Once treated as a cost component, feed is now emerging as the key driver of productivity, resilience, and sustainability in India’s next phase of agritech innovation.

The most strategic agritech bet in recent decades is not the incremental digitisation of the agri supply chain. Nor is it farm automation or agri-finance. Without taking away due credit to these feats that have propelled India’s agri ecosystem, consider the facts: Aquaculture has grown by 14 per cent in the last decade and dairy by 5.7 per cent against conventional crops at 2.1 per cent CAGR. Livestock single handedly contributed to 31 per cent of total agricultural GVA between 2023-24 and has grown by 195 per cent in the last 10 years. The new frontier of agri-innovation is in animal agriculture. 

Not only has livestock propelled growth for the country, it also contributes 20-30 per cent of farm income in many Indian states. Furthermore, aquaculture alone delivers 5-7 times the income farmers get from cereals. At such a critical juncture, it is remarkable that startups in the space are rethinking what agricultural infrastructure truly means. And it all eventually boils down to one thing: feed. 

The paradox of animal agriculture

India is the global leader in milk production, second in egg production and fourth in meat production. Yet, our animal productivity is much lower than most countries. Our milk yield is about 1/4th that of New Zealand, feed conversion ratio and growth rates of goats and sheep are much lower than the top breeds of the world. What we have in scale, we lack in efficiency. Sustaining the scale and increasing productivity is directly connected to the nutritional value of feed and the volatility in the feed supply chain. 

On one hand, soy-meal, sorghum, maize, and other traditional proteins used in feed are being diverted for human consumption and industrial uses. On the other hand, environmental pressures on land and water further constrain their sustained use, especially of ingredients like fish-meal. Meanwhile, price volatility is being driven not by a single shock but by the combined effect of competition, energy, climate, and the complexity of global trade systems. 

Innovating for a Rs 2 trillion market by 2040 

The animal feed market is valued at Rs 1.11 trillion right now and set to double in the next decade. Protein independence, environmental impact, and precision nutrition are at the forefront of the next leap in feed innovation centred around the idea that commercial viability and sustainability need not be mutually exclusive. And there is literally no dearth of credible ideas to propel this transformation.

For instance, in aquaculture and poultry, String Bio is exploring a novel methane-to-protein process that is not only carbon negative, but also requires much less water than soy meal. Developed to address the macro nutrient requirements of livestock, these proteins claim to increase stress tolerance, provide more protein than traditional sources and remain contaminant free. 

Another start-up Wastelink is exploring circular innovation by upcycling food-waste into high-energy feed ingredients for poultry and cattle. In a country generating 78 million tonnes of waste, this model reduces pressure of landfills on the environment while stabilising feed input costs. 

To address seasonality and feed scarcity for livestock, especially cattle fodder, which contributes to lower milk productivity, fodder preservation is truly a game changer. Cornext does exactly this, turning what was seasonal into a stable and predictable input. 

Addressing micro-nutrient deficiencies and playing into precision nutrition, Gramik and Zenex are optimising for managing biological indicators like fertility, longevity and yield while tackling anti-microbial resistance through nutrition itself. 

At Loopworm, we leverage silkworms to produce alternative proteins that are resource efficient, reduce land and water impact and provide a balanced nutritional profile. By turning by-products into co-products, and consciously operating at global standards, Loopworm produces in India for the world. 

A biocircular economy powered by feed is already here 

In the era of tech innovation, it may be easy to overlook this invisible component that has vast potential to transform livelihoods, development agenda and the very nature of agri-innovation. But, feed, which was once considered just an input   cost, is now the fulcrum for productivity, climate resilience, and price stability in the fastest growing segment of Indian agriculture. 

The coming together of deep tech, operational excellence and clear unit economics has the potential to significantly change farm outcomes. To this mixture, add patient capital and policy support, what you get is transformational. With support from the National Livestock Mission, the National Programme for Dairy Development, and the Animal Husbandry Infrastructure Development Fund, building capacity for a bio-circular feed economy is already underway.

As India looks towards a Viksit Bharat and an increasingly volatile world economy, frugal innovation will be the key to unlock growth. In that context, feed is leverage for systemic resilience.

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