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S
INTRODUCTIONTOLIVESTOCK SECTOR 
The
livestock sector
has been growing rapidly as compared to
crop production
. This growthcan 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 increasedimpressively in the last twenty years, from less than 15% in the late 70s to over 33% in 2002
a) Livestock Sector in India 
ASIA PACIFIC INSTITUTE OF MANAGEMENT                      DEVKANT RATH-INTERNATIONAL BUSINESS 
 
2011
[
“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 theIssues due to which this sector has yet been utilized fully to its calibre.
] 
 
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 accountsfor 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 bya set of mutual input-output relationships. Over the last four decades there has been rapidgrowth in livestock production and a rapid change in how animal products are produced,processed, consumed and marketed.Livestock and livestock products are an important sourceof 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 theproduction and consumption of animal-origin foods, as a result of rising incomes and dietarydiversification away from staple cereals, has taken place in East  and Southeast Asia, inparticular China. Meat production in
China
grew more  than six-fold to  over 88 milliontonnes from 1980 to 2007, while milk and egg production increased over twelve-fold andtenfold, respectively, to 37 and 30 million tonnes over this period. Meat and egg productionin
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 micronutrientscompared to cereals and plant-based foods
1
.These include vitamin A, vitamin B12, riboflavin,calcium, iron and zinc which are vital for nutritional security. A deficiency of these nutrientsin the diet leads to health problems, including increased risk of infectious disease morbidityand mortality, particularly in infants and children
2
. Meat, milk and egg consumption hasgrown 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 andeight-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 developedand 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 theincrease that occurred in developed countries. The increase in poultry meat consumption hasbeen most evident in East and Southeast Asia and in Latin America, particularly in China andBrazil. The share of the world’s poultry meat consumed in developing countries rose from 43to 54 percent between 1990 and 2005, which accounted for 36 percent of the large netincrease  in  meat  consumption  in developing  countries  over this  period. Further,  the
1
 
The State of Food and Agriculture 2009
, FAOhttp://www.fao.org/publications/sofa/en/
2
 
Ibid 
2
 
proportion of the world’s poultry meat produced in developing countries rose from 42 to 57percent. It is estimated that production and consumption of poultry meat in developingcountries will increase by 3.6 percent and 3.5 percent, respectively,
per annum
from 2005 to2030 because of rising incomes, diversification of diets and expanding markets, particularlyin Brazil, China and India. Dairying is not an adjunct to the crop-mix of Indian farms but anintegral part of the total farming system. Hence, treating dairy cattle as the backbone of thelivestock wealth of our country would not be an exaggeration. Although dairying provideslivelihood 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 totalcattle 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 milchanimals in the world and probably only one fifth as efficient as those in the advancedcountries (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 to14.5 per cent in 2003. Although India has huge livestock population, in terms of trade itstands insignificant in the world trade of livestock products. However, it is to be noted thatIndia has tremendous potential to produce and export various livestock products.Despite constraints like rearing of livestock under sub optimal conditions due to loweconomic status of livestock owners, India has now become the largest producer of milk inthe world. The development of Indian dairy sector is an unprecedented success story as it isbased 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 tomatch 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 productswith a view to boost export trade of these products in free trade regime and earn valuableforeign 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 GATTprovisions 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
3
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