EXPORT COMPETITIVENESS OF INDIA IN LIVESTOCK PRODUCTS

S

[“India’s Export Competitiveness in Livestock Products”][ This Project report will be focusing in livestock products with a special reference to the

Dairy Production and Meat Production in India and there export relations and potential

with rest of the World or Regions. Apart from that it will also focus on the challenges and

the Issues due to which this sector has yet been utilized fully to its calibre.]

INTRODUCTION

TO

LIVESTOCK SECTOR

The livestock sector has been growing rapidly as compared to crop production. This growth

can be attributed to the increasing number of animals, thereby leading to high productivity.

The Livestock Sector contributes around 6.8% to GDP and employs around 8% of labour

force. The contribution of the Livestock sub-sector of Agriculture GDP has increased

impressively in the last twenty years, from less than 15% in the late 70s to over 33% in 2002

ASIA PACIFIC INSTITUTE OF MANAGEMENT DEVKANT RATH-INTERNATIONAL BUSINESS

2011

a) Livestock Sector in India

Agriculture is an economic symbiosis of crop and milk production. Historically, the role of

livestock has been complementary to crop production. The Indian livestock sector accounts

for a large share of the livestock resources in the global market. India boasts of having one of

the largest livestock populations in the world. Dairying and agriculture are bound together by

a set of mutual input-output relationships. Over the last four decades there has been rapid

growth in livestock production and a rapid change in how animal products are produced,

processed, consumed and marketed. Livestock and livestock products are an important source

of food, nutrition and livelihood security in Asia and the Pacific where production of animal-

based foods has grown dramatically over the past two decades. The greatest increase in the

production and consumption of animal-origin foods, as a result of rising incomes and dietary

diversification away from staple cereals, has taken place in East and Southeast Asia, in

particular China. Meat production in China grew more than six-fold to over 88 million

tonnes from 1980 to 2007, while milk and egg production increased over twelve-fold and

tenfold, respectively, to 37 and 30 million tonnes over this period. Meat and egg production

in India in 2007 was about 2.5 and 4.5 times the 1980 level while milk production trebled.

Animal-origin foods are an important source of high quality protein and micronutrients

compared to cereals and plant-based foods1.These include vitamin A, vitamin B12, riboflavin,

calcium, iron and zinc which are vital for nutritional security. A deficiency of these nutrients

in the diet leads to health problems, including increased risk of infectious disease morbidity

and mortality, particularly in infants and children2. Meat, milk and egg consumption has

grown rapidly in East and Southeast Asia over the past 20 years. Between 1980 and 2005,

daily per capita meat, milk and egg consumption in China grew over four-fold, ten-fold and

eight-fold to 59.5, 23.2 and 20.2 kg/capita/year respectively. According to FAO projections,

meat consumption in Asia and the Pacific will nearly double to 51kg/capita/year by the year

2050 compared to the turn of the century. Growth in livestock production in both developed

and developing countries has been led by poultry. From the 1990s to 2005, consumption of

poultry meat in developing countries increased by 35 million tonnes – almost double the

increase that occurred in developed countries. The increase in poultry meat consumption has

been most evident in East and Southeast Asia and in Latin America, particularly in China and

1 The State of Food and Agriculture 2009, FAO http://www.fao.org/publications/sofa/en/2 Ibid

2

Brazil. The share of the world’s poultry meat consumed in developing countries rose from 43

to 54 percent between 1990 and 2005, which accounted for 36 percent of the large net

increase in meat consumption in developing countries over this period. Further, the

proportion of the world’s poultry meat produced in developing countries rose from 42 to 57

percent. It is estimated that production and consumption of poultry meat in developing

countries will increase by 3.6 percent and 3.5 percent, respectively, per annum from 2005 to

2030 because of rising incomes, diversification of diets and expanding markets, particularly

in Brazil, China and India. Dairying is not an adjunct to the crop-mix of Indian farms but an

integral part of the total farming system. Hence, treating dairy cattle as the backbone of the

livestock wealth of our country would not be an exaggeration. Although dairying provides

livelihood to millions of Indian farmers and generates additional income and employment for

a large number of families in the countryside with significantly greater participation of

women in this important activity, our country with about 18.36 per cent of the world’s total

cattle and buffalo population accounts for only about 14.5 per cent of the world’s total milk

production (GOI, 2004). Our livestock are roughly half as efficient as the average milch

animals in the world and probably only one fifth as efficient as those in the advanced

countries (Shah, 2001). However, there is consistent rise in India’s share in world milk

production, which has grown from 9.9 per cent in 1990 to 12.3 per cent in 1996 and further to

14.5 per cent in 2003. Although India has huge livestock population, in terms of trade it

stands insignificant in the world trade of livestock products. However, it is to be noted that

India has tremendous potential to produce and export various livestock products.

Despite constraints like rearing of livestock under sub optimal conditions due to low

economic status of livestock owners, India has now become the largest producer of milk in

the world. The development of Indian dairy sector is an unprecedented success story as it is

based on millions of small producers.

Government of India is making concerted efforts to raise the per capita availability of milk

through increase in productivity of milch animals. In order to achieve this ambitious goal,

assistance is being provided to the State Governments for controlling animal diseases,

scientific management and up gradation of genetic resources, increasing availability of

nutritious feeds and fodder, etc. In the present milieu, when production of dairy products to

match international standards has become necessary to compete in international market of

milk and milk products, steps need to be initiated to improve quality of Indian milk products

3

with a view to boost export trade of these products in free trade regime and earn valuable

foreign exchange as well as provide clean and quality milk to domestic population for their

better health market coupled with marketing opportunities abroad due to the GATT

provisions now render India to an enviable position to cater to the huge global market of

livestock products, particularly dairy products. Earlier, the past trends in milk production and

domestic consumption had indicated a possible exportable surplus of a modest level of

1,00,000 MTs of dairy products by the turn of the century (Baxi, 1994). The emergence of

India as an exporting nation of livestock products in the era of liberalization is sure to upset

the traditionally exporting block of nations in these products. Further, with the signing of the

agreement on Dunkel Draft Report, giving rise to World Trade Organization (WTO) from

January 1995, it is believed that the opportunities for enhanced livestock product exports

have opened up considerably which our country should take advantage of. It is also widely

believed that with the ushering in of the agricultural policy reforms in major industrial

countries, the demand for livestock products from developing countries, like India, will get a

real boost There is no denying the fact that the adoption of several liberal policy measures by

the Government in more recent times and the application of scientific production techniques

have boosted India’s livestock production. However, the point that merits consideration is

how did the structure of livestock production and exports of India changed over time and

what future prospects India holds in the export trade of livestock products in the light of the

rapidly changing world market conditions and in view of the various trade policy measures

adopted by the various developed and developing nations. Against this backdrop, it is felt

necessary to assess the output and export performance of India vis-à-vis Asia and World in

terms of livestock products over the past decade and a half. The dynamics of temporal

variations in the structure of production and export trade of livestock products of India is the

main foci of the subject matter of this study.

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b) Data Base and Scope of the Study

The data used in this study were collected from various secondary sources. Data collected

from various issues of the annual publication of Food and Agricultural Organization (FAO)

of the United Nations, “Production Yearbook”, “Trade Yearbook”, FAO; International Trade

Statistics Yearbook, Export Import Data Bank, Agricultural and Processed Food Products

Export Development Authority (APEDA), Annual Reports from Department of Animal

Husbandry, Dairying & Fisheries Ministry of Agriculture, Government of India, New Delhi

and from various authors research papers.

In general, the paper focuses on variations in: (a) pattern of production and export trade of

livestock and livestock products, (b) share of export trade in total production, (c) growth in

individual livestock commodities produced and exported. The reference period for the

analysis is from 2001 to 2010. The entire paper is divided into two sections. While the first

section the changing structure in the production and export trade of livestock products of

India and the changes that have taken place over time, the second section is devoted to the

future prospects of India in the export trade of various livestock products through various

data analysis and interpretation by using Statistical Techniques like Correlation and Least

square method.

5

Section – I

1) Livestock Production in India

Livestock plays an important role in the socioeconomic life of India. It is a rich source of

high quality foods such as milk, meat and eggs. With a large human population and about 250

million economically strong potential consumers, the domestic demand for these food

products are increasing rapidly, the demand often exceeding the supply. After China, India

provides a major consumer base for human foods in the world. In India, livestock provides a

regular supplementary income and employment not only to millions of producers in the rural

areas but also to very large number of people engaged in secondary and tertiary business

related to livestock business. It is an important occupation and a source of family income

large number of women in the villages. Besides providing organic manure for the soil,

livestock is also an important source of several value-added byproducts of animal origin

which presently are not properly processed and utilized as a commercial activity but have an

immense future business potential.

In last 50 years, India has developed a strong and professionally competent technical,

marketing and business manpower in Livestock production and Information Technology.

This is an added advantage over many developing countries of Asia and Africa. Availability

of competent and comparatively low-cost manpower in India is a great asset which is

attracting foreign investors. As a result of stagnancy or in some cases reduction in

agricultural production, demand for several inputs like machinery and equipment, feeds,

pharmaceuticals etc. has reduced in some countries of America and Europe. It is therefore not

surprising that these business enterprises have focussed their attention to emerging Asian

markets, particularly India and China. India is in a better position as it has a strong technical

manpower base and large number of English speaking population. India’s livestock scene has

witnessed certain major changes in the last 25-30 years. Government outlay on development

of livestock sector rose dramatically from a mere 905 million rupees in the Third Plan (1961-

66) to the Sixth Plan (1980-85) total outlay of 3,966 million rupees on animal husbandry and

dairying, (Table 1) of which 2,983 million rupees was meant for expenditure on dairying

alone. During the Seventh Plan (1985-90), 3,028 million rupees was earmarked for dairying

out of a total outlay of 4,679 million rupees for animal husbandry and dairy. Expenditure on

6

dairying increased sharply during the Eighth Plan (1992-97). Of the total outlay of 13,000

million rupees for animal husbandry and dairying, the expenditure on dairying was nearly 63

per cent. Nonetheless, though outlay on development of livestock sector increased to 15,456

million rupees in the Ninth Plan (1997-2002), only 30 per cent of the total outlay was

earmarked for dairying and the remaining for the development of various other animal

husbandry activities. The outlay for dairying in the Ninth Plan was substantially lower than

the outlay for dairying in Eighth Plan but higher than the outlay for dairying in the Seventh

Plan.

Table 1.1:Outlay and expenditure of central and centrally sponsored schemes

UNDER ANIMAL HUSBANDRY AND DAIRYING SECTOR FROM FIRST PLAN - All India

(Rs.crore)

Total Plan Animal Husbandry

Dairy Development

Total (AH & DD)

Outlay Outlay Expd Outlay Expd Outlay Expd

First Plan(1950-55) 1960.00 14.19 8.22 7.81 7.78 22.00 16.00

Second Plan(1955-60) 4600.00 38.50 21.42 17.44 12.05 55.94 33.47

Third Plan(1960-65) 8576.50 54.44 43.40 36.08 33.60 90.52 77.00

Annual Plan (1966-67) 6625.40 41.33 34.00 26.14 25.70 67.47 59.70

Fourth Plan(1967-72) 15778.80 94.10 75.51 139.00 78.75 233.10 154.26

Fifth Plan 39426.20 178.43 437.54 232.46

Sixth Plan(1980-85) 97500.00 60.46 39.08 336.10 298.34 396.56 337.42

Seventh Plan(1985-90) 180000.00 165.19 102.35 302.75 374.43 467.94 476.78

Annual Plan (1990-91) 43.71 36.18 79.67 41.43 123.38 77.61

Annual Plan (1991-92) 57.97 43.28 97.49 77.99 155.46 121.27

Eighth Plan(1992-97) 434100.10 400.00 305.43 900.00 818.05 1300.00 1123.48

Ninth Plan(1997-2002) 2345.64 1076.12 - 469.52 - 1545.64 -

1997-98 160.15 94.84 39.00 29.24 199.15 124.08

7

1998-99 170.40 53.03 50.60 23.97 221.00 77.00

1999-2000 160.08 97.26 73.90 16.45 233.98 113.71

2000-01 124.90 85.10 51.00 39.59 175.90 124.69

2001-02 156.49 115.61 37.45 37.60 193.94 153.21

Tenth Plan(2002-07) 1384.00 361.00 1745.00

2002-03 156.48 125.36 37.02 34.99 193.50 160.35

2003-04 172.10 181.20 29.90 19.61 202.00 200.81

2004-05 284.38 348.73 51.62 63.66 336.00 412.39

2005-06 397.91 326.94 92.00 91.58 489.91 418.52

2006-07 415.00 437.17 79.00 75.91 494.00 513.08

Eleventh Plan 4323.00 580.00

2007-08 440.92 328.02 88.50 108.19 529.42 436.21

2008-09* 521.00 382.57 98.00 76.84 619.00 459.41

2009-10 559.40 101.10 660.50

* Expenditure up to December 2008

Source: Annual Report of DAH&D (Abridged) 2008

At present, India accounts for about one sixth of the world’s cattle and half of the world’s

buffalo population. The importance of livestock sector in India can be better indicated by

looking at its share in agricultural production. “India has vast resource of livestock and

poultry, which play a vital role in improving the socioeconomic conditions of rural masses.

