- Poultry: Scope/significance
- Locations- Poultry Business
- Poultry Supply chain & Backward Integration
- Govt. schemes for poultry
- Meat: Scope/Significance
- Meat SCM@Upstream
- @Processing Level
- Government Schemes for meat/livestock
- Misc. Schemes
- Mock Questions
Previous article was on fisheries, now comes meat/poultry.
|UPSC syllabus||topics in this article|
|GS2: Statutory, regulatory and various quasi-judicial bodies.||Veterinary council of India|
|GS2: Government policies and interventions for development in various sectors||fodder points that
|GS2: Bilateral agreements involving India and/or affecting India’s interests.||fodder point that China has agreed to allow meat import from India. (earlier it was banned because of diseases)|
|GS2: Effect of policies and politics of developing countries on India’s interests||fodder point that Oman’s ban on Indian poultry has badly affected our business.|
|GS3: economics of animal-rearing||Plenty of fodder points on poultry and buffalo meat.|
|GS3: Changes in industrial policy and their effects on industrial growth.||fodder point that Meat processing industry was de-licensed in the 90s and as a result, now India is 6th largest exporter of bovine meat, produces meat worth >Rs.60,000 crores.|
|GS3: Food processing and related industries in India||for poultry and buffalo meat|
After this, only one and last article remains in [Food processing]: tea, coffee, wine, edible oil and confectionary.
Poultry business has potential to grow because:
- There is no religious sentiment associated with poultry.(unlike beef or pork)
- It takes far less feed to produce a kilo of chicken than the equivalent amount of pork or beef.
- Many youngsters becoming non-vegetarian under the influence of advertisements e.g. KFC, McDonalds etc.
- Consumer studies from other countries say “when vegetarians choose to convert to non-vegetarianism, they first experiment with poultry before trying other meat products.”
- Increasing prosperity in emerging markets= people can afford to put more meat on the table.
Contribution to economy:
- Meat: more than Rs.80,000 cr
- Eggs/Poultry: more than Rs.17,000 cr (and export ~450 crore)
- Backyard poultry provides cheap protein nutrition and side income to poor families.
- Per capita availability of eggs = ~ 55 per year
Namakkal District in TN:
Big poultry companies have backward integration. Let’s observe the case study of Saguna Foods
As a result of 1+2+3, all chicken/eggs are uniform in size, shape and quality.
- Another big player with similar backward integration is Venky’s (Pune based company): supplies Chicken to Indian outlets of McDonalds, KFC, Pizza Hut, and Domino’s.
- But just two Cinderella stories doesn’t mean everything is well and good with Indian Poultry business. Let’s observe the constrains-
- Poultry Feed constitutes almost 60-70% of the total broiler cost.
- Therefore, fluctuations in the prices of maize, soybeans/oilmeals significantly affect input cost in poultry business.
- Maize consumption by the animal feed sector (which accounts for almost 50% of maize consumption) has been growing much faster than maize production.
- Maize is primarily a rain-fed crop, the annual production level is dependent on monsoons= fluctuations in production level (and therefore fluctuation in price level).
- Government offers better MSP for rice and wheat. Hence farmers prefer rice/wheat over Maize cultivation.
- December-April period, maize is grown only in a small region in Eastern India = high feed prices for North East poultry business.
- Adding insult to the injury: Indian exports of maize to Bangladesh, Nepal and other countries have been rising exponentially. These countries do not have significant domestic maize production, yet their poultry industry is growing rapidly. (Meaning, Bangleshi and Nepali are using Indian maize to improve their poultry business, while Indian poultry farmers are struggling.)
- After the outbreak of bird flu, (+ inflation), desi customers decreased egg/chicken consumptions and foreign countries also imposed ban on Indian poultry. As a result, most poultry farmers are making losses.
Government needs to address this inconsistency in its policy on maize and poultry rearing.
- Outbreak of Avian influence (commonly known as bird flu)= culling of poultry + fall in demand= hurt the business.
- Since many poor families raise poultry in backyard don’t maintain hygiene standards=flu outbreak.
- This not only hurts the family but also commercial players, because foreign countries will impose ban on import of Indian egg/chicken because of the bird flu news.
Influenza virus has two components
|Haemagglutinin (H)||Protein found on the surface of influenza viruses.which is responsible for binding the virus to the victim-cell|
|Neuraminidase (N)||Enzyme found on the surface of influenza viruses.|
- There are multiple varieties of (H) and (N), and based on their combination in the given virus, scientists name it H5N1, H5N2 etc.
|Avian flu||Swine Flu|
Two types of Avian influenza
|low capacity for causing disease (low pathogenic avian influenza or LPAI)||causes disease very easily (highly pathogenic avian influenza or HPAI)|
|Migratory water fowl||One type of wild ducks – constitute the natural reservoir of the virus. Wild birds may carry H5N1 from one area to another through the process of migration.|
|Poultry flocks (chickens, ducks, turkeys, geese)||
|Cats, tigers, leopards||found to be affected by Avian influenza, after eating raw infected birds|
|Human||Disease can also affect humans but only after eating poultry meat that has not been cooked properly or after very close contact between a person and an affected animal.first outbreak: Hongkong’97|
Steps taken by our government so far:
- The Action Plan to combat Avian Influenza was revised in 2012 and circulated to the State/UT Governments for implementation.
