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Indian Meat Industry: Opportunities and Challenges

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TECHNICAL A RT I C L E S
Indian Meat Industry: Opportunities and Challenges
Y. P. Gadekar* and A. K. Shinde
Central Sheep and Wool Research Institute, Avikanagar,
Rajasthan- 304 501
*E-mail: yogirajlpt@gmail.com

Abstract
Livestock sector is vital component of Indian of the output of Rs 1376561 crore from total agriculture
economy. Indian meat industry is playing pivotal role in and allied sector (DHADF Annual Report, 2010-11).
the socioeconomic development as it is providing Among agriculture produce, meat occupies a significant
employment to the millions of workers from the weaker place as about 80% of Indian population is non-
section are engaged in meat and allied industry. Meat and vegetarians. Although, India is bestowed with huge
meat products are essential livestock resources with
in the diet for sound health. enormous potential but
Changes in socioeconomic Indian meat industry has not
status, increasing number of att ained its due status
women entering in the because of obvious reasons.
workforce are fuelling high Major portion of meat from
demand for ready to eat heat sheep, goat, pig and poultry
and serve type of meat is primarily used for
products. Still there is huge domestic consumption in
gap in demand and supply of the form of hot meat.
meat and meat products in Certain portion of meat from
India. Present st atus of buffaloes, cattle and sheep
Indian meat i ndust ry, is exported. Though, the
contribution of different Indian consumer has a taste
food animals in total meat preference for chevon all
production, export of animal over the country and mutton
products, consumption of in J&K and southern states,
meat and meat products as supply is not keeping pace
well as demand scenario, with growing demand in the
underlying problems and prospects of Indian meat industry country.
is reviewed. Meat and meat products are crucial part of the
man’s diet. Meat is highly demanded food items of
Introduction human being due to presence of plentiful proteins,
The livestock sector is floating for revolution in minerals and all the B-complex vitamins with excellent
developing countries where the major increase in meat digestibility and well-balanced composition of essential
and milk production is anticipated in next few decades. amino acids. Population growth, urbanization, changed
Livestock production is a vital activity in rural areas, which life styles and increased per capita income are fuelling a
provide employment, livelihood and income for farmers, massive increase in demand for food of animal origin all
rural poorer and weaker sections of society. Meat sector around the world. Delgado et al (1999) made a prediction
plays an important role in India as it not only provides that the demand for milk will double and that for meat
meat and by-products for human consumption but also will treble in India by 2020. As per World Bank
contributes towards sustainable livestock development and projection, worldwide demand for food will increase by
livelihood security for millions of men and women from 50% and for meat by 85% by 2030. Governments and
weaker sections. According to estimates of the Central industries must prepare for meeting demand of meat in
Statistical Office (CSO), the value of output from livestock the country with long run policies and investments to
sectors at current prices during 2009-10 was Rs 408386 satisfy ever rising consumer demand, improve nutritional
crore (Rs 340473 crore for livestock sector and Rs 67913 status, generation of income opportunities and alleviate
crore for fisheries) which is about 29.7 % of the value environment stress. Government of India has already

