bovine meat

Meat of Bovine Animals, Frozen

Export Strategy of India for enhancing exports of Meat of

Bovine Animals mainly Buffalo Meat (HS Code: 0202) to China

by reducing inefficiencies

By –

Nitin Puri 29B

Rajiv Bhardwaj 38B

Sumit Bachani 50B

Table of Contents

1. Introduction to Bovine meat – Processed meat.........................................4

2. Indian Buffalo Meat Value Chain for Domestic and Export Market................7

3. Value addition by various actors in production of Buffalo meat....................8

4. Indian Exports Scenario.......................................................................10

5. Strengths of Indian buffalo meat for export market.................................11

6. Closest Competitor..............................................................................12

7. Domestic Consumption in India............................................................15

8. China as The Target Region for India’s Exports of Buffalo Meat...............16

9. Trade Barriers with China for export of Indian Buffalo Meat....................19

10. Analysis & Recommendations..............................................................20

11. Promotion of Exports to China.............................................................20

12. Bibliography.....................................................................................22

Introduction to processed meat in India: The livestock sector is an important component of India’s economy in terms of income, employment and foreign exchange earnings. An analysis of the composition of agricultural trade over the last decade shows that traditional agricultural exports of India have been overtaken by new and more dynamic sectors, such as buffalo meat exports. A Bovine animal is one which belongs to the Bovini (cattle), a bovid tribe including domestic

cattle such as an ox, cow or buffalo. Though Cow Slaughter is highly taboo in India, there is no

prohibition on killing buffaloes for meat. Meat of Goat and Lamb is still a small segment relatively where

local demand is outstripping supply. The production level in these two segments stands at an immutable

figure of 950,000 tons with annual exports of less than 10,000 tons.

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

percent is utilized. Indian exports amount to more than 500,000 tons of meat, in which major

contributor is buffalo meat and thus Indian bovine meat is majorly buffalo meat. Indian buffalo meat is

witnessing strong demand in international markets due to its lean character and near organic nature.

The meat of bovine animal’s products as per the ITC-HS code can be further subdivided into the

following categories:

HSCode Item Description w.e.f policy

02 Chapter 2: Meat and Edible Meat Offal

0202 Meat of Bovine animals, Frozen

02021000 Other: Carcasses and half-carcasses

18-Apr-2012 Restricted

02022000 Other: Other cuts with bone in

18-Apr-2012 Restricted

02023000 Other: Boneless 18-Apr-2012 Restricted

Nature of Restriction imposed on Boneless meat of buffalo (both male and female), frozen 02023000 is:

1. Export allowed on production of a certificate from designated veterinary authority of the state from

which the meat or offals emanate, to the effect that meat or offals are from buffalo not used for

breeding and milch purposes

2. Quality control and inspection under note 3 and 4 respectively as well as condition stipulated under

note 6 are fulfilled.

Production pattern and Technology involved for processed meat: The recent trend in India has been to

establish large slaughterhouses (abattoirs) which also serve as meat processing plants with the latest

technology. There are 10 state-of-the-art mechanized slaughterhouses-cum-meat processing plants in

various states where buffaloes and sheep are slaughter for meat. It is ensured that these plants are

environmental friendly as all the byproducts are utilized to make meat cum bone meal, bone chips,

tallow and other value-added products. The plants adhere to the norms set by the International Animal

Health code of World Organization for Animal Health (O.I.E.) w.r.t sanitary and phyto-sanitary measures.

Areas of Production: Andhra Pradesh, West Bengal, Maharashtra, Kerala, Delhi, Uttar Pradesh,

Rajasthan are the key areas of Processed meat production in India.

India Facts and Figures: India exported 796.93 MT of processed meat to the different countries in the

world for the worth of INR 9.38 crores during the year 2012-13.

Major Export Destinations (2012-13): India’s Major export destinations comprise of countries like

Thailand, Australia, Myanmar, United Arab Emirates, Saudi Arabia and Vietnam Social Republic.