India ranks first in respect of buffalo, 2nd in cattle and goats, 3rd in sheep, 4th in ducks, 5th

in chickens and 6th in camel population in the world. India has 57% of the world's buffalo

population”3. The animal husbandry and fisheries sector provides employment to 23.68

million people. According to the Central Statistical Organization of the Government of India

(CSO), the value of output (at current prices) from the livestock and fisheries sector was

around $62 billion during the Indian Financial Year (IFY) 2006/07. The livestock and

3Annual Report (2007-08), Department Of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture Government of India New Delhi.

8

fisheries sectors together contribute 31.7 percent to India’s agriculture production value

(value of output) and are the major sources of income for small and marginal farmers.

Additionally, the livestock and fisheries sector had a share of 5.26 percent in the total GDP

during 2006-07. India has the world’s largest livestock population. However, India’s share in

the world meat trade is minimal (except beef) and meat processing levels are below other

major meat producing countries. Animal slaughtering for domestic consumption is mainly

carried out in slaughterhouses approved by the municipal corporation (a local regulatory

body) and small corner shops. According to the Animal Husbandry Statistical Database of the

Department of Animal Husbandry, Dairying and Fisheries (DADF), there are a total of 5,520

recognized and 4,707 unorganized slaughterhouses in the country as of 2006. Livestock

trading in India is done in livestock markets, which are regulated by state governments.

Nonetheless, supervising direct operation of the markets is the responsibility of local

authorities such as municipal corporations. There are also some privately owned markets and

the model Agricultural Produce Marketing Act (APMC) has a provision for running private

livestock markets.

Buffaloes can be used for milk production, meat, and also as a work animal for small and

marginal farmers. Small and marginal farmers in India mainly rear cows and buffaloes as this

ensures a sustained means of income during the year. The milk obtained from buffaloes is

high in fat and therefore attracts a premium in the Indian market, as consumers prefer high fat

milk. Animal maintenance costs are also lower for buffaloes as compared to dairy cows. India

has the famous Murrah variety of buffalo, which has a high milk yield, is a hardy breed that

easily withstands diverse weather conditions, and easily gains body weight on readily

available green fodder. The buffalo carcass has less fat and bone and a higher proportion of

muscle than an Indian cow carcass. Additionally, buffalo meat, unlike cow and pig meat, has

no religious taboos attached to it and is therefore freely consumed in the domestic market

among meat-eating consumers. For these reasons, the buffalo population has been growing

faster than the cow population over the past several years. Animal husbandry, like other

agricultural sectors, is a state subject and therefore each state has its own set of rules and

regulations.

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Value of livestock products produced in India

At current prices, the value of livestock products produced in the country in 2003-04 was

estimated at Rs.1,64,509 crores with milk and milk products accounting for 67 per cent share

in this value (Table 2.1). It is to be noted that the value of livestock products produced in the

country has been steadily growing over the past three decades. The increase in this value was

about 18 per cent between 2000-01 and 200-04. Not only this, the share of livestock products

in total value of agriculture and allied activities was also estimated to be growing steadily

from 15 per cent in 1970-71 to 26 per cent in 2003-04

Table 2.1: Value of Livestock Product Produced in India

(At current prices in Rs. Crore)Item 1999-

20002000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

1 Milk Group 88092 94551 100454

104347

110447

121505

132811

143869

162136

2 Meat Group 21905 22980 24983 26547 27337 31805 32548 35936 40399

2.1 Meat 18521 19571 21231 22571 23223 27570 27760 30530 34227

2.1.1 Beef 2060 2311 2292 2510 2630 2805 3108 3332 3799

2.1.2 Mutton 6696 7036 7899 8789 9179 9721 10708 11549 12920

2,1,3 Pork 997 1089 1187 1430 1405 3283 1751 1970 2694

2.1.4 Poultry Meat

8768 9134 9853 9842 10010 11762 12192 13679 14813

2.2 Meat Products

720 744 841 905 951 937 1123 1375 1632

2.3 By-Products

2665 2665 2912 3071 3162 3297 3665 4030 4541

2.3.1 Hides 991 977 1046 1097 1107 1194 1322 1420 1625

2.3.2 Skins 1070 1065 1194 1257 1285 1340 1483 1529 1652

2.3.3 Other By Products

604 623 672 716 770 764 861 1081 1264

3 Eggs 4398 4669 4879 5049 5186 5965 6354 7187 8630

4 Wool & hair 281 317 308 329 343 361 346 373 361

4.1 Wool 209 230 227 241 252 270 249 260 245

4.2 Hair and Bristles

73 88 80 88 91 90 97 113 116

5 Dung 10533 11484 10790 12021 12868 13176 16142 17064 18498

5.1 Dung Fuel 4295 4652 4473 5346 5561 5830 7259 7716 8412

5.2 Dung Mature

6238 6832 6317 6675 7307 7346 8883 9349 10086

6 Silk Worm Cocoonsand Honey

1384 1526 1922 1560 1837 1689 1577 1576 1523

7 Increment in Stock

2937 3446 3762 4202 4903 5731 6614 7979 9054

Value of Output from Livestock Sector

129531 138973

147097

154056

162921

180231

196392

213984

240601

10

Source: Central Statistical Organisation, Dept. of Statistics, GOI (2009)

2) The share of Livestock sector in India’s GDP

The importance of livestock sector in India can also be corroborated from the fact that while

the share of agriculture in India’s GDP had been declining in more recent times, there was an

increasing trend in value of output from livestock sector (Government of India, 1998). In fact,

the dairy sector alone accounts for nearly two third of the value of the animal husbandry

output. In the light of these facts and in view of designing appropriate policies for giving

further boost to their contribution to the national economy and for the overall development of

the livestock sector, it is extremely essential to bring into focus the nature and extent of

changes that have taken place in the structure of livestock production and in its population

dynamics over time. The scenario obtaining over the last several years has clearly shown a

significant shift not only in population dynamics of livestock but also in the production

profile of livestock products in India. (Table 3.1) provides an insight on the share of

Agriculture and Livestock sector in India’s GDP.

Table 3.1: Share of Agriculture and Livestock Sector in GDP(At current prices in Rs. Crore)

Year GDP (Total) GDP (Agriculture) GDP (Livestock Sector)Rs. % Share Rs. % Share

1999-00 1,786,526 409,660 22.93 94698 5.30

2000-01 1,925,017 408,932 21.24 104,745 5.44

2001-02 2,097,726 442,464 21.09 109,254 5.21

2002-03 2,261,415 425,521 18.82 114,872 5.08

2003-04 2,538,170 483,030 19.03 118,316 4.66

2004-05 2,877,701 501,415 17.42 136,108 4.73

2005-06 3,282,385 567,897 17.30 150,268 4.58

2006-07 3,779,385 625,161 16.54 165,169 4.37

2007-08 4,320,892 718,278 16.62 189,990 4.40

Source : National Accounts Statistics-2009; Central Statistical Organisation;GOI

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3) Changing Livestock Population

The population figures of various species of livestock taken into consideration in this study

have gone up considerably over the past decade and a half. The population of cattle in the

country is seen to have increased from 182 million nos. during the early eighties to 195

million nos. by the mid-nineties. Similarly, the buffalo population in India has increased from

65 million nos. during the early eighties to nearly 80 million nos. by the mid-nineties. During

the given period of time, the overall increases in the population of pigs, sheep, goats and

poultry birds are seen to be much higher than the increases in cattle and buffalo population.

However, it is to be noted that the major increase in various species of livestock population

took place during the period between early - and the late eighties and thereafter a

considerable slowing down in the same was noticed. In fact, sheep population had rather

declined during the period between late eighties and the mid-nineties. Similarly, a marginal

decline in cattle population was also noticed during this period. Nonetheless, the period gone

by was marked with significant increases in the population of majority of the species of the

livestock in India (Table 4.1) provides an insight into India’s changing structure of livestock

population production since the early 1950s..

Table 4.1: Change in Livestock Population by Species Annual Growth rate (%)Species 1951-

561956-

611961-

661966-

721972-

771977-

821982-

871987-

921993-

971997-

03Cattle 0.43 2.04 0.07 0.24 0.19 1.35 0.74 0.49 -0.56 -1.18

Adult Female Cattle

-2.76 1.52 0.31 0.61 0.45 1.63 0.95 0.73 0.02 0.02

Buffalo 0.68 2.66 0.69 1.61 1.55 2.39 1.71 2.08 1.32 1.43

Adult Female Buffalo

0.66 2.29 0.89 2.40 1.82 0.76 3.78 2.29 1.32 1.44

Total Bovines 0.49 2.18 0.21 0.56 0.53 1.62 1.00 0.93 0.00 -0.33

Sheep 0.10 0.45 1.07 -1.16 0.50 3.53 -1.29 2.13 2.51 1.12

Goat 3.26 1.91 1.19 0.88 2.29 4.73 2.96 0.90 1.26 0.22

Horses and Ponies

0.00 -2.82 -3.29 -3.93 0.00 0.00 -2.33 0.50 0.24 -1.68

Camels 5.92 2.38 2.13 1.92 0.00 -0.37 -1.53 0.59 -2.45 -5.94

Pigs 2.18 1.20 -0.78 6.65 1.95 5.79 1.09 3.77 0.77 0.29

Mules -7.79 4.56 9.86 0.00 2.38 7.63 5.51 2.25 2.98 -4.21

Donkeys -3.29 0.00 0.00 -1.89 0.00 0.40 -1.21 0.21 -1.93 -4.92

Yak NC NC 8.45 5.92 26.58 0.00 -21.00 8.45 0.00 0.00

Total 0.92 1.87 0.47 0.55 0.90 2.58 1.19 1.13 0.61 -0.01

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LivestockPoultry 5.22 3.79 0.21 3.72 2.82 5.47 5.79 2.21 2.51 5.85

Dogs NC NC NC NC NC NC -0.64 3.93 3.20 2.19

NC : Not Collected Source: Livestock Census 2003

4. a) Meat Production:

India has also been showing a continuous increase in its total meat production. This is mainly

because of considerable rise in non-vegetarian population over time. In India, various species

of livestock such as cattle buffalo, sheep and goats, pigs and poultry birds are used for meat

production. The production of poultry meat is also gaining considerable ground in India. The

poultry sector has undergone major structural changes during the past two decades due to the

introduction of modern intensive production methods, genetic improvements, improved

preventive disease control and bio security measures, increasing income and human

population, and urbanization. These changes offer tremendous opportunities for poultry

producers, particularly smallholders, to improve their farm income. The total meat production

in India has increased by more than four folds over the last one and a half decades with an

annual compound growth rate of about 14 per cent during this period. The total meat

production in the country was estimated at around one million tonnes during the early

eighties, which rose to nearly two million tonnes by the late eighties and over four million

tonnes by the mid-nineties. The two main categories of meat consumed in largest quantity in

India are the goat and poultry meat. In fact, the population of goat and poultry birds in the

country has increased at much faster rate than the population of other species of livestock

used for meat production. It is to be noted that about 40 per cent of the goats are slaughtered

every year to meet the domestic requirements of meat.