Indian Food Industry  30(4), July-August 2011 17

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recognized livestock and poultry as an important sector as against 15% from small ruminants, 10% from pigs and
for the socio-economic development of the country. 13.4% from poultry in the total meat production. India
contributes 2.2% of world meat production and on the
Meat production and supply of meat for local
basis of per capita availability of meat, India ranks 170
consumption is the most neglected sector in the country.
in world. There are 2702 registered slaughter houses in
Meat is sold in open premises leading to contamination
the country, mostly providing service of only slaughtering
from dirt, dust, flies and other pollutants. The traditional
and dressing. Meat and meat products from India are
production systems and the unhygienic practices have
finding wider acceptance in world market mainly because
ruined and flawed the image of the Indian meat industry.
of the fact that the Indian meat is internationally price
Indian meat industry on scientific and modern lines is
competitive.
need for benefiting livestock producers, processors, finally
consumers. Ministry of Food Processing Industries (MFPI) has
established National Meat and Poultry Processing Board
In India, poultry industry is one of the fastest
(NMPPB) at New Delhi to support the healthy and
growing segments of the livestock sector. The production
organized development of meat sector for clean and
of agricultural crops is growing at a rate of 1.5 to 2
wholesome meat production. NMPPB formulates uniform
percent per annum that of eggs and broilers at a rate of 8
and effective meat quality testing systems and looks for
to 10 percent per annum. Poultry meat is the fastest
reduction of environmental pollution due to meat
growing component of meat demand in the globe as well
industry. It also gives priority on R & D for production
as in India. There are number of small poultry dressing
and marketing of newer value added meat products for
plants in the country in addition to five modern integrated
poultry processing plants producing dressed chicken,
chicken cut parts and other chicken products (APEDA,
2010).

Present Status
Presently India possesses 106.6 (53.6% of world)
million buffaloes, 172.4 (12.4% of world) million cattle,
126 (14.5% of world) million goats, 65.7 (6.1% of world)
million sheep, 13.84 (1.46% of world) million pigs and
613 (3.3% of world) million chicken (FAO, 2009). They

domestic and international markets. NMPPB also serves


as a single window service for producers and
manufacturers and exporters of meat and meat products
promote and regulate the meat industry for increasing
exports and help industry for establishing self-sustainable
and viable projects. Further, Food Safety and Standards
Act, 2006 regulates and ensures the processed meat sector
to produce safe and quality products in order to meet the
requirements of International trade and make the Indian
food and meat industry competitive in the global market.

Export of Meat
The share of Indian meat exports in the world
market is less than 2%. Adequate potential of meat
production exists in the country to meet the domestic
demand and to substantially increase the export. India’s
international trade in livestock and livestock products is
provide milk, meat, draft power, hides and skins, manure
mainly confined to meat and meat products (82%), to
and other valuable by-products thereby significantly
live animals (17%), dairy and egg products (1%). India
contributing to sustainable human nutrition and economy
exports both frozen and fresh chilled meat to more than
of the nation. Although, India stands at number one in
54 countries of the world. The major item of export
milk production in the world whereas the meat production
includes deboned and deglanded frozen buffalo meat,
is a miserably lower compared to other developed
which accounts for 97% of the total meat export. Meat
country. It is reported that annually 5% cattle, 10%
is produced from animals procured from disease free zones
buffaloes, 30.2% sheep, 38% goat, 99% pigs and 123%
and processed in modern abattoir and processing plants
poultry are slaughtered. The share of bovine meat is 62%

18 Indian Food Industry  30(4), July–August 2011

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Table 1. Trends in livestock production and meat production in
India-2009

Livestock Population Percent Average yield / Meat production


species (in million) slaughtered animal (kg) (MT)
Cattle 189.4 8.0 103 1.49
Buffalo 105.0 9.7 138 1.58
Sheep 57.0 47.0 12 0.25
Goats 140 38 10 0.57
Pigs 18 88.9 31 0.60
Poultry 1049 73.6 0.8 1.60
(Department of Animal Husbandry and Dairying, GOI, FAO-2009)
Table 2. Meat and meat products export trend from India (Value in
Rs. crores)
Item /Year 2005-06 2006-07 2007-08 2008-09 2009-10
Buffalo meat 2629.57 3213.74 3549.8 4839.7 5480.6
Sheep/goat meat 80.37 65.87 134.09 493.36 747.2
Processed meat 2.43 7.12 12.96 10.14 9.58
Poultry products 167.58 318.17 441.08 422.05 372.1
(APEDA, 2011)

