In a strategic move to navigate industry challenges and safeguard profitability and expansion, Avanti Feeds Ltd. Group, a prominent player in shrimp feed, processing, and export, is actively pursuing a multifaceted approach. This approach encompasses a focus on value-added exports, exploration of new markets, the introduction of ready-to-eat shrimp products, and a significant foray into the pet food sector through a collaborative effort with a Thai counterpart.
Avanti Feeds is also looking to the government for support in ensuring the availability of raw materials at competitive prices within the domestic market. The company’s Joint
, highlighted the hurdles faced in both the feeds, shrimp processing, and export segments of the industry.
Rao stated, “We have also sought government intervention to ensure adequate availability of fishmeal in the domestic market for cost-effective shrimp feed production, as the duty cut is not adequate to provide sufficient relief.”
In addition to their diversification efforts, Avanti Feeds is exploring new markets, including China and Japan, in addition to their traditional markets in the US and Europe. Economic challenges in the latter regions have led to a 10-15% decline in shrimp export realizations.
Looking ahead, Rao anticipates a 15-20% decline in export demand in the second half of the year, further emphasizing the importance of cost-effective raw materials for industry stability. While the first quarter showed promise for feeds, the full year may witness a decline in feed output due to prevailing challenges.
Avanti Feeds has previously proposed the imposition of export duty and quotas on fishmeal to the government, yet no definitive action has been taken thus far. The export of fishmeal from India to countries like China, Taiwan, and Vietnam has surged over the past 8 to 10 months, resulting in a shortage of fishmeal for domestic consumption.
Currently, fishmeal production in India stands at approximately 3.75–4 lakh metric tons annually, with the shrimp feed industry consuming around 3 lakh metric tons per year. This underscores the significance of securing a sufficient supply of fishmeal for domestic feed production.