Thursday, March 4, 2021
Home India Buffalo meat exports likely to grow 50 Percent in Five years, says...

Buffalo meat exports likely to grow 50 Percent in Five years, says ICRA

A report from credit rating agency ICRA shows that India’s annual buffalo meat exports will touch the Rs 40,000 crore mark in the next five years, compared with Rs 26,682 crore in FY16

  • A report from credit rating agency ICRA shows that India’s annual buffalo meat exports will touch the Rs 40,000 crore mark in the next five years, compared with Rs 26,682 crore in FY16
  • In the last 8 years, India’s buffalo meat exports have recorded CAGR of 29 per cent, rising from the Rs 3,533 crore-level in FY08
  • For the last two years, buffalo meat has been the highest agri-related export from India and its contribution to the total exports revenue has almost doubled to 1.56 per cent in FY16, from 0.76 per cent in FY11

Buffalo meat exports from India are likely to grow by 50 percent over the next five years, thanks to growing demand. A report from Investment Information and Credit Rating Agency of India shows that India’s annual buffalo meat exports will touch the Rs 40,000 crore mark in the next five years, compared with Rs 26,682 crore in FY16. This means compounded annual growth rate (CAGR) of 8 percent.

In the last 8 years, India’s buffalo meat exports have recorded CAGR of 29 per cent, rising from the Rs 3,533 crore-level in FY08. “While India has been exporting buffalo meat for almost two decades, the industry has gained momentum only in the last decade. This can be attributed to multiple factors like increasing demand from developing countries (like China, Vietnam, Thailand, etc), slaughtering method meeting the religious requirements of certain ethnicities, price competitiveness, high buffalo population, and low domestic consumption,” said Sabyasachi Majumdar, senior vice president — corporate sector rating, Icra.

Within India, Uttar Pradesh accounts for the highest share (28 percent) of the total buffalo population and has also emerged as the leading buffalo meat producer — housing around 60 per cent of the total standalone slaughter houses, standalone meat processing units and fully-integrated meat processing units.

Follow NewsGram on Twitter

India’s buffalo meat exports account for around 20 percent of the world’s total buffalo meat/beef exports (in volume terms), making it the largest exporter, overtaking Brazil and Australia.

India by and large exports only buffalo meat, compared with other countries which primarily export beef. This growth has been driven both by volume expansion (CAGR of 13 percent) and an increase in realisations (CAGR of 13 per cent). For the last two years, buffalo meat has been the highest agri-related export from India and its contribution to the total exports revenue has almost doubled to 1.56 per cent in FY16, from 0.76 per cent in FY11.

Buffalo meat sold in tin boxes. Image Source: Wikimedia Commons
Buffalo meat sold in tin boxes. Image Source: Wikimedia Commons

The buffalo meat industry is largely unorganised and only moderately regulated. It also remains vulnerable to risks pertaining to social and political sensitivity, sustainability of buffalo population, disease outbreak and high competition from global beef industry (this was evident in FY16 when the buffalo meat exports from India declined for the first time in almost a decade as depreciation of Brazilian currency made Brazilian beef cheaper).

Follow NewsGram on Facebook

Additionally, there is considerable scope for improvement in the industry infrastructure, which lags the standards of some of the major global beef exporting countries. However, the government is addressing these challenges by focusing on improving industry infrastructure through direct as well as private sector participation, the rollout of schemes to sustain the availability of buffaloes for slaughtering and developing a wider regulatory framework to ensure quality control.

“In the long term, buffalo meat exports are likely to continue to report healthy growth, driven by improving infrastructure, a sizeable buffalo population, a relatively lower price of Indian buffalo meat, and steady demand in the international market,” said Majumdar. (IANS)

ALSO READ:

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

Best Sites To Play Andar Bahar Online

By John Graham Playing Andar Bahar is fun, especially when playing on a user-friendly site. It’s a game where you play and win. Besides, it’s...

7 Tips On How To Always Wake Up On Time In College

By Grace Johnson Many students complain that waking up early to go to classes seems to be getting more and more difficult day by day....

US Based OAC To Make The World’s First Space Hotel

If you are a space enthusiast, there is more exciting news as a US-based space construction company, Orbital Assembly Corporation (OAC), is planning to...

Gut Instinct To Figure Out Between Fake And Genuine Reviews

While booking a hotel online, travelers should trust their gut instinct rather than relying on computer algorithms to figure out between fake and genuine...

Study: Customized Diets Could Be Key To Optimizing Mental Health

Lifestyle changes and customized diets could be key to optimizing mental health, a new study suggests. The study indicates that significant customized diets and...

Study: One In Four People, Maybe Living With Some Degree Of Hearing Loss By 2050

Nearly 2.5 billion people worldwide, or one in four people, maybe living with some degree of hearing loss by 2050, and at least 700...

Rare India: Commit To A Life That Puts Planet And People First

The Climate crisis is real, and the travel industry is affected in so many ways that there is an immediate need to address how...

World Wildlife Day: Here Are Some Wildlife Sanctuaries Worth Visiting

With millions of species breathing on earth, the world celebrates Wildlife Day today, March 3, to raise awareness of global flora and fauna. There...

Recent Comments