Market Trends of india edible meat Industry
Production is propelling due to domestic consumption and export demand
- In 2022, beef production in India grew by a strong 8.76% from 2021. The increase in production is attributed to the rising demand for carabeef from India's export markets. The carabeef export is expected to grow to 1.48 MMT in 2023, driven by increased demand in Malaysia and the Middle East. India's carabeef and beef consumption projections for 2023 are expected to increase as water-bovine beef remains the country's most cost-effective animal protein source after poultry. However, religious taboos related to the consumption of cattle meat are a restraint to the growth.
- India has the highest number of live bovine animals worldwide, followed by Brazil and China in absolute terms. The national bovine herd is made up of bovine dairies and Asian domestic water buffaloes. The total bovine population is expected to reach 307.5 million in 2023, compared with 306.7 million bovine heads in 2022. With the improvement in the reproductive health of animals, calf crop numbers will gradually march upward.
- In 2022, India experienced an outbreak of lumpy skin disease (LSD) in cattle in various parts of the country. The overall observed impact of the outbreak was not severe, and the disease has now been largely contained. A new homologous vaccine, developed indigenously by the Indian Council for Agricultural Research-Indian Veterinary Research Institute (ICAR-IVRI), is expected to help control the spread of the virus in the coming years. The government is supporting the local livestock by providing a substantial allocation in the Fiscal Year Budget 2023/24 for the Ministry Of Agriculture and Farmers’ Welfare’s Department of Animal Husbandry and Dairying (DAHD).
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Modest demand growth, coupled with government initiatives, is stabilizing the prices of beef
- In 2022, beef prices in India reached USD 3.06/kg. The prices gradually increased by 8.52% between 2017 and 2022. India’s 2022 carabeef and beef consumption was 2.9 MMT, representing a nearly 5% increase from 2021’s estimate of roughly 2.8 million metric tons. Carabeef has strong consumer demand, primarily driven by its affordable pricing.
- The wholesale price index (WPI) for buffalo meat (carabeef) and beef in 2022 (January-June) rose 6%, a modest increase compared to other meats, which makes these red meats relatively more affordable and accessible to consumers. During the first quarter of 2023, the approximate wholesale price range for Indian beef was between USD 1.07 and USD 2.63/ kilogram. Over the last five years, the import price per kilogram of beef into India has been relatively stable. In 2017, the price was USD 2.99/kg, which decreased to USD 2.86/kg in 2022. Based on this trend, the import price per kilogram of beef into India in 2023 was predicted to be around USD 2.84/kg.
- About 50% of total meat production is generated in unregistered, makeshift abattoirs. Marketing and transaction costs of livestock products are high, taking 15% to 20% from the sale price. The government's USD 1.80 billion Atma Nirbha Bharat Abhiyan stimulus package announced the creation of an Animal Husbandry Infrastructure Development Fund (AHIDF), the primary objective of which is to increase milk and meat processing capacity and product variety, increasing farmers’ price realization. Prices in 2022 were also increasing due to a rise in food prices, feed prices, commodity prices, fuel prices, and supply chain disruptions due to the Russia-Ukraine war, which increased India's food inflation level by 7.7% Y-o-Y in March 2022.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing demand and rising costs are impacting the prices of mutton
- Rising production costs are impacting the profitability of the industry
- Rising incidents of diseases affecting the swine are impacting pork production
- Outbreaks and feed shortages impacting the prices of pork
- Government initiatives are expected to boost the production of mutton in India
- Poultry production is anticipated to grow despite the hit by surging feed prices and outbreaks