Figure4.a.1: Indian Meat Production (Category-Wise Share)

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Source: Animal Husbandry Statistics (2005/06)

In India, meat is made available through about 3000 registered slaughter houses. In this

context, it is to be noted that a centrally sponsored scheme “Assistance to states for (a)

Improvement/Modernization of Abattoirs and (b) Establishment of Carcass By-products

Utilization Centres and Primary Hide Flying Units” is being implemented. The objectives of

the scheme are to provide wholesome and hygienic meat, gainful utilization of animal by

products, prevention of environmental pollution and prevention of cruelty to animals. During

the Eighth Plan period (1992-97) and the first year of the Ninth Plan (1997-98), a financial

grant of Rs.2,066.09 lakhs was earmarked for the modernization of slaughter-houses in the 14

major states of India (Ministry of Information and Broadcasting, 1999).

“Beef and poultry production in India is expected to increase by 29 per cent and 41 per cent

respectively up to the 2013-2014 fiscal years due to increased demand from higher incomes

and prevalence of western style restaurant4”. It said over the last five-year forecast period,

production across all agricultural subsectors will be positive, spurred by increased demand,

foreign direct investment. Dairy and livestock will also benefit from improved technology

adoption, which could set a strong example and produce a model for other subsectors to

follow. Because of marketing schemes targeted at the general population and generally

greater demand for high-value dairy products such as yoghurt and cottage cheese, butter and

milk production is expected to grow by 38 per cent and 26 per cent respectively to 2013/14.

The CattleSite News Desk

4 India Agribusiness Report. 14

Figure 4.a.2: Chicken meat production in world, Asia and China


Figure 4.c.3: Chicken meat production in other Asian countries


The total meat production in the country is 4 million tonnnes, which includes beef, buffalo

meat, mutton, goat meat, pork and poultry meat. However, only about 1% of the total meat is

converted into value added products like sausages, ham becon, luncheon meat, kababs,

meatballs etc. The total meat export during 1999-2000 was worth Rs.845.00 crores consisting

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mostly of mutton and buffalo meat out of which 70% was contributed by export of buffalo

meat. Buffalo meat is surplus in India. There is a vast scope to set up modern slaughter

facilities and cold store chains in meat and poultry processing sector. India’s current level of

meat and meat-based exports is around Rs. 8,000 million. In the last six years foreign

investment in this segment stood at Rs. 5,000 million which is more than 50 percent of the

total investment made in this sector. The current level of exports of meat and meat products

from India is US$ 190 million, the major destinations being the countries in the Middle East

and South East Asia. Meat processing sector has attracted a total investment of US$ 471.1

million in the last six years i.e., since the initiation of the liberalisation process including

Foreign Investment of US$ 116.1 million.

Major markets

Buffalo Meat Malaysia, Philippines, UAE, Iran, Jordan

Sheep/goat Meat Saudi Arabia, UAE, Oman, Bahrain, Kuwait

Animal Products Portugual, France, UK, Spain, Netherlands

Processed Meat Seychelles, Germany, Oman, Congo, Sri Lanka

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4. b) Production of Milk and Milk Products:

As for the dairy production front, the total milk production in India has increased from 38.8

million tonnes during the early eighties to 64.8 million tonnes by the mid-nineties (Table 3).

During this period, the goat milk production has increased at much faster rate as compared to

cow and buffalo milk production. Amidst global doom, India has retained its position as

world's largest milk producing country with production estimated to reach 110 million tonnes

for 2008-09. The National Dairy Development Board (NDDB) revealed this on dairy

cooperatives annual report. The Food and Agriculture Organisation of United Nations had

stated in June 2009 that US and China are the second and third largest producers of milk

globally. "India's milk production was 104.8 million tonnes in 2007-08 and it is expected to

be 110 million tonnes in 2008-09," the national board's annual report

In 2006-07 the growth rate of Indian dairy cooperatives had hit an all time low when it had

registered mere 1.1 per cent growth rate compared to 2005-06 when the cooperatives had

registered seven per cent growth. In 2007-08, when the dairy cooperatives in the country

procured around 8.3 million tonnes of milk, the growth rate had improved to 5.4 per cent.

While India continues enjoying a share of close to 15 per cent of world's milk production, the

world milk production is estimated to be around 688 million tonnes in 2008 about 1.7 per

cent higher than in the previous year, when the estimated global milk production was at

around 676 million tonnes. Impressive work has been done under the guidance of the

National Dairy Development Board under “ Operation Flood “ programmes for organizing

dairy production, processing and marketing of milk and milk products by the cooperative

dairy sector following the well known "Amul" model- a three tiered cooperative structure of

village level dairy cooperative societies, a district level cooperative milk union and a state

level cooperative milk marketing federation where the profits are shared by the farmer

members. The small rural milk producers have several problems. The major problems faced

by the farmers include small herd strengths, small land holdings, shortages of green and dry

fodder, low productivity of animals, non availability of timely inputs for breeding, feeding

and health care of animals, lack of suitable education/training for skill development for new

viable and sustainable technology, inadequate finances, poor rural infrastructure facilities and

lack of proper marketing support for their produce.

17

http://timesofindia.indiatimes.com/topic/India

http://timesofindia.indiatimes.com/topic/United-Nations

Nonetheless, it is to be noted that the contribution of bovine in India’s total milk production

is as high as 97 per cent. Of late, the demand for milk and milk products in India is on the

rise. The domestic market for butter, ghee, cheese, dairy whiteners and ice cream is also

growing at a healthy rate of over 10 per cent per annum. The lower growth rates are observed

in whole milk powder and skimmed milk powder (Baxi, 1994). As for the production, the

growth in evaporated condensed milk is seen to be lower than the growth in butter and ghee

production during the given period of time (Table 4.b.1)

Table 4.b.1: Milk Production in IndiaYear Production (Million Tonnes) Per Capita Availability (gms/day)1991-92 55.7 1781992-93 58.0 1821993-94 60.6 1871994-95 63.8 1941995-96 66.2 1971996-97 69.1 2021997-98 72.1 2071998-99 75.4 2131999-00 78.3 2172000-01 80.6 2202001-02 84.4 2252002-03 86.2 2302003-04 88.1 2312004-05 92.5 2332005-06 97.1 2412006-07 100.9 2462007-08 104.8 2522008-09 108.5 258Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture,Government of India New Delhi

18

4) Share of India in Asia and World Output of Livestock Products:

The scenario obtaining over the past one and a half decades in term of share of India in Asia

and in the World output of various livestock products reveals a considerable rise in country’s

share not only in Asia but also in the World, particularly in the production of meat and also in

certain milk products.

In fact, the increase in India’s share in Asia and World output of various livestock products

like pig, goat and poultry meat, mutton and lamb, cow, buffalo and goat milk, etc. Is noticed,

particularly during the period between early- and the late eighties and thereafter its share in

total Asia and World production of these products has declined marginally. Nonetheless,

there has been steady increase in India’s share in Asia and World production of goat milk,

butter and ghee and also to some extent in pig and poultry meat. A steady increase in India’s

share in total Asia and World population of buffalo, pig and poultry birds is also noticed

during the study period. Interestingly, while India’s share in World output of majority of

livestock products has been steadily increasing, there have also been cases of declining share

of India in Asia’s total output of livestock products such as evaporated condensed milk,

buffalo milk and wool. Thus, India’s share in Asia and World output of various livestock

products has fluctuated considerably over the past one and half decades.

19

5) Live Animals and Livestock Product Exports of India

Total export earnings from livestock, poultry and marine products was Rs.18, 664.44 crore

during 2008-09 (Rs.10, 056.50 crore from livestock & poultry and Rs.8, 607.94 crore from

marine products)5. Although India is a world leader in the production of Dairy Animal

Products. India's exports of Animal products have increased from Rs. 5129.27 Crores in

2007-08 to Rs 6913.11 Crores in 2008-09. India's export of Buffalo meat products has been

increased from Rs. 3549.78 Crores in 2007-08 to Rs. 4839.71 Crores in 2008-09. The export

of Sheep/Goat meat products has also been increased from Rs. 134.10 Crores from 2007-08

to Rs 493.37 Crores in 2008-09.The (Table 6.1) below show the compiled data of livestock

export from India, the products are Buffalo, Dairy Products, Poultry and Sheep and Goat

Meat

Table 6.1: Livestock Export from India (last Nine years data)

Year/Products Buffalo Dairy Product

Poultry Product

Processed Meat

Sheep and Goat Meat

2001-02 2,33,052 1303.74 14,784.75 315.24 3494

2002-03 2,92,163 1221.73 20,767.14 995.82 4973

2003-04 3,19,087 9590.39 8,63,467.66 2074.28 16821

2004-05 2,75,861 45805.33 10,62,573.95 1874.47 8885

2005-06 4,28,686 75551.4 11,85,279.63 736.98 7178

2006-07 4,73,198 45584.39 6,94,595.69 859.16 5482

2007-08 4,83,478.28 69,415.44 13,55,246.31 1,245.46 8,908.70

2008-09 4,62,749.65 70,146.77 10,57,016.44 857.66 37,790.64

2009-10 4,95,019.71 34,379.98 10,16,783.08 716.2 52,868.00

Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank

Frozen bovine meat dominated the exports with a contribution of over 97%. The demand for

bovine meat in international market has sparked a sudden increase in the meat exports from

India. The main markets for Indian bovine meat are Malaysia, Philippines, Mauritius, and

Gulf countries. Concentrated Dairy products such as skimmed milk continues to be the

largest item of export, which together accounts for nearly 78% of net milk and milk products

5 Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture Government of India New Delhi

20

exports during the year 2006-07. The exports of Dairy Products reached 70146.77 MT with

the value of Rs.980.86 Crores in 2008-09 as against Rs. 866.56 Crores in 2007-08. India’s

exports of Processed Meat and Natural honey attained 857.63 MT and 15587.53 MT with the

value of Rs. 10.14 Crores and Rs. 148.96 Crores in 2008-09. Exports of various livestock

products have been given due priority in various trade related policies that were initiated by

the Government of India during the era of liberalization and opening up of the national

economy to the international market . In fact, the Department of Animal Husbandry and

Dairying has formulated a proposal of Rs. 1677.88 crores for the Ninth Plan (1997-2002) for

the rapid growth of the livestock sector. The major thrust would be on genetic upgradation of

livestock to improve the productivity and production of major livestock products. To achieve

these objectives, emphasis would be laid on development of requisite infrastructure, feed

management, and better health services (Government of India, 1999). A provision of

financial assistance to the tune of Rs.465.69 lakhs has also been made under the central sector

scheme “Development of Infrastructure and Technology for Export – Oriented Livestock

Product Units” during the Eighth Plan period. The assistance would be provided to one unit

each in Utter Pradesh and Punjab (Ministry of Information and Broadcasting, 1999).

Figure 6.2: Livestock Products Export from India for last Nine years


Livestock, poultry and related products accounted for export earnings of $1.3 billion during

2006-07. Beef (buffalo meat) is the largest meat segment exported out of India and

international demand for buffalo meat is growing. India is cost competitive in buffalo meat

21

but further improvement is needed in India’s cold chain infrastructure in order to increase

competitiveness. The beef export and consumption estimates for CY 2007 and 2008 have

been revised to reflect government trade statistics. The buffalo meat share in total meat

exports from India is more than 90 percent (in value terms) followed by a three percent share

of sheep and goat meat. Exports of pork, poultry meat and processed meat are negligible.

According to trade sources, the majority of buffalo meat exports (90 percent) are boneless

and the balance is shipped as carcasses. Malaysia and Jordan are the major markets for

specialty and Halal buffalo meat whereas some South East Asian countries have growing

institutional demand for processed buffalo meat products such as sausages and salami. The

export of meat and meat products is handled by 15 export-oriented modern combined

slaughter houses and meat processing plants registered with the Agricultural Processed Food

Export Development Agency (APEDA), Ministry of Commerce. Additionally, there are

about 35 meat processing and packaging units (out of which 12 are registered with APEDA),

which source dressed carcasses from the government approved municipal slaughter houses

for export. The GOI has proposed a financial outlay of $250 million to fund the program

‘Salvaging and Rearing of Male Buffalo Calves’ for the purpose of increasing meat

production during the 11th five year plan (2007-12).

