standard pricing based on 1/4th of a kilo, which should total 175 or more,” the officer explained. Surprisingly, just 30% of butchers prefer butchered meat, while the remaining 70% prefer to transport the whole animal to their shops. This apparent misappropriation allows butchers to avoid taking processed meat, resulting in financial losses for the firm.

The money earned by this activity is substantially lower than planned, with numerous charges removed from the revenue, including labour, power, sanitization, and licensing fees, further diminishing their revenues. Government-run slaughterhouses, which can handle 1500 animals, only receive 150-200 animals each day, resulting in significant losses.

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Industry Professionals Meat and its products will be allowed to be exported as ‘halal certified’ only if they are produced, processed, and packaged in a facility having a valid certificate issued by a body accredited by a board of the Quality Council of India, the commerce ministry said.

However, it said that the procedure for exporting non-halal certified meat and meat products will remain unchanged. It also said that for export consignments to countries where there is a regulation on halal, the producer, supplier, or exporter would have to meet the importing country’s requirements.

Policy conditions for the halal certification process of meat and meat products are notified,” the DGFT said in a notification. It added that all existing halal certification bodies would have six months to seek accreditation from the NABCB (national accreditation board for certification bodies) for ICAS (Indian conformity assessment scheme) halal.

The notification said, “Meat and meat products shall be allowed to be exported as ‘halal certified’, only if produced, processed, and/or packaged in facilities having a valid certification under the iCAS of the Quality Council of India (QCI), issued by a certification body duly accredited by the NABCB as per the guidelines issued or amended from time to time.”

Products covered under this notification include meat of bovine animals, fish, and chilled meat; meat of sheep and goats; and sausages and similar products of meat. With an objective to streamline the certification of meat and meat products as halal in the country, a scheme titled ‘India Conformity Assessment Scheme (i-CAS)’ has been developed.

Earlier, there was no mandatory halal certification system in India regulated by the government, as India does not have a national regulation for the certification.

The global halal food market reached a value of USD 1978 billion in 2021. Looking forward, the market is projected to reach USD 3,907.7 billion by 2027. It is said that India’s large Muslim population represents huge opportunities for halal-based entrepreneurs.

In India, the country’s halal industry is still in its infancy. There are no specific labelling requirements for halal food products imported into India. Halal certification is given by many private companies in India and marks the food or products as permissible. The major halal-certifying organizations in India include Halal India Pvt. Ltd. and Jamiat Ulama-i-Hind Halal Trust.

The International Halal Accreditation Forum (IHAF) is an international network of accreditation bodies mandated to enforce halal standards in their economies. Countries across the globe, including Indonesia, Malaysia, Thailand, the Philippines, the UAE, Pakistan, and others, have their own halal standards; however, so far there have been no global halal standards.

The rapid growth of the halal industry has not only led to halal technologies and innovations but also to halal-related laws and regulations that are still not harmonized globally, the report said. Due to changed consumer perception, the halal market attracts not only the Muslim population but also non-Muslim consumers.

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Middle Eastern countries such as Oman and Qatar are the main buyers of eggs from India, but in recent months, Indian hatcheries have received large orders from unexpected sources as output at some of the world’s top suppliers has decreased. The biggest such unexpected order came from Malaysia, which used to export eggs to Singapore and other Asian countries.

Malaysian Minister of Agriculture and Food Security Mohamad Sabu had visited Namakkal, in the southern Indian state of Tamil Nadu, where several leading hatcheries are based. This step was taken to secure egg supplies as prices rose to record highs.

India shipped 5 million eggs to Malaysia in December, and it will ship 10 million in January and up to 15 million in February.

The outbreak of highly pathogenic avian influenza, commonly called “bird flu” has curtailed supplies of eggs and chicken in many countries around the globe, pressuring already high food prices and triggering trade restrictions from countries that import poultry.

The imports from India have helped Malaysia bring prices down from the record highs seen in late December. Having suffered a shortfall of 157 million eggs in November, the market gap was down to just one million in December, the Malaysian minister said in a statement earlier this week.

Malaysia’s egg production would recover in a few months as the government has increased a subsidy, said Tan Chee Hee, president of the Federation of Livestock Farmers’ Association of Malaysia.

For the time being, prices in India have shot up to a record 565 rupees ($6.96) per 100 eggs, up nearly a quarter on a year ago’s prices and adding to domestic concerns over food price inflation.

Exports are rising amid robust local consumption during the winter months, and domestic supplies have fallen by around a tenth as small-scale Indian farmers, like their counterparts in Malaysia, have curtailed production after incurring losses in the past two years due to the high price of feed and the impact of the pandemic.

India’s domestic prices could eventually make exporting eggs less profitable, in which case foreign buyers will have to look elsewhere, but for the time being, demand is not abating. Countries such as Singapore and Sri Lanka could be next in line to buy from India in the coming months.

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The ready-to-cook products are assured to be free of artificial preservatives, trans fat, and Monosodium glutamate (MSG) with a shelf life of 12-14 days. 

“Licious is the only Indian company to house both animal and alternative protein under one roof. We have been able to achieve this because we have always kept our consumers as our biggest priority, Simeran Bhasin, Business Head, alternative protein, Licious, said. “

The consumer-backed research and innovation process have played a significant role in the development of the brand over the past two years. 

The team delved deeper into the meat consumption habits of the country and realised that a significant population does not consume meat regularly, and a large section remains protein deficient. 

In addition, we have festivities and beliefs centered around our identity, which may affect when we may consume meat. For such consumers, Licious aims to provide a protein-rich alternative with UnCrave.

Today, plant-based alternatives are relevant to those who have turned vegan and are actively understanding their food choices. But a large part of India is still not familiar with this category.