certified with HACCP and ISO 9002 following world class processing industry is still in infancy even though there
SPS measures. Meat industry, which has shown a is vast scope for processing. Now scenario is changing
tremendous development in the last decade, has a greater rapidly with entries of top players like Shalimar Super
scope of improvement with support of the industrialists Foods, Venkateswara Hatcheries, Godrej Agrovet, Al-
and government. Kabeer, Arpit Enterprises, Allanasons, Mark International,
According to APEDA, India’s export of buffalo AL Barkat Exports, Nensey Poultry Farm, Prabhat Poultry,
meat products in 2008-09 was Rs. 4839.71 crores. The Vista Processed Foods, Fiza Exports, Meatzza - Darshan
export of sheep/goat meat products also increased from Foods, etc, with an aggressive rise of commodity branding;
Rs. 134.10 crores in 2007-08 to Rs 493.37 crores in 2008- there is beginning to change the economics of the Indian
09. Animal products export from India has increased from meat processing industry. Modern state-of-the-art slaughter
Rs. 5129.27 crores in 2007-08 to Rs 6913.11 crores in and processing plants have changed the entire scenario,
2008-09. India’s export of processed meat in 2008-09 was making the industry to grow at the rate of 10%. There is
857.63 MT amounting to Rs. 10.14 crores. Major market a huge scope for expanding exports, especially in buffalo
for Indian buffalo meat is Malaysia and Egypt and for sheep and poultry meat, eggs and dairy products.
and goat meat is UAE, Iran and Jordan. India also exports Demand for Meat and Meat
small quantity of processed meat to Thailand, Yemen,
and Japan and poultry products to Saudi Arabia, Oman, Products
Kuwait and Qatar. Indian meat is leaner with less fat and Meat serves as the principal source of animal origin
cholesterol. Moreover, meat is free from growth protein for mankind. In addition meat also contributes
promoters or other therapeutic residues and mad cow macro and micro nutrients required for the growth and
disease (bovine spongiform encephalopathy, BSE), which health. The rate of increase in per capita consumption of
favors Indian meat in international market. animal products was found to be higher in the developing
countries compared to developed countries. The per capita
Meat processing animal protein consumption in India is 10.4 g per day
In India, meat is consumed either in curry form compared to world average of 25 g. Minimum
with high spices or as processed meat products. Only 2% requirement of 20 g per capita /day for animal protein
of the meat is processed in India (APEDA, 2008), the can be fulfilled from milk 10 g, meat 4 g, fish 4 g and 2
remaining meat is sold in fresh or frozen form. The meat g eggs. As per Indian Council of Medical Research
Indian Food Industry  30(4), July-August 2011 19