Figure 6.3: Indian Bovine Meat Exports - FY 2006/07 ('000 Tons, $ million)

Source: Directorate General of Foreign Trade, Ministry of Commerce & Industry, GOI

22

The above concerted efforts made by the government in more recent times have certainly

boosted the Country’s exports of various livestock products to newer heights. The export

trade of India in meat and meat products and also in respect of milk and milk products has

gone up considerably, both in quantity and in value terms (Table 5). This held especially true

after the late eighties period. However, the overall increase in export trade of various

livestock products from India is found to be much higher in quantity terms than the value

terms. As regards the export of live animals from India, a steady decline is noticed during the

study period. The decline in export value of live animals is found to be much sharper than

decline in numerical strength of live animals exported from India. The possible reason for

this could be attributed to declining world export prices of live animals, particularly after the

late eighties period. Meat and meat product exports from India is seen to be 4-5 per cent of

their total production over the past decade and a half. Though India had produced an annual

average of about 0.98 million tonnes of meat during the early eighties, only 45,233 tonnes of

this was exported annually in the international market, and this constituted about 4.62 per

cent of the annual average production of meat during this period. During the mid-nineties,

India exported 1,55,543 tonnes of meat which constituted about 3.60 per cent of the annual

average production of meat during this period. Thus, despite the fact that in absolute term the

quantity of meat exported from India had increased significantly, the exports of the same as

proportion of production declined considerably during the given period of time. The reason

for this could be the rise in consumption of meat in domestic market. However, one of the

major obstacles in the growth of domestic market for meat products in India is the religious

sentiments in the large sections of population which prohibits the consumption of the beef

and pork. As regards milk and milk products, a real boost in their exports from India is

noticed only after the early nineties period i.e. in the era of liberalization. While India

exported about 364 metric tonnes of dry milk during the late eighties, her exports of the same

increased to as high as 4,983 metric tonnes by the mid-nineties. Similarly, the condensed

milk exports of India also increased from 29 metric tonnes during the late eighties to 145

metric tonnes by the mid- nineties. Further, it is to be noted that India had been exporting

small quantities of ghee and butter despite domestic shortage and consequent high prices in

the past. The trend over the past one and a half decades reveals a steady increase in India’s

export of butter and ghee. Even the export of butter as proportion of its production has also

gone up in due course of time. As regards exports of cheese and curd and also wool, there has

23

been considerable fluctuations in their exports from India over the past decade or so, not only

in absolute terms but also in terms of their share in total production. In fact, in due course of

time the status of India has changed from a net importer of livestock products to a surplus

nation with high export potential. The increasing export trade of India in various livestock

products in more recent times is a case in point in this regard. The foregoing observations

also indicate an increasing trend in export trade of India in processed livestock products. The

livestock products in processed form are, therefore, acquiring larger significance in the

rapidly changing market scenario. In a free trade regime, the processed livestock product

exports from India may get further momentum as not only the consumer’s taste as well as his

preference for products in processed form is gradually changing over time but the demand for

such products is also increasing in various regions of the world. As for the export trade of

livestock products, there are also many issues that require fuller attention and discussion. For

instance, is our livestock sector protected, what is its comparative advantage, what is its

export potential, what are the tariff and non-tariff barriers to livestock exports. There are

several issues that might loom large on the horizon when one discusses the development of

livestock sector in the era of liberalization, globalization and privatization.

24

6) Live animals export scenario from India:

India is never been reckoned as a major exporter of live animals, the live animals those are

exported to various nations are mostly Live Horses, Asses, Mules & Hinnies, Live Bovine

Animals, Live swine, Live sheep and goats, Live poultry fowls of the Species Gallus

Domesticus Ducks,Geese,Turkeys & Guinea

Table 7.1: Live animals Export from India Value in Lacs

Years 2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

Live Animal exports 763.5 904.0 628.1 2,062.8 2,809.9 2,654.5 4,294.2 4,122.5 5,656.90 8,012.91

Source: Export Import Data Bank

India’s exports of live animals in 2005-06, as may be seen from the above data, registered a

growth of 9.98 per cent over the previous year when the same reached a level of Rs. 26.55

crore as against Rs. 24.14 crore. The segment “Live sheep and goats” over the years continue

to dominate exports. In 2005-06, the segment accounted for a share of 79.47 per cent of the

total exports from the country, and had registered a steep growth of 23.10 per cent over the

previous year. “Live horses, asses, mules & hinnies“, the other major segment, during the

period registered a phenomenal growth of 169.86 per cent by touching a figure of 3.94 per

cent as against 1.46 per cent. On the other, the segments witnessing a steep decline during the

period included: Live bovine animals (87.50%), live poultry fowls of the species gallous

domestics ducks, geese, turkeys & guinea (74.95%), and Live swine (44.44%). The decline in

export value of live animals is found to be much sharper than decline in numerical strength of

live animals exported from India. The possible reason for this could be attributed to declining

world export prices of live animals, particularly after the late eighties period.

25

7) Livestock Products Exports Details:

8. a) Buffalo Meat:

India's livestock population includes, 88 million buffaloes, which is 58 per cent of the world's

buffalo population. Animals which are generally used for production of meat comprise of

sheep and goats, pigs and poultry. Besides about 3600 slaughter houses, there are live modern

abattoirs and one integrated abattoir meat processing plant for slaughtering buffaloes for

exports and domestic consumption. There are 24 meat processing plants including 13,

hundred percent export oriented units who are mainly engaged in export of meat products. In

the last one-year three new export oriented units of buffalo meat processing have been

approved and are reportedly under implementation. In addition, there are few animal casing

units engaged in collecting cleaning, grading and exporting sheep and goat and cattle guts.

Buffalo meat consumption is forecast to have increased by six per cent throughout 2009 to

2.1 million tons, again due to its cost effectiveness. Annual per capita buffalo meat

consumption is estimated at 2 kilograms; however there is a cultural difference in India

regarding categorical meat consumption patterns. It is estimated that about 20 per cent of the

population are vegetarian. According to the Ministry of Food Processing Industries,

processing levels in buffalo meat (20 per cent) and poultry (6 per cent) are quite low as

compared to most developed countries. Indian consumers prefer to buy fresh meat from wet

markets for further processing at home. Meat from buffaloes is primarily processed for

exports. India has a total meat processing capacity of over one million MT per annum out of

which 40 to 50 per cent is actually utilised. The lack of sufficient cold chain infrastructure is

one of the constraints to processing. Over 90 per cent of buffalo meat exports are boneless

and the balance is shipped as carcases.

The buffalo meat share in India is more than 90 per cent. India's total export earnings during

IFY 2007/08 were around two billion dollars from livestock and poultry products and 1.8

billion dollars from marine products.

26

Areas of production:

The major areas for Buffalo Meat production are Maharastra, Andhra Pradesh, Uttar

Pradesh.

India Facts and

Figures :

India’s export of Buffalo (bovine) meat has increased from Rs 3549.78 Crores in 2007-08

to Rs 4839.71 Crores in 2008-09.

Major Export Destinations (2008-09) :

Vietnam, Malaysia, Philippines, Egypt Arab Republic, Kuwait.

Source: www.apeda.gov.in

Figure 8.a.1: Buffalo Meat Export from India


Table 8.a.1: Buffalo Meat Export from India Country Wise

Value in Rs. lacs

Qty in Mt.