Individual products under processed meat include:

1. Sausages & Canned Meat

2. Homogenized Meat Preparations

3. Preserved Meats

4. Other Poultry Meat

5. Preserved Meat Of Bovine Animals

6. Meat Extracts & Meat Juices

As buffalo meat constitutes a huge percentage of processed meat exports for India, the analysis reveals following facts & figures about buffalo meat:

Buffalo Meat: India's consists of 88 million buffaloes, which is 58 per cent of the world's buffalo population. 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.

Major Areas of Buffalo meat Production: Andhra Pradesh, Maharashtra, Uttar Pradesh are the key

areas of Buffalo meat production in India.

India Facts & Figures: The country has exported 11,07,506.24 MT of buffalo meat products to the world

for the worth of INR 17,412.86 crores.

Major Export Destinations of Buffalo meat (2012-13): Vietnam Social Republic, Malaysia, Thailand,

Egypt Arab Republic and Saudi Arabia.

Individual products under buffalo meat include:

1. Carcasses Of Bovine Animals (Fresh)

2. Meat Of Bovine Animals With Bone (Fresh)

3. Boneless Meat Of Bovine Animals (Fresh)

4. Carcasses Of Bovine Animals (Frozen)

5. Meat Of Bovine Animals With Bone (Frozen)

6. Boneless Meat Of Bovine Animals (Frozen)

Other Meat: Animals which are generally used for production of meat comprise of sheep and goats, pigs

and poultry. These include species like pig, camel, horses, camel and primates which are important for

their contribution to the development of rural zones and people living in those areas. The initiatives by

organizations like APEDA to promote quality labels and innovative products for cheeses, meat and fibres

could help Swine/Pigs, Rabbits, Horse, Camel, Primates etc. in keeping a role for sustainable

development in an eco-friendly environment all over the world.

Major Areas of swine/pig meat production: U.P, Bihar and Maharashtra.

India Facts & Figures for swine/pig meat production: India exported 194.14 MT of Other Meat products

to the world for the worth of INR 2.32 crores in 2012-13.

Major Export Destinations for swine/pig meat in 2012-13: Thailand, France, Vietnam Social Republic,

Bhutan and South Africa.

Individual products under other meats include:

1. Carcasses, Hams, Shoulders & Cuts Thereof Of Swine/pig (Fresh & Frozen)

2. Meat Of Swine/pig With Bone and Boneless (Fresh & Frozen)

3. Meat Of Horses, Asses (Fresh & Frozen)

4. Meat And Edible Meat Offal Of Rabbits Or Hares (Fresh & Frozen)

5. Meat And Edible Meat Offal Of Primates (Fresh & Frozen)

6. Meat Edible Offal Of Camels And Other Camelids (Fresh & Frozen)

India Meat production – growth in recent years:

Annual Growth Rate of Meat Production in India: 1975-2000 (source fao.org)

Item Percentage Percentage Percentage

1985 Over 1975 2000 Over 1985 2000 Over 1975

1. Buffalo meat 2.3 2.1 2.1

2. beef 2.0 3.8 2.9

3. Mutton 1.9 2.0 1.9

4. Goat Meat 2.9 2.0 2.9

5. Pig Meat 4.6 14.7 10.8

6. Poultry 4.8 10.0 8.1

Total 5 4.7 4.6

Production of Buffalo Meat in India (in 000' tons)

Source: FAO

S. No State Municipal Slaughterhouse (MSH) visited

Approx Buffalo slaughtered/day, head

1 Uttar Pradesh Rampur MSH Bareilly MSH Aishbag MSH

350 400 300

2 Andhra Pradesh Chengicharala MSH 300

3 Maharashtra Debonair Slaughterhouse 200

4 Delhi Gazipur Slaughterhouse 1000

5 West Bengal Tangra MSH, Garden Reach MSH

450 150-200

6 Rajasthan Chainpura MSH 800-1000

7 Karnataka Civil Slaughterhouse, Bengaluru

150

Source: FICCI primary survey

Note: These states are also the major consumers of buffalo meat in India

Indian Buffalo Meat Value Chain for Domestic and Export Market: Structure of buffalo meat sector i.e.

