Bovine Meat Ex­ports Fall on China Ban, Brazil Com­pe­ti­tion

Sales also hit by cur­rency cri­sis in Egypt & low de­mand in high-con­sump­tion mkts like Syria, Iraq & Saudi Ara­bia

The Economic Times - - Economy - Kir­tika.Suneja@ times­group.com

Raw Deal Buf­falo meat ex­ports down y-o-y in first three quar­ters of 2015-16 at from $3.77 b in year-ago pe­riod

Ex­ports of sheep & goat meat down 5.7% in same pe­riod Ac­cord­ing to USDA, In­dia ex­ported

com­pared to 2 mt by Brazil & 1.6 mt by Aus­tralia New Delhi: In­dia’s meat ex­ports have fallen sharply – and it’s not the out­cry over beef that’s re­spon­si­ble.

The global fi­nan­cial tur­moil, low price re­al­i­sa­tion and a Chi­nese ban on im­ports have re­duced In­dia’s bovine meat ex­ports from a year ear­lier, when the coun­try dis­lodged Brazil from the No. 1 spot. Ship­ments have fallen due to lower de­mand in high-con­sump­tion mar­kets such as Egypt, Syria and Iraq, along with com­pet­i­tive rates of­fered by Brazil, the sec­ond­biggest ex­porter.

In­dia’s buf­falo meat ex­ports are down al­most 16% to $3.17 bil­lion in the first three quar­ters of 2015-16 from $3.77 bil- lion in the year-ago pe­riod. The ex­port of sheep and goat meat has de­clined 5.7% in this pe­riod.

“Buf­falo meat ex­ports have de­clined and the main rea­son is the de­val­u­a­tion of Brazil­ian cur­rency due to which price dif­fer­en­tial be­tween In­dian and Brazil­ian ex­ports has re­duced, ren­der­ing us less com­pet­i­tive,” said an of­fi­cial.

In­dia also lost a sig­nif­i­cant mar­ket in China, which pro­hibits the en­try of bovine meat on grounds of al­leged foot-and­mouth dis­ease.

Slow­ing global de­mand is also not help­ing In­dia’s case, as is ev­i­dent in the Mid­dle East and Africa.

“World over, the economies are down...Many coun­tries are find­ing it dif­fi­cult to sus­tain their economies,” said Su­nil Sud, a part­ner at Delhi based Al-Noor Ex­ports, which, ac­cord­ing to its web­site, is one of the old­est and largest ex­porters of frozen buf­falo meat in the world. Egypt has a cur­rency cri­sis and de­mand in Iraq, Syria and Saudi Ara­bia is down, he said.

The situation is con­trary to what the US Depart­ment of Agri­cul­ture said on live­stock and poul­try meat ex­ports last year in its re­port in Au­gust.

Ac­cord­ing to the data, In­dia ex­ported 2.4 mil­lion tonnes of beef and veal in 2014-15, com­pared with 2 mil­lion tonnes by Brazil and 1.6 mil­lion by Aus­tralia.

The US gov­ern­ment clas­si­fies buf­falo meat as beef. In­dia does not per­mit ex­port of beef that in­cludes meat and ed­i­ble of­fal (heart, liver, tongue, kid­neys) of cows, oxen and calves.

The of­fi­cial said that due to ad­verse de­mand con­di­tions, in many cases In­dian ex­porters are ready to sell at lower prices, es­pe­cially in the Mid­dle East.

The in­dus­try also blames lack of in­cen­tives in the cur­rent for­eign trade pol­icy for fall­ing bovine meat ex­ports.

“The ba­sic prob­lem is global de­mand. The in­ter­nal do­mes­tic prob­lem has al­ways been there. It is only a con­trib­u­tory fac­tor,” the of­fi­cial said.

Sud cor­rob­o­rated: “There has been no change in pol­icy. In­dian pol­icy has been con­sis­tent for many years.”

2.4 mt beef & veal in 2014-15,

$3.17 b

16% Buf­falo meat ex­ports are down al­most 16% to $3.17 bil­lion in the first three quar­ters of 2015-16

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.