The demand for animal proteins and dairy products in the country is likely to drive the growth of compound feed consumption to 28 million tonne by 2017-18, says a study.
Compound feed is livestock fodder that is blended from various raw materials and additives.
India has recently emerged as one of the largest and fastest growing compound feed markets in the world. The demand for animal proteins and dairy products in India will increase the compound feed consumption volumes to 28 million tonnes by 2017-18, said the report by Rabobank, a financial services provider.
The feed industry is growing at a Compound Annual Growth Rate (CAGR) of eight per cent, with poultry, cattle and aqua feed sectors emerging as major growth drivers, it said.
Broiler feed is still the largest segment but aqua feed has experienced the strongest growth, it added.
The report said that there is enough potential for compound feed segment to grow if livestock challenges such as disease outbreaks, volatile livestock product prices and poor animal genetics are addressed.
Increased industrialisation and participation from organised players will help in driving production system efficiencies and improve food safety standards, it added.
In 2012-13, India became the world's fourth-largest broiler producer and the third-largest egg producer.