Buffalo meat production can be classified into two major value chains:

(a) Large-scale production for export, and

(b) Municipal slaughterhouse system for domestic consumption.

The 3rd prevalent model is “backyard” slaughtering in remote areas. Backyard slaughter is characterized

by low inputs and slaughter of animals for one's own consumption or for sale of surpluses to local

557

623

670

805

Production(in 000 tons)

2007-08

2008-09

2009-10

2010-11

markets. Municipal slaughterhouses (MSH) are State Government bodies that provide services for

buffalo meat production for domestic consumption. They are the state-of-the-art abattoirs with latest

technology and follow the rules and regulation of sanitation and phtyo-sanitation. Production for export

consists of companies controlling the initial stage of animal purchase from livestock traders to marketing

deboned meat in the international market.

Value addition by various actors in production of Buffalo meat: Buffalo are primarily raised by farmers

in India for meat production and for dairy purposes. Most farmers sell the buffaloes to traders. Farmers

rear buffalo till they reach an unproductive age or are inefficient for any work and thereafter sell them

either to traders or at the livestock market. Traders transport the purchased animal to a municipal

slaughterhouse for slaughtering. These livestock traders don’t own slaughter facilities but take the help

of MSHs. The buffalo meat is after slaughtering collected by the retailers directly or by wholesaler meat

dealers. So the role of various actors which include farmer/dairy sector, trader, commission agent, at

different stages of meat production can be explained in the following manner:

Livestock Market

Livestock Trader

Commission Agent Farmer MSH Retail/Wholesale

meat dealer

Commission Agent

Consumer

BUFFALO MEAT VALUE CHAIN FOR DOMESTIC MARKET

Livestock Market

Livestock Trader

Farmer Exporter Importing Country

BUFFALO MEAT VALUE CHAIN FOR EXPORT MARKET

Also if we look at the price of live buffalo for sale in the domestic market, we have:

S. No Liveweight of

buffalo, kilograms

Price at livestock market, per head

Trader prices, per head

INR USD INR USD

1 200 11,000 183 10,000 166

2 150 9,000 150 8,000 133

Production of Buffalo meat in domestic market and the costs incurred at each stage:

Alive buffalo is available in the domestic market at an average cost of INR 10,000-11,000. Once a trader

or a butcher buys the buffalo for the purpose of meat production, the buffalo meat sells at an

approximate cost of INR 115/kg from MSHs to wholesaler/retailer. Also the butcher sells the

remains/hide of buffalo at the rate of INR 1250. A buffalo weighing 200 Kgs (average estimation of a

buffalo’s weight) produces hide of around 110 Kgs. Finally the consumer is able to buy the meat in the

market at the rate of INR 130/kg.

Farmer/Dairy

Sector

Trader Commission

Agent

Rearing buffaloes &

non-milik breed

buffaloes & transport

to livestock market

Aggregator,

transportation of

buffalo to municipal

slaughterhouse

Facilitator in selling

and buying, money

lender

Butcher

Wholesale

meat dealer

Retailer

Slaughter, sale of

buffalo meat

Sale and purchase of

buffalo meat

Selling buffalo meat to

consumers

Indian Exports Scenario: India is on track to become the world’s largest bovine meat exporter in the

world by the year 2013-14. US Department of Agriculture data revealed that Indian production had of

buffalo meat had grown 9.8% in 2012-13 and is forecasted to grow by a further 4% in 2013-14 to 4MT.

The optimism also stems from the fact that the global economic recession will not impact meat exports

from India due to its cost competitiveness in international markets. Last year, India overtook Brazil as

the top exporter of beef, mainly due to growing acceptance of its buffalo meat by South-East Asia, West

Asia and African countries due to our competitive pricing and quality.

The introduction of Salvaging and Rearing Male Buffalo Calves law and Utilization of Fallen

Animals Scheme had helped promote rearing of buffalo bull calves for meat production and assisted the

sector in moving towards its meat sector growth rate target of 10%. The slaughter is restricted to males

and unproductive females. According to APEDA, exports of meat and its products increased to $3.29

billion in 2012-13 against $2.91 billion the previous year.