- About 90% veterinary workforce of India has been trained to combat bird flu.
- Culling of entire poultry population in the affected zone of 0-1 Km
- Upgraded laboratories, stockpiled materials, medicines etc.
- Bio-Safety labs setup @Jalandhar, Kolkata, Bangalore & Bareilly.
- Education and Communication (IEC) campaigns to sensitize general public
- All the state governments have been alerted to be vigilant about the outbreak of the disease.
- Government has banned imports of poultry from bird flu positive countries. (and Oman banned our poultry exports, so tit for tat, the circle of karma is complete.)
- Government has alerted Border check posts with neighboring countries to stop transport of live-birds/eggs/chicken.
- Contract Farming prevalent in Southern India for poultry business. eg. Saguna Foods and Venky’s.
- Farmers provided with feed, medicines and bird growing fee. Some companies have state of the art processing plants located close to cities.
- But this contract farming model has still under developed in the remaining parts of India.
- Poultry processing capacity India ~ 25,000 birds per hour BUT, Average utilization is barely 30%. Because Several of the operating units are run by small and unorganized players.
- The only “big” players in Indian Chicken business= Venky’s, Godrej, Arambagh and Suguna.
At “Retail” level, chicken are slaughtered on street side shops/hotels by untrained people. Result?
- Clean water not used for washing= contamination
- Poor hygiene practices in defeathering, chopping, removal of viscera etc. =contamination.
- Lack of chilling facilities= immediate bacterial attack.
- Lengthy farm-to-slaughter time + no cold storage= dehydration= shriveled/bad quality meat.
- Improper ventilation and space for storing live chicken = droppings / feed / feathers spread bacteria.
Slaughter waste generated per day in Mumbai alone is about 150 tons.
Solution= ban street side slaughter of all animals + rigorous food inspection of all such shops, just like in developed countries.
- Kerala imposes ~13% VAT on chicken
- On the other hand Tamilnadu has exempted Meat, fish eggs, poultry and livestock from VAT.
- Result: “Smuggling” of chicken from Tamilnadu to Kerala = revenue loss to government
- Solution: uniform GST all over India.
|OCT 12||WHO confirms bird flu outbreak in government-run turkey farm at Hesaraghatta, Karnataka,|
|NOV 12||Oman, the biggest egg export market for India, bans import of eggs and chicken from India because of bird flu news.|
|JUN 13||Oman has lifted the ban on importing poultry products from India, but with condition that an Indian company must get its premises and husbandry procedures verified by Omani officials first.But in during this ‘ban’ time, the Omani hotels, businessmen made import-contracts with Brazil and Holland for supply of eggs and chicken. So, even after the ban is lifted, we are not seeing much high demand from Oman.|
High cost of feed, high food inflation, ban by Oman= Poultry business is deeply affected, Most poultry farmers are selling below production cost and making losses.
- 100% centrally sponsored.
- By Department of Animal Husbandry Dairying & Fisheries (DADF) under Agro Ministry.
- Has three components
||One time assistance is provided to strengthen poultry farms.e.g. for buying/upgrading hatchery, brooding and rearing houses, laying houses for birds, in-house disease diagnostic facilities and feed analysis laboratory.|
||Poultry given to BPL families= supplementary income + nutritional support.|
||In these poultry estates, entrepreneurship skills given to educated, unemployed youth and small farmers, so they start poultry related business-activities.|
- Scheme provides finance through NABARD.
- To setup poultry breeding farms, feed godown, feed mill, marketing of poultry products, egg grading, packing and storage houses for export, egg and broiler carts for sale of poultry products etc.
- Additional finance for SC/ST/North Eastern state.
|REGION||org. located @|
They help farmers diversify poultry rearing by adding new species:
|REGION||poultry species introduced|
|SOUTH||Duck, Emu, Turkey|
|NORTH, WEST||Japanese Quail|
They train farmers, women beneficiaries, various public and private sector poultry organizations, NGOs, Cooperatives and foreign trainees etc.
- in the Union Budget 2013-14.
- To support poultry, dairy farming and fisheries.