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(ICMR) recommendation, minimum amount of 30 g of international standard sanitary and phyto-sanitary (SPS)
meat /day/head should be taken which makes 10.95 kg measures. These plants are eco-friendly, where all the
of meat/head/annum. At present availability of meat is slaughterhouse byproducts are utilized in the production
only 5.5 kg /head/annum. From the above figures, it is of carcass meal, meat-cum-bone meal, tallow, bone chips
clear that there is wide gap between demand and and other value-added products. Several more plants are
availability. During 1993-2020, the average growth rate coming up due to large potential for export of meat. At
(weighted) for the total domestic demand of milk was present, there are 70 meat processing plants and 29
reported to be 4.9% whereas for mutton and goat meat APEDA approved Indian abattoirs-cum-meat processing
it was 13.7%, for beef & buffalo meat 3.5%, for chicken plants in India.
4.8% and for eggs 6.2% (Dastagiri, 2004) indicate bright
prospects of meat industry in India. Globalization and WTO
In India, meat production and consumption has Animal production is the most competitive sector
increased remarkably in recent years. Meat eating habits in the entire agriculture economy. There is immense
of the consumers are slowly changing from fresh to frozen potential for producing animal products for domestic and
and to processed meat and meat products. Demand for overseas markets. In the quest of globalization, agriculture
quality meat and meat products are increasing due to
and animal husbandry must acquire the status of an
growing awareness about nutritional and sensory
industry. Hence, there is need for a farmer friendly and
characteristics of such meat products. Changing socio-
economic status also contributed towards enhancing export oriented clear policy to realize the full potential
consumption of processed and convenience meat of livestock resources. To get the benefits of globalization,
products. Though, the meat industry in the country is yet the production and processing of value added traditional
to transform into an organized sector, still its contribution products has to be improved by employing modern
to the national GDP at present is significant. processing machinery and quality control techniques like
HACCP and GMP to meet the stringent standards of
Need of Modern or Semi-odern importing countries. Collaborative linkages among R&D
institutions, small and large firms would be desirable for
Abattoir the benefit of sun rise meat industry. India can be a
At present, condit ion of the maj ority of beneficiary of globalization if it launches a positive
slaughterhouse is not satisfactory. Adequate slaughter programme for technology creation and implementation.
facilities are not available to produce meat under sanitary To ensure quality of international standards, a world-class
conditions. Animals are slaughtered both in authorized infrastructural facility has to be developed/ strengthened
and unauthorized places which makes meat inspection in the country.
impossible. Floor slaughter is practiced for large animals
with poor hygiene. Overcrowded slaughter in unaesthetic Constraints of Indian Meat
premises is quite common. Inadequate drainage facility Industry
and improper utilization of valuable byproducts like
blood results in environmental pollution and offensive There are many reasons for slow growth rate of meat
smell in premises and creates negative image of industry in India:
slaughterhouses in the minds of public. Slaughterhouses 1. Myths about meat consumption and half truths in the
are regulated by the local bodies and mostly they are media against meat consumption.
reluctant to develop these premises. Meat produced in 2. Insanitary and unhygienic conditions of the
such environment is potential source of diseases for slaughterhouses and the meat shops.
human beings. Thanks to our cooking method which is 3. Lower carcass weight and dressing percentage of food
very effective in destroying all the pathogens. But if we animals due to the slaughter of spent / aged animals.
want to compete with international market we need to 4. Indian consumer prefers fresh meat, resulting in less
improve the quality of our produce so that it can be demand for frozen meat.
accepted without any hesitation. 5. Diseases such as Foot and Mouth Disease (FMD) are
Escalating global market opportunities for the Indian a major concern
meat sector have significantly generated a plenty of private 6. Subsidies in developed countries, stipulation of
investment in meat processing through state-of-the-art Sanitary and Phyto Sanitary (SPS) measures, and
technology of integrated plants. Many corporate firms are increasing cost of production and inputs as compared
coming up and have set up modern integrated plants with to competing Nations.
state-of-the-art facilities for slaughtering and dressing of 7. Non availability of good quality livestock in the open
animals, carcass deboning, packing, chilled and frozen market.
storages, byproducts processing, effluent treatment etc. 8. Overcrowding of food animals during transport
There are already established ten state-of-art mechanized resulting into inferior meat quality.
abattoirs-cum-meat processing plants and four integrated 9. The lack of a sufficient cold chain infrastructure.
poultry meat-processing plants, which are adopting