India’s Exports to the world for the period of 2008-12 stand as

Period Trade Flow

Reporter Partner Code Trade Value NetWeight

(kg) Quantity

Unit Trade

Quantity Flag

2008 Export India World 0202 $1,097,874,890 475,239,567 8 475,239,567 0

2009 Export India World 0202 $972,646,944 428,855,782 8 428,855,782 0



2012 Export India World 0202 $2,962,562,555 1,027,078,627 8 1,027,078,627 0

Source: UN comtrade

Farmer/dairy sector

Livestock Market

Farmer/dairy sector

Animal Trader/Butcher

MSHs Retailer/Wholesaler Consumer

SP 11k

SP 10k Price of buffalo meat INR 115/kg

Earnings from Carcasses INR 1250

Price 130/kg

Leg 1 Leg 2 Leg 3

Stages in buffalo meat production for domestic market and cost involved in each stage

India’s major export Destinations: Vietnam, Malaysia, Egypt, Saudi Arabia, Jordan, Iran, Algeria, UAE &

Philippines.

Strengths of Indian buffalo meat for export market:

1. Livestock rearing in India is very healthy as it happens on green pastures and agriculture crop

residues.

2. Conducive Government policies

• Licensing and registration of meat packing plants/abattoirs: Government of India has laid down

standards for export of meat which includes standards for abattoirs, processing plants for various meat

products. Registration of abattoirs and meat processing plants is done by the Agricultural and Processed

Food Products Export Development Authority (APEDA).

• Government of India accords high priority to quality issues in buffalo meat for export.

• Animal Health Certificate

3. India is a member country of the International Organization for Animal Health (OIE), and is mandated

to report list “A” and list “B” animal diseases to the OIE at regular intervals. Among the list “A' disease of

cattle and buffaloes, except for foot and mouth disease, India is free from all other bovine diseases. For

control of FMD, 54 districts had been identified where 100% vaccination was completed during the 10

Five Year Plan (2002-2007).

4. There is no practice of using hormones, antibiotics or any other chemicals to promote growth and

fattening of livestock.

5. Indian buffalo meat is 93% chemically lean and blends very well with other ingredients for value

added products.

6. The animals are strictly halal slaughtered.

7. Indian buffalo meat is low in fat and cholesterol.

8. Indian buffalo meat is free from radiation.

India caters to the meat demand of major Islamic countries as the meat is genuinely halal, lean

and nutritious, healthier than beef. Indian buffalo meat is ideal for processing since it retains more

moisture and binds easily with ingredients. Indian buffalo meat is witnessing strong demand in

international markets due to its lean character and organic nature. Also India has a cost advantage as

Indian buffalo meat is most competitively priced red meat in the world.

Closest Competitor: India’s exports have made inroads into territories like West Asia, North Africa and

South-East Asia, a key market for Brazil, as buffalo meat is cheaper in these price-sensitive markets. It is

produced according to halal standards (meat prepared as prescribed by Islamic law).

Due to shrinking of the available land, Brazil has been witnessing a constant decline in beef

exports but this year its shipments are expected to rise to 1.6 MT from 1.52 MT last year. Due to support

extended by the Brazilian government for pasture management and genetic improvement of cattle,

there is a renewed interest in livestock farming. The other reason for Indian exports rising is their

quality. Some of Indian exporters have excellent processing units.

