Logistics and Processing Challenges in Poultry Sector

Logistics, Storage Solutions, and Processing Challenges in Poultry Supply Chain and Cold Storage Trends in India

Rapid expansion in India’s poultry sector is fuelled by chicken and egg consumption, urbanization, and organized retail. Jointly or individually, this growth has significant implications for the poultry sector's ability to maintain quality, safety, and shelf lives, as logistical, cold storage, and processing methods increasingly adapt to maintain the entire poultry value chain from farm to consumer. 

Though production is one component of the poultry supply chain value, the ability to store, move, and process poultry while assuring hygienic, temperature-controlled storage for distribution is equally important. Bad or old infrastructure, a fragmented supply chain, and low cold storage capacity combine to produce losses, price volatility, and a less profitable situation for farmers and processors. While there is an increasing domestic thrust as well as export opportunity, modernizing the supply chain will also be a priority.

Current State of Poultry Logistics in India

The poultry supply chain in India consists of farms, hatcheries, dedicated feed suppliers, processing units, distribution and retailer segment. The poultry supply chain is typically fragmented and localised, where numerous small and medium-sized farms typically engage local markets. The degree of cold-chain logistics primarily refrigerated is limited. Therefore, during processing and distribution, the potential exists for spoilage and deterioration during transit. 

Urban centres, such as Delhi, Mumbai, Bengaluru, and Hyderabad are experiencing their potential for temperature-controlled distribution vehicles and central distribution points. Larger or leading processors are actively deploying refrigerated trucks with GPS capabilities to ensure the temperature of product, transit conditions, and possibly less spoilage are first established. In addition, the use of refrigerated trucks with GPS will also improve compliance with food safety regulations.

Capacity and Innovation in Cold Storage Solutions

Although the situation is improving, cold storage capacity is still limited to large businesses in certain states, with most of that capacity located in Maharashtra, Tamil Nadu, and Gujarat. These three states continue to dominate cold storage. As a result, there is a disparity in cold storage coverage across the regions of India.

Many Tier-2 and Tier-3 cities do not have any cold storage capacity, which greatly increases the risk of spoilage and market access. Increasing cold storage coverage through both public-private partnerships and incentives will be necessary for providing coverage across the constructs of our country. 

Processing Challenges in Poultry Supply Chains

Processing is another link in ensuring safe and quality poultry products. Small processors often do not have adequate equipment, further setting the stage for inconsistent hygiene, training and certification of workforces. These barriers lead to inconsistent products, greater chance of contamination, and a slow transition to value-added products like ready-to-cook and frozen products. 

Centred around high throughput, processing facilities with the ability to automated chill, package, and distribute poultry will help minimize loss, improve traceability and consolidate the supply chain. To provide additional transparency, blockchain and digital monitoring systems are being piloted to ensure quality assurance and compliance to regulatory authorities.

The Role of Technology in Optimizing Supply Chains

Digitization is transforming poultry logistics in India. In many cases IoT sensors are being used to actively monitor temperature and humidity conditions in storage and transport to ensure food safety and reduce wastage. Predictive analytics are also being used to optimize routes, inventory management, and demand for poultry products, to minimize the occurrence of stockouts and wating of product.

Mobile applications and cloud-enabled platforms also help facilitate better coordination between farmers, processors, and retailers. Smaller farms can now get into centralized distribution networks and cold storage, linking production with urban consumption. One of the greatest opportunities for producers to implement is technology adoption that creates a resilient and scalable poultry supply chain.

Economic and Regulatory Considerations

Efficient cold chain infrastructure not only reduces losses but also has implications on margins and price structures in markets. Government interventions like the Cold Chain Development Programme, and Pradhan Mantri Kisan Sampada Yojana will offer essential funding to build storage, processing or logistical efficiency.

It is critical that private, cooperative, and public entities come together to evolve reliance on infrastructure and benchmarks across the supply chain, particularly in underdeveloped regions. Investing in centralized cold storage capacity, refrigerated logistic investments and processing availability will also provide efficiencies and offset costs through the poultry supply chain.

For a comprehensive analysis and future forecast, read our India Poultry Market

Future-Proofing India’s Poultry Supply Chain

With the surging demand for poultry products, India’s supply chain is evolving to meet modern standards of safety, efficiency, and sustainability. The expansion of cold storage capacity, integration of processing units, adoption technology-driven logistics, and regulatory compliance are key in minimizing losses and maximizing profitability. With coordinated investments, digital adoption, and infrastructure modernization, India’s poultry supply chain is poised to become more resilient, scalable, and consumer centric.