20 Indian Food Industry  30(4), July–August 2011

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The factors favoring meat 3. Rearing buffaloes: Contractual farming as backward
integration to modern abattoir: A strong need has been
sector development felt to establish a production base around each
modern abattoir to produce quality and disease free
1. Low cost of production of meat type of animals to a
animals as per SPS requirements of O.I.E. The success
desired age of 2 years.
story of broiler farming with contract farming can be
2. Leanness of Indian meat: contains less fat and the
employed here to safeguard the interest of small and
present international trend is favorable for low fat marginal farmers by providing them the feed, medicine
meat. Average fat content of Indian beef is around and marketing of finished product and ascertaining a
4% compared to 15-20% in most of the developed fixed remuneration to farmers.
countries.
4. Establishing disease free zones for rearing animals:
3. Green fodder feeding, absence of animal protein
India is fortunately free from most of the trade related
(carcass meal; meat and bone meal) in the ration are diseases and BSE has not been reported. However,
favorable factors for Indian meat industry. FMD is still prevalent in an endemic form in some
4. Price structure of various meats in international states. The establishment of 3 zones with 56 districts
market. Beef price is the highest followed by pork, to control FMD in the X five year plan was the first
mutton, and chicken. step by the Government of India towards the
5. The absence of hormones, antibiotics and growth establishment of disease free zones. The World
promoters’ in the feed, the Indian meat is considered Organization of Animal Health (OIE) declared India
not only lean but also clean and organic. “Rinderpest free” in May 2006.
6. There is no incidence of Bovine Spongiform
5. Byproduct utilization: For the profitability of the
Encephalopathy (BSE) in India.
meat industry, proficient utilization of meat by-
7. Close proximity to promising Middle East market.
products is important. It has been estimated that
Challenges and opportunities 11.4% of the gross income from beef and 7.5% of
the income from pork, come from the by-products.
for the Indian Meat Industry
6. Identification and up gradation of municipal slaughter
1. Setting up of State of Art- Abattoir cum meat houses for export purpose: Government should make
processing plants: In India, there are only 10 most efforts to upgrade municipal slaughter houses to semi
modern sate of art mechanized abattoir cum meat modern abattoirs with all basic requirements and
processing plants in various states for slaughtering of minimum hygienic standards. In the present context
buffaloes and sheep. These plants are eco-friendly as of WTO agreement on sanitary and phyto-sanitary
the byproducts are utilized for production of MBM, (SPS) measures, the hygienic standards of existing meat
tallow, bone chips etc. In addition, establishment of plants should be improved at par with the best in the
Effluent Treatment Plant for waste water treatment world.
from abattoir and lairage, with the water discharged
7. Need for modernizing the Quali ty Control
having BOD values  30 ppm. These plants follow
laboratories of the State Govt.: The State Govt.
SPS measures prescribed by the International Animal
laboratories are not well equipped and also lacking
Health Code of O.I.E. There are four fully integrated
in skilled staff to conduct various examinations of
poultry meat processing plants of world standard too.
meat. It is therefore need of an hour to upgrade the
2. Raising male buffalo calves for meat production: In quality control laboratories in terms of modern testing
India, 15 million calves are removed from the buffalo facilities and skilled manpower in order to produce
production system due to intentional killing by the safe, clean and wholesome meat.
farmers to save dam’s milk in the wake of non-
remunerative cost of raising them. Male calf therefore 8. Need for strict laboratory inspection of meat and meat
is unfortunately not cared for and resultantly does not products: In most of the slaughter houses, basic
survive. A major potential exists for male calf rearing facilities required for hygienic meat production are
for meat purposes. These calves can be salvaged for lacking so ante mortem and post mortem inspection
meat production thereby improving the economic are not followed.
condition of the farmers and also meat production 9. Training programmes for meat workers: Regular
for domestic and export market. Male calves can be training should be conducted by Govt. institutions,
reared without the use of hormones, antibiotics, and SAUs for meat workers, supervisors and managers on
growth promoters. They can then be slaughtered importance of scientific slaughtering and dressing.
scientifically for meat production. The GOI has This will help in realization of significance of hygiene
proposed a financial outlay of $250 million to fund and sanitation in slaughter house, meat processing
the programme ‘Salvaging and Rearing of Male Buffalo plants etc.
Calves’ for the purpose of increasing meat production
during the XI plan (GAIN report, 2008). 10. Marketing of Meat and Meat Products: Most of the
meat production and marketing practices in India are

