Indian Beef Export Company, Trends and Prospects

Indian Beef Export Company, Trends and Prospects

How India Became a Global Beef Export Powerhouse Despite Religious Taboos – The Inside Story

India exported 1.56 million tonnes of beef in 2022, making it one of the world’s top beef exporting countries. This remarkable achievement comes despite the fact that cows are considered sacred in Hinduism, the majority religion in India. So how did India overcome religious taboos to build a thriving beef export industry? Here is the fascinating story.


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The Rise of India’s Meat Export Industry

India’s meat export industry began back in the 1960s, when the government established slaughterhouses and meat processing plants to export buffalo meat. Exports were modest at first, but picked up significantly in the 1990s after economic liberalization reforms. The real breakthrough came in 2009, when the Agricultural and Processed Food Products Export Development Authority (APEDA) set an ambitious target to more than double Indian beef exports from 1.28 million tons to 3 million tons by 2020.

APEDA worked closely with industry players to make investments in cold chain infrastructure, develop international market linkages and meet global quality standards. Their efforts paid off – Indian beef exports crossed the 2 million tons mark in 2018, two years ahead of schedule. By 2022, India was the world’s 2nd largest beef exporter after Brazil, with exports worth $5.9 billion.

The Water Buffalo Advantage

Here’s the interesting part – the majority of “beef” that India exports is actually water buffalo meat, not cow meat. Water buffaloes are not considered sacred in Hinduism. India has about 109 million water buffaloes compared to 192 million cows. Water buffalo meat looks, tastes and cooks very similar to cow beef, but exporters are careful to always label Indian exports as “carabeef” or buffalo meat. This semantic distinction allows India to export beef while still respecting religious sensitivities about cows at home.

The water buffalo has physical advantages too. It produces brighter red and more tender meat than cattle. Water buffalo also have higher dressing percentage – the animal-to-meat conversion ratio. That means more usable meat for every buffalo slaughtered. Indian water buffaloes are grass-fed and raised in small farms rather than feedlots, which adds to the perception of higher quality among foreign buyers.

Building a World-Class Export Supply Chain

While water buffaloes solved the religious issue, building a competitive beef export industry required major investments in processing infrastructure and cold chain logistics. APEDA worked closely with private companies like Allanasons, which set up modern abattoirs and meat processing plants approved by regulators in the U.S., EU, ASEAN and the Middle East.

India now has 200+ USDA-approved abattoirs and meat processing facilities located close to livestock areas. Integrated companies like Al Kabeer operate their own abattoirs, processing units and cold storage warehouses to manage quality and costs. Ports like Mundra have dedicated multi-product cargo terminals with cooling zones to maintain meat integrity during shipment. Major meat exporting companies now rival Brazil and Australia in quality, cost and reliability.

Winning Hearts and Minds at Home

Initially there was some opposition at home to beef exports from Hindu nationalist groups like the RSS and VHP. They protested at ports and unsuccessfully filed legal petitions seeking a ban on beef exports, arguing that it still indirectly hurts Indian cows.

But over time, the meat industry was able to convince opponents that buffalo meat exports financially help farmers who own both cattle and buffaloes. Meat companies also emphasized their practices for segregating buffalo and cow meat operations completely. These assurances helped diffuse social tensions around beef exports.

The revenue incentives were also too good for state governments to ignore – beef exports are now a $5.9 billion industry sustaining millions of livelihoods. Both federal and state governments are fully on board, seeing meat exports as an important foreign exchange earner like software services. This political consensus has been crucial for the rapid growth of India’s beef export industry.

Looking Ahead

India’s beef exports are projected to grow another 40-50% and hit 2.5 million tons by 2025. The major target markets are Vietnam, Malaysia, Egypt, Saudi Arabia and Indonesia – countries where demand for buffalo meat is growing. However, India will face increasing competition from other Asian beef exporters like Pakistan, Australia and New Zealand. Maintaining cost leadership and product quality will be critical for future success.

There are also longer term challenges. Rising domestic demand is reducing the number of surplus buffaloes available for export. Water scarcity in major livestock states like UP and Punjab is another constraint. The meat industry is working on sustainable solutions like cooperative farming models and technology to improve yields.

