India to lead global beef sector volumes despite rise in Hindu sentiment, says report

Low local consumption of beef has also allowed the country to record very large exportable surpluses, as only 50 per cent of production is consumed locally, compared with 80 per cent in Brazil, according to the report.

By: PTI | New Delhi | Published:October 12, 2016 9:23 pm

beef, beef ban, bee biryani, haryana cattle, Haryana’s Muslim population, mewat, 2012 Livestock Census, india news,latest newsThe rise of nationalistic Hindu sentiment notwithstanding, India’s beef sector will continue to be one of the country’s bright spots of agribusiness and will continue to lead the global beef trade in volume, according to Fitch group firm BMI Research.

“India specialises in the production of cheap and abundant buffalo meat and will continue to lead the global beef trade in volume, amidst increasing demand for inexpensive meat in Asia and the Middle East,” BMI Research said in a report.

However, India’s reliance on illegal trade routes to China makes the sector vulnerable to a potential crackdown on smuggling, it added.

The report noted that after more than a year since the implementation of a ban of cow slaughter and consumption in the Indian state of Maharashtra on growing opposition to cow meat nationally, the country’s beef sector remains one of the faster growing agribusiness markets.

“India’s beef sector will continue to be one of the country’s agribusiness bright spots despite the rise of nationalistic Hindu sentiment,” it said.

Low local consumption of beef has also allowed the country to record very large exportable surpluses, as only 50 per cent of production is consumed locally, compared with 80 per cent in Brazil, according to the report.

“We forecast beef meat production to grow at a steady 4 per cent annually over 2016-2020, to reach 5.1 million tonnes at the end of that period,” BMI Research said in the paper.

India, which overtook Brazil as the world’s largest beef exporter in 2014, will maintain a head start over its competitors in terms of exportable supply in the coming years as the country will record a surplus of 2.2 million tonnes on average over 2016-2020, compared with 2 million tonnes for Brazil and 1.5 million tonnes for Australia, the report said.

Looking ahead, beef production growth will be mainly driven by the domestic growth in the dairy sector and by steady demand in the international market, BMI Research said.

The paper highlighted that a significant part of India’s beef trade is done through illegal channels, as live cattle is exported to Bangladesh (prohibited by the Indian government) and frozen meat reaches China via Vietnam (which is prohibited by China).

Therefore, it said, India’s beef market is at a high risk of a change in trade regulation or a crackdown on illegal trade. In particular, China could seal the fate of India’s exports; exports to Chinese markets would boom should the 2013 Memorandum of Understanding over beef trade between the two countries be finally enacted after years of negotiations.

The paper observed that although the national outlook is enticing, some individual states will fall behind in terms of beef production in the coming years, mainly due to cultural factors and local politics.

Several India states mainly controlled by the BJP and large producers of beef meat, including Maharashtra and Haryana strengthened the legislation against cattle slaughter to include all types of cattle (male, female, at all age).

For all the latest Business News, download Indian Express App

  1. K
    khan
    Oct 12, 2016 at 4:45 pm
    Cow( mother) sold and slaughtered for money
    Reply
    1. S
      Steff
      Oct 13, 2016 at 8:39 pm
      The cow vigilantes have killed humans and raped women to protect an animal ! Can u imagine the fate of this country ? Where are they when their God is eating from the dustbins ? All in the name of blind belief. How can someone worship an animal ? Reasons why this country goes through so much of natural disaster and poverty. We don't know there on only one God and he will form to judge us one day for all this .
      Reply
      1. S
        sunny
        Oct 12, 2016 at 5:14 pm
        cow is slaughter for dollars BJP banned cow and buffloes slaughter in india just for export now india is a leading beef exporter india as four largest slaughter house 3 are owned by hindu and 1 muslim AL-KABBER largest slaughter in andhra is owned by A JAIN
        Reply
        1. B
          Biltu
          Oct 12, 2016 at 11:39 pm
          DEKHO O DIWANO TUM YEH KAAM NAA KAROlt;br/gt;COW KO SPARE KAR KE, BUFFALLO NAA MARO.
          Reply
          1. B
            bitterhoney
            Oct 12, 2016 at 6:06 pm
            Where are cow vigilantes hiding? Why are they not questioning the govt? Are they dead?
            Reply
            1. A
              ashitosh pandey
              Oct 13, 2016 at 3:18 am
              This study should be taken seriously by the government if want to do something about beef ban
              Reply
              1. R
                rumi
                Oct 12, 2016 at 7:18 pm
                Hypocrate hypocrate hypocrate
                Reply
                1. R
                  rumi
                  Oct 12, 2016 at 7:16 pm
                  Reality of bjp
                  Reply
                  1. Load More Comments