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INTRODUCTION
TO
LIVESTOCK SECTOR
The livestock sector has been growing rapidly as compared to crop production. This growth
can be attributed to the increasing number of animals, thereby leading to high productivity.
The Livestock Sector contributes around 6.8% to GDP and employs around 8% of labour
force. The contribution of the Livestock sub-sector of Agriculture GDP has increased
impressively in the last twenty years, from less than 15% in the late 70s to over 33% in 2002
1
The State of Food and Agriculture 2009, FAO http://www.fao.org/publications/sofa/en/
2
Ibid
2
proportion of the world’s poultry meat produced in developing countries rose from 42 to 57
percent. It is estimated that production and consumption of poultry meat in developing
countries will increase by 3.6 percent and 3.5 percent, respectively, per annum from 2005 to
2030 because of rising incomes, diversification of diets and expanding markets, particularly
in Brazil, China and India. Dairying is not an adjunct to the crop-mix of Indian farms but an
integral part of the total farming system. Hence, treating dairy cattle as the backbone of the
livestock wealth of our country would not be an exaggeration. Although dairying provides
livelihood to millions of Indian farmers and generates additional income and employment for
a large number of families in the countryside with significantly greater participation of
women in this important activity, our country with about 18.36 per cent of the world’s total
cattle and buffalo population accounts for only about 14.5 per cent of the world’s total milk
production (GOI, 2004). Our livestock are roughly half as efficient as the average milch
animals in the world and probably only one fifth as efficient as those in the advanced
countries (Shah, 2001). However, there is consistent rise in India’s share in world milk
production, which has grown from 9.9 per cent in 1990 to 12.3 per cent in 1996 and further to
14.5 per cent in 2003. Although India has huge livestock population, in terms of trade it
stands insignificant in the world trade of livestock products. However, it is to be noted that
India has tremendous potential to produce and export various livestock products.
Despite constraints like rearing of livestock under sub optimal conditions due to low
economic status of livestock owners, India has now become the largest producer of milk in
the world. The development of Indian dairy sector is an unprecedented success story as it is
based on millions of small producers.
Government of India is making concerted efforts to raise the per capita availability of milk
through increase in productivity of milch animals. In order to achieve this ambitious goal,
assistance is being provided to the State Governments for controlling animal diseases,
scientific management and up gradation of genetic resources, increasing availability of
nutritious feeds and fodder, etc. In the present milieu, when production of dairy products to
match international standards has become necessary to compete in international market of
milk and milk products, steps need to be initiated to improve quality of Indian milk products
with a view to boost export trade of these products in free trade regime and earn valuable
foreign exchange as well as provide clean and quality milk to domestic population for their
better health market coupled with marketing opportunities abroad due to the GATT
provisions now render India to an enviable position to cater to the huge global market of
livestock products, particularly dairy products. Earlier, the past trends in milk production and
3
domestic consumption had indicated a possible exportable surplus of a modest level of
1,00,000 MTs of dairy products by the turn of the century (Baxi, 1994). The emergence of
India as an exporting nation of livestock products in the era of liberalization is sure to upset
the traditionally exporting block of nations in these products. Further, with the signing of the
agreement on Dunkel Draft Report, giving rise to World Trade Organization (WTO) from
January 1995, it is believed that the opportunities for enhanced livestock product exports have
opened up considerably which our country should take advantage of. It is also widely
believed that with the ushering in of the agricultural policy reforms in major industrial
countries, the demand for livestock products from developing countries, like India, will get a
real boost There is no denying the fact that the adoption of several liberal policy measures by
the Government in more recent times and the application of scientific production techniques
have boosted India’s livestock production. However, the point that merits consideration is
how did the structure of livestock production and exports of India changed over time and
what future prospects India holds in the export trade of livestock products in the light of the
rapidly changing world market conditions and in view of the various trade policy measures
adopted by the various developed and developing nations. Against this backdrop, it is felt
necessary to assess the output and export performance of India vis-à-vis Asia and World in
terms of livestock products over the past decade and a half. The dynamics of temporal
variations in the structure of production and export trade of livestock products of India is the
main foci of the subject matter of this study.
4
Husbandry, Dairying & Fisheries Ministry of Agriculture, Government of India, New Delhi
and from various authors research papers.
In general, the paper focuses on variations in: (a) pattern of production and export trade of
livestock and livestock products, (b) share of export trade in total production, (c) growth in
individual livestock commodities produced and exported. The reference period for the
analysis is from 2001 to 2010. The entire paper is divided into two sections. While the first
section the changing structure in the production and export trade of livestock products of
India and the changes that have taken place over time, the second section is devoted to the
future prospects of India in the export trade of various livestock products through various data
analysis and interpretation by using Statistical Techniques like Correlation and Least square
method.
Section – I
5
provides a major consumer base for human foods in the world. In India, livestock provides a
regular supplementary income and employment not only to millions of producers in the rural
areas but also to very large number of people engaged in secondary and tertiary business
related to livestock business. It is an important occupation and a source of family income
large number of women in the villages. Besides providing organic manure for the soil,
livestock is also an important source of several value-added byproducts of animal origin
which presently are not properly processed and utilized as a commercial activity but have an
immense future business potential.
In last 50 years, India has developed a strong and professionally competent technical,
marketing and business manpower in Livestock production and Information Technology.
This is an added advantage over many developing countries of Asia and Africa. Availability
of competent and comparatively low-cost manpower in India is a great asset which is
attracting foreign investors. As a result of stagnancy or in some cases reduction in agricultural
production, demand for several inputs like machinery and equipment, feeds, pharmaceuticals
etc. has reduced in some countries of America and Europe. It is therefore not surprising that
these business enterprises have focussed their attention to emerging Asian markets,
particularly India and China. India is in a better position as it has a strong technical
manpower base and large number of English speaking population. India’s livestock scene has
witnessed certain major changes in the last 25-30 years. Government outlay on development
of livestock sector rose dramatically from a mere 905 million rupees in the Third Plan (1961-
66) to the Sixth Plan (1980-85) total outlay of 3,966 million rupees on animal husbandry and
dairying, (Table 1) of which 2,983 million rupees was meant for expenditure on dairying
alone. During the Seventh Plan (1985-90), 3,028 million rupees was earmarked for dairying
out of a total outlay of 4,679 million rupees for animal husbandry and dairy. Expenditure on
dairying increased sharply during the Eighth Plan (1992-97). Of the total outlay of 13,000
million rupees for animal husbandry and dairying, the expenditure on dairying was nearly 63
per cent. Nonetheless, though outlay on development of livestock sector increased to 15,456
million rupees in the Ninth Plan (1997-2002), only 30 per cent of the total outlay was
earmarked for dairying and the remaining for the development of various other animal
husbandry activities. The outlay for dairying in the Ninth Plan was substantially lower than
the outlay for dairying in Eighth Plan but higher than the outlay for dairying in the Seventh
Plan.
6
Table 1.1:Outlay and expenditure of central and centrally sponsored schemes
(Rs.crore)
Annual Plan (1966-67) 6625.40 41.33 34.00 26.14 25.70 67.47 59.70
7
2002-03 156.48 125.3 37.02 34.99 193.50 160.35
6
At present, India accounts for about one sixth of the world’s cattle and half of the world’s
buffalo population. The importance of livestock sector in India can be better indicated by
looking at its share in agricultural production. “India has vast resource of livestock and
poultry, which play a vital role in improving the socioeconomic conditions of rural masses.
India ranks first in respect of buffalo, 2nd in cattle and goats, 3rd in sheep, 4th in ducks, 5th
in chickens and 6th in camel population in the world. India has 57% of the world's buffalo
population”3. The animal husbandry and fisheries sector provides employment to 23.68
million people. According to the Central Statistical Organization of the Government of India
(CSO), the value of output (at current prices) from the livestock and fisheries sector was
around $62 billion during the Indian Financial Year (IFY) 2006/07. The livestock and
fisheries sectors together contribute 31.7 percent to India’s agriculture production value
(value of output) and are the major sources of income for small and marginal farmers.
3
Annual Report (2007-08), Department Of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture
Government of India New Delhi.
8
Additionally, the livestock and fisheries sector had a share of 5.26 percent in the total GDP
during 2006-07. India has the world’s largest livestock population. However, India’s share in
the world meat trade is minimal (except beef) and meat processing levels are below other
major meat producing countries. Animal slaughtering for domestic consumption is mainly
carried out in slaughterhouses approved by the municipal corporation (a local regulatory
body) and small corner shops. According to the Animal Husbandry Statistical Database of the
Department of Animal Husbandry, Dairying and Fisheries (DADF), there are a total of 5,520
recognized and 4,707 unorganized slaughterhouses in the country as of 2006. Livestock
trading in India is done in livestock markets, which are regulated by state governments.