At present, the products are available in Delhi NCR, Mumbai, and Bengaluru through the Licious app, marketplaces, and Licious stores.  

Over the past 6 years, Licious has made its mark among meat lovers. Since starting up, it has witnessed a 300 percent growth and is actively interacting with consumers across 28 Indian cities viz, Bengaluru, Hyderabad, Delhi NCR, Mumbai, Pune, Kochi, and Kolkata to name a few. 

Currently, it provides over 2 million orders every month and enjoys a 90 percent repeat consumption across markets.

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The company will debut a new logo and colour palette as part of its new identity, which smoothly crosses the limits of visual media to bring the hearty-meaty experience to life.

Licious has relaunched its brand identity. The brand will have a new logo and colour palette as part of its new identity, which will smoothly transcend the borders of visual media to bring the hearty-meaty experience to life.

Licious, India’s most popular meat brand, has triumphed over Indian consumers’ kitchens and hearts with a perfect blend of high-quality goods and unrivalled experience. It has catered to Indian consumers’ highly evolved palates by providing higher quality, fresh goods, as well as streamlining the meat purchasing process with cutting-edge technology and producing an overall joy by changing the way India perceives meat! Furthermore, empirical research reveals that brand identities should be refreshed every seven years. The change in Licious’ identity corresponds with the company’s seventh anniversary.

“Licious was established by meat lovers, for meat lovers,” Santosh Hegde, VP-Brands, Licious, remarked. Customers and the brand are both live, breathing entities. As a result, innovation and evolution are not only important, but also vital to human progress. Licious has effectively transformed the way people in India think about meat and seafood in terms of quality, purchasing, and consumption. We have begun a movement as the torchbearer, and we must live up to it! As a result, the company’s brand identity has been refreshed.”

“We operate in a market that is continually developing, expanding, and disrupting in terms of customer, category, and competition.” Our new brand identity will allow us to not just remain ahead of the curve, but to forge ahead of it. We will invest in establishing properties across many consumer touchpoints in the coming months to help tales and storylines that will give the Licious of future a more distinct shape,” he added.

The logo, which is made up of smokey grey, hearty red, and creamy white, is meant to evoke the lusciousness of meat – the taste, texture, and perfume of the eating experience. The flowing and luscious textures of meats, fish, and poultry products are strongly referenced in the logo and other graphic aspects. The patterns, which can be seen across all touchpoints of the brand’s engagement with its stakeholders, are little but delightful elements.

The new brand identity is reflected in the app, website, offline stores, packaging, messaging, and all other branded assets. All of the graphics in the brand’s signature are inspired by the logo’s visual character and shape.

Licious has used 100 percent traceable and sustainable sourcing techniques since its debut in 2015, setting industry standards. The Bangalore-based company is also the largest direct-to-consumer (D2C) brand in India to be accredited with FSSC22000, one of the world’s most stringent food safety standards. Licious is the first firm in the category to adopt a vow to achieve total ESG compliance, thanks to its sustainability purpose. Licious, which is present in 27 Indian cities, caters to a significant number of Indian families, delivering over 2 million orders every month.

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Due to high input prices, the margins of India’s chicken business are predicted to decrease considerably in the fiscal year 2022.

Prices for soybeans and maize, two main commodities used as animal feed in the poultry business, are skyrocketing as a result of the crisis between Russia and Ukraine.

First, there was Covid, when chicken product prices decreased due to erroneous worries that their consumption was linked to virus transmission. Then came the statewide shutdown, followed by the avian influenza epidemic in January-February 2021, which impacted sales just as they were rebounding. Just as it happened, the second Covid wave hit. And now, just as the sector was regaining its footing, feeder costs have skyrocketed as a result of the Russia-Ukraine conflict.

Soybean has been the primary driver of increased feed costs. Feed contributes for 70% of variable expenses, while maize accounts for 60-63 percent of feed volume, while soymeal accounts for 25-27 percent. Maize prices declined by 30% in FY2021, while soybean prices grew by 6% year on year.

De-oiled cake is imported by India for usage in poultry feed. However, due to the conflict with Russia, imports from Ukraine have ceased, causing price increases. Toss in the price of maize, and you’ve got a recipe for a disaster. Despite the fact that India produces a lot of grain, the price has skyrocketed. Because Ukraine is now unable to sell grain to the rest of the globe, other nations have resorted to India to fill the void. Corn feed, another material used to feed hens, has grown in price as demand for Indian corn has soared. Maize farm gate prices have risen from Rs. 19.50 per kg to Rs. 22 per kg, thanks to increased exports of Indian corn.

“The sector is very vulnerable to changes in input prices, particularly feed, which accounts for 70% of variable expenses. On average, we predict industry margins to suffer in FY2022, owing to a surge in soybean and maize prices. While several participants experienced net losses in the first half of FY2022, the subsequent lowering of soybean prices as a result of government interventions and fresh crop supplies brought some relief. Recent geopolitical concerns, on the other hand, have re-heated soybean prices,” according to Icra, a rating agency.

ICRA anticipates industry operating margins to decline by 350 to 450 basis points in FY2022, as higher-than-normal feed costs would have a significant impact on profitability.

Chicken prices have also increased by 25% since January, with industry analysts predicting a further increase of 10% to 50% in March in various sections of the nation owing to a severe feed scarcity.

Aside from chicken, consumers should expect an extraordinary increase in the price of animal protein, which includes dairy goods and fish. Amul, the world’s largest dairy company, hiked retail milk prices by 4% in all Indian markets on March 1st. “Rising energy, packaging, transportation, and cow feeding expenses have all contributed to this price increase. As a result, the overall cost of operation and milk output has increased,” Amul stated in a statement.

Mother Dairy has also announced a price increase of Rs. 2 effective March 6th.

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