- It’ll have sub-missions for
- increasing availability of feed + fodder
- Improving animal breeds to raise milk yields.
|Kalamasi Fowls||Already covered under Hindu Sci-tech compilation. click me|
Enough of eggs, chicken and poultry. Let’s move to
Indian buffalo meat is witnessing strong demand in international markets because
- Our main competitors (Aus+US) are on decline. (more under downstream=>Export )
- Indian buffalos have near organic nature (i.e. grown without use of drugs/antibiotics unlike American cattle=less harmful effect on human health).
|India’s world ranking||in|
|5||Bovine meat export.|
We’ve export demand in
|BOVINE MEAT||Saudi Arabia, Vietnam, Malaysia, Angola, Kuwait, Egypt, UAE, Jordan, Iran|
|SHEEP||UAE, Saudi Arabia, Vietnam, Qatar , USA|
|CHICKEN||Oman, Afghanistan, Sri Lanka, Kuwait|
- Livestock market = where buying selling of animals done for dairy/meat.
- Supervision falls within the purview of the local bodies (panchayats, municipalities or corporations).
Problems of Livestock markets:
- Markets are primitive in functioning. No facilities for weighbridges, ramp facilities for loading and unloading, feeding and watering animals.
- No veterinary doctors available in market to certify animal health before sale.
- No separate markets for different species of animals.
- No licensing/registration of merchants, brokers or suppliers= non-transparent pricing, margins/commissions almost 30% of the consumer prices.
- The global trend is “Contract farming” For animal rearing.
- Meaning, the meat-processing companies pay advance money, veterinary services, fodder to the farmers and ask them to raise buffalos/sheep/pigs for slaughtering.
- But in India, buffalo slaughter is allowed only when the buffalo outlives their useful life as a dairy or a draught animal.
- Male buffalo calves often slaughtered illegally (=revenue loss for government)
- They’re starved when farmers do not find them useful for draught purpose.(=resource loss, animal cruelty)
- Meat processing companies find it difficult to do “contract farming” for buffalo/sheep etc. Hind Agro is the only Indian player which has backward linkages with male buffalo calf rearing.
- No control over animal feed =meat quality is not uniform = doesn’t commend high prices abroad.
- inadequate veterinary care = various diseases= export rejected from US/EU
|veterinary services||same like previous article on milk/dairy business.|
|fodder||same like previous article on milk/dairy business.|
There are two types of slaughter houses in India:
#1: MUNICIPAL SLAUGHTER HOUSES
- Municipal slaughter houses are owned and operated by local and state governments.
- Their infrastructure + facilities are (as you can guess) inadequate and outdated.
- They charge fees but often money is not used for upgrading the infra/facility.
- The animals are often kept in poor conditions (due to lack of adequate infrastructure)=unhygienic meat.
#2: PRIVATE SLAUGHTER HOUSES
- meat processing was delicensed in 1991
- Meat-export companies need to have private slaughter houses to meet the quality standards of US/EU.
- But since meat is a highly controversial subject involving religious, social angles=> local authorities are reluctant to give land allocation for new private slaughter houses.
- Result: Plenty unauthorized slaughterhouses: almost 50 percent of animals slaughtered here => unhygienic meat + revenue loss to government.
- Since many of the slaughterhouses are unorganized and illegal- the byproducts of livestock slaughter are not utilized for additional income e.g. Meat-cum-Bone Meal (MBM), tallow, Bone Chips etc. could be sold as pet food. Viscera, waste could used for methane generation etc.
Since 9th Five year plan, Central government had come up with a scheme to upgrade municipal slaughter houses, but progress is unsatisfactory. Why?
Under this scheme, center: state will share cost burden equally (50:50) but state governments are reluctant to pay their 50% money, because of following reasons
- Frequent interference by animal rights activists
- Negative perception of meat eating and therefore limited proactive action by all concerned authorities.
Solution: Privatize the Municipal slaughter houses.
Notable private players in Meat industry
|Hind Agro Industries Ltd||Fast Prax (fast food outlets)||Buffalo, sheep and goat meats|
|Allana sons Ltd||Premier, Saffa||Premier (fruits and vegetables) Saffa (meat)|
|Al Kabeer||Al Kabeer||Vegetables and fruits, snacks, meat and poultry, ready meals and sea food|
|PRICE||Indian consumer = price sensitive. Chicken and Buffalo meat are more consumed than other varieties.|
|SELF-BAN||Even non-vegetarian refrain from consuming meat on certain religious festivals|
|REGIONAL PREFERENCE||Eastern India and Coastal regions prefer marine products over poultry/animal.|
|FRESH||Indian consumers prefer to buy freshly cut meat from the wet market, rather than processed or frozen meats. Health concerns associated with red meats leading to preference for poultry.|
Potential market in China
- Till now, China did not allow import of Indian meat because of concerns about ‘Rinderpest’ and foot & mouth disease.
