India Beef Export Growing

INDIA has been a rapidly growing beef exporter in recent years, underpinned by housing the world’s largest buffalo herd, and assisted by the outgoing Indian government’s policies aimed at increasing the supply of buffalo meat (Australian Bureau of Agricultural and Resource Economics and Sciences – Agricultural commodities, June quarter 2014).

Meat and Livestock Australia reports that while Indian buffalo meat is sold as carabeef, it is exported as beef, and in 2013 India was the world’s largest beef exporter in volume terms, at 1.56 million tonnes swt. Following India was Brazil (1.18 million tonnes shipped weight) and Australia (1.07 million tonnes swt).

While the outgoing Ministry of Agriculture’s Scheme for Salvaging and Rearing of Male Buffalo Calves aimed to increase the use of previously unwanted male dairy buffalo for meat, there has also been greater investment in buffalo processing in India. This has coincided with the growing demand for inexpensive protein in South-east Asia and a preference for halal slaughtered meat in the Middle East – each assisting India’s rapid export growth.

Indian buffalo meat has a significant price advantage in world markets, where access is allowed. For example, according to ABARES, the 2013 average export price for Indian Buffalo meat was US$2.88/kg, while in contrast, the average Brazilian beef export price was US$4.52/kg, while Australia was US$4.73/kg. The lower Indian prices reflect the low cost structure of the industry in India.

India is restricted to the countries it can export to, due to their Foot and Mouth Disease (FMD) endemic status with the World Organisation for Animal Health, which eliminates exports to Japan, the US and Korea. India does, however, send large volumes to Vietnam, Thailand, Malaysia, Saudi Arabia and the Philippines – all growing markets for Australian beef.

In 2013, the Chinese and Indian governments signed a memorandum of understanding for direct trade in buffalo meat from India to China, but official shipments have not yet commenced. It is unknown at this stage if and when such trade will occur.

However, the Scheme for Salvaging and Rearing Male Buffalo Calves may change under India’s newly elected government. Particularly given that during the election campaign, the leader of the Bharatiya Janata Party, which gained power in May 2014, denounced India’s status as one of the world’s largest beef exporters on religious grounds.

The majority of the Indian population is Hindu, holding the belief that cows are sacred; however, India’s beef exports are largely sourced from buffalo – consequently, the policies on this will be closely monitored.

Source:- stockjournal.com.au