If we compare the major buffalo producing nations’ numbers:

World buffalo production (in 000’ numbers)

Country 2009 2010 2011 %age Share Rank

India 109438.00 111891.00 112916.00 57.83 1

Pakistan 29883.00 29413.00 31726.00 16.25 2

China 23271.36 23602.12 23382.13 11.97 3

Nepal 4680.49 4836.98 4993.65 2.56 4

Egypt 3838.72 3818.24 3800.00 1.95 5

Philippines 3321.00 3270.40 3075.30 1.57 6

Myanmar 2900.00 2874.86 2977.15 1.52 7

Viet Nam 2886.60 2877.00 2712.00 1.39 8

Thailand 1670.51 1622.65 1698.00 0.87 9

Bangladesh 1304.00 1349.00 1394.00 0.71 10

Other Countries 7030.52 7202.99 6591.95 3.38

World Total 190224.20 192758.25 195266.18

World Production of Buffalo meat for the year 2009-11:

World production (in 000’ tonnes) and slaughtered (in 000’ no.) of Buffalo meat

Country 2009 2010 2011 %age share in

Production Rank Slaughtered Production Slaughtered Production Slaughtered Production

India 10599.00 1462.66 10793.00 1489.43 10890.00 1502.82 42.80 1

Pakistan 6080.00 730.00 6267.00 752.00 6455.00 775.00 22.07 2

Egypt 1228.00 411.91 1262.00 398.35 1271.00 395.80 11.27 3

China 3091.75 309.43 3101.70 310.42 3094.72 308.43 8.78 4

Nepal 712.60 156.62 737.00 162.21 763.00 167.86 4.78 5

Philippines 455.00 98.90 485.00 105.65 481.30 105.60 3.01 6

Viet Nam 491.00 105.56 490.00 105.35 462.00 99.33 2.83 7

Indonesia 164.00 34.76 164.00 35.90 164.00 37.50 1.07 8

Myanmar 233.60 32.93 230.00 34.56 228.00 34.32 0.98 9

Thailand 89.26 33.74 108.64 46.10 91.83 23.23 0.66 10

Other countries 451.92 57.72 464.42 59.86 481.21 61.70 1.76 11

World Total 23596.13 3434.27 24102.77 3499.85 24382.07 3511.60

Source: UN comtrade

List of exporters for the selected product(Unit : US Dollar thousand)

Exporters Exported value

in 2009 Exported value



in 2012

Exported value in

2013

World 11457198 14568377 17721682 18361806

Brazil 2655312 3376278 3517740 3674543

Australia 1868559 2263221 2902739 2963580 1041067

India 972647 1676479 2566806 2962563 876946

USA 874871 1520808 2070250 2040304 414572

New Zealand 978003 1176684 1418825 1459636 420749

Uruguay 739306 833517 971341 1019086 199598

Paraguay 274880 379525 367099 654419 188790

Nicaragua 142116 234910 324075 371299 68356

Argentina 818621 417866 422414 304781

Mexico 53953 73696 212192 256289

List of exporters for the selected product(Unit : Tons, quantity)

