The Hindu Business Line : Poultry players to give thrust to frozen meat

Despite the present trend of consumers preferring butcher-cut poultry meat to its frozen/chilled counterpart sold through retail outlets, major poultry industry players seem to believe that the shift of preference to the frozen category is imminent.

"Of our total turnover, the frozen/chilled category forms 3 per cent of our produce. But the returns are extremely insignificant, as consumers are still not receptive to the idea of buying packed frozen/chilled chicken," explained Mr Chander Raj Gopal, GM Marketing of the Rs 1,800-crore Suguna Poultry Farm Ltd.

Venkateshwara Hatcheries' CEO, Mr O.P. Singh, said: "While the frozen/chilled category forms 10 per cent of our Rs 3,000 crore poultry business, the returns are only about 4.5-5 per cent." As per estimates on the size of the domestic frozen/chilled poultry meat market, according to the Confederation of Indian Industry (CII), it is about 3 per cent of the total market size of Rs 9,000 crore.

Reasons for preference

"There are two major reasons for consumers preferring to buy butcher cut meat rather than frozen/chilled meat from retail outlets. First, the social mind block that butchered chicken is fresher and tastier. Second, that branded and packed frozen or chilled chicken has cost of infrastructure added to it," pointed out Mr Singh.

However, the industry seems to believe that this trend will change sooner than later.

Time for change

Explaining the reasons for the impending change in trend, Mr C.K. Vaidya, Managing Director, Godrej Agrovet Ltd, said: "The change has to happen. Not only is frozen/chilled chicken more hygienic, but also healthier." He added that companies have regulated disposable systems, while waste generated by butchers is left to the municipal divisions of cities to dispose, leading to unhygienic conditions, a reason that would eventually lead people to buy frozen/chilled meat.

Another reason cited is the lack of time. Mr Shubhomoy Mitra of the Kolkata-based Arambagh Hatcheries said: "There are more and more working couples today who would rather go for the clean, cut thing at a retail outlet than spend time on the entire procedure."

`Goodness & safety'

The industry has also chalked out definite plans to give effect to the change. "For the consumers, frozen meat means is either stale or dead, thus, unhealthy. So, people need to be educated about the goodness and safety of the product through advertising campaigns through not only print and television, but also through door-to door activities, for which we are ready to spend crores of rupees," said Mr Raj Gopal.

While Mr Singh said, "There is a need to proliferate a transitional model of marketing the products through shops that have a minimum level of infrastructure deployed to build up the hygiene systems of the shops."

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