Product: BUFFALO MEAT

2007-2008 2008-2009 2009-2010

27

Country Qty Value Qty Value Qty Value

VIETNAM SOCIAL REPUBLIC

50,343.60 43,301.94 1,04,286.27 1,21,195.45 1,16,974.66 1,44,086.10

MALAYSIA 53,096.43 38,698.20 45,003.61 47,103.74 55,826.97 62,852.45

PHILIPPINES 55,624.57 35,693.82 47,787.75 44,945.16 40,525.86 43,254.24

EGYPT ARAB REPUBLIC

28,730.11 22,722.48 39,608.43 44,955.10 32,923.24 38,503.96

KUWAIT 37,476.66 26,981.29 32,939.29 32,133.26 33,873.96 35,666.99

SAUDI ARABIA 32,517.89 27,944.08 24,038.78 26,863.14 28,372.64 32,946.33

UNITED ARAB EMIRATES

26,212.08 20,618.82 15,648.93 15,816.76 21,419.84 21,939.18

JORDAN 19,513.25 14,804.04 14,661.84 15,542.90 17,724.39 19,388.09

ANGOLA 43,348.23 30,349.08 28,742.62 29,936.46 14,885.82 16,845.97

IRAQ 6,563.88 4,623.15 1,353.19 1,268.33 13,000.29 12,908.52

CONGO P REPUBLIC

10,896.05 7,376.49 13,946.69 12,954.84 12,789.45 12,184.88

OMAN 12,215.71 10,166.84 10,164.92 10,747.01 13,923.87 10,655.73

SYRIA 114.15 71.17 1,588.06 1,901.38 7,983.69 9,190.95

IRAN 10,074.69 7,576.05 11,979.27 11,117.24 7,645.50 8,488.31

GEORGIA 10,040.77 6,459.24 6,178.98 5,359.84 6,928.32 6,737.29

LEBANON 5,440.87 4,505.29 6,353.33 6,976.82 6,075.38 6,706.79

HONG KONG 224.09 129.47 83 111.01 4,512.51 5,947.84

SENEGAL 6,821.21 4,884.90 5,056.44 5,022.05 5,546.73 5,888.63

GABON 7,997.18 4,925.86 5,688.67 5,009.72 5,885.90 5,287.98

ARMENIA 5,925.90 4,320.08 4,355.06 4,650.53 4,294.14 4,744.05

QATAR 3,213.70 2,759.63 3,735.81 3,918.43 4,716.82 4,622.33

GHANA 9,880.31 4,381.63 7,109.19 4,376.42 5,928.60 4,266.59

MAURITIUS 3,594.43 2,911.58 3,747.84 4,272.53 3,343.03 4,156.40

COTE D IVOIRE 4,657.56 2,822.65 4,278.68 3,249.35 3,746.10 3,223.00

BAHRAIN 2,400.57 1,855.99 2,136.38 2,436.64 2,616.07 3,136.56

AZERBAIJAN 3,469.24 2,835.74 3,554.77 4,126.75 2,519.24 3,136.26

TAJIKISTAN 2,626.33 1,824.70 2,054.83 2,153.86 2,064.21 2,291.78

COMOROS 1,958.38 1,188.38 2,007.95 2,195.81 1,906.58 2,029.75

PAKISTAN 9,947.68 6,125.58 2,789.37 1,743.72 3,038.23 1,895.85

28

YEMEN REPUBLC 2,807.22 1,926.41 1,323.00 1,238.43 1,457.06 1,489.16

EQUTL GUINEA 1,517.40 972.36 962.29 846.36 1,318.40 1,254.16

CHINA P RP 564 404.72 525.98 650.79 783 1,249.72

BRUNEI 1,723.42 1,409.01 1,534.38 1,914.72 868.29 1,191.90

KAZAKHSTAN 86.08 64.27 0 0 686.45 790.39

ALBANIA 278.56 176.17 1,365.65 1,332.27 812.37 752.07

MYANMAR 24 11.57 0 0 389.18 663.71

UNITED STATES 0 0 120.5 158.59 240.65 653.31

INDONESIA 0 0 0 0 682.79 551.52

TURKMENISTAN 990 590.28 0 0 560 539.8

GERMANY 0 0 392.62 487.43 401.24 468.92

TURKEY 647.78 438.64 281.7 322.46 374.3 409.83

SOUTH AFRICA 3.16 3.61 0 0 375.36 396.75

UNITED KINGDOM 0.57 0.23 6.34 9.78 432.6 393.54

AFGHANISTAN 3,512.29 2,135.80 1,251.08 1,057.98 618.23 386.27

COLOMBIA 0 0 0 0 193.22 366.17

BANGLADESH 10 8.04 77.13 27.19 286 343.53

ISRAEL 0 0 0 0 260.19 302.1

NAMIBIA 564.82 340.05 953.73 906.04 337.04 297.54

MALDIVES 507.95 397.07 217.97 268.16 248.85 296.6

SEYCHELLES 110 96.86 272.63 302.47 238.46 264.68

CONGO D. REPUBLIC

0 0 0 0 376.51 247.4

UZBEKISTAN 491.68 336.97 568.74 560.96 224 244.19

LIBERIA 448.54 229.08 451.81 363.87 340.69 217.47

SIERRA LEONE 810.99 475.58 366.49 263.32 308.03 191.62

CANADA 0.86 0.26 0 0 280.3 165.51

SINGAPORE 0 0 0.1 0.13 196.01 163.77

HUNGARY 0 0 0 0 56.85 117.87

YUGOSLAVIA F REPUBLIC

0 0 0 0 100 100.17

GAMBIA 113.08 74.15 56.5 66.37 84 99.48

29

SPAIN 0 0 130.2 107.41 70.51 90.58

UNSPECIFIED 14.3 23.58 87.16 87.89 84.3 78.57

GUINEA 0 0 56.13 56.95 84.79 73.92

BENIN 0 0 57.54 45.07 86.67 69.68

THAILAND 113.59 51.4 93.39 52.29 27.98 37.11

NORWAY 0 0 0 0 28.7 32.42

MOZAMBIQUE 985 603.69 56.53 48.52 28 27.58

JAPAN 1.2 0.88 10 7.48 28.65 21.77

ITALY 0 0 0 0 6.6 12.34

NETHERLAND 0 0 0 0 6.4 11.93

NEPAL 8.3 6.11 126.02 72.09 43.6 6.79

PORTUGAL 97 55.69 96 79.39 0.48 4.98

TANZANIA REPUBLIC

125 74.29 23 26.25 0.85 0.45

GUYANA 0 0 0 0 0.07 0.02

SLOVAK REPUBLIC

0 0 3 8.6 0 0

KOREA REPUBLIC 0 0 28 25.11 0 0

BELGIUM 0 0 10 21.56 0 0

CZECH REPUBLIC 0.13 0.22 0 0 0 0

DJIBOUTI 16 9.05 0 0 0 0

KYRGHYZSTAN 332.67 188.1 0 0 0 0

CAMEROON 0 0 114.04 107.35 0 0

BAHAMAS 5.51 6.7 0 0 0 0

ARGENTINA 0 0 115.2 228.13 0 0

AUSTRALIA 15.81 12.2 29.6 35.86 0 0

GREECE 1,625.85 997.24 103.25 97.12 0 0

SRI LANKA 0 0 2 2.37 0 0

Total 4,83,478.28 3,54,978.45 4,62,749.65 4,83,971.01 4,95,019.71 5,48,060.09

Source: DGCIS Annual Export, www.apeda.gov.in

30

http://www.apeda.gov.in/

8. b) Sheep/ Goat Meat:

Goats/Sheep constitute a very important species of livestock in India, mainly on account of

their short generation intervals, higher rates of prolificacy, and the ease with which the goats

as also their products can be marketed. They are considered to be very important for their

contribution to the development of rural zones and people. The local initiatives to promote

quality labels and innovative products for cheeses, meat and fibres could help goats in

keeping a role for sustainable development in an eco-friendly environment all over the world.

However, the future of the goat and sheep industry as a significant economic activity will also

be very dependent on the standards of living in the countries where there is a market for the

goat products.

Areas of Production:

Rajasthan, Jammu, Kashmir, Uttar Pradesh, Gujarat, Hilly regions of North and Eastern Himalayas

are the Indian regions with maximum livestock population

India Facts and Figures :

The world production of Sheep meat was 8.89 million tones and Goat meat was 5.14

million tonnes in 2007. India ranked seventh in sheep and second in goat meat

production. India’s export of sheep/goat meat has been increased from Rs. 134.10

Crores in 2007-08 to Rs. 493.37 Crores in 2008-09.

Major Export Destinations (2008-09):

Saudi Arabia, UAE, Kuwait, Angola, Egypt Arab Republic.

.


31


Figure 8.b.1: Sheep and Goat/Meat Export from India


Table 8.a.1: Sheep and Goat/Meat Export from India /Country Wise

Value in Rs. lacs

Qty in Mt.

Product: SHEEP / GOAT MEAT

2007-2008 2008-2009 2009-2010


SAUDI ARABIA 4,297.90 7,085.14 8,894.05 15,123.39 9,552.66 17,429.00

EGYPT ARAB REPUBLIC

0 0 3,128.60 4,460.67 11,535.10 14,088.03

IRAQ 111 117.41 376 339.28 7,821.50 10,863.03


3,206.98 4,635.11 3,406.23 5,532.55 5,140.52 8,084.50

MALAYSIA 0 0 3,399.86 3,945.37 4,132.65 5,252.18

ANGOLA 0 0 5,676.35 6,478.67 3,009.59 3,736.53

KUWAIT 102.67 143.66 6,052.99 6,544.36 2,157.13 2,881.75

32

OMAN 132.84 159.9 474.67 615.26 1,192.06 1,851.05

QATAR 440.72 574.55 864.73 1,470.37 838.77 1,506.93

LEBANON 0 0 252.99 269.23 950.8 1,364.03

JORDAN 0 0 0 0 1,114.92 1,320.76

SYRIA 0 0 200 309.36 1,082.40 1,195.54

CONGO D. REPUBLIC

0 0 0 0 816.76 853.35

CONGO P REPUBLIC 0 0 174 218.1 762.36 805.21

GERMANY 208.1 166.79 433.36 366.73 335.88 470.01


120 159.21 2 2.48 303.9 378.52

ARMENIA 0 0 0 0 284 323.49

RUSSIA 0 0 0 0 267.5 288.38

YEMEN REPUBLC 0 0 111.5 146.85 314.78 282.1

IRAN 0 0 0 0 204 228.68

GEORGIA 0 0 0 0 140 195.14

BAHRAIN 92.18 148.7 103.06 199.81 104.28 169.43

UNITED STATES 16.5 19.8 120.3 160.53 121.42 155.88

NETHERLAND 14.29 18.28 96.75 46.13 117.99 126.66

NEPAL 67.53 61.94 107.32 144.62 88.67 122.01

ITALY 0 0 0 0 72.8 118.5

UNITED KINGDOM 3.84 5.8 32.34 57.4 44.05 74.08

ROMANIA 0 0 15.51 20.59 38.35 70.55

SPAIN 0 0 5 4.86 21.14 70.09

DENMARK 0.5 0.59 120 307.19 56 69.26

PAKISTAN 0 0 0 0 56.77 59.26

CANADA 0 0 360 472.01 44 57.22

THAILAND 0 0 0 0 20 39.14

BAHAMAS 4.08 5.57 0 0 28.7 37.03

MALDIVES 32.36 27.24 5.57 8.9 17.69 34.99

CZECH REPUBLIC 0 0 2.5 5.71 6.61 19.86

TURKEY 0.54 0.98 0 0 8 16.54

SEYCHELLES 0 0 0 0 16.26 12.29

GHANA 0 0 50 53.06 7 12.05

BHUTAN 0 0 0 0 13.5 11.88

SOUTH AFRICA 0 0 12.74 29.52 4.3 10.35

HONG KONG 0 0 0 0 7.5 8.1

AZERBAIJAN 0 0 0 0 5 7.66

FRANCE 8.5 9.61 6 15.02 5 7.04

BANGLADESH 1.5 0.77 12 9.57 2 5.66

SENEGAL 0 0 0 0 2 2.79

CHINA P RP 0 0 0.01 0.01 1.05 2.61

SRI LANKA 0 0 0 0 0.43 0.61

EQUTL GUINEA 0 0 0 0 0.2 0.32

JAPAN 0.62 0.42 0 0 0.01 0.01

33

NEW ZEALAND 0 0 57 56.98 0 0

SINGAPORE 0.87 0.91 0 0 0 0

MALI 0 0 0.1 0.22 0 0

MOZAMBIQUE 0 0 86.64 100.42 0 0

SWITZERLAND 0 0 87 92.92 0 0

CYPRUS 0 0 51.3 32.25 0 0

MACEDONIA 15.98 19.96 0 0 0 0

PUERTO RICO 0.95 1.73 0 0 0 0

KOREA REPUBLIC 0.12 0.1 1,535.00 382.7 0 0

INDONESIA 0 0 39 57.57 0 0

TAIWAN 0 0 7.8 11 0 0

UNSPECIFIED 28.13 45.76 1,430.37 1,245.31 0 0

Total 8,908.70 13,409.93 37,790.64 49,336.97 52,868.00 74,720.08


8.c) Processed Meat:

The total processing capacity in India is over 1 million tons per annum, of which 40-50

percent is utilized. India exports more than 500,000 tons of meat, mostly buffalo meat.

Indian buffalo meat is witnessing strong demand in international markets due to its lean

character and near organic nature. Unlike cow slaughter, there is no social taboo in

killing buffalo for meat. Goat and lamb meat are relatively small segments where local

demand is outstripping supply. The production levels in these two categories have been

almost constant at 950,000 tons with annual exports of less than 10,000 tons. The recent

trend in India is to establish large abattoirs-cum-meat processing plants with the latest

technology. India has already established ten state-of-art mechanized abattoirs-cum-

meat processing plants in various states based on slaughtering buffaloes and sheep.

These plants are environmentally friendly, where all the slaughterhouse by-products

are utilized in the production of meat-cum-bone meal, tallow, bone chips and other

value-added products. Several more are under construction. The plants follow all the

sanitary and phyto-sanitary measures required by the International Animal Health

code of World Organization for Animal Health (O.I.E.). These plants mostly produce

buffalo meat for export. India is becoming a major buffalo meat producing country and

will be a main player in the international market with additional establishment of the

state-of-art-abattoirs cum meat processing plants.


Andhra Pradesh, West Bengal , Maharashtra , Kerala, Delhi , Uttar Pradesh , Rajasthan

34


are the key areas of Processed meat production in India .

The individual products under this sub-head are as below:

Sausages & Canned Meat Homogenized Meat Preparations Preserved Meats Other Poultry Meat Preserved Meat Of Bovine Animals Meat Extracts & Meat Juices


India’s Export of milled products was Rs. 10.14 Crores in 2008-09

Major Export Destinations (2008-09): Vietnam, Malaysia, Australia, United Arab

Emirates, and Seychelles.


Figure 8.c.1: Processed Meat Export from India


Table 8.c.1: Processed Meat Export from India Country Wise

Value in Rs. lacs , Qty in Mt.Product: PROCESSED MEAT

2007-2008 2008-2009 2009-2010Country Qty Value Qty Value Qty ValueUNITED ARAB EMIRATES

21.88 25.03 79.06 133.92 175.17 224.18


915.27 982.69 506.32 571.4 75 132.39

HONG KONG 0 0 0 0 56 123.61

AUSTRALIA 74.94 77.47 134.03 145.85 147.02 119.07

SEYCHELLES 33.92 26.93 52.85 53.4 71.67 72.38

MALAYSIA 95.94 80.05 52.35 57.31 53.67 57.05

GHANA 35.35 31.91 0 0 52.35 54.45

SAUDI ARABIA 0 0 10.2 17.11 30.2 53.64

MOZAMBIQUE 0 0 0 0 16.23 30.51

ROMANIA 0 0 0 0 9.5 25.68

SPAIN 3 4.23 0 0 1.78 16.97

UNITED KINGDOM 0 0 0 0 1.6 12.5

SRI LANKA 0 0 0 0 5.01 12.33

CZECH REPUBLIC 0 0 0 0 0.6 8.76

FRANCE 0 0 0 0 0.68 6.15

35


GERMANY 6.28 12.76 0 0 18 5.97

NEPAL 1.5 1.08 0.23 0.23 0.5 1.7

CANADA 0 0 3 2.31 0.95 0.99

DENMARK 0 0 0 0 0.23 0.15

KUWAIT 0 0 0 0 0.04 0.04

NETHERLAND 0 0 9.8 15.32 0 0

IRAN 1.43 0.57 0 0 0 0

HUNGARY 0.55 1.11 0.3 1.74 0 0

NIGERIA 0.59 0.3 0.7 0.45 0 0

UNITED STATES 9.23 3.6 0.1 0.61 0 0

CHINA P RP 9.92 8.77 0 0 0 0

INDONESIA 2.85 0.77 0 0 0 0

MALDIVES 0 0 1 1.93 0 0

OMAN 0 0 6 10.46 0 0

EGYPT ARAB REPUBLIC

0 0 0.3 0.32 0 0

ITALY 0 0 0.2 0.44 0 0

NEW ZEALAND 26.3 32.89 0.2 0.1 0 0

PHILIPPINES 5.58 5 0 0 0 0

SINGAPORE 0.03 0.05 0.02 0.03 0 0

BAHRAIN 0 0 0 0 0 0

QATAR 0.9 0.91 1 1.49 0 0

UNSPECIFIED 0 0.01 0 0 0 0

Total 1,245.46 1,296.13 857.66 1,014.42 716.2 958.52


36


8.d) Poultry Products:

Poultry is one of the fastest growing segments of the agricultural sector in India today. While

the production of agricultural crops has been rising at a rate of 1.5 to 2 percent per annum

that of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. As a result,

India is now the world's fifth largest egg producer and the eighteenth largest producer of

broilers. The Potential in the sector is due to a combination of factors - growth in per capita

income, a growing urban population and falling real poultry prices. Poultry meat is the fastest

growing component of global meat demand, and India, the world's second largest developing

country, is experiencing rapid growth in its poultry sector. In India, poultry sector growth is

being driven by rising incomes and a rapidly expanding middle class, together with the

emergence of vertically integrated poultry producers that have reduced consumer prices by

lowering production and marketing costs. Integrated production, market transition from live

birds to chilled and frozen products, and policies that ensure supplies of competitively priced

corn and soybeans are keys to future poultry industry growth in India. There are number of

small poultry dressing plants in the country. These plants are producing dressed chickens. In

addition to these plants, there are five modern integrated poultry processing plants producing

dressed chicken, chicken cut parts and other chicken products. These plants will manufacture

egg powder and frozen egg-yolk for export.