The road ahead is not without obstacles. But for now, India’s remarkable beef export success story seems poised to continue well into the future. The agility and pragmatism shown by both industry and the government in turning an initial controversy into a triumph of export-oriented development sets a great example for other developing economies looking to leverage their natural resources in today’s globalized economy.


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Indian Beef Export Industry: Trends and Prospects

India is one of the leading exporters of beef and veal in the world, with an estimated export volume of 1.5 million metric tons carcass weight equivalent (CWE) in 2022. The CWE of beef and veal is expected to remain at 1.5 million metric tons in 2023, ranking third in terms of production volume globally. However, the Indian beef export industry faces several challenges and opportunities in the changing global market scenario. This article will analyze some of the key factors that affect the demand and supply of Indian beef and veal in the international market.

Demand for Indian Beef and Veal

The demand for Indian beef and veal is mainly driven by the preferences and incomes of consumers in the importing countries. India exports beef and veal to more than 280 foreign countries, with the majority of its exports going to Vietnam, Malaysia, Egypt, Saudi Arabia, Indonesia, Iraq, and the United Arab Emirates. These countries have large Muslim populations that prefer halal meat, which is produced by slaughtering animals according to Islamic law. India has an advantage in producing halal meat as it has a large population of water buffaloes, also known as carabeef or carabao, which are considered halal by most Muslims. Carabeef accounts for about 90% of India’s beef and veal exports.

Another factor that influences the demand for Indian beef and veal is the price competitiveness of Indian products in the global market. India has a low cost of production compared to other major beef exporters such as Brazil, Australia, and the United States. This is because India has abundant availability of feed resources such as crop residues, agro-industrial by-products, and grasslands, which reduce the cost of feeding animals. Moreover, India has a large pool of skilled and cheap labor that lowers the cost of processing and transportation. As a result, Indian beef and veal are cheaper than those from other countries, making them attractive for price-sensitive consumers in developing countries.

Supply of Indian Beef and Veal

The supply of Indian beef and veal is determined by the availability and quality of livestock in the country. India has a large livestock population, with about 303 million cattle and 109 million buffaloes as of 2019. However, not all of these animals are suitable for meat production, as many of them are used for dairy, draught, or religious purposes. Moreover, the productivity and health of Indian livestock are low due to poor breeding practices, inadequate nutrition, diseases, and environmental stress. Therefore, India faces a challenge in improving the quality and quantity of its livestock to meet the growing demand for beef and veal in the domestic and international markets.

One of the ways that India can increase its supply of beef and veal is by adopting modern technologies and practices in animal husbandry. For instance, India can improve its genetic resources by using artificial insemination, embryo transfer, sexed semen, and genomic selection to produce high-yielding animals with desirable traits such as growth rate, feed efficiency, carcass quality, and disease resistance. India can also enhance its feed resources by using improved varieties of fodder crops, silage making, feed additives, and balanced rations to provide adequate nutrition to animals. Furthermore, India can improve its animal health services by implementing vaccination programs, disease surveillance systems, biosecurity measures, and veterinary extension services to prevent and control diseases among animals.

The Indian beef export industry is a significant contributor to the country’s economy and food security. However, it also faces several challenges and opportunities in the changing global market scenario. India needs to address the issues related to demand and supply of beef and veal by adopting strategies such as diversifying its export markets, improving its product quality and safety standards, enhancing its livestock productivity and health, and promoting its brand image as a reliable supplier of halal meat.

References:

https://web.archive.org/web/20120112101355/http://www.aphis.usda.gov/animal_health/emergingissues/downloads/dioxins.pdf

http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2004/02/02/000090341_20040202130625/Rendered/PDF/277150PAPER0wbwp0no1022.pdf

https://beef2live.com/story-world-beef-production-country-0-106880

https://www.statista.com/statistics/1181402/india-beef-and-veal-export/
https://www.statista.com/topics/5350/meat-and-seafood-in-india/
https://www.exportgenius.in/blog/top-beef-exporters-in-india-report-on-beef-and-other-meat-exporters-22.php

https://www.financialexpress.com/economy/how-water-buffaloes-helped-india-achieve-5-9-billion-beef-exports/1965348/

https://www.businesstoday.in/latest/trends/story/how-india-went-from-cow-slaying-protests-to-top-beef-exporter-163628-2019-07-16

https://www.aljazeera.com/economy/2019/6/27/how-india-became-the-worlds-biggest-beef-exporter



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