- Amazon is operating its Amazon.in business in India and planning the launch of new fulfillment centers across major cities including Hyderabad, Bengaluru, Chennai, and Mumbai.
- DSM Fresh Foods Limited operates as an integrated fresh protein company in India, utilizing Amazon for e-commerce and quick commerce deliveries.
Rising Poultry Feed Costs Squeeze Margins for Zappfresh and Meat Retailers
What happened
Poultry feed costs in India are rising due to crop stress from a weak monsoon and competition from ethanol producers, putting pressure on broiler producers and meat retailers. DSM Fresh Foods, which operates the Zappfresh brand, increased chicken prices by about 5% after its procurement costs rose by 10%.
From livemint.com
Why it matters
Higher input costs, including feed, energy, and transport, are increasing production expenses across the livestock industry. DSM Fresh Foods is absorbing part of these cost increases, which is impacting its margins while passing some costs onto consumers.
DSM Fresh Foods Limited is an integrated fresh protein company in India that utilizes Amazon for e-commerce and quick commerce deliveries.
From livemint.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ZappfreshSpeculative
Procurement costs might increase due to rising poultry feed costs, affecting the cost of goods sold.
- DSM Fresh Foods Pvt LtdSpeculative
The company could face margin pressure and cost increases from rising market rates, impacting profitability.
Keep exploring
The entities involved
-
Zappfresh
ZappFresh is an online platform that delivers a variety of meat and seafood direct from farms and fisheries
Nothing else this week.