Exporters

2009 2010 2011 2012 2013

Exported quantity, Tons





World 3760844 3947093 4378876 4500151

India 428856 490842 939224 1027079

Brazil 851879 870559 731296 820018 1041067

Australia 688490 697508 756007 757671 876946

United States of America 225667 346108 458745 413769 414572

New Zealand 342737 339667 333804 339629 420749

Uruguay 225641 205387 186986 206580 199598

Paraguay 103228 108493 84132 158035 188790

Nicaragua 47393 65912 82191 88851 68356

Mexico 13600 33721 47912 56863

Canada 42653 51069 55082 51973 51726

Source: trademap

Country-wise International Trade of Bovine Meat

Qty in 000’ MT, Value in US$ Mill

Exporting Country Importing Country

2009 2010 2011

Qty Value Qty Value Qty Value

Australia All 1477.38 5104.76 1376.03 5648.3 1359.39 6501.12

USA All 705.89 2854.73 892.55 3725.56 969.23 5098.16

Brazil All 903.84 3113.92 1134.22 4113.49 802.16 3465.56

Netherlands All 437.63 2606.81 481.79 2765.05 434.30 2945.74

New Zealand All 591.46 1800.69 578.17 2116.62 553.66 2479.97

Germany All 401.79 2051.39 484.20 2091.2 461.84 2385.72

Ireland All 508.30 2505.57 574.71 2792.88 400.52 2344.37

Canada All 663.30 1938.76 722.65 2358.6 580.82 2290.72

France All 251.35 1281.89 296.53 1322.98 302.64 1587.81

Argentina All 472.48 1959.33 231.06 1260.07 223.50 1339.85

Uruguay All 299.90 1213.32 277.51 1255.24 247.34 1310.77

Poland All 227.95 915.48 283.03 982.25 293.38 1226.41

India All 398.77 1002.61 453.65 1269.84 397.24 1186.61

Mexico All 65.80 323.74 105.15 527.39 174.28 879.43

Belgium All 93.95 550.08 379.25 641.44 142.94 762.68

Other Countries 10,43.00 4,633.16 16,06.90 5,158.79 12,19.04 5,619.87

Total 85,42.89 33,856.24 98,77.46 38,029.70 85,62.35 41,424.79

Source: UN comtrade

According to the UN comtrade data Australia is the largest Buffalo Meat Exporter in the world, with

1359.39 MT during the year of 2011, followed by USA and Brazil with 969.23 MT and 802.16 MT

representing the second and third position in Buffalo Meat Export during the same period. India stood

at 13th position in World Buffalo Meat Export during the same period. As compared to India most other

major buffalo meat exporting countries can be considered mature export industries.

Domestic Consumption in India: India is set to witness an increase in the domestic consumption to 2.1

MT from 2.04MT last year. The domestic consumption hasn’t surged as much as the exports have done

as per GAIN (Global Agricultural Information Network) report. This is because people are shifting to lamb

and other meats in view of increasing income in the country. Poultry meat, in particular, has increased

sharply in the last few years.

Buffalo slaughter numbers and carabeef produced in India for domestic consumption

State wise Trends in increasing consumption of buffalo meat in the domestic market

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2007-08 2008-09 2009-10 2010-11 2011-12

Buffalo meat produced

Est no of Buffalo slaughtered

0

200

400

600

800

1000

1200

AndhraPradesh

KarnatakaKerala

WestBengal

Buffalo meat produced

Est no of Buffaloes slaughtered

Trends in buffalo meat consumption in domestic market:

I. Slaughter of buffalo for domestic consumption is trending upward in some major meat producing states, which points to increasing domestic demand.

II. The pattern of buffalo meat consumption in India may differ from state to state due to differences in consumer preference and religious taboos. Buffalo meat in India is generally consumed by the Muslim community and in some places by Christians as well. Therefore, growth in the population of buffalo meat consumers will lead to a direct increase in domestic demand for buffalo meat.

III. Buffalo meat is one of the cheaper options of animal protein for consumers. The average price of buffalo meat is Rs 130-150/kg whereas the average price for mutton is Rs 380/kg, fish is Rs 200-500/kg, and chicken is Rs 180 per kg.

IV. There are no restrictions on buffalo slaughter when compared to cows in most states. V. Being relatively low in fat and cholesterol, buffalo meat is one of the most healthful red

meats for Indians.

WHY CHINA AS THE TARGET REGION FOR INDIA’S EXPORTS OF BUFFALO MEAT?

Indian export of Buffalo meat to China: Direct export of buffalo meat is not allowed currently from India to China for health and biosecurity reasons, and the exclusion has been a long-pending issue between the two countries. Till May last year, Buffalo meat entered Chinese borders through grey channels slipped over the border tariff-area from neighboring countries like Vietnam. Similar banned products like Beef from Brazil and US also followed the same route into China. So we take a look at India’s export to Vietnam.

Buffalo Meat Exports from India to Vietnam

Value (Rs Crore) Quantity (MT)

2013-14 (April-Oct) 5220 247819

2012-13 (April-Oct) 1586 123138

2011-12 (April-Oct) 1888 137913

Source: APEDA

China and India signed a Memorandum of Understanding over direct exports of Indian Buffalo meat between the Agricultural and Processed Food Products Export Development Authority (APEDA) and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ) wherein the terms included minimum safety requirements, quality supervision, inspection and quarantine. The pact is yet to be implemented, but once ratified; the deal is likely to give a great fillip to buffalo meat exports from India. The Chinese demand for Indian buffalo is estimated to be worth US$ 1.5 billion a year at the rate of US$3000/tonnes stimulating annual trade of approximately 500,000 tonnes. Indian buffalo meat accessing the Chinese market currently totals only about 5000-7000 tonnes via the grey channel, out of total Chinese beef imports of about 340,000t in 2013. According to the US Department of Agriculture, in 2013 India will export 1.7 million tonnes of beef (including buffalo meat), 20% above 2012 and continuing to grow.