“India, with poultry population of 489 million (as per Livestock Census 2003) and egg

production of 55.6 billion number in 2008-09, ranks among top three countries in egg

production. Export of poultry & poultry products increased from nearly Rs.11 crore in 1993-

94 to about Rs.422 crore in 2008-09)6”

6 Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries Ministry Of Agriculture Government Of India New Delhi

37


Over all, Tamil Nadu counts for maximum egg production. In Andhra Pradesh, Hyderabad is the city with maximum poultry and hatcheries. Besides the state of Andhra Pradesh, Vishakhapatnam, Chittoor, Karnataka, Tamil Nadu, Maharashtra, Gujarat, Madhya Pradesh, Orissa and North Eastern States are the major egg contributors.The individual products under this sub-head are as below:

Live Poultry <=85 Gram Other Live Poultry <=185 Gram Live Poultry > 185 Gram Other Live Poultry >185 Gram Edible Poultry Meat (Fresh) Edible Poultry Meat (Frozen) Other Poultry Meat Not Cut In Pieces Cuts & Offal’s Excluding Livers


India’s Export of Poultry Products has reached to Rs 422.06 Crores in 2008-09.

Major Export Destinations (2008-09):

Germany, Afghanistan, Angola, Saudi Arabia, Denmark.


Figure 8.d.1: Poultry Products Export from India

38


Table 8.d.1: Poultry Products Export from India Country Wise

Value in Rs. lacs

Qty in Mt.

Product: POULTRY PRODUCTS

2007-2008 2008-2009 2009-2010


AFGHANISTAN 2,25,791.56 5,087.90 3,36,516.81 7,123.35 3,76,051.10 8,815.97

OMAN 2,16,217.41 4,262.81 27,921.62 810.94 1,77,340.18 3,694.59

GERMANY 1,801.99 3,027.66 1,647.57 3,914.72 2,395.12 3,352.76

ANGOLA 1,03,839.43 2,377.65 1,51,465.60 2,989.26 1,32,732.22 3,261.70

INDONESIA 1,618.66 558.1 1,038.73 2,403.86 1,071.66 2,473.80

LIBERIA 36,300.00 836.29 76,285.18 1,698.70 65,077.19 1,712.56

DENMARK 2,556.60 3,151.79 1,389.26 3,415.05 753.04 1,626.17

BAHRAIN 49,636.70 1,331.72 44,374.42 1,494.08 47,440.61 1,354.96

JAPAN 1,789.79 4,229.89 749.09 2,299.75 551.72 1,143.77

NETHERLAND 12,957.81 539.89 7,006.96 666.68 1,011.75 1,094.23

SIERRA LEONE 7,770.00 177.77 48,538.94 952.35 39,398.24 1,034.04

PAKISTAN 46,640.22 1,145.89 38,565.25 852.14 29,992.19 952.21

MALDIVES 40,256.72 658.3 52,829.52 1,216.44 39,254.22 844.41


194.16 287.31 460.92 873.13 681.33 685.54

SAUDI ARABIA 5,744.55 1,072.74 21,803.52 2,913.43 8,199.69 632.37

39

TAJIKISTAN 13,594.38 243.36 85,213.38 1,315.55 26,822.62 629.68

SUDAN 300 8.65 2,988.05 147.99 5,999.50 379.23

BHUTAN 0 0 145.04 133.96 6,154.91 341.89

IRAN 18,150.67 419.47 15,473.92 283.02 22,162.16 306.43

POLAND 104.93 190.59 104.41 272.95 160.29 289.51

MALAYSIA 63.44 188.67 92.03 367.49 70.9 252.78

GAMBIA 2,500.00 63.91 4,830.00 110.72 8,772.32 225.08

PHILIPPINES 47.47 96.02 161.82 265.53 124.21 211.97


64,059.56 1,180.44 5,449.86 325.92 313 185.79

THAILAND 183.56 273.97 163.52 497.15 82.04 178.06

AUSTRALIA 100.19 150.09 33 141.56 56.07 172.9

SRI LANKA 453.88 330.16 9,764.61 811.13 56.85 151.94

TAIWAN 198.84 505.39 111.02 399.82 54.73 149.83

HONG KONG 2,310.00 62.67 3,644.64 54.94 1,386.55 142.65

BANGLADESH 48 4.67 126 98.09 4,961.27 118.65

KOREA REPUBLIC

5,372.99 680.73 47.78 99.72 69 113.68

CONGO P REPUBLIC

6,946.00 181.76 11,156.92 212.14 4,184.40 110.72

COMOROS 0 0 20.6 21.05 2,233.16 95.41

LEBANON 890 18.79 1,876.52 42.12 2,983.20 81.53

TURKMENISTAN 2,992.72 41.15 16,777.10 337.32 2,613.00 72.9

NEPAL 1,081.44 153.93 332.27 29.77 1,074.68 65.82

SWEDEN 155.78 364.47 82.86 218.33 20.16 57.95

UNSPECIFIED 3,020.34 107.59 0 0 22.5 42.78

UNITED STATES 69.88 64.55 8.02 10 37.5 38.7

MOZAMBIQUE 0 0 1,400.00 23 1,200.00 37.22

COTE D IVOIRE 2,401.20 52.38 4,826.12 108.69 1,400.00 22.57

QATAR 83,969.15 1,520.21 449.5 18.77 240.5 21.65

UNITED KINGDOM

82.69 87.56 1,005.89 27.45 500.18 11.13

KENYA 487.38 42.93 0 0 400 8.84

TURKEY 22.06 58.58 0 0 420 8.22

CAMEROON 0 0 0 0 240 4.86

NIGERIA 0 0 0 0 12.24 1.93

CZECH REPUBLIC

0 0 0 0 0.6 0.2

MALI 0 0 0 0 3.17 0.16

TANZANIA REPUBLIC

0 0 0 0 0.03 0.12

SINGAPORE 2.88 0.06 0 0 1.08 0.02

SPAIN 647.4 298.77 0 0 0 0

SWITZERLAND 7.2 0.58 0 0 0 0

COLOMBIA 20 24.91 0 0 0 0

GUINEA BISSAU 700 16.82 800 14.75 0 0

40

ITALY 930.07 55.46 0 0 0 0

UGANDA 0 0 2 0.7 0 0

EGYPT ARAB REPUBLIC

0.06 0 0 0 0 0

FRANCE 1 2.09 1.5 2.89 0 0

MAURITIUS 5.49 5.66 0 0 0 0

GUINEA 0 0 600 9.68 0 0

AUSTRIA 3.66 3.67 24 74.82 0 0

YEMEN REPUBLC

1,446.15 92.6 2,594.49 159.7 0 0

BELGIUM 38.44 92.88 24 66.05 0 0

JORDAN 1,380.00 31.14 5,350.00 128.53 0 0

SYRIA 3,705.19 94.53 1,500.00 30.19 0 0

GREECE 6.4 11.19 0 0 0 0

PORTUGAL 79.3 124.78 0 0 0 0

CANADA 0 0 320 11.68 0 0

EQUTL GUINEA 0 0 1,000.00 22.15 0 0

GEORGIA 0 0 12.5 22.8 0 0

KYRGHYZSTAN 0 0 502 19.86 0 0

MADAGASCAR 0 0 300 7 0 0

MAURITANIA 0 0 519 10.38 0 0

ZAMBIA 500.05 9.56 0 0 0 0

CAMBODIA 0 0 600 22.89 0 0

ALGERIA 1.03 1.13 0 0 0 0

ARMENIA 25 27.15 0 0 0 0

KUWAIT 3,82,967.84 7,333.71 65,288.68 1,587.92 0 0

RUSSIA 57 43.47 0 0 0 0

KAZAKHSTAN 0 0 200 6.43 0 0

SENEGAL 0 0 500 9.32 0 0

Total 13,55,246.31 44,108.56 10,57,016.44 42,205.80 10,16,783.08 37,211.88


41


8.e) Dairy Products:

India now has indisputably the world's biggest dairy industry—at least in terms of milk

production; last year India produced close to 100 million tonnes of milk, 15% more than the

US and three times as much as the much-heralded new growth champ, China. Appropriately,

India also produces the biggest directory or encyclopaedia of any world dairy industry. The

dairy sector in the India has shown remarkable development in the past decade and India has

now become one of the largest producers of milk and value-added milk products in the world.

“India is the highest milk producer in the world recording an average annual growth rate of

4.3 per cent since (2004-05)7”.

The individual products under this sub-head are as below:

Butter Fresh Butter MilK Butter Oil Fresh Cheese Milk & Cream in Powder

Milk for Babies

Other Fat Skimmed milk powderOther milk Whole Milk

7 Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture Government Of India New Delhi

42

power Ghee


Maharashtra, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu are

the major production area of Dairy Products in India.


Concentrated Dairy products such as skimmed milk continues to be the largest item of

export, which together accounts for nearly 78% of net milk and milk products exports

during the year 2008-09. The exports of Dairy Products reached. 70146.77 MT from

69415.44 MT . India’s export of Dairy products has increased from Rs. 866.56 Crores in

2007-08 to Rs 980.86 Crores in 2008-09.

Major Export Destinations (2008-09): Egypt Arab Republic, UAE, Bangladesh, Algeria,

Thailand.


