September 14, 2012

 

 

Due to better prices following lower cost of production, India's buffalo meat exports are expected to jump by 30% to 2.15 million tonnes in the 2013 calendar year.

 

According to a latest USDA report, the exports are estimated at over 1.66 million tonnes this year. Given its tremendous export growth, India is likely to become the world's largest buffalo meat exporter by next year, if not sooner, it said.

 

"Indian buffalo meat exports have grown to record levels in the last two years, making India the fourth country in the world to export more than one million tonnes of bovine meat annually. As a result, calendar year 2013 buffalo meat exports are forecast at 2.15 million tonnes," the USDA said in its latest report.

 

The country's growing exports are the result of its low cost of production (relative to international competitors), it said.

 

Production costs are low in India as a result of herd growth due to strong dairy demand and new incentives from slaughter facilities to salvage previously underutilised animals.

 

While Indian buffalo meat competes on a cost basis, there are several other factors influencing trade. For example, all Indian buffalo meat is produced according to halal standards. It is also characterised as a lean meat with positive blending characteristics, the report explained.

 

As a price-based competitor, India has seen export increases in the previous two years to Middle Eastern, African and Southeast Asian countries, it added.

 

The report highlighted that the country's buffalo meat production growth is being led by the export market, while domestic demand is keeping pace with population growth rate.

 

"Further expansion into the domestic market appears unlikely because Indian meat retailing lacks cold chain facilities and Indian consumers prefer non-bovine proteins such as chicken, goat, dairy products, and pulses," it noted.

 

Production of buffalo meat in 2013 is thus forecast to rise by 14% to a record 4.16 million tonnes from 3.64 million tonnes in 2012. Domestic consumption of buffalo meat is also expected to increase slightly to two million tonnes in 2013 from 1.98 million tonnes this year, it said.

 

India's per capita buffalo meat consumption is estimated at approximately two kilogrammes per year. Increases in local consumption are marginal, reflecting population growth and India's preference for vegetarian and dairy-based protein.

 

Indian government laws prohibit the slaughter of cattle for religious concerns. Buffalo slaughter is allowed, although it is restricted to bulls and unproductive heifers.

 

There are 33 integrated slaughter/processing facilities and 58 meat processing facilities serving the export market in India. Supply chains for domestic and exported buffalo meat are separate.