The reason why China is a huge market for bovine meat export is obvious. Its huge population base, large projected per capita income and increasing per capita beef and meat consumption levels show that it is marketplace which needs to be tapped to be made most out of the export business of Buffalo meat. (Diagrams below)

Projected per capita beef

consumption in China Projected rural, urban, and total beef

consumption in China

Chinese projected per capita income

Meat consumption percentages in China

The Chinese import of Buffalo meat stood as follows for 2008-12

Period Trade Flow

Reporter Partner Code Trade Value NetWeight

(kg) Quantity

Unit Trade

Quantity Flag

2008 Import China World 0202 $9,946,360 3,696,736 8 3,696,736 0





Source: UN comtrade

China’s import Destination for Buffalo meat: Australia, Uruguay, New Zealand, Canada & Argentina.

Imports of Bovine animals to China in 2012:

Sr. No Product Quantity(MT) Value(in Million US$)

1 Meat of bovine animals, frozen, boneless (020230) 50,398.00 223.68 2 Meat of bovine animals, frozen (excl. of 0202.10),

bone-in (020220) 10,127.00 19.54

Import Tariffs applicable for China for Buffalo meat:

HS Code

Product Final Bound Duties MFN Applied Duties Imports

[AVG]-FBD

[Duty Free in %]-FBD

[Max]-FBD

[Binding in %]-FBD

[AVG]-MFN

[Duty Free in %]-MFN

[Max]-MFN

[Max]-MFN

[Duty Free in %]-Imp

020220

Meat of Bovine Animals, Frozen (Excl. of 0202.10), BoneIn

14.8 9.4 25 100 14.8 10.1 25 0.2 9.2

020230

Meat of Bovine Animals, Frozen, Boneless

14.8 9.4 25 100 14.8 10.1 25 0.2 9.2

As China had until 2013 banned imports of Buffalo meat from India and only in May, 2013 signed a MoU with Indian APEDA department which is yet to be implemented, we take a look at the engagement of China with the countries from where it is importing frozen meat.

All frozen meat products containers arriving at ports under the supervision of Guangdong CIQ would require verification from the Food Safety Inspection Service (FSIS).

With the electronic system (eTDE) for health certificates introduced on June 1st 2012, all of the health certificates had to be verified by CIQ port officers in their internal database before the product meat products could be released.

Trade Barriers with China for export of Indian Buffalo Meat:

1. Firstly, non-tariff barriers are more important than tariff barriers. Starting from the issue of the mandarin language which is difficult to understand since it is phonetically different from the European languages, the list of non-tariff barriers that exporters into China faces is endless.

2. India has been chief anti-dumping champion at the WTO meets whereas the China has been at the receiving end of anti-dumping charges.

3. Among Non-Tariff Trade barriers, the single largest complaint against China has been its exchange rate. China follows a managed float regime for its interventions in the foreign exchange market. This implies that the Chinese central bank allows some movement of the exchange rate with respect to a basket of currencies.

4. Indian meat doesn’t meet the quality standards set by Chinese importing agencies as Chinese feel that the imported products fail to meet the quality assurance standards because of Meat adulteration and Meat animal welfare not meeting the Chinese benchmark. In 2012, USA exporters also faced a simple complying issue where around 106 ships containing buffalo meat

were detained at the Chinese ports for not meeting the Cold chain standards thus failing to provide a sustainable supply of meat.

5. In India, there are about 4,000 registered slaughter houses with the local bodies and more than 25,000 unregistered premises, where animals are slaughtered to fulfil the demands of domestic consumers. There are about 20 integrated abattoirs-cum-meat processing plants with state-of-the-art facilities for hygienic meat production to meet the export demands, where animals are received from the suppliers who procure the animals from the weekly markets.