Figure 8.e.1: Dairy Products Export from India


Table 8.e.1: Dairy Products Export from India, Country Wise

Value in Rs. lacs

43

Qty in Mt.Product: DAIRY PRODUCTS

2007-2008 2008-2009 2009-2010Country Qty Value Qty Value Qty ValueBANGLADESH 9,839.85 13,247.23 4,636.22 5,777.58 7,564.13 8,420.17


8,431.45 9,212.54 10,290.92 13,885.28 4,988.24 7,064.49

NEPAL 2,171.43 2,645.09 2,349.81 3,290.93 2,429.02 3,659.05

AFGHANISTAN 998.23 1,380.96 670.7 842.88 1,916.85 2,312.38

SAUDI ARABIA 1,415.55 1,940.45 3,590.60 5,217.91 1,556.59 2,131.25

SINGAPORE 4,381.68 2,205.12 6,578.99 3,698.56 3,597.88 1,879.16

PHILIPPINES 2,438.00 3,141.00 3,454.83 4,710.88 1,182.75 1,319.71

YEMEN REPUBLC 1,454.14 1,914.16 373.53 594.12 1,664.69 1,128.82

UNITED STATES 658.33 717.64 489.2 589.56 622.39 959.67

KUWAIT 647.98 1,000.44 670.99 1,053.49 612.72 942.44

ALGERIA 3,929.80 6,342.05 2,934.43 6,686.00 709.7 938.4

EGYPT ARAB REPUBLIC 5,735.15 7,855.06 8,870.31 13,321.27 864.44 891.91

AUSTRALIA 326.73 363.6 540.52 632.26 481.43 762.86

THAILAND 2,587.95 3,363.41 2,647.79 5,465.89 397.01 668.29

DJIBOUTI 77 123.53 363.15 520.69 541.04 657.97

SYRIA 1,897.65 2,549.74 1,435.41 2,095.28 479.34 639.41

OMAN 1,479.96 2,131.39 1,367.60 1,911.21 386.37 581.96

QATAR 482.52 567.59 806.87 1,142.81 343.49 559.39

HONG KONG 485.82 582.47 782.37 629.5 514.16 462.18

MOROCCO 3,110.19 4,183.22 1,109.24 1,893.25 307.37 435.44

SOUTH AFRICA 36.36 59.26 240.23 411.03 172.83 384.64

SUDAN 240.64 326.24 558.16 757.69 291.45 348.33

BAHRAIN 385.72 508.48 616.42 993 163.16 346.52

PAKISTAN 711.25 1,283.56 353.97 420.84 311.94 312.67

KOREA REPUBLIC 565.63 651.04 383.45 666.7 264.01 274.26

SRI LANKA 1,062.11 1,468.76 1,014.50 1,478.62 170.93 261.45

MYANMAR 1,346.94 1,947.42 203 332.69 199.35 253.17

CHINA P RP 6,321.26 7,018.00 2,449.74 2,517.72 229.12 214.28

BHUTAN 66 78.39 418.3 563.91 393.52 211.06

SEYCHELLES 149.87 171.36 196.11 253.45 134.6 209.63

MALAYSIA 93.74 129.69 146.5 202.02 77.07 126.18

MAURITIUS 61.1 40.45 288.28 292.84 95.17 117.97

MOZAMBIQUE 2.25 1.61 1 1.51 61.93 89.93

KENYA 0.01 0.01 49.07 48.02 62.39 79.04

LEBANON 107.78 172.66 168.86 263.56 41.37 73.84

BENIN 101.96 158.71 33.4 62.61 50.56 72.15

IRAN 311.38 332.41 0.02 0.02 45 64.16

POLAND 31.97 40.92 0 0 34 61.64

NEW ZEALAND 24.27 37.33 34.99 46.9 40.54 53.84

44

JAPAN 46.8 59.86 1,162.35 1,490.79 31.65 48.16

NIGERIA 189.9 271.15 732.25 1,065.17 22.31 45.19

TANZANIA REPUBLIC 83.01 105.18 128.59 170.97 34.08 35.09

UNSPECIFIED 0.16 0.21 64 113.13 49.38 29.68

UGANDA 0.09 0.09 3.33 4.65 121.17 29.53

MALDIVES 62.14 20.3 52.9 27.93 27.87 24.47

BRUNEI 76.62 44.83 155.65 99.08 45.12 20.88

RUSSIA 18.3 14.73 0.49 1.25 15.56 18.71

CANADA 293.29 258.21 90.67 141.6 7.16 12.4

GERMANY 0.74 0.92 21.83 61.81 12.07 11.18

DENMARK 1.1 1.65 0.06 0.04 0.98 2.81

SWEDEN 0 0 0 0 1.23 2.59

NETHERLANDANTIL 0.72 0.81 0.68 1.32 3.46 2.57

UNITED KINGDOM 23.01 33.67 19.58 26.06 1.22 2.47

TURKEY 697.96 1,005.84 151.72 402.85 1.11 2.43

GREECE 6.34 13.92 3.06 6.54 0.9 2.01

LIBERIA 0.63 0.8 0.51 0.89 0.42 1.1

GHANA 0.5 0.75 36.66 21.09 0.78 1.06

TAIWAN 62.94 85.36 98.37 145.06 0.25 0.93

SWITZERLAND 0.53 0.61 101.14 141.15 0.57 0.93

SURINAME 180.36 284.8 78.9 146.46 0.4 0.86

COTE D IVOIRE 0.2 0.21 548 801.29 0.38 0.79

ITALY 0.53 0.35 0.16 0.13 0.2 0.75

MADAGASCAR 422.29 597.78 304.04 413.32 0.71 0.46


82.6 113.16 379.28 580.32 0.16 0.35

REUNION 0.77 0.43 0 0 0.13 0.21

GAMBIA 1.17 2.37 19.56 19.51 0.1 0.15

CONGO P REPUBLIC 31.99 51.77 129.03 195.32 1.6 0.15

CHILE 0.06 0.05 0.04 0.05 0.1 0.15

GUYANA 17.34 26.79 0.12 0.11 0.05 0.12

IRELAND 0.04 0.06 0.03 0.01 0.05 0.12

KYRGHYZSTAN 0 0 0 0 0.12 0.1

TOGO 0.07 0.09 25.02 37.41 0.05 0.09

ZAMBIA 0 0 0.95 1.07 0.04 0.08

BELGIUM 0 0 1.2 2.04 0.02 0.05

CAMBODIA 0.26 0.3 13.42 27.76 0.02 0.03

SIERRA LEONE 0.03 0.05 19.75 16.25 0.01 0.02

ST. PIERRA & MI 0.1 0.14 0 0 0 0

FRANCE 0.39 0.76 35.74 30.3 0 0

SPAIN 0 0 9 21 0 0

JORDAN 359.48 553.52 260.11 382.87 0 0

MALAWI 17.02 28.05 0 0 0 0

ECUADOR 0 0 0.02 0.02 0 0

45

ETHIOPIA 85 110.35 0 0.06 0 0

MACAO 0.2 0.29 2.7 4.22 0 0

BOTSWANA 466.15 114.74 0.56 1.17 0 0

EQUTL GUINEA 0 0 14.94 26.31 0 0

INDONESIA 486.91 699.28 535.04 1,830.55 0 0

CAMEROON 10.4 11.12 118 187.8 0 0

LIBYA 235.14 326.41 144.51 169.51 0 0

HONDURAS 0.01 0.02 0 0 0 0

KOREA D P REPUBLIC 21 18.46 0 0 0 0

MAURITANIA 0 0 83.28 116.07 0 0

GEORGIA 106.56 148.9 136.59 177.71 0 0

ISRAEL 2.49 4.25 1.91 11.4 0 0

FIJI ISLANDS 0 0 1 0.83 0 0

KAZAKHSTAN 0.27 0.31 0 0 0 0

ALBANIA 0 0 0.72 23.03 0 0

UKRAINE 0 0 0.01 0.01 0 0

PANAMA REPUBLIC 53.9 82.74 180.84 350.07 0 0

DOMINIC REPUBLIC 0 0 50 83.94 0 0

AZERBAIJAN 39.93 57.11 0 0 0 0

SLOVENIA 0 0 3.13 3.79 0 0

TUNISIA 0 0 93.26 132.35 0 0

GABON 99.74 149.45 154.93 170.02 0 0

SOMALIA 0 0 28.63 50.02 0 0

BRAZIL 0 0 0.2 0.26 0 0

FINLAND 0 0 0.01 75.56 0 0

BURKINA FASO 2.5 6.57 71.5 63.68 0 0

ZIMBABWE 0.4 0.37 0 0 0 0

GUINEA 15.01 21.51 64.43 74.61 0 0

NAMIBIA 0 0 0.01 0.02 0 0

LATVIA 0 0 0 0 0 0

CYPRUS 0 0 0.08 0.19 0 0

IRAQ 908.26 1,380.57 2,691.85 4,052.79 0 0

MEXICO 0 0 0.32 0.28 0 0

NETHERLAND 2.22 2.68 0.11 609.54 0 0

PERU 0.2 0.18 0 0 0 0

NORWAY 0.01 0.02 0 0 0 0

TRINIDAD 30.01 48.5 0.52 1.15 0 0

Total 69,415.44 86,656.39 70,146.77 98,086.04 34,379.98 40,268.38


46


9) India’s Share in Asia and World Exports of Livestock Products

There has been considerable increase in livestock exports of India after the late eighties,

chiefly because of liberalization of trade and several trade policy changes coupled with surge

in international prices of many livestock based products that gave real boost to Indian

livestock exports. The upswing in livestock exports of India in due course of time has also

filtered into significant increase in her share not only in Asia but also in World export trade.

At the same time, for some of the livestock based commodities and for live animals, the share

of India in Asia as well as in the World export trade has come down over time, e.g., bovine,

sheep and goats among various live animals, and poultry meat, meat dried, salted and smoked

and also canned meat among various meat and meat products. This held true both in quantity

and value terms. The changing scenario in terms of India’s share in Asia and in the World

exports of Meats Products from year (2000 to 2007) is present below in Table 9.1

Table 9.1: Meat Products Exports data for Asia

47

The slaughter rate in case of bovine animals is very low, whereas the slaughter rate is high in

case of Sheep and Goat (as high as 38% in goats). The demand for meat of bovine animals in

domestic market is negligible as the domestic consumers have a preference for Sheep, Goat

and Poultry meat. We have therefore, enough potential for production of buffalo meat for

export. There has been steady decline in India’s share in total live animal export trade of

Asia as well as the world over the past decade and a half. This disquieting trend is noticed

particularly in value terms. Nevertheless, share of India in fresh, chilled and frozen meat

export is noticed to have grown considerably not only in Asia but in the World too. Among

various fresh, chilled and frozen meat, India’s export has grown more sharply in the case of

fresh sheep meat, both in Asia and in the World trade of the same. This holds true both in

quantity and value terms. Among various milk and milk products, dry milk, butter and ghee

and to some extent condensed and evaporated milk export trade of India have grown

significantly, both in Asia and in the World. In fact, the results of this study clearly indicate a

48

marginal presence of India in World trade of majority of the livestock products. It is only in

the case of bovine meat and also sheep and goat meat that India has shown a considerable

share in the global trade of the same, particularly in quantity terms. In fact, India continues to

remain as one of the leading bovine meat exporter not only in Asia but also in the World.

Thus, the past trends show that India has achieved considerable growth in exports in a

number of livestock based commodities, especially in the post economic liberalization period,

but the estimates also show that such growth trends are not devoid of wide fluctuations which

put a shadow of doubt about its future potential. Export trade of milk and milk products, in

particular, have fluctuated widely over the past decade or so. Such fluctuations were due

mainly to the fact that India exported these valued products whenever it had exportable

surplus of the same and also when international prices were favourable for these products. At

present India is not able to compete with EC and US in export trade of dairy products because

milk in these countries is highly subsidized (58 percent and 69 percent, respectively). It is to

be noted that the GATT negotiations were for removal of these subsidies. Till date India has

targeted the bulk customers in the export of buffalo meat. Small quantities as branded product

in consumer packs have shown their presence in the super markets. Except corned beef, we

are not exporting any other product of processed meat category. Whereas there is a demand

for ethnic Indian meat product like Kabab, Gushtaba, Akhani, Korma etc., still there is a great

potential for European processed meat products like Sausages, Ham, Salami, Burger, Smoked

meat etc. If we are able to produce processed meat products, it would add value and help in

earning more foreign exchange. Developing countries have responded to growing demand for

livestock products by rapidly increasing production. Between 1961 and 2007, the greatest

growth in meat production occurred in East and Southeast Asia, followed by Latin America

and the Caribbean. Most of the expansion in egg production was in East and Southeast Asia,

while South Asia dominated milk production. By 2007, developing countries had overtaken

developed countries in terms of production of meat and eggs and were closing the gap for

milk production. Trends in production growth largely mirror those for consumption. China

and Brazil show the greatest growth, especially for meat. Between 1980 and 2007, China

increased its production of meat more than six fold; today, it accounts for nearly 50 percent

of meat production in developing countries and 31 percent of world production. Brazil

expanded meat production by a factor of almost four and now contributes 11 percent of

developing country meat production and 7 percent of global production. In the remaining

49

parts of the developing world, growth in meat output – as well as production levels – was

lower, with the highest growth rates being in the rest of East and Southeast Asia and the Near

East and North Africa. In spite of more than doubling meat production between 1980 and

2007, India’s overall meat production levels remain low in a global context. However, after

more than tripling milk production between 1980 and 2007, India now produces some 15

percent of the world’s milk. Production of meat, milk and eggs also increased in sub-Saharan

Africa but more slowly than in other regions.

If India intends to capture a major chunk of this market, it will have to make concerted efforts

to ensure quality of milk and milk products. With the reduction of subsidies, milk in the EC

and US will be more expensive and India will have good chance to capture these markets,

which were hitherto denied to it.