Nonetheless, supervising direct operation of the markets is the responsibility of local
authorities such as municipal corporations. There are also some privately owned markets and
the model Agricultural Produce Marketing Act (APMC) has a provision for running private
livestock markets.
Buffaloes can be used for milk production, meat, and also as a work animal for small and
marginal farmers. Small and marginal farmers in India mainly rear cows and buffaloes as this
ensures a sustained means of income during the year. The milk obtained from buffaloes is
high in fat and therefore attracts a premium in the Indian market, as consumers prefer high fat
milk. Animal maintenance costs are also lower for buffaloes as compared to dairy cows. India
has the famous Murrah variety of buffalo, which has a high milk yield, is a hardy breed that
easily withstands diverse weather conditions, and easily gains body weight on readily
available green fodder. The buffalo carcass has less fat and bone and a higher proportion of
muscle than an Indian cow carcass. Additionally, buffalo meat, unlike cow and pig meat, has
no religious taboos attached to it and is therefore freely consumed in the domestic market
among meat-eating consumers. For these reasons, the buffalo population has been growing
faster than the cow population over the past several years. Animal husbandry, like other
agricultural sectors, is a state subject and therefore each state has its own set of rules and
regulations.
10
output. In the light of these facts and in view of designing appropriate policies for giving
further boost to their contribution to the national economy and for the overall development of
the livestock sector, it is extremely essential to bring into focus the nature and extent of
changes that have taken place in the structure of livestock production and in its population
dynamics over time. The scenario obtaining over the last several years has clearly shown a
significant shift not only in population dynamics of livestock but also in the production
profile of livestock products in India. (Table 3.1) provides an insight on the share of
Agriculture and Livestock sector in India’s GDP.
11
the given period of time, the overall increases in the population of pigs, sheep, goats and
poultry birds are seen to be much higher than the increases in cattle and buffalo population.
However, it is to be noted that the major increase in various species of livestock population
took place during the period between early - and the late eighties and thereafter a
considerable slowing down in the same was noticed. In fact, sheep population had rather
declined during the period between late eighties and the mid-nineties. Similarly, a marginal
decline in cattle population was also noticed during this period. Nonetheless, the period gone
by was marked with significant increases in the population of majority of the species of the
livestock in India (Table 4.1) provides an insight into India’s changing structure of livestock
population production since the early 1950s..
Table 4.1: Change in Livestock Population by Species Annual Growth rate (%)
Species 1951- 1956- 1961- 1966- 1972- 1977- 1982- 1987- 1993- 1997-
56 61 66 72 77 82 87 92 97 03
Cattle 0.43 2.04 0.07 0.24 0.19 1.35 0.74 0.49 -0.56 -1.18
Adult Female -2.76 1.52 0.31 0.61 0.45 1.63 0.95 0.73 0.02 0.02
Cattle
Buffalo 0.68 2.66 0.69 1.61 1.55 2.39 1.71 2.08 1.32 1.43
Adult Female 0.66 2.29 0.89 2.40 1.82 0.76 3.78 2.29 1.32 1.44
Buffalo
Total Bovines 0.49 2.18 0.21 0.56 0.53 1.62 1.00 0.93 0.00 -0.33
Sheep 0.10 0.45 1.07 -1.16 0.50 3.53 -1.29 2.13 2.51 1.12
Goat 3.26 1.91 1.19 0.88 2.29 4.73 2.96 0.90 1.26 0.22
Horses and 0.00 -2.82 -3.29 -3.93 0.00 0.00 -2.33 0.50 0.24 -1.68
Ponies
Camels 5.92 2.38 2.13 1.92 0.00 -0.37 -1.53 0.59 -2.45 -5.94
Pigs 2.18 1.20 -0.78 6.65 1.95 5.79 1.09 3.77 0.77 0.29
Mules -7.79 4.56 9.86 0.00 2.38 7.63 5.51 2.25 2.98 -4.21
Donkeys -3.29 0.00 0.00 -1.89 0.00 0.40 -1.21 0.21 -1.93 -4.92
Yak NC NC 8.45 5.92 26.58 0.00 -21.00 8.45 0.00 0.00
Total 0.92 1.87 0.47 0.55 0.90 2.58 1.19 1.13 0.61 -0.01
Livestock
Poultry 5.22 3.79 0.21 3.72 2.82 5.47 5.79 2.21 2.51 5.85
Dogs NC NC NC NC NC NC -0.64 3.93 3.20 2.19
NC : Not Collected
Source: Livestock Census 2003
4. a) Meat Production:
India has also been showing a continuous increase in its total meat production. This is mainly
because of considerable rise in non-vegetarian population over time. In India, various species
of livestock such as cattle buffalo, sheep and goats, pigs and poultry birds are used for meat
production. The production of poultry meat is also gaining considerable ground in India. The
poultry sector has undergone major structural changes during the past two decades due to the
introduction of modern intensive production methods, genetic improvements, improved
12
preventive disease control and bio security measures, increasing income and human
population, and urbanization. These changes offer tremendous opportunities for poultry
producers, particularly smallholders, to improve their farm income. The total meat production
in India has increased by more than four folds over the last one and a half decades with an
annual compound growth rate of about 14 per cent during this period. The total meat
production in the country was estimated at around one million tonnes during the early
eighties, which rose to nearly two million tonnes by the late eighties and over four million
tonnes by the mid-nineties. The two main categories of meat consumed in largest quantity in
India are the goat and poultry meat. In fact, the population of goat and poultry birds in the
country has increased at much faster rate than the population of other species of livestock
used for meat production. It is to be noted that about 40 per cent of the goats are slaughtered
every year to meet the domestic requirements of meat.
In India, meat is made available through about 3000 registered slaughter houses. In this
context, it is to be noted that a centrally sponsored scheme “Assistance to states for (a)
Improvement/Modernization of Abattoirs and (b) Establishment of Carcass By-products
Utilization Centres and Primary Hide Flying Units” is being implemented. The objectives of
the scheme are to provide wholesome and hygienic meat, gainful utilization of animal by
products, prevention of environmental pollution and prevention of cruelty to animals. During
the Eighth Plan period (1992-97) and the first year of the Ninth Plan (1997-98), a financial
grant of Rs.2,066.09 lakhs was earmarked for the modernization of slaughter-houses in the 14
major states of India (Ministry of Information and Broadcasting, 1999).
13
“Beef and poultry production in India is expected to increase by 29 per cent and 41 per cent
respectively up to the 2013-2014 fiscal years due to increased demand from higher incomes
and prevalence of western style restaurant4”. It said over the last five-year forecast period,
production across all agricultural subsectors will be positive, spurred by increased demand,
foreign direct investment. Dairy and livestock will also benefit from improved technology
adoption, which could set a strong example and produce a model for other subsectors to
follow. Because of marketing schemes targeted at the general population and generally
greater demand for high-value dairy products such as yoghurt and cottage cheese, butter and
milk production is expected to grow by 38 per cent and 26 per cent respectively to 2013/14.
The CattleSite News Desk
4
India Agribusiness Report.
14
Source: Animal Husbandry Statistics (2005/06)
The total meat production in the country is 4 million tonnnes, which includes beef, buffalo
meat, mutton, goat meat, pork and poultry meat. However, only about 1% of the total meat is
converted into value added products like sausages, ham becon, luncheon meat, kababs,
meatballs etc. The total meat export during 1999-2000 was worth Rs.845.00 crores consisting
mostly of mutton and buffalo meat out of which 70% was contributed by export of buffalo
meat. Buffalo meat is surplus in India. There is a vast scope to set up modern slaughter
facilities and cold store chains in meat and poultry processing sector. India’s current level of
meat and meat-based exports is around Rs. 8,000 million. In the last six years foreign
investment in this segment stood at Rs. 5,000 million which is more than 50 percent of the
total investment made in this sector. The current level of exports of meat and meat products
from India is US$ 190 million, the major destinations being the countries in the Middle East
and South East Asia. Meat processing sector has attracted a total investment of US$ 471.1
million in the last six years i.e., since the initiation of the liberalisation process including
Foreign Investment of US$ 116.1 million.
Major markets
Buffalo Meat Malaysia, Philippines, UAE, Iran, Jordan
Sheep/goat Meat Saudi Arabia, UAE, Oman, Bahrain, Kuwait
Animal Products Portugual, France, UK, Spain, Netherlands
Processed Meat Seychelles, Germany, Oman, Congo, Sri Lanka
15
4. b) Production of Milk and Milk Products:
As for the dairy production front, the total milk production in India has increased from 38.8
million tonnes during the early eighties to 64.8 million tonnes by the mid-nineties (Table 3).