6. Existing conditions of slaughter-houses for domestic supply. The existing condition in the majority of the traditionally slaughter-houses is far from satisfactory. Most of the slaughter-houses are lacking basic facilities like water, electricity, ventilation, drainage, ceramic flooring, overhead rails and waste disposal.

7. Animals are slaughtered in traditional ways on the open ground with/without further processing or dressing on the floor/rails are the common practices in a majority of the slaughter-houses. Carcasses are exposed to heavy contamination from dung and soil. Situation is further aggravated by inadequate ante-and post-mortem inspection practices. These existing slaughter houses are mostly under the local governmental authority and no one is brother about their 'up gradation' and consumer/public health point of view. Major concern of the officials is money collection in these cases.

Analysis & Recommendations: Recommendations to improve export of 0202 from India are as

follows:

Identification of Foot and Mouth Disease (FMD) free areas particularly where export

oriented abattoirs are located and notification of these Disease Free Zones by OIE.

Identification and up-gradation of municipal slaughter houses for export purpose.

Need for modernising the Quality Control laboratories of the State Govt.

Need for strict laboratory inspection of meat and meat products.

Training programmes for meat workers regarding hygiene and sanitation need to be

organized regularly.

Rearing of Male Buffalo Calves on scientific lines so as to fatten them quickly.

Investment opportunities in this sector can help India to export legally through official

channels to countries like China by adhering to the export norms set by the Chinese

government. There is a large potential for setting up of modern slaughter facilities and

development of cold chains in meat and poultry processing sector.

Steps laid by APEDA to follow norms and standards for export of frozen meat must be

followed like registration of abattoirs and meat processing plants which should be

regularly undertaken with APEDA

Promotion of Exports to China: Incentives that Indian exporters can avail from DGFT, Indian

Government are:

1. VKGUY: Meat and meat products covered by ITC HS codes 0201, 0202,0203 & 0204

have been notified by the DGFT under Vishesh Krishi and Gram Udyog Yojana

(VKGUY). The products will be entitled for Duty Credit scrip w.e.f 1/4/2008. Duty

Credit scrip benefits are granted with an aim to compensate high transport costs.

Exporters, of products notified under Appendix 37 A of HBP v1, shall be entitled for

Duty Credit scrip.

2. FMS incentives from meat products were removed recently by the Indian government.

They need to be brought back for the Indian traders to be incentivized for exporting meat

products to china.

3. Widespread training and support for Farmers and Slaughter houses: Both these actors

need to be trained in rearing of unproductive buffaloes and the slaughtering techniques

and sanitation norms which should be followed to keep the meat in proper shape and

condition for exporting. This would help in focusing on quality and consistency of

product being exported to China. This would help the meat consignments conforming to

the notified standards and specifications and thus will be allowed for export to

destinations such as China.

4. Tax preferences: Relaxation/Exemption: government needs to step up to make the

exports profitable to destinations like china to make India an indomitable player in

buffalo meat exports and strengthen its position as a leader in world exports for this

commodity.

5. India needs to develop programs like FMD control programme where the animals are

vaccinated every six months and there are no growth enhancing medicines/chemicals

used in rearing of animals.

Bibliography

1. www.trademap.org 2. www.apeda.gov.in 3. www.eximguru.org 4. http://www.buffalopedia.cirb.res.in/ 5. http://www.beefcentral.com/ 6. http://www.comtrade.un.org/db/ 7. http://www.intracen.org 8. http://www.fao.org/home/en/ 9. http://www.google.com 10. http://www.wikipedia.org/

http://www.trademap.org/

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

http://www.eximguru.org/

http://www.buffalopedia.cirb.res.in/

http://www.beefcentral.com/

http://www.comtrade.un.org/db/

http://www.intracen.org/

http://www.fao.org/home/en/

http://www.google.com/

http://www.wikipedia.org/

Thankyou

bovine meat

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