Section - II

As for livestock products, there are two important aspects which would largely determine the

India’s potential to export in the future. The most important aspect on which future export

potentiality of India would depend could be traced in the domestic requirement of various

livestock based products and their expected production levels in the future. In case India

generates sufficient production surpluses of these products after meeting the domestic

demand, the residual could be made available for exports, provided international prices

remain favourable. The future growth in exports for India will also depend on production

deficit realized in various developed and developing nations of the world. In fact, production

deficit of other countries would act as engine of export growth for India. Nevertheless, how

best India can meet the challenges arising out of growing requirements of other countries due

50

to deficit in their production levels would depend on India’s export capabilities and available

surpluses for exports. In order to assess India’s export capabilities, it is worthwhile to first

examine what would be the future scenario of domestic requirement of various livestock

products in India.

1) CORRELATION ANALYSIS

The Correlation analysis is used to determine the extent to which changes in the value of an

attribute are associated with changes in another attribute. The data for a correlation analysis

consists of two input columns. Each column contains values for one of the attributes of

interest. The Correlation transformer can calculate various measures of association between

the two input columns. You can select more than one statistic to calculate for a given pair of

input columns.

Pearson’s coefficient of correlation can be used to establish the statistical relationships

between all of these variables (Buffalo Meat, Dairy Products, Poultry Products, Processed

Meats and Sheep and Goat Meat Exports) with the total Livestock export from India for

last Nine years. In statistics, the Pearson product-moment correlation coefficient (sometimes

referred to as the PMCC, and typically denoted by r) is a measure of the correlation (linear

dependence) between two variables X and Y, giving a value between +1 and −1 inclusive. It is

widely used in the sciences as a measure of the strength of linear dependence between two

variables. It was developed by Karl Pearson

The interpretation of correlation coefficient ranges from −1 to 1. A value of 1 implies that a

linear equation describes the relationship between X and Y perfectly, with all data points lying

on a line for which Y increases as X increases. A value of −1 implies that all data points lie on

a line for which Y decreases as X increases. A value of 0 implies that there is no linear

correlation between the variables.

Karl pearsons’ coefficient of correlation is given as:-

R = ∑XY ∕∑X2 _∑Y2

51

http://en.wikipedia.org/wiki/Line_(mathematics)

http://en.wikipedia.org/wiki/Karl_Pearson

http://en.wikipedia.org/wiki/Correlation

http://en.wikipedia.org/wiki/Statistics

Where X = x – x (For the values of attribute related to Individual Livestock for last Nine

years like Buffalo meat, Sheep and Goat meat, Dairy product, Poultry Product and Processed

Meat)

Where Y = y - ȳ (for the value of attribute related to whole livestock sector in last Nine years)

Results:-

Correlation factor (Buffalo Export: Total Export) = 0.767513872

Correlation factor (Dairy Product Export: Total Export) = 0.767513872

Correlation factor (Poultry Product Export: Total Export) = 0.988002978

Correlation factor (Processed Meat Product Export: Total Export) = 0.249016215

Correlation factor (Sheep and Goat Meat Export: Total Export) = 0.420364876

Interpretation:-

Significance of outcome values is as given value (r varies from -1 to 0 to +1) is given below-

If r = 1, then x and y are perfectly positively correlated. The possible values

of x and y all lie on a straight line with a positive slope.

If r = 0, then x and y are not correlated. They do not have an apparent linear

relationship. However, this does not mean that x and y are statistically independent.

If r = -1, then x and y are perfectly negatively correlated. The possible values

of x and y all lie on a straight line with a negative slope.

52

It is shown statistically that there exist correlation between the Buffalo Export for last Nine

years with the Total Livestock Export, it shows that the Buffalo meat do have a strong hold in

Indians Livestock sector with a correlation of 0.7675 which is very near to one.

Therefore looking at the correlation factor Buffalo meat export, Dairy Product and Poultry

products have a good correlation with the total livestock export share where as Processed

Meat products and Sheep and Goat products correlation is not as satisfactory with the total

Livestock export. The reason because of poor infrastructure and Government support even

though Animal Husbandry department is encouraging the investors still there are lot of scope

in this segment.

2) FORECASTED GROWTH OF LIVESTOCK SECTOR FOR NEXT

FOUR YEARS: Forecasting can be done by using least square

method of statistics. Main idea of the method is a forecast is

calculated by inserting a time value into the regression equation. The

regression equation is determined from the time-series data using the

“least squares method”

YEARS Year No. Livestock Exports in lacs t-5

T Y X X2 XY2001-02 1 2,52,950 -4 16 -10,11,8002002-03 2 3,20,121 -3 9 -9,60,3632003-04 3 12,11,040 -2 4 -24,22,080

53

2004-05 4 13,95,000 -1 1 -13,95,0002005-06 5 16,97,432 0 0 02006-07 6 12,19,719 1 1 12,19,7192007-08 7 19,18,294 2 4 38,36,5882008-09 8 16,28,561 3 9 48,85,6832009-10 9 15,99,766 4 16 63,99,064

1,12,42,883 0 60 1,05,51,811ΣY ΣX ΣX2 ΣXY

a 1249209.222b 175863.5

Equation Y= 1249209 + 175863.5X

4 YEAR PREDICTION

YEAR YEAR NO.

T X X2 Y2010-2011 10 5 25 21,28,526.502011-2012 11 6 36 23,04,3902012-2013 12 7 49 24,80,253.502013-2014 13 8 64 26,56,117

Values in Million Tonnes.

3) RECOMMENDATION

a) Till date India has targeted the bulk customers in the export of buffalo meat. A small

quantity as branded product in consumer packs has shown their presence in the super

markets. Except corned beef, we are not exporting any other product of processed meat

category. Whereas there is a demand for ethnic Indian meat product like Kabab, Gushtaba,

Akhani, Korma etc., still there is a great potential for European processed meat products like

Sausages, Ham, Salami, Burger, Smoked meat etc. If we are able to produce processed meat

products, it would add value and help in earning more foreign exchange.

54

b) There is a large potential for setting up of modern slaughter facilities and development of

cold chains in meat and poultry processing sector. The market has not been tapped fully for

ready-to-eat and semi-processed meat products in the domestic market as well as for exports

to neighbouring countries especially to the Middle East. Buffalo meat is surplus in the

country and has good export potential.

c) Poultry production and egg processing industries have come up in the country in a big way

and we are exporting egg powder, frozen egg yolk, albumin powder to Europe, Japan and

some other countries. Meat products have a growth rate of 10% whereas the growth rate of

eggs and broilers is 16% and 20% respectively.

d) Most of the production of meat and meat products continues to be in the unorganised

sector. However, some branded products have also come up in the domestic market. At

present, poultry export from India is mostly to Maldives and Oman. Some other markets can

be explored for export of poultry meat products like Japan, Malaysia, Indonesia and

Singapore.

55

3. A) Concluding Remarks:

There is no iota of doubt that as a result of application of scientific production techniques and

favorable government policies the total livestock production of India has increased to a

considerable extent. Nonetheless, the export trade of India in livestock products have been

highly fluctuating over time. The opening up of the national economy to the international

market in the era of liberalization has certainly boosted country’s trade in various livestock

products. There is also no denying the fact that the successful GATT negotiations have

provided India an opportunity to compete on a more equal footing in the global livestock

trade. But, at the same time, it also raises concerns on as to how international prices of

livestock products will react to free trade regime. Who will gain and who will lose from the

possible outcome of trade liberalization is again central point of discussion. According to

Baxi (1994), there would be an upward increase in the international prices of dairy products.

The long term implications of this can be :(a) EC would lose markets to the US, New Zealand

and Australia, (b) A significant rise in cheese export prices, (c) Effect on SMP and Butter

prices would be marginal, and (d) The benefit to India through SMP exports would be

gradual and modest. One of the arguments put forward by Baxi (1994) is that India will gain

from the possible outcome of the changes as the EC will have to raise export prices by 15 per

cent to adjust lower inward tariffs. On the whole, India needing a modest share in the world

exports market for various dairy products will be able to realize better prices in future.

Nevertheless, such realization will be possible only when India produces and exports

sufficient quantities of these valued products in the years to come. Growth in livestock trade

has been facilitated by increasing consumption of livestock products and economic

liberalization. Developments in transportation, such as long-distance cold-chain shipments

(refrigerated transport) and large-scale and faster shipments, have made it possible to trade

and transport animals, products and feedstuffs over long distances. This has allowed

production to move away from the loci of both consumption and production of feed

resources. Increasing trade flows also have implications for the management of animal

diseases and a number of food-safety issues. Livestock products represent a growing

proportion of agricultural exports. Their share of agricultural export value globally rose from

11 percent to 17 percent between 1961 and 2006. However, trade in crops – including feed

crops – still dwarfs that of livestock products. Between 1980 and 2006, the volume of total

meat exports increased more than threefold. Exports of dairy more than doubled and exports

56

of eggs almost doubled. The share of production entering international trade increased, except

for sheep meat and an egg, reflecting the sector’s increasing degree of openness to trade. The

degree of trade openness has been particularly high for monogastrics. Although the bulk of

livestock produce is consumed within the country of production and does not enter

international trade, livestock exports are important for a few countries.

Notes

1. The new policy environment is designed to create a favourable climate for livestock output

to increase. Effective exchange rate adjustment and trade reforms are expected to improve the

terms of trade of tradable livestock products, making it internationally competitive and enable

it to record a large increase in export output.

2. In this study the total period of 9 years (2001-10) showing the trends of export from India

representing the situation at the beginning of the study.

3. In India, while cattle and buffalo are grown for producing milk and milk products, other

species of livestock like pig, sheep, goat, and poultry birds are reared for meat production.

The slaughter rates in relation to the population of the animals are: 1.45 per cent for cattle,

3.45 percent for buffalo, 32.5 per cent for sheep, 35.58 per cent for goats, and 26.25 per cent

for pigs (Singhal, 1995).

4. The major importers of the Indian meat and meat products are West Asian countries and

also some of the African countries that mainly include Malaysia, U.A.E., Jordan, Saudi

Arabia, Oman, Yemen Republic, Kuwait, Mauritius, Bahrain, etc.

57

3. B) References:

Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries,

Ministry of Agriculture Government of India New Delhi

Baxi, J.J. (1994), ‘Export of Milk and Milk Products’, Indian Dairyman, Vol.46, No.5, PP

229-235.

Dastagiri, M.B. (2003), ‘Is India Self-Sufficient in Livestock Food Products?’, Indian

Journal of Agricultural Economics, Vol. 58, No. 4, Oct.-Dec., pp. 729-740.

Government of India (1995), Economic Survey, 1994-95, Economic Division, Ministry of

Finance, New Delhi.


Finance, New Delhi.


Finance, New Delhi.

Government of India (1999), Basic Animal Husbandry Statistics, Ministry of Agriculture,

Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi.

Kumar, Praduman and V.C. Mathur (1996), ‘Agriculture in Future: Demand-Supply

Perspective for the Ninth Five-year Plan’, Economic and Political Weekly, Vol.31, No.39,

PP.A131-139.

Mishra, S.N. (1995), ‘India’s Livestock Economy : A Perspective on Research’, Indian

Journal of Agricultural Economics, Vol.50, No.3, PP. 255-263. Ministry of Information and

Broadcasting (1999), India : A Reference Annual, New Delhi.

Patel R.K. (1993), ‘Present Status and Promise of Dairying in India’, Indian Journal of

Agricultural Economics, Vol.48, No.1

Pandey, U.K. (1995), ‘The Livestock Economy of India : A Profile’, Indian Journal of

Agricultural Economics, Vol.50, No.3, PP 264-282.

Sarma, J.S. and Patric Yeung (1985), ‘Livestock Products in the Third World : Past Trends

and Projections to 1990 and 2000’, IFPRI Research Report, 49.

Shah, Deepak (2001), ‘Indian Dairy Industry: Present Status and Future Prospects’,

Productivity, Vol. 42, No. 3, October - December, pp. 474-483.

Singhal, Vikas (1995), Handbook of Indian Agriculture, Vikas Publishing House Pvt. Ltd.,

New Delhi.

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EXPORT COMPETITIVENESS OF INDIA IN LIVESTOCK PRODUCTS