Required Report - public distribution

**Date:** 8/25/2003

**GAIN Report Number:** IN3079

IN3079

**India**

**Livestock and Products**

**Annual**

**2003**

**Approved by:**

![](media/image1.wmf)Chad Russell

U.S. Embassy, FASNEWDELHI

**Prepared by:**

V. Shunmugam

**Report Highlights:**

Despite moderate growth in CY2004 cattle population, exports of meat are
forecast to grow by 12 percent to 520,000 tons to cater to the
increasing demand from the traditional and emerging markets. Domestic
beef consumption is forecast to increase to 1.55 million tons during CY
2004 and will remain second to poultry meat.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Annual Report

New Delhi \[IN1\]

\[IN\]

# 

# Table of Contents

# 

[PART I SITUATION AND OUTLOOK 3](#part-i-situation-and-outlook)

[Production 3](#production)

[Consumption 3](#consumption)

[Production Policy 3](#production-policy)

[Trade 4](#trade)

[PART II STATISTICAL TABLES 5](#part-ii-statistical-tables)

[Table 1: Commodity, Animal Numbers, Cattle, PSD table
5](#table-1-commodity-animal-numbers-cattle-psd-table)

[Table 2: Commodity, Meat, Beef and Veal, PSD Table
6](#table-2-commodity-meat-beef-and-veal-psd-table)

#   {#section-2 .unnumbered}

# PART I SITUATION AND OUTLOOK

## Production 

On improved fodder availability and higher prices for buffalo meat
(carabeef), India's cattle population in CY 2004 is forecast at 374
million, up 1.4 percent from the previous year. Buffaloes account for
roughly 49 percent of the total cattle population. The buffalo
population has registered a higher growth in recent years due to better
economic returns to farmers from its high-fat milk and increasing export
demand for buffalo meat. Although cow slaughter is generally banned in
India due to religious sensitivities, there are no restrictions on the
slaughter of buffaloes in most states. The government is presently
contemplating a law enforcing a comprehensive nation-wide ban on cow
slaughtering.

Commercial feed consumption is currently estimated at 10 million tons,
constituting about 10 percent of the total feed consumption. Growing
awareness about high quality feed and an expanding dairy and meat sector
is expected to lead to a significant increase in the demand for
commercial feed. Nonetheless, localized small feed formulators will
continue to dominate the Indian feed sector in the near-term.

## Consumption

Per capita beef consumption is estimated at 1.4 kg compared with 740
grams of sheep/lamb meat and 1.5 kg of poultry meat. Increased awareness
about the health implications of red meat coupled with better
affordability of poultry meat due to rising incomes has favored poultry
meat consumption, especially among urban consumers. The current retail
price of beef averages \$1.30 per kg compared to \$ 2.7 per kg for
sheep/lamb meat, and \$ 1.76 per kg for poultry meat.

Livestock slaughtering is typically a small-scale operation catering to
mostly the fresh meat consumers in the rural and semi-urban areas. There
are a few large-scale, modern slaughterhouses, mostly to cater to the
export market. Market for chilled or frozen meat is absent in India due
to a lack of cold chain facilities and an aversion to frozen meat.

## Production Policy

Government animal husbandry programs are largely focused to improving
milk production rather than the meat sector. There are no direct
subsidies to the Indian meat sector except for a few government-funded
research programs. Private exporters have taken up the primary
responsibility for developing the meat sector with various outreach
programs. There are nine export-oriented plants, which have incorporated
HACCP and/or ISO 9000 standards in addition to the BIS (Bureau of Indian
Standards) standards, which are obligatory for the export-oriented
slaughterhouses. These plants are periodically inspected by the
Agricultural and Processed Products Export Development Authority (APEDA)
and other concerned government authorities for their adherence to
domestic and export standards.

The private sector meat industry is also actively involved in developing
their animal supply catchment areas through a variety of services (feed
distribution, breeding, and vaccination) to meet the quarantine
requirements of importing countries. This has helped them to develop
disease free zones in their catchment areas.

Although there was a government proposal to introduce a bill (Prevention
of Cruelty to Cows Bill, 2003) in the Parliament seeking a nation-wide
ban on cow slaughter, following opposition from various political
parties and state governments, the plan was shelved. The government has
decided to convene an all-party meeting to reach consensus on the issue.

## Trade

CY 2004 carabeef exports are forecast to increase to 520,000 tons due to
increased demand from both the traditional and emerging markets. Exports
in CY 2003 are estimated to increase by 11 percent from the CY 2002
level to 465,000 tons (CWE) due to increased purchases by CIS and
African countries. Exports to the UAE are estimated to increase during
2003 following increased re-exports to Iraq. The former CIS countries,
which have been earlier importing beef from the EU, have recently begun
sourcing from India due to the BSE concerns and competitive Indian
pricing. Beef exports to West African countries are increasing due to
promotional efforts by Indian exporters.

According to trade sources, 90 percent of Indian beef exports is as
boneless and the balance as carcasses. Major markets for Indian
specialty beef cuts are Malaysia, Philippines, Egypt, and Jordan, with
smaller exports to the Middle East and African countries. The
Philippines and Malaysia account for a major share of the fresh/chilled
category, and the Middle East and Malaysia also import frozen meat. Most
of the beef exported to the South East Asian countries is to cater to
the institutional demand for processed beef products such as sausages,
salami, etc., due to the better water holding capacity of carabeef and
its better blending properties.

Foot and Mouth Disease (FMD) still remains a major hurdle in exporting
to new, lucrative markets in South Africa, Indonesia, and Russia. Trade
sources soon expect the opening up of the Indonesian market following an
intensive joint campaign by the private sector and the Indian government
in cooperation with the International Organization of Epizootics (OIE)
and the development of FMD free zones in India.