During this period, the goat milk production has increased at much faster rate as compared to
cow and buffalo milk production. Amidst global doom, India has retained its position as
world's largest milk producing country with production estimated to reach 110 million tonnes
for 2008-09. The National Dairy Development Board (NDDB) revealed this on dairy
cooperatives annual report. The Food and Agriculture Organisation of United Nations had
stated in June 2009 that US and China are the second and third largest producers of milk
globally. "India's milk production was 104.8 million tonnes in 2007-08 and it is expected to
be 110 million tonnes in 2008-09," the national board's annual report
In 2006-07 the growth rate of Indian dairy cooperatives had hit an all time low when it had
registered mere 1.1 per cent growth rate compared to 2005-06 when the cooperatives had
registered seven per cent growth. In 2007-08, when the dairy cooperatives in the country
procured around 8.3 million tonnes of milk, the growth rate had improved to 5.4 per cent.
While India continues enjoying a share of close to 15 per cent of world's milk production, the
world milk production is estimated to be around 688 million tonnes in 2008 about 1.7 per
cent higher than in the previous year, when the estimated global milk production was at
16
around 676 million tonnes. Impressive work has been done under the guidance of the
National Dairy Development Board under “ Operation Flood “ programmes for organizing
dairy production, processing and marketing of milk and milk products by the cooperative
dairy sector following the well known "Amul" model- a three tiered cooperative structure of
village level dairy cooperative societies, a district level cooperative milk union and a state
level cooperative milk marketing federation where the profits are shared by the farmer
members. The small rural milk producers have several problems. The major problems faced
by the farmers include small herd strengths, small land holdings, shortages of green and dry
fodder, low productivity of animals, non availability of timely inputs for breeding, feeding
and health care of animals, lack of suitable education/training for skill development for new
viable and sustainable technology, inadequate finances, poor rural infrastructure facilities and
lack of proper marketing support for their produce.
Nonetheless, it is to be noted that the contribution of bovine in India’s total milk production is
as high as 97 per cent. Of late, the demand for milk and milk products in India is on the rise.
The domestic market for butter, ghee, cheese, dairy whiteners and ice cream is also growing
at a healthy rate of over 10 per cent per annum. The lower growth rates are observed in whole
milk powder and skimmed milk powder (Baxi, 1994). As for the production, the growth in
evaporated condensed milk is seen to be lower than the growth in butter and ghee production
during the given period of time (Table 4.b.1)
17
2008-09 108.5 258
Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of
Agriculture,
Government of India New Delhi
18
5) Live Animals and Livestock Product Exports of India
Total export earnings from livestock, poultry and marine products was Rs.18, 664.44 crore
during 2008-09 (Rs.10, 056.50 crore from livestock & poultry and Rs.8, 607.94 crore from
marine products)5. Although India is a world leader in the production of Dairy Animal
Products. India's exports of Animal products have increased from Rs. 5129.27 Crores in
2007-08 to Rs 6913.11 Crores in 2008-09. India's export of Buffalo meat products has been
increased from Rs. 3549.78 Crores in 2007-08 to Rs. 4839.71 Crores in 2008-09. The export
of Sheep/Goat meat products has also been increased from Rs. 134.10 Crores from 2007-08
to Rs 493.37 Crores in 2008-09.The (Table 6.1) below show the compiled data of livestock
export from India, the products are Buffalo, Dairy Products, Poultry and Sheep and Goat
Meat
Table 6.1: Livestock Export from India (last Nine years data)
Year/Products Buffalo Dairy Poultry Processed Sheep and Goat
Product Product Meat Meat
2001-02 2,33,052 1303.74 14,784.75 315.24 3494
2002-03 2,92,163 1221.73 20,767.14 995.82 4973
2003-04 3,19,087 9590.39 8,63,467.66 2074.28 16821
2004-05 2,75,861 45805.33 10,62,573.95 1874.47 8885
2005-06 4,28,686 75551.4 11,85,279.63 736.98 7178
2006-07 4,73,198 45584.39 6,94,595.69 859.16 5482
5
Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries Ministry of Agriculture
Government of India New Delhi
19
2007-08 4,83,478.2 69,415.44 13,55,246.31 1,245.46 8,908.70
8
2008-09 4,62,749.6 70,146.77 10,57,016.44 857.66 37,790.64
5
2009-10 4,95,019.7 34,379.98 10,16,783.08 716.2 52,868.00
1
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
Frozen bovine meat dominated the exports with a contribution of over 97%. The demand for
bovine meat in international market has sparked a sudden increase in the meat exports from
India. The main markets for Indian bovine meat are Malaysia, Philippines, Mauritius, and
Gulf countries. Concentrated Dairy products such as skimmed milk continues to be the largest
item of export, which together accounts for nearly 78% of net milk and milk products exports
during the year 2006-07. The exports of Dairy Products reached 70146.77 MT with the value
of Rs.980.86 Crores in 2008-09 as against Rs. 866.56 Crores in 2007-08. India’s exports of
Processed Meat and Natural honey attained 857.63 MT and 15587.53 MT with the value of
Rs. 10.14 Crores and Rs. 148.96 Crores in 2008-09. Exports of various livestock products
have been given due priority in various trade related policies that were initiated by the
Government of India during the era of liberalization and opening up of the national economy
to the international market . In fact, the Department of Animal Husbandry and Dairying has
formulated a proposal of Rs. 1677.88 crores for the Ninth Plan (1997-2002) for the rapid
growth of the livestock sector. The major thrust would be on genetic upgradation of livestock
to improve the productivity and production of major livestock products. To achieve these
objectives, emphasis would be laid on development of requisite infrastructure, feed
management, and better health services (Government of India, 1999). A provision of financial
assistance to the tune of Rs.465.69 lakhs has also been made under the central sector scheme
“Development of Infrastructure and Technology for Export – Oriented Livestock Product
Units” during the Eighth Plan period. The assistance would be provided to one unit each in
Utter Pradesh and Punjab (Ministry of Information and Broadcasting, 1999).
Figure 6.2: Livestock Products Export from India for last Nine years
20
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
Livestock, poultry and related products accounted for export earnings of $1.3 billion during
2006-07. Beef (buffalo meat) is the largest meat segment exported out of India and
international demand for buffalo meat is growing. India is cost competitive in buffalo meat
but further improvement is needed in India’s cold chain infrastructure in order to increase
competitiveness. The beef export and consumption estimates for CY 2007 and 2008 have
been revised to reflect government trade statistics. The buffalo meat share in total meat
exports from India is more than 90 percent (in value terms) followed by a three percent share
of sheep and goat meat. Exports of pork, poultry meat and processed meat are negligible.
According to trade sources, the majority of buffalo meat exports (90 percent) are boneless
and the balance is shipped as carcasses. Malaysia and Jordan are the major markets for
specialty and Halal buffalo meat whereas some South East Asian countries have growing
institutional demand for processed buffalo meat products such as sausages and salami. The
export of meat and meat products is handled by 15 export-oriented modern combined
slaughter houses and meat processing plants registered with the Agricultural Processed Food
Export Development Agency (APEDA), Ministry of Commerce. Additionally, there are about
35 meat processing and packaging units (out of which 12 are registered with APEDA), which
source dressed carcasses from the government approved municipal slaughter houses for
export. The GOI has proposed a financial outlay of $250 million to fund the program
‘Salvaging and Rearing of Male Buffalo Calves’ for the purpose of increasing meat
production during the 11th five year plan (2007-12).
