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Large scope for meat processing & exports
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Saturday, 27 January, 2007, 08 : 00 AM [IST]
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Dhwani Pandya, Mumbai
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of meat processing and marketing for more than 30 years. Through his acumen and innovative practices in processing of meat in state-of-the-art fully integrated slaughter house-cum-meat processing plant, the concept in the Indian meat industry has completely changed. Sirajuddin has established backward linkage to meat processing by animal rearing with the farmers and in the intensive feedlot, where male buffalo calves are commercially raised. Thus, the concept of 'FARM TO FORK' as envisaged in the Codex has been implemented in his establishment with individual identification and traceability. Through the animal rearing project involving about 160,000 farmers families, the mortality rate in calves has been reduced from 80% to 10% and milk production has increased by 15%. The economic condition of the families of small and marginal farmers has also considerably improved.
Chairman-cum-managing director of HIND GROUP of Industries, Sirajuddin has established the first meat processing plant in Sahibabad, UP, in 1990. This was followed by the establishment of a most modern state-of-the-art abattoir-cum-meat processing plant in Aligarh in 1997. The plant started commercial production in 1998. It is a 100% Export Oriented Unit.
His meat processing and marketing company, Hind Agro Industries Limited (HAIL), is now exporting deglanded, deboned high quality and risk free Halal meat to more than 44 destinations throughout the world. The company has bagged several National Awards both in food processing and marketing continuously from 1997 from the National Productivity Council, Government of India, APEDA and the Government of Uttar Pradesh. The company enjoys the status of a government recognised Trading House. Sirajuddin replies to Dhwani Pandya of Food & Beverage News on the challenges and prospects of the meat processing industry.
Indian meat and meat products exports have grown significantly during the last one decade. What are the primary reasons behind such remarkable growth?
The Indian meat production has been growing at a combined average growth rate (CAGR) of 5% during the last one decade. The export of buffalo meat has, however, 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.
The quantum jump in meat export has been mainly due to the establishment of state-of-the-art integrated meat processing plants which follow the guidelines of International Animal Health Code of Terrestrial Animals of O.I.E. The export-oriented units (EOUs) are HACCP, ISO:9001:2000 certified. India is free from Rinderpest which was eradicated in 1997, and is free from BSE (Mad Cow Disease) and other diseases. The incidence of FMD (Foot & Mouth Disease) has also gone down significantly and is now endemic only in a few states. The Indian meat is of an excellent quality and safe for human consumption. Indian meat is also very competitive in international market and has created a special niche in most of the importing countries. Buffalo meat blends very well with other value added products like hot dogs, corn beef, salamis and, therefore, has a good market.
Hind Agro Industries Limited (HAIL) is a leading exporter of meat products and a recipient of several awards for export promotion and market development. What have been the key success factors for HAIL?
HAIL had established its state-of-the-art abattoir-cum- meat processing plant in 1997 in Aligarh. Prior to that in 1995, the company had initiated the Animal Rearing Project with the farmers in Aligarh wherein we provide to the farmers all the inputs in animal health, like vaccination and deworming, supply animal feed and arrange for artificial insemination. At present, we have covered 7,500 villages in 8 districts around the HAIL plant where the Animal Rearing Project is operational. At the same time, we have established an Integrated Livestock Village Farm where the male animals of about 9 - 12 months of age, after the dams become dry, are reared under disease-free conditions. These two initiatives, namely, establishment of a world class abattoir-cum-meat processing plant and backward integration for animal rearing under disease-free conditions, gave us a market edge whereby we boosted our exports. Needless to mention that this has revolutionised the meat industry in the country.
Indian meat exports are largely confined to West Asian and East Asian markets. What are the reasons for such concentration?
Indian meat, which is genuinely HALAL, is exported to about 60 countries in South-East Asia, West Asia, Africa and Eastern Europe. However, it is not exported to West Europe and the USA because of their stringent Sanitary and Phytosanitary (SPS) requirements. As soon as we are able to control and eradicate FMD from the country, we should be able to export meat to these countries also.
Indian meat industry is largely unorganised and employs unscientific techniques for production. In your opinion, how can the industry re-organise and become competitive? What are your views on the setting up of a National Meat Board in this regard ?
It is true that Indian meat industry was disorganised but during the last 10 years, the industry has revolutionised specially with respect to the EOU units which are world class and follow HACCP, ISO 9001:2000 and are equipped with SGS Certification. Their products carry APEDA's "QUALITY PRODUCE OF INDIA" certificate. Then there is the backward linkages taking place as has been initiated by some companies, ensuring individual identification and traceability. Rinderprest has been eradicated and FMD control measures are already in place. We strongly feel that there is need for establishing a National Meat Development Board on the lines of National Dairy Development Board for which the Ministry of Food Processing Industries has initiated steps, and has agreed to establish it in the 11th Five Year Plan (2007 - 2012). Further, the enforcement of the Food Regulatory and Standards Act 2006, would change the food processing scenario in the country.
Less than 2% of meat produced in India gets processed. What factors are limiting the value addition of meat in India? What can be done to improve this?
It is true that not more than 2% of meat produced in the country is processed for value addition. There are several limitations to value addition because of the food habits in India where people are habituated to home prepared recipes. In the absence of a branded product, raw and frozen meat is exported from India. A very small portion goes into value addition and export. The Ministry of Food Processing Industries is very much concerned and, hopefully, these pressing needs will be taken care of.
What are the major non-tariff barriers faced by Indian meat exporters in the international markets? What steps can be taken by the government and the industry to tackle such issues?
The major non-tariff barriers faced by Indian meat exporters is the bogey of FMD prevalence in the country. As a matter of fact, the Paris-based International Animal Health Organisation (OIE), does not ban the export of meat from FMD-infected countries to the FMD free countries as per Chapter 2 of the International Animal Health Code for Terrestrial Animals. In this connection, I would like to cite an example of UK importing meat from South America during the 1960s and 70s when South America was infected with FMD and UK was free from it. There was not a
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