Licensing requirements due to quarantine concerns effectively ban
imports of live bovine animals. However, imports for breeding purposes
could be done under an advance import license issued by the Department
of Animal Husbandry. Due to the reported incidence of the TSE group of
diseases since August 1999, the Government of India had banned imports
of live cattle, buffalo, sheep and goat, fresh meat, meat products,
tissue/organ (other than milk), meat, and bone meal of ruminant origin
from countries where incidence of TSE group of diseases have been
reported.

India prohibits imports of beef owing to religious sensitivities.
However, limited opportunities exist for specialty beef cut imports to
meet the demand in the luxury hotels serving wealthy Indians and foreign
tourists.

# PART II STATISTICAL TABLES

## Table 1: Commodity, Animal Numbers, Cattle, PSD table

  ---------------- ---------- ------------- -------- ------------- -------- ------------- --------------
  **PSD Table**                                                                           

  **Country:**     India                                                                  

  **Commodity:**   **Animal                                                               
                   Numbers,                                                               
                   Cattle**                                                               

                              **2002**               **2003**               **2004**      UOM

                   Old        New           Old      New           Old      New           

  **Calendar Year             **01/2002**            **01/2003**            **01/2004**   (MONTH/YEAR)
  Begin**                                                                                 

  Total Cattle     317000     317000        324200   323000        329000   326900        (1000 HEAD)
  Beg. Stks                                                                               

  Dairy Cows Beg.  134200     134200        135700   135000        0        136300        (1000 HEAD)
  Stocks                                                                                  

  Beef Cows Beg.   0          0             0        0             0        0             (1000 HEAD)
  Stocks                                                                                  

  Production (Calf 45500      45500         46700    46200         0        47500         (1000 HEAD)
  Crop)                                                                                   

  Intra EC Imports 0          0             0        0             0        0             (1000 HEAD)

  Other Imports    1          1             1        0             0        0             (1000 HEAD)

  TOTAL Imports    1          1             1        0             0        0             (1000 HEAD)

  **TOTAL SUPPLY** 362501     **362501**    370901   **369200**    329000   **374400**    (1000 HEAD)

  Intra EC Exports 0          0             0        0             0        0             (1000 HEAD)

  Other Exports    0          0             0        0             0        0             (1000 HEAD)

  TOTAL Exports    0          0             0        0             0        0             (1000 HEAD)

  Cow Slaughter    1250       1250          1300     1350          0        1200          (1000 HEAD)

  Calf Slaughter   2800       2800          3200     3200          0        3500          (1000 HEAD)

  Other Slaughter  10200      10200         11000    11250         0        12000         (1000 HEAD)

  Total Slaughter  14250      14250         15500    15800         0        16700         (1000 HEAD)

  Loss             25251      25251         26401    26500         0        25500         (1000 HEAD)

  Ending           323000     323000        329000   326900        0        332200        (1000 HEAD)
  Inventories                                                                             

  **TOTAL          362501     **362501**    370901   **369200**    0        **374400**    (1000 HEAD)
  DISTRIBUTION**                                                                          

  Calendar Yr.     0          0             0        0             0        0             (1000 MT CWE)
  Imp. from U.S.                                                                          

  Calendar Yr.     0          0             0        0             0        0             (1000 MT CWE)
  Exp. to U.S.                                                                            
  ---------------- ---------- ------------- -------- ------------- -------- ------------- --------------

## Table 2: Commodity, Meat, Beef and Veal, PSD Table

  ---------------- ----------- ------------- ------- ------------- --------------- ------------- --------------
  **PSD Table**                                                                                  

  **Country:**     **India**                         0.7           \<-Conversion                 
                                                                   factor for CWE                

  **Commodity:**   **Meat,                                                                       
                   Beef and                                                                      
                   Veal**                                                                        

                               **2002**              **2003**                      **2004**      UOM

                   Old         New           Old     New           Old             New           

  **Calendar Year              **01/2002**           **01/2003**                   **01/2004**   (MONTH/YEAR)
  Begin**                                                                                        

  Slaughter        14250       14250         15500   15800         0               16700         (1000 HEAD)
  (Reference)                                                                                    

  Beginning Stocks 0           0             0       0             0               0             (1000 MT CWE)

  Production       1810        1810          1920    1960          0               2070          (1000 MT CWE)

  Intra EC Imports 0           0             0       0             0               0             (1000 MT CWE)

  Other Imports    0           0             0       0             0               0             (1000 MT CWE)

  TOTAL Imports    0           0             0       0             0               0             (1000 MT CWE)

  **TOTAL SUPPLY** 1810        1810          1920    1960          0               2070          (1000 MT CWE)

  Intra EC Exports 0           0             0       0             0               0             (1000 MT CWE)

  Other Exports    400         418           420     465           0               520           (1000 MT CWE)

  TOTAL Exports    400         418           420     465           0               520           (1000 MT CWE)

  Human Dom.       1410        1392          1500    1495          0               1550          (1000 MT CWE)
  Consumption                                                                                    

  Other Use,       0           0             0       0             0               0             (1000 MT CWE)
  Losses                                                                                         

  TOTAL Dom.       1410        1392          1500    1495          0               1550          (1000 MT CWE)
  Consumption                                                                                    

  Ending Stocks    0           0             0       0             0               0             (1000 MT CWE)

  **TOTAL          1810        **1810**      1920    **1960**      0               **2070**      (1000 MT CWE)
  DISTRIBUTION**                                                                                 

  Calendar Yr.     0           0             0       0             0               0             (1000 MT CWE)
  Imp. from U.S.                                                                                 

  Calendar Yr.     0           0             0       0             0               0             (1000 MT CWE)
  Exp. to U.S.                                                                                   
  ---------------- ----------- ------------- ------- ------------- --------------- ------------- --------------