21
Figure 6.3: Indian Bovine Meat Exports - FY 2006/07 ('000 Tons, $ million)
Source: Directorate General of Foreign Trade, Ministry of Commerce & Industry, GOI
The above concerted efforts made by the government in more recent times have certainly
boosted the Country’s exports of various livestock products to newer heights. The export
trade of India in meat and meat products and also in respect of milk and milk products has
gone up considerably, both in quantity and in value terms (Table 5). This held especially true
after the late eighties period. However, the overall increase in export trade of various
livestock products from India is found to be much higher in quantity terms than the value
terms. As regards the export of live animals from India, a steady decline is noticed during the
study period. The decline in export value of live animals is found to be much sharper than
decline in numerical strength of live animals exported from India. The possible reason for this
could be attributed to declining world export prices of live animals, particularly after the late
eighties period. Meat and meat product exports from India is seen to be 4-5 per cent of their
total production over the past decade and a half. Though India had produced an annual
average of about 0.98 million tonnes of meat during the early eighties, only 45,233 tonnes of
this was exported annually in the international market, and this constituted about 4.62 per
cent of the annual average production of meat during this period. During the mid-nineties,
India exported 1,55,543 tonnes of meat which constituted about 3.60 per cent of the annual
average production of meat during this period. Thus, despite the fact that in absolute term the
quantity of meat exported from India had increased significantly, the exports of the same as
proportion of production declined considerably during the given period of time. The reason
for this could be the rise in consumption of meat in domestic market. However, one of the
major obstacles in the growth of domestic market for meat products in India is the religious
22
sentiments in the large sections of population which prohibits the consumption of the beef
and pork. As regards milk and milk products, a real boost in their exports from India is
noticed only after the early nineties period i.e. in the era of liberalization. While India
exported about 364 metric tonnes of dry milk during the late eighties, her exports of the same
increased to as high as 4,983 metric tonnes by the mid-nineties. Similarly, the condensed milk
exports of India also increased from 29 metric tonnes during the late eighties to 145 metric
tonnes by the mid- nineties. Further, it is to be noted that India had been exporting small
quantities of ghee and butter despite domestic shortage and consequent high prices in the
past. The trend over the past one and a half decades reveals a steady increase in India’s export
of butter and ghee. Even the export of butter as proportion of its production has also gone up
in due course of time. As regards exports of cheese and curd and also wool, there has been
considerable fluctuations in their exports from India over the past decade or so, not only in
absolute terms but also in terms of their share in total production. In fact, in due course of
time the status of India has changed from a net importer of livestock products to a surplus
nation with high export potential. The increasing export trade of India in various livestock
products in more recent times is a case in point in this regard. The foregoing observations
also indicate an increasing trend in export trade of India in processed livestock products. The
livestock products in processed form are, therefore, acquiring larger significance in the
rapidly changing market scenario. In a free trade regime, the processed livestock product
exports from India may get further momentum as not only the consumer’s taste as well as his
preference for products in processed form is gradually changing over time but the demand for
such products is also increasing in various regions of the world. As for the export trade of
livestock products, there are also many issues that require fuller attention and discussion. For
instance, is our livestock sector protected, what is its comparative advantage, what is its
export potential, what are the tariff and non-tariff barriers to livestock exports. There are
several issues that might loom large on the horizon when one discusses the development of
livestock sector in the era of liberalization, globalization and privatization.
23
6) Live animals export scenario from India:
India is never been reckoned as a major exporter of live animals, the live animals those are
exported to various nations are mostly Live Horses, Asses, Mules & Hinnies, Live Bovine
Animals, Live swine, Live sheep and goats, Live poultry fowls of the Species Gallus
Domesticus Ducks,Geese,Turkeys & Guinea
India’s exports of live animals in 2005-06, as may be seen from the above data, registered a
growth of 9.98 per cent over the previous year when the same reached a level of Rs. 26.55
crore as against Rs. 24.14 crore. The segment “Live sheep and goats” over the years continue
to dominate exports. In 2005-06, the segment accounted for a share of 79.47 per cent of the
total exports from the country, and had registered a steep growth of 23.10 per cent over the
previous year. “Live horses, asses, mules & hinnies“, the other major segment, during the
period registered a phenomenal growth of 169.86 per cent by touching a figure of 3.94 per
cent as against 1.46 per cent. On the other, the segments witnessing a steep decline during the
period included: Live bovine animals (87.50%), live poultry fowls of the species gallous
domestics ducks, geese, turkeys & guinea (74.95%), and Live swine (44.44%). The decline in
24
export value of live animals is found to be much sharper than decline in numerical strength of
live animals exported from India. The possible reason for this could be attributed to declining
world export prices of live animals, particularly after the late eighties period.
25
one of the constraints to processing. Over 90 per cent of buffalo meat exports are boneless
and the balance is shipped as carcases.
The buffalo meat share in India is more than 90 per cent. India's total export earnings during
IFY 2007/08 were around two billion dollars from livestock and poultry products and 1.8
billion dollars from marine products.
Areas of production:
The major areas for Buffalo Meat production are Maharastra, Andhra Pradesh, Uttar
Pradesh.
India Facts and Figures :
India’s export of Buffalo (bovine) meat has increased from Rs 3549.78 Crores in 2007-08 to
Rs 4839.71 Crores in 2008-09.
Major Export Destinations (2008-09) :
Vietnam, Malaysia, Philippines, Egypt Arab Republic, Kuwait.
Source: www.apeda.gov.in
Figure 8.a.1: Buffalo Meat Export from India
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
Qty in Mt.
26
2007-2008 2008-2009 2009-2010
27
PAKISTAN 9,947.68 6,125.58 2,789.37 1,743.72 3,038.23 1,895.85
28
UNSPECIFIED 14.3 23.58 87.16 87.89 84.3 78.57
SLOVAK 0 0 3 8.6 0 0
REPUBLIC
BELGIUM 0 0 10 21.56 0 0
DJIBOUTI 16 9.05 0 0 0 0
29
8. b) Sheep/ Goat Meat:
Goats/Sheep constitute a very important species of livestock in India, mainly on account of
their short generation intervals, higher rates of prolificacy, and the ease with which the goats
as also their products can be marketed. They are considered to be very important for their
contribution to the development of rural zones and people. The local initiatives to promote
quality labels and innovative products for cheeses, meat and fibres could help goats in
keeping a role for sustainable development in an eco-friendly environment all over the world.
However, the future of the goat and sheep industry as a significant economic activity will also
be very dependent on the standards of living in the countries where there is a market for the
goat products.
Areas of Production:
Rajasthan, Jammu, Kashmir, Uttar Pradesh, Gujarat, Hilly regions of North and Eastern
Himalayas are the Indian regions with maximum livestock population
India Facts and Figures :
The world production of Sheep meat was 8.89 million tones and Goat meat was 5.14
million tonnes in 2007. India ranked seventh in sheep and second in goat meat production.
India’s export of sheep/goat meat has been increased from Rs. 134.10 Crores in 2007-08
to Rs. 493.37 Crores in 2008-09.
Major Export Destinations (2008-09):
Saudi Arabia, UAE, Kuwait, Angola, Egypt Arab Republic.
.
Source: www.apeda.gov.in
30
Figure 8.b.1: Sheep and Goat/Meat Export from India
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
31
IRAN 0 0 0 0 204 228.68
GEORGIA 0 0 0 0 140 195.14
BAHRAIN 92.18 148.7 103.06 199.81 104.28 169.43
UNITED STATES 16.5 19.8 120.3 160.53 121.42 155.88
NETHERLAND 14.29 18.28 96.75 46.13 117.99 126.66
NEPAL 67.53 61.94 107.32 144.62 88.67 122.01
ITALY 0 0 0 0 72.8 118.5
UNITED KINGDOM 3.84 5.8 32.34 57.4 44.05 74.08
ROMANIA 0 0 15.51 20.59 38.35 70.55
SPAIN 0 0 5 4.86 21.14 70.09
DENMARK 0.5 0.59 120 307.19 56 69.26
PAKISTAN 0 0 0 0 56.77 59.26
CANADA 0 0 360 472.01 44 57.22
THAILAND 0 0 0 0 20 39.14
BAHAMAS 4.08 5.57 0 0 28.7 37.03
MALDIVES 32.36 27.24 5.57 8.9 17.69 34.99
CZECH REPUBLIC 0 0 2.5 5.71 6.61 19.86
TURKEY 0.54 0.98 0 0 8 16.54
SEYCHELLES 0 0 0 0 16.26 12.29
GHANA 0 0 50 53.06 7 12.05
BHUTAN 0 0 0 0 13.5 11.88
SOUTH AFRICA 0 0 12.74 29.52 4.3 10.35
HONG KONG 0 0 0 0 7.5 8.1
AZERBAIJAN 0 0 0 0 5 7.66
FRANCE 8.5 9.61 6 15.02 5 7.04
BANGLADESH 1.5 0.77 12 9.57 2 5.66
SENEGAL 0 0 0 0 2 2.79
CHINA P RP 0 0 0.01 0.01 1.05 2.61
SRI LANKA 0 0 0 0 0.43 0.61
EQUTL GUINEA 0 0 0 0 0.2 0.32
JAPAN 0.62 0.42 0 0 0.01 0.01
NEW ZEALAND 0 0 57 56.98 0 0
SINGAPORE 0.87 0.91 0 0 0 0
MALI 0 0 0.1 0.22 0 0
MOZAMBIQUE 0 0 86.64 100.42 0 0
SWITZERLAND 0 0 87 92.92 0 0
CYPRUS 0 0 51.3 32.25 0 0
MACEDONIA 15.98 19.96 0 0 0 0
PUERTO RICO 0.95 1.73 0 0 0 0
KOREA REPUBLIC 0.12 0.1 1,535.00 382.7 0 0
INDONESIA 0 0 39 57.57 0 0
TAIWAN 0 0 7.8 11 0 0
UNSPECIFIED 28.13 45.76 1,430.37 1,245.31 0 0
Total 8,908.70 13,409.93 37,790.64 49,336.97 52,868.00 74,720.08
Source: DGCIS Annual Export, www.apeda.gov.in
33
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
34
UNITED STATES 9.23 3.6 0.1 0.61 0 0
CHINA P RP 9.92 8.77 0 0 0 0
INDONESIA 2.85 0.77 0 0 0 0
MALDIVES 0 0 1 1.93 0 0
OMAN 0 0 6 10.46 0 0
EGYPT ARAB 0 0 0.3 0.32 0 0
REPUBLIC
ITALY 0 0 0.2 0.44 0 0
NEW ZEALAND 26.3 32.89 0.2 0.1 0 0
PHILIPPINES 5.58 5 0 0 0 0
SINGAPORE 0.03 0.05 0.02 0.03 0 0
BAHRAIN 0 0 0 0 0 0
QATAR 0.9 0.91 1 1.49 0 0
UNSPECIFIED 0 0.01 0 0 0 0
35
now the world's fifth largest egg producer and the eighteenth largest producer of broilers. The
Potential in the sector is due to a combination of factors - growth in per capita income, a
growing urban population and falling real poultry prices. Poultry meat is the fastest growing
component of global meat demand, and India, the world's second largest developing country,
is experiencing rapid growth in its poultry sector. In India, poultry sector growth is being
driven by rising incomes and a rapidly expanding middle class, together with the emergence
of vertically integrated poultry producers that have reduced consumer prices by lowering
production and marketing costs. Integrated production, market transition from live birds to
chilled and frozen products, and policies that ensure supplies of competitively priced corn and
soybeans are keys to future poultry industry growth in India. There are number of small
poultry dressing plants in the country. These plants are producing dressed chickens. In
addition to these plants, there are five modern integrated poultry processing plants producing
dressed chicken, chicken cut parts and other chicken products. These plants will manufacture
egg powder and frozen egg-yolk for export.
