|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
An overview of the meat sector in India
|
|
Saturday, 31 March, 2007, 08 : 00 AM [IST]
|
|
Agnelo Gomes, Mumbai
|
e businesses that together supply much of the food energy consumed by the world population. Even though food processing is among the largest industries, India ranks fifth in terms of production, consumption, export and expected growth. Food processing industry is widely recognised as a 'sunrise industry' having huge potential for uplifting agricultural economy, creation of large scale processed food manufacturing and food chain facilities, and the resultant generation of employment and export earnings. India has enormous growth potential from its current status of being the world's second largest food producer to be the world's number one producer.
Meat processing industry also is of enormous significance for India's development because of the vital linkages and synergies that it promotes. Meat processing covers a spectrum of products from sub-sector comprising animal husbandry and poultry farms, and bulk frozen meat, packaged meat, ready-to-eat processed meat products. Essentially, the meat industry involves the commercial movement of food from farm to fork. While India has an abundant supply of meat, the meat processing industry is still nascent.
Growth Potential
Though the Indian meat production has been growing at a compound annual growth rate (CAGR) of 5% during the last one decade, there is a considerable concern to a certain extent about production, which remains static or flow at the present growth rate of 2% annually. Meat exports are likely to increase at an annual growth rate of about 10%. While in the previous year 2005-06, the exports touched a spectacular 48%. The export of buffalo meat has been growing at a CAGR of about 8%. The country produces an estimated 1.5 million tonnes of buffalo meat annually. Of this, about 24% is exported. Meat is primarily exported to the Philippines, Malaysia, West Asian countries like the UAE, Saudi Arabia, Qatar, Oman etc., African and CIS countries.
With the overwhelming success of the Green and White Revolution, India is now fervently poised for the Pink Revolution that will ensure diversification and large investments in meat-food-processing.
In the current scenario there is large scope for meat processing in poultry as well as in red meat. The entries of few belligerent players like Shalimar Super Foods, Venkateswara Hatcheries, Godrej Agrovet, Al-Kabeer, Arpit Enterprises, Allanasons, Mark International, AL Barkat Exports, Nensey Poultry Farm, Prabhat Poultry, Vista Processed Foods, Fiza Exports, Meatzza - Darshan Foods, etc, with an aggressive rise of commodity branding; is beginning to change the economics of the Indian meat processing industry.
The poultry sector
The poultry sector in India employs three million people and contributes Rs 26,000 crore to the national income. In fact the poultry industry has made a considerable progress by developing and marketing value added products. Select companies have made a steady growth in this area, namely, Venkateswara Hatcheries, Godrej Agrovet, Al-Kabeer, Shalimar etc. Traditional products are very popular in the red meat, namely, sheikh kabab, mouth watering biryani, mughlai qaurma, stew, ham, salami, sausages, cocktail etc.
The poultry meat consumption in 2005 was about 1.9 million tonnes, or 1.8 kg per capita. It is the major meat consumed in India and has wider regional acceptance, given the high price of mutton, cultural and religious restrictions on consumption of pork and beef; and fish largely being confined to the coastal regions. Lower retail prices, resulting from expanding vertical integration, have also stimulated consumption. Integrators have established wholesale-and retail-price leadership in their markets, mostly in south India, by reducing the number of middlemen and forcing wholesalers and retailers to reduce their margins. In other regions, particularly in the northern region, where the traditional wholesale traders still dominate the markets, the marketing margins and retail prices are considerably higher than in the south.
The Indian poultry industry remains primarily live bird-oriented, although there is a growing market for chilled products, especially in the restaurant and hotel sector. Most birds for home consumption are purchased live and slaughtered in small local shops. Movement of live poultry from the low-cost growing areas to high-cost consumption areas is constrained by the high mortality and high transport and shrinkage costs. This results in significant price variations. Frozen poultry meat product consumption is restricted by inadequate cold storage facilities, a lack of consumer preference, and high import duties. Although a shift towards chilled products is likely to continue in urban areas, in part due to slaughter restrictions imposed by major cities like Delhi due to waste disposal problems, frozen product demand growth will likely remain weak over the near-to-medium term.
India's broiler production grew by about 15% to 2 million tonnes in 2006, due to the larger availability of feed and the growing demand for poultry meat in response to affordable prices and rising consumer income. The per capita consumption of poultry meet in India stood at 1.9 kg in 2006. A trend towards forward integration in poultry operations, growing farmer preference for birds with higher dressing yields, and price stabilisation measures initiated by the industry are also the factors supporting production growth. The US Department of Agriculture (USDA) revised downwards the broiler meat production for 2006 to two million tonne from 2.2 million tonne, owing to losses caused by the avian influenza outbreak in some parts of the Western India. Consequent to the outbreak in the major poultry belt, the price remained below the cost of production for several months and caused colossal financial losses to the poultry industry and forced several units to scale down or close operations.
That apart, industry analysts say that the demand for meat products is bound to increase as they foresee a very good future for the take-away ready-to-eat dishes being sold in the super markets which are opening outlets in big metros. There is a rapidly increasing demand for processed food (meat) caused by rising urbanisation and income levels. This is supported by number of people preferring to live as nucleus family, rather than joint families. Rise in employment with more of adult working ratio and spending lesser time in the kitchen. In addition to prime factors like, change in consumer eating habits as well as rising demand for health, wellness and lifestyle products, together with inflated take-home packages, and rise in family income provides tremendous growth opportunities for the meat sector.
"With rising incomes, changing lifestyles, and increased promotional efforts to popularise processed meat, its share is estimated to increase considerably in 2007," say industry analysts from the meat sector.
As per the latest update of US Department of Agriculture (USDA), the growth projection is based on the assumption that India remains free from Highly Pathogenic Avian Influenza (HPAI). "Production growth is supported by likely strong growth in domestic poultry meat demand in response to affordable prices and increasing incomes," USDA said. The projected growth in output would also be supplemented by increasing trends towards integrated poultry operations, and improving bird weights and dressing yields due to better genetics. USDA claims that the India's broiler industry, which was growing at over 15% per annum in recent years, was badly hit due to the recent outbreak of HPAI.
Many of th
|
|
|
|
|
|
|
|
|
|