Indian Food Industry  30(4), July-August 2011 21

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traditional. Well-integrated marketing system for meat and intensive system should be adequately exploited
and meat products is lacking in India. The main through cross breeding of selected local breeds/ non-
reasons are monopoly of meat trader, lack of co- descript breeds with specific exotic and improved
ordination between production and demand, too many breeds.
middlemen in the trade and inefficiency management 7. At present buffalo meat is obtained as a byproduct
in slaughterhouse. There is a dire need to modernize of buffalo milk production. There is vast scope for
the meat production and marketing system. increasing carabeef export consequent to cattle
Government of India is keen to improve the marketing slaughter ban act, availability of male buffalo calves
system so that the consumers would get the quality and the steady demand for the same from the
meat and meat products at reasonable prices. importing countries. It is high time to consider
11. Setting up cold storages: Meat is nutrient dense food growing/fattening of male buffalo calves for veal
which makes it perishable commodity. In order to production. Sufficient nutrition and improved levels
improve keeping quality of meat, cold chain is of of hygiene and sanitation at meat handling will
crucial importance during transport as well as storage enable India a quantum jump in meat production by
till it reaches to consumers. The Government should utilizing the surplus male calves.
support setting up cold storages, supply/value chain
and 100% export oriented slaughter houses in the Conclusion
country.
Since last decade, due to stringent SPS requirements
Future prospects of meat imposed by the importing countries has brought in a sea
change in the meat industry This has forced the
industry establishment of State of Art abattoirs and modernization
Strategies for the prosperity of Indian meat industry: of local slaughterhouses by the Ministry of Food
Processing Industries, GOI for export. India had already
1. Production of good quality animals for slaughter is witnessed revolution in food grain and milk production,
must for production of good quality meat. Hence, now its prime time for the revolution in meat production
farmers’ cooperative can play a major role in the field in up-coming years. Indian farming community has been
of production and marketing of quality animals, very progressive by need based adaptation. Animal
extension education and encouragement of backward agriculture has been favorable and so has become
integration / contract farming as in poultry industry popular. The major role played by buffaloes in
for intensive and semi-intensive system of rearing strengthening dairy industry in India can well be repeated
small ruminants. in meat industry. The non-tariff barriers (NTB) such as
2. Food safety at all stages of production, processing, SPS should be based strictly on real health and
packing, storage and marketing of meat and meat environmental standards. Collective and planned efforts
products, maintenance of standards such as SPS, from liaison offices, meat industries, meat corporations,
HACCP certification and others which are prescribed scientists and nodal bodies like APEDA and Directorate
by the importing countries. of Marketing and Inspection (DMI) are required for
exchange of information, overall improvement and thus
3. Consumer awareness: Priorities must be given to transformation of this escalating industry.
address the myths prevalent among the public
regarding meat consumption and diseases (Meat References
consumption and risk of cancer, Meat consumption APEDA. (2008). Export of agro and processed food
associated to increased risk of coronary heart disease products including meat and meat products.
due to its fat and cholesterol content) with proper Agricultural and Processed Food Products Export
extension programmes. Development Authority. Ministry of Commerce,
4. Meat processing and value addition are key for the Government of India.
prosperity of meat industry. The awareness regarding Dastagiri M. B. (2004) Demand and Supply Projections
the processed meats and the convenience to the
for Livestock Products in India. Policy Paper 21.
consumers and households should be improved.
Delgado, C., M. Rosegrant, H. Steinfeld, S. Ehui, and C.
5. Packaging of meat and meat products: Most of meat
Courbois.1999. ‘Livestock to 2020 – The Next Food
is sold in India is in unpacked form. Meat is packed
only in some organized meat factories and in bacon Revolution’: Food, Agriculture and the Environment
factories. For safe delivery of the meat and various Discussion Paper 28. IFPRI/FAO/ILRI.
value added meat products through the various stages DHADF Department of Animal Husbandry, Dairying &
of processing, storage, transport, distribution and Fisheries, Ministry of Agriculture, Government of
marketing packaging is of utmost importance. India, New Delhi annual report, 2010-11
6. Breeding strategies: Meat scientists and animal FAO. (2009). Food and Agriculture Organisation, Rome.
geneticists should collaborates their research for GAIN Report (2008) India Livestock and Products Annual
developing a potential cross bred buffalo for meat 2008 (IN8098).
purpose. Meat production potential under extensive

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