“India, with poultry population of 489 million (as per Livestock Census 2003) and egg
production of 55.6 billion number in 2008-09, ranks among top three countries in egg
production. Export of poultry & poultry products increased from nearly Rs.11 crore in 1993-
94 to about Rs.422 crore in 2008-09)6”
Areas of Production:
Over all, Tamil Nadu counts for maximum egg production. In Andhra Pradesh, Hyderabad is
the city with maximum poultry and hatcheries. Besides the state of Andhra Pradesh,
Vishakhapatnam, Chittoor, Karnataka, Tamil Nadu, Maharashtra, Gujarat, Madhya
Pradesh, Orissa and North Eastern States are the major egg contributors.
The individual products under this sub-head are as below:
Live Poultry <=85 Gram
6
Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries Ministry Of Agriculture
Government Of India New Delhi
36
Other Live Poultry <=185 Gram
Live Poultry > 185 Gram
Other Live Poultry >185 Gram
Edible Poultry Meat (Fresh)
Edible Poultry Meat (Frozen)
Other Poultry Meat Not Cut In Pieces
Cuts & Offal’s Excluding Livers
India Facts and Figures :
India’s Export of Poultry Products has reached to Rs 422.06 Crores in 2008-09.
Major Export Destinations (2008-09):
Germany, Afghanistan, Angola, Saudi Arabia, Denmark.
Source: www.apeda.gov.in
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
37
INDONESIA 1,618.66 558.1 1,038.73 2,403.86 1,071.66 2,473.80
LIBERIA 36,300.00 836.29 76,285.18 1,698.70 65,077.19 1,712.56
DENMARK 2,556.60 3,151.79 1,389.26 3,415.05 753.04 1,626.17
BAHRAIN 49,636.70 1,331.72 44,374.42 1,494.08 47,440.61 1,354.96
JAPAN 1,789.79 4,229.89 749.09 2,299.75 551.72 1,143.77
NETHERLAND 12,957.81 539.89 7,006.96 666.68 1,011.75 1,094.23
SIERRA LEONE 7,770.00 177.77 48,538.94 952.35 39,398.24 1,034.04
PAKISTAN 46,640.22 1,145.89 38,565.25 852.14 29,992.19 952.21
MALDIVES 40,256.72 658.3 52,829.52 1,216.44 39,254.22 844.41
VIETNAM 194.16 287.31 460.92 873.13 681.33 685.54
SOCIAL
REPUBLIC
SAUDI ARABIA 5,744.55 1,072.74 21,803.52 2,913.43 8,199.69 632.37
TAJIKISTAN 13,594.38 243.36 85,213.38 1,315.55 26,822.62 629.68
SUDAN 300 8.65 2,988.05 147.99 5,999.50 379.23
BHUTAN 0 0 145.04 133.96 6,154.91 341.89
IRAN 18,150.67 419.47 15,473.92 283.02 22,162.16 306.43
POLAND 104.93 190.59 104.41 272.95 160.29 289.51
MALAYSIA 63.44 188.67 92.03 367.49 70.9 252.78
GAMBIA 2,500.00 63.91 4,830.00 110.72 8,772.32 225.08
PHILIPPINES 47.47 96.02 161.82 265.53 124.21 211.97
UNITED ARAB 64,059.56 1,180.44 5,449.86 325.92 313 185.79
EMIRATES
THAILAND 183.56 273.97 163.52 497.15 82.04 178.06
AUSTRALIA 100.19 150.09 33 141.56 56.07 172.9
SRI LANKA 453.88 330.16 9,764.61 811.13 56.85 151.94
TAIWAN 198.84 505.39 111.02 399.82 54.73 149.83
HONG KONG 2,310.00 62.67 3,644.64 54.94 1,386.55 142.65
BANGLADESH 48 4.67 126 98.09 4,961.27 118.65
KOREA 5,372.99 680.73 47.78 99.72 69 113.68
REPUBLIC
CONGO P 6,946.00 181.76 11,156.92 212.14 4,184.40 110.72
REPUBLIC
COMOROS 0 0 20.6 21.05 2,233.16 95.41
LEBANON 890 18.79 1,876.52 42.12 2,983.20 81.53
TURKMENISTAN 2,992.72 41.15 16,777.10 337.32 2,613.00 72.9
NEPAL 1,081.44 153.93 332.27 29.77 1,074.68 65.82
SWEDEN 155.78 364.47 82.86 218.33 20.16 57.95
UNSPECIFIED 3,020.34 107.59 0 0 22.5 42.78
UNITED STATES 69.88 64.55 8.02 10 37.5 38.7
MOZAMBIQUE 0 0 1,400.00 23 1,200.00 37.22
COTE D IVOIRE 2,401.20 52.38 4,826.12 108.69 1,400.00 22.57
QATAR 83,969.15 1,520.21 449.5 18.77 240.5 21.65
UNITED 82.69 87.56 1,005.89 27.45 500.18 11.13
KINGDOM
KENYA 487.38 42.93 0 0 400 8.84
TURKEY 22.06 58.58 0 0 420 8.22
CAMEROON 0 0 0 0 240 4.86
38
NIGERIA 0 0 0 0 12.24 1.93
CZECH 0 0 0 0 0.6 0.2
REPUBLIC
MALI 0 0 0 0 3.17 0.16
TANZANIA 0 0 0 0 0.03 0.12
REPUBLIC
SINGAPORE 2.88 0.06 0 0 1.08 0.02
SPAIN 647.4 298.77 0 0 0 0
SWITZERLAND 7.2 0.58 0 0 0 0
COLOMBIA 20 24.91 0 0 0 0
GUINEA BISSAU 700 16.82 800 14.75 0 0
ITALY 930.07 55.46 0 0 0 0
UGANDA 0 0 2 0.7 0 0
EGYPT ARAB 0.06 0 0 0 0 0
REPUBLIC
FRANCE 1 2.09 1.5 2.89 0 0
MAURITIUS 5.49 5.66 0 0 0 0
GUINEA 0 0 600 9.68 0 0
AUSTRIA 3.66 3.67 24 74.82 0 0
YEMEN 1,446.15 92.6 2,594.49 159.7 0 0
REPUBLC
BELGIUM 38.44 92.88 24 66.05 0 0
JORDAN 1,380.00 31.14 5,350.00 128.53 0 0
SYRIA 3,705.19 94.53 1,500.00 30.19 0 0
GREECE 6.4 11.19 0 0 0 0
PORTUGAL 79.3 124.78 0 0 0 0
CANADA 0 0 320 11.68 0 0
EQUTL GUINEA 0 0 1,000.00 22.15 0 0
GEORGIA 0 0 12.5 22.8 0 0
KYRGHYZSTAN 0 0 502 19.86 0 0
MADAGASCAR 0 0 300 7 0 0
MAURITANIA 0 0 519 10.38 0 0
ZAMBIA 500.05 9.56 0 0 0 0
CAMBODIA 0 0 600 22.89 0 0
ALGERIA 1.03 1.13 0 0 0 0
ARMENIA 25 27.15 0 0 0 0
KUWAIT 3,82,967.84 7,333.71 65,288.68 1,587.92 0 0
RUSSIA 57 43.47 0 0 0 0
KAZAKHSTAN 0 0 200 6.43 0 0
SENEGAL 0 0 500 9.32 0 0
Total 13,55,246.31 44,108.56 10,57,016.4 42,205.80 10,16,783.08 37,211.88
4
Source: DGCIS Annual Export, www.apeda.gov.in
39
8.e) Dairy Products:
India now has indisputably the world's biggest dairy industry—at least in terms of milk
production; last year India produced close to 100 million tonnes of milk, 15% more than the
US and three times as much as the much-heralded new growth champ, China. Appropriately,
India also produces the biggest directory or encyclopaedia of any world dairy industry. The
dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producers of milk and value-added milk products in the world.
“India is the highest milk producer in the world recording an average annual growth rate of
4.3 per cent since (2004-05)7”.
Source: Compiled data from FAOSTAT, APEDA & Export Import Data Bank
41
2007-2008 2008-2009 2009-2010
Country Qty Value Qty Value Qty Value
BANGLADESH 9,839.85 13,247.23 4,636.22 5,777.58 7,564.13 8,420.17
UNITED ARAB 8,431.45 9,212.54 10,290.92 13,885.28 4,988.24 7,064.49
EMIRATES
NEPAL 2,171.43 2,645.09 2,349.81 3,290.93 2,429.02 3,659.05
AFGHANISTAN 998.23 1,380.96 670.7 842.88 1,916.85 2,312.38
SAUDI ARABIA 1,415.55 1,940.45 3,590.60 5,217.91 1,556.59 2,131.25
SINGAPORE 4,381.68 2,205.12 6,578.99 3,698.56 3,597.88 1,879.16
PHILIPPINES 2,438.00 3,141.00 3,454.83 4,710.88 1,182.75 1,319.71
YEMEN REPUBLC 1,454.14 1,914.16 373.53 594.12 1,664.69 1,128.82
UNITED STATES 658.33 717.64 489.2 589.56 622.39 959.67
KUWAIT 647.98 1,000.44 670.99 1,053.49 612.72 942.44
ALGERIA 3,929.80 6,342.05 2,934.43 6,686.00 709.7 938.4
EGYPT ARAB REPUBLIC 5,735.15 7,855.06 8,870.31 13,321.27 864.44 891.91
AUSTRALIA 326.73 363.6 540.52 632.26 481.43 762.86
THAILAND 2,587.95 3,363.41 2,647.79 5,465.89 397.01 668.29
DJIBOUTI 77 123.53 363.15 520.69 541.04 657.97
SYRIA 1,897.65 2,549.74 1,435.41 2,095.28 479.34 639.41
OMAN 1,479.96 2,131.39 1,367.60 1,911.21 386.37 581.96
QATAR 482.52 567.59 806.87 1,142.81 343.49 559.39
HONG KONG 485.82 582.47 782.37 629.5 514.16 462.18
MOROCCO 3,110.19 4,183.22 1,109.24 1,893.25 307.37 435.44
SOUTH AFRICA 36.36 59.26 240.23 411.03 172.83 384.64
SUDAN 240.64 326.24 558.16 757.69 291.45 348.33
BAHRAIN 385.72 508.48 616.42 993 163.16 346.52
PAKISTAN 711.25 1,283.56 353.97 420.84 311.94 312.67
KOREA REPUBLIC 565.63 651.04 383.45 666.7 264.01 274.26
SRI LANKA 1,062.11 1,468.76 1,014.50 1,478.62 170.93 261.45
MYANMAR 1,346.94 1,947.42 203 332.69 199.35 253.17
CHINA P RP 6,321.26 7,018.00 2,449.74 2,517.72 229.12 214.28
BHUTAN 66 78.39 418.3 563.91 393.52 211.06
SEYCHELLES 149.87 171.36 196.11 253.45 134.6 209.63
MALAYSIA 93.74 129.69 146.5 202.02 77.07 126.18
MAURITIUS 61.1 40.45 288.28 292.84 95.17 117.97
MOZAMBIQUE 2.25 1.61 1 1.51 61.93 89.93
KENYA 0.01 0.01 49.07 48.02 62.39 79.04
LEBANON 107.78 172.66 168.86 263.56 41.37 73.84
BENIN 101.96 158.71 33.4 62.61 50.56 72.15
IRAN 311.38 332.41 0.02 0.02 45 64.16
POLAND 31.97 40.92 0 0 34 61.64
NEW ZEALAND 24.27 37.33 34.99 46.9 40.54 53.84
JAPAN 46.8 59.86 1,162.35 1,490.79 31.65 48.16
NIGERIA 189.9 271.15 732.25 1,065.17 22.31 45.19
TANZANIA REPUBLIC 83.01 105.18 128.59 170.97 34.08 35.09
UNSPECIFIED 0.16 0.21 64 113.13 49.38 29.68
UGANDA 0.09 0.09 3.33 4.65 121.17 29.53
42
MALDIVES 62.14 20.3 52.9 27.93 27.87 24.47
BRUNEI 76.62 44.83 155.65 99.08 45.12 20.88
RUSSIA 18.3 14.73 0.49 1.25 15.56 18.71
CANADA 293.29 258.21 90.67 141.6 7.16 12.4
GERMANY 0.74 0.92 21.83 61.81 12.07 11.18
DENMARK 1.1 1.65 0.06 0.04 0.98 2.81
SWEDEN 0 0 0 0 1.23 2.59
NETHERLANDANTIL 0.72 0.81 0.68 1.32 3.46 2.57
UNITED KINGDOM 23.01 33.67 19.58 26.06 1.22 2.47
TURKEY 697.96 1,005.84 151.72 402.85 1.11 2.43
GREECE 6.34 13.92 3.06 6.54 0.9 2.01
LIBERIA 0.63 0.8 0.51 0.89 0.42 1.1
GHANA 0.5 0.75 36.66 21.09 0.78 1.06
TAIWAN 62.94 85.36 98.37 145.06 0.25 0.93
SWITZERLAND 0.53 0.61 101.14 141.15 0.57 0.93
SURINAME 180.36 284.8 78.9 146.46 0.4 0.86
COTE D IVOIRE 0.2 0.21 548 801.29 0.38 0.79
ITALY 0.53 0.35 0.16 0.13 0.2 0.75
MADAGASCAR 422.29 597.78 304.04 413.32 0.71 0.46
VIETNAM SOCIAL 82.6 113.16 379.28 580.32 0.16 0.35
REPUBLIC
REUNION 0.77 0.43 0 0 0.13 0.21
GAMBIA 1.17 2.37 19.56 19.51 0.1 0.15
CONGO P REPUBLIC 31.99 51.77 129.03 195.32 1.6 0.15
CHILE 0.06 0.05 0.04 0.05 0.1 0.15
GUYANA 17.34 26.79 0.12 0.11 0.05 0.12
IRELAND 0.04 0.06 0.03 0.01 0.05 0.12
KYRGHYZSTAN 0 0 0 0 0.12 0.1
TOGO 0.07 0.09 25.02 37.41 0.05 0.09
ZAMBIA 0 0 0.95 1.07 0.04 0.08
BELGIUM 0 0 1.2 2.04 0.02 0.05
CAMBODIA 0.26 0.3 13.42 27.76 0.02 0.03
SIERRA LEONE 0.03 0.05 19.75 16.25 0.01 0.02
ST. PIERRA & MI 0.1 0.14 0 0 0 0
FRANCE 0.39 0.76 35.74 30.3 0 0
SPAIN 0 0 9 21 0 0
JORDAN 359.48 553.52 260.11 382.87 0 0
MALAWI 17.02 28.05 0 0 0 0
ECUADOR 0 0 0.02 0.02 0 0
ETHIOPIA 85 110.35 0 0.06 0 0
MACAO 0.2 0.29 2.7 4.22 0 0
BOTSWANA 466.15 114.74 0.56 1.17 0 0
EQUTL GUINEA 0 0 14.94 26.31 0 0
INDONESIA 486.91 699.28 535.04 1,830.55 0 0
CAMEROON 10.4 11.12 118 187.8 0 0
LIBYA 235.14 326.41 144.51 169.51 0 0
HONDURAS 0.01 0.02 0 0 0 0
43
KOREA D P REPUBLIC 21 18.46 0 0 0 0
MAURITANIA 0 0 83.28 116.07 0 0
GEORGIA 106.56 148.9 136.59 177.71 0 0
ISRAEL 2.49 4.25 1.91 11.4 0 0
FIJI ISLANDS 0 0 1 0.83 0 0
KAZAKHSTAN 0.27 0.31 0 0 0 0
ALBANIA 0 0 0.72 23.03 0 0
UKRAINE 0 0 0.01 0.01 0 0
PANAMA REPUBLIC 53.9 82.74 180.84 350.07 0 0
DOMINIC REPUBLIC 0 0 50 83.94 0 0
AZERBAIJAN 39.93 57.11 0 0 0 0
SLOVENIA 0 0 3.13 3.79 0 0
TUNISIA 0 0 93.26 132.35 0 0
GABON 99.74 149.45 154.93 170.02 0 0
SOMALIA 0 0 28.63 50.02 0 0
BRAZIL 0 0 0.2 0.26 0 0
FINLAND 0 0 0.01 75.56 0 0
BURKINA FASO 2.5 6.57 71.5 63.68 0 0
ZIMBABWE 0.4 0.37 0 0 0 0
GUINEA 15.01 21.51 64.43 74.61 0 0
NAMIBIA 0 0 0.01 0.02 0 0
LATVIA 0 0 0 0 0 0
CYPRUS 0 0 0.08 0.19 0 0
IRAQ 908.26 1,380.57 2,691.85 4,052.79 0 0
MEXICO 0 0 0.32 0.28 0 0
NETHERLAND 2.22 2.68 0.11 609.54 0 0
PERU 0.2 0.18 0 0 0 0
NORWAY 0.01 0.02 0 0 0 0
TRINIDAD 30.01 48.5 0.52 1.15 0 0
44
9) India’s Share in Asia and World Exports of Livestock Products
There has been considerable increase in livestock exports of India after the late eighties,
chiefly because of liberalization of trade and several trade policy changes coupled with surge
in international prices of many livestock based products that gave real boost to Indian
livestock exports. The upswing in livestock exports of India in due course of time has also
filtered into significant increase in her share not only in Asia but also in World export trade.
At the same time, for some of the livestock based commodities and for live animals, the share
of India in Asia as well as in the World export trade has come down over time, e.g., bovine,
sheep and goats among various live animals, and poultry meat, meat dried, salted and smoked
and also canned meat among various meat and meat products. This held true both in quantity
and value terms. The changing scenario in terms of India’s share in Asia and in the World
exports of Meats Products from year (2000 to 2007) is present below in Table 9.1
Table 9.1: Meat Products Exports data for Asia
45
The slaughter rate in case of bovine animals is very low, whereas the slaughter rate is high in
case of Sheep and Goat (as high as 38% in goats). The demand for meat of bovine animals in
domestic market is negligible as the domestic consumers have a preference for Sheep, Goat
and Poultry meat. We have therefore, enough potential for production of buffalo meat for
export. There has been steady decline in India’s share in total live animal export trade of
Asia as well as the world over the past decade and a half. This disquieting trend is noticed
particularly in value terms. Nevertheless, share of India in fresh, chilled and frozen meat
export is noticed to have grown considerably not only in Asia but in the World too. Among
various fresh, chilled and frozen meat, India’s export has grown more sharply in the case of
fresh sheep meat, both in Asia and in the World trade of the same. This holds true both in
quantity and value terms. Among various milk and milk products, dry milk, butter and ghee
and to some extent condensed and evaporated milk export trade of India have grown
significantly, both in Asia and in the World. In fact, the results of this study clearly indicate a
marginal presence of India in World trade of majority of the livestock products. It is only in
the case of bovine meat and also sheep and goat meat that India has shown a considerable
46
share in the global trade of the same, particularly in quantity terms. In fact, India continues to
remain as one of the leading bovine meat exporter not only in Asia but also in the World.
Thus, the past trends show that India has achieved considerable growth in exports in a
number of livestock based commodities, especially in the post economic liberalization period,
but the estimates also show that such growth trends are not devoid of wide fluctuations which
put a shadow of doubt about its future potential. Export trade of milk and milk products, in
particular, have fluctuated widely over the past decade or so. Such fluctuations were due
mainly to the fact that India exported these valued products whenever it had exportable
surplus of the same and also when international prices were favourable for these products. At
present India is not able to compete with EC and US in export trade of dairy products because
milk in these countries is highly subsidized (58 percent and 69 percent, respectively). It is to
be noted that the GATT negotiations were for removal of these subsidies. Till date India has
targeted the bulk customers in the export of buffalo meat. Small quantities as branded product
in consumer packs have shown their presence in the super markets. Except corned beef, we
are not exporting any other product of processed meat category. Whereas there is a demand
for ethnic Indian meat product like Kabab, Gushtaba, Akhani, Korma etc., still there is a great
potential for European processed meat products like Sausages, Ham, Salami, Burger, Smoked
meat etc. If we are able to produce processed meat products, it would add value and help in
earning more foreign exchange. Developing countries have responded to growing demand for
livestock products by rapidly increasing production. Between 1961 and 2007, the greatest
growth in meat production occurred in East and Southeast Asia, followed by Latin America
and the Caribbean. Most of the expansion in egg production was in East and Southeast Asia,
while South Asia dominated milk production. By 2007, developing countries had overtaken
developed countries in terms of production of meat and eggs and were closing the gap for
milk production. Trends in production growth largely mirror those for consumption. China
and Brazil show the greatest growth, especially for meat. Between 1980 and 2007, China
increased its production of meat more than six fold; today, it accounts for nearly 50 percent of
meat production in developing countries and 31 percent of world production. Brazil expanded
meat production by a factor of almost four and now contributes 11 percent of developing
country meat production and 7 percent of global production. In the remaining parts of the
developing world, growth in meat output – as well as production levels – was lower, with the
highest growth rates being in the rest of East and Southeast Asia and the Near East and North
Africa. In spite of more than doubling meat production between 1980 and 2007, India’s
overall meat production levels remain low in a global context. However, after more than
47
tripling milk production between 1980 and 2007, India now produces some 15 percent of the
world’s milk. Production of meat, milk and eggs also increased in sub-Saharan Africa but
more slowly than in other regions.
If India intends to capture a major chunk of this market, it will have to make concerted efforts
to ensure quality of milk and milk products. With the reduction of subsidies, milk in the EC
and US will be more expensive and India will have good chance to capture these markets,
which were hitherto denied to it.
Section - II
As for livestock products, there are two important aspects which would largely determine the
India’s potential to export in the future. The most important aspect on which future export
potentiality of India would depend could be traced in the domestic requirement of various
livestock based products and their expected production levels in the future. In case India
generates sufficient production surpluses of these products after meeting the domestic
demand, the residual could be made available for exports, provided international prices
remain favourable. The future growth in exports for India will also depend on production
deficit realized in various developed and developing nations of the world. In fact, production
deficit of other countries would act as engine of export growth for India. Nevertheless, how
best India can meet the challenges arising out of growing requirements of other countries due
to deficit in their production levels would depend on India’s export capabilities and available
surpluses for exports. In order to assess India’s export capabilities, it is worthwhile to first
examine what would be the future scenario of domestic requirement of various livestock
products in India.
48
1) CORRELATION ANALYSIS
The Correlation analysis is used to determine the extent to which changes in the value of an
attribute are associated with changes in another attribute. The data for a correlation analysis
consists of two input columns. Each column contains values for one of the attributes of
interest. The Correlation transformer can calculate various measures of association between
the two input columns. You can select more than one statistic to calculate for a given pair of
input columns.
Pearson’s coefficient of correlation can be used to establish the statistical relationships
between all of these variables (Buffalo Meat, Dairy Products, Poultry Products, Processed
Meats and Sheep and Goat Meat Exports) with the total Livestock export from India for
last Nine years. In statistics, the Pearson product-moment correlation coefficient (sometimes
referred to as the PMCC, and typically denoted by r) is a measure of the correlation (linear
dependence) between two variables X and Y, giving a value between +1 and −1 inclusive. It is
widely used in the sciences as a measure of the strength of linear dependence between two
variables. It was developed by Karl Pearson
Where X = x – x (For the values of attribute related to Individual Livestock for last Nine
years like Buffalo meat, Sheep and Goat meat, Dairy product, Poultry Product and Processed
Meat)
Where Y = y - ȳ (for the value of attribute related to whole livestock sector in last Nine years)
Results:-
49
Correlation factor (Buffalo Export: Total Export) = 0.767513872
Correlation factor (Sheep and Goat Meat Export: Total Export) = 0.420364876
Interpretation:-
Significance of outcome values is as given value (r varies from -1 to 0 to +1) is given below-
• If r = 0, then x and y are not correlated. They do not have an apparent linear
relationship. However, this does not mean that x and y are statistically independent.
• If r = -1, then x and y are perfectly negatively correlated. The possible values
of x and y all lie on a straight line with a negative slope.
It is shown statistically that there exist correlation between the Buffalo Export for last Nine
years with the Total Livestock Export, it shows that the Buffalo meat do have a strong hold in
Indians Livestock sector with a correlation of 0.7675 which is very near to one.
Therefore looking at the correlation factor Buffalo meat export, Dairy Product and Poultry
products have a good correlation with the total livestock export share where as Processed
Meat products and Sheep and Goat products correlation is not as satisfactory with the total
Livestock export. The reason because of poor infrastructure and Government support even
50
though Animal Husbandry department is encouraging the investors still there are lot of scope
in this segment.
a 1249209.222
b 175863.5
YEAR YEAR
NO.
T X X2 Y
2010-2011 10 5 25 21,28,526.50
2011-2012 11 6 36 23,04,390
2012-2013 12 7 49 24,80,253.50
2013-2014 13 8 64 26,56,117
3) RECOMMENDATION
a) Till date India has targeted the bulk customers in the export of buffalo meat. A small
quantity as branded product in consumer packs has shown their presence in the super
markets. Except corned beef, we are not exporting any other product of processed meat
category. Whereas there is a demand for ethnic Indian meat product like Kabab, Gushtaba,
Akhani, Korma etc., still there is a great potential for European processed meat products like
Sausages, Ham, Salami, Burger, Smoked meat etc. If we are able to produce processed meat
products, it would add value and help in earning more foreign exchange.
b) There is a large potential for setting up of modern slaughter facilities and development of
cold chains in meat and poultry processing sector. The market has not been tapped fully for
ready-to-eat and semi-processed meat products in the domestic market as well as for exports
to neighbouring countries especially to the Middle East. Buffalo meat is surplus in the
country and has good export potential.
c) Poultry production and egg processing industries have come up in the country in a big way
and we are exporting egg powder, frozen egg yolk, albumin powder to Europe, Japan and
some other countries. Meat products have a growth rate of 10% whereas the growth rate of
eggs and broilers is 16% and 20% respectively.
d) Most of the production of meat and meat products continues to be in the unorganised
sector. However, some branded products have also come up in the domestic market. At
52
present, poultry export from India is mostly to Maldives and Oman. Some other markets can
be explored for export of poultry meat products like Japan, Malaysia, Indonesia and
Singapore.
53
3. A) Concluding Remarks:
There is no iota of doubt that as a result of application of scientific production techniques and
favorable government policies the total livestock production of India has increased to a
considerable extent. Nonetheless, the export trade of India in livestock products have been
highly fluctuating over time. The opening up of the national economy to the international
market in the era of liberalization has certainly boosted country’s trade in various livestock
products. There is also no denying the fact that the successful GATT negotiations have
provided India an opportunity to compete on a more equal footing in the global livestock
trade. But, at the same time, it also raises concerns on as to how international prices of
livestock products will react to free trade regime. Who will gain and who will lose from the
possible outcome of trade liberalization is again central point of discussion. According to
Baxi (1994), there would be an upward increase in the international prices of dairy products.
The long term implications of this can be :(a) EC would lose markets to the US, New Zealand
and Australia, (b) A significant rise in cheese export prices, (c) Effect on SMP and Butter
prices would be marginal, and (d) The benefit to India through SMP exports would be gradual
and modest. One of the arguments put forward by Baxi (1994) is that India will gain from the
possible outcome of the changes as the EC will have to raise export prices by 15 per cent to
adjust lower inward tariffs. On the whole, India needing a modest share in the world exports
market for various dairy products will be able to realize better prices in future. Nevertheless,
such realization will be possible only when India produces and exports sufficient quantities of
these valued products in the years to come. Growth in livestock trade has been facilitated by
increasing consumption of livestock products and economic liberalization. Developments in
transportation, such as long-distance cold-chain shipments (refrigerated transport) and large-
scale and faster shipments, have made it possible to trade and transport animals, products and
feedstuffs over long distances. This has allowed production to move away from the loci of
both consumption and production of feed resources. Increasing trade flows also have
implications for the management of animal diseases and a number of food-safety issues.
Livestock products represent a growing proportion of agricultural exports. Their share of
agricultural export value globally rose from 11 percent to 17 percent between 1961 and 2006.
However, trade in crops – including feed crops – still dwarfs that of livestock products.
Between 1980 and 2006, the volume of total meat exports increased more than threefold.
Exports of dairy more than doubled and exports of eggs almost doubled. The share of
production entering international trade increased, except for sheep meat and an egg, reflecting
the sector’s increasing degree of openness to trade. The degree of trade openness has been
54
particularly high for monogastrics. Although the bulk of livestock produce is consumed
within the country of production and does not enter international trade, livestock exports are
important for a few countries.
Notes
1. The new policy environment is designed to create a favourable climate for livestock output
to increase. Effective exchange rate adjustment and trade reforms are expected to improve the
terms of trade of tradable livestock products, making it internationally competitive and enable
it to record a large increase in export output.
2. In this study the total period of 9 years (2001-10) showing the trends of export from India
representing the situation at the beginning of the study.
3. In India, while cattle and buffalo are grown for producing milk and milk products, other
species of livestock like pig, sheep, goat, and poultry birds are reared for meat production.
The slaughter rates in relation to the population of the animals are: 1.45 per cent for cattle,
3.45 percent for buffalo, 32.5 per cent for sheep, 35.58 per cent for goats, and 26.25 per cent
for pigs (Singhal, 1995).
4. The major importers of the Indian meat and meat products are West Asian countries and
also some of the African countries that mainly include Malaysia, U.A.E., Jordan, Saudi
Arabia, Oman, Yemen Republic, Kuwait, Mauritius, Bahrain, etc.
55
3. B) References:
Annual Report (2009-10), Department Of Animal Husbandry, Dairying & Fisheries,
Ministry of Agriculture Government of India New Delhi
Baxi, J.J. (1994), ‘Export of Milk and Milk Products’, Indian Dairyman, Vol.46, No.5, PP
229-235.
Dastagiri, M.B. (2003), ‘Is India Self-Sufficient in Livestock Food Products?’, Indian
Journal of Agricultural Economics, Vol. 58, No. 4, Oct.-Dec., pp. 729-740.
Government of India (1995), Economic Survey, 1994-95, Economic Division, Ministry of
Finance, New Delhi.
Government of India (1998), Economic Survey, 1997-98, Economic Division, Ministry of
Finance, New Delhi.
Government of India (1999), Economic Survey, 1998-99, Economic Division, Ministry of
Finance, New Delhi.
Government of India (1999), Basic Animal Husbandry Statistics, Ministry of Agriculture,
Department of Animal Husbandry and Dairying, Krishi Bhawan, New Delhi.
Kumar, Praduman and V.C. Mathur (1996), ‘Agriculture in Future: Demand-Supply
Perspective for the Ninth Five-year Plan’, Economic and Political Weekly, Vol.31, No.39,
PP.A131-139.
Mishra, S.N. (1995), ‘India’s Livestock Economy : A Perspective on Research’, Indian
Journal of Agricultural Economics, Vol.50, No.3, PP. 255-263. Ministry of Information and
Broadcasting (1999), India : A Reference Annual, New Delhi.
Patel R.K. (1993), ‘Present Status and Promise of Dairying in India’, Indian Journal of
Agricultural Economics, Vol.48, No.1
Pandey, U.K. (1995), ‘The Livestock Economy of India : A Profile’, Indian Journal of
Agricultural Economics, Vol.50, No.3, PP 264-282.
Sarma, J.S. and Patric Yeung (1985), ‘Livestock Products in the Third World : Past Trends
and Projections to 1990 and 2000’, IFPRI Research Report, 49.
Shah, Deepak (2001), ‘Indian Dairy Industry: Present Status and Future Prospects’,
Productivity, Vol. 42, No. 3, October - December, pp. 474-483.
Singhal, Vikas (1995), Handbook of Indian Agriculture, Vikas Publishing House Pvt. Ltd.,
New Delhi.
56