- But in May 2013, India-China made agreement that’ll help in export of buffalo meat, fishery products and poultry feeds from India to China.
Decline of competitors
Indian buffalo meat exports =potential to grow, because some of our competitors are on decline:
- covers all livestock species except cattle and buffalo
- To protecting threatened breeds of livestock whose population is about of 10,000 (for animal)) and 1000 (for poultry)
|Example of breeds covered under this program||state|
|Black Bengal goat+Haringhata Black Fowl||West Bengal|
|Yak||Jammu and Kashmir|
|Nilgiri sheep||Tamil Nadu|
|Muzzafarnagari sheep||Uttar Pradesh|
(copy pasting from earlier article)…
Scheme by Ministry of food processing industries.
Abattoir= slaughterhouse/ butcher house. Food processing ministry runs a scheme for them. This scheme Under PPP mode with involvement of local bodies (Panchayats or municipalities) via
- build-own-operate (BOO)
- build-operate-transfer (BOT)
- Joint venture(JV) basis.
- establish new modern abattoirs
- modernize existing abattoirs
- promote scientific and hygienic slaughtering.
- Modern technology for waste management.
- better by product utilization (bones, skin etc.)
- provide chilling facility, retail cold chain management etc.
|area||grant for __ % of the project cost|
|North East, Hill area, areas under integrated Tribal development plan||75|
Maximum grant: Rs.15 crore per project.
Ten slaughterhouse projects ongoing:
- Component of Rashtriya Krishi Vikas Yojana.
- to promote production of animal based protein through livestock development, dairy farming, pig and goat rearing and fisheries
by Department of Animal Husbandry, Dairying & Fisheries
|National Project on Rinderpest Eradication||
|Foot & Mouth Disease Control Programme||
|National Control Programme of Peste des Petits||
|National Control Programme on Brucellosis||
The limitation of each of the following 3 schemes= government has allotted a “token sum” of only Rs.1 lakh for the given year.
- to rear male buffalo calves for meat production
- to develop linkages with export oriented slaughterhouses in Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Uttar Pradesh, Punjab and West Bengal.
- is expected to generate substantial quantity of meat, hides and by-products
- also provide direct part employment and indirect employment to people in feed, fodder, meat leather and various input services.
- to be establish/ modernize slaughterhouses in rural areas and smaller towns
- to produce wholesome and hygienic meat for supplying to the cities/towns.
- This way, the loss in the meat sector due to transportation of live animals, shrinkage of meat and environmental pollution in the cities will be prevented
- fresh hides and skins in the tanneries in vicinity of the slaughterhouses will boost production of quality leather.
- pilot implementation in three states: Uttar Pradesh, Andhra Pradesh and Meghalaya
More than Rs.900 cr are lost per year, due to non-recovery/ partial recovery of hides/skins and other by-products from the fallen animals. Hence this scheme was launched with following objectives
- Provide opportunity of employment to rural poor engaged in carcass collection, flaying and by-product processing
- Produce better quality hides and skins through timely recovery, better handling and transport
- Prevent bird-hit hazards to civil and defence aircrafts
|rabbits||Integrated Development of Small Ruminants & RabbitsNABARD. The scheme is aimed for women beneficiaries, poor and marginal farmers|
|Animal Quarantine and Certification Service||
|Livestock Health & Disease Control program||supports the state Governments for animal immunization, strengthening of existing Laboratories and in-service training to Veterinarians|
|Veterinary Council of India||
|National Institute of Animal Health||at Baghpat, Uttar Pradesh to undertake the testing of animal vaccines and drugs.|
|Central Sheep Breeding Farm||Hissar (Haryana). as the name suggests: sheep breeding research.|
|Central/Regional Disease Diagnostic Laboratories||Izatnagar is functioning as Central Laboratory for surveillance and diagnosis of various livestock and poultry diseases including Avian Influenz|
- Which of the following is a part of concurrent list under 7th Schedule?
- prevention of cattle trespass
- prevention of animal diseases
- infectious or contagious diseases or pests affecting animals or plants
- None of above
- Correct statement about Avian influenza
- It is caused by H1N1 virus
- Migratory water fowl is the natural reservoir of the virus
- Carnivore animals such as Cats, tigers, leopards are immune to avian influenza.
- None of Above
- Poultry Venture Capital Fund provides financial assistance through
- Central Poultry development Organization
- Department of Animal husbandry
- Ministry of food processing industries
- Find odd term
- Rinder pest
- Foot and mouth disease
- Peste des Petits
- Find correct match
- Chegu Goat: Kerala
- Haringhata Black Fowl: MP
- Bonpala Sheep: Sikkim
- None of above
- 2 marks
- Veterinary Council of India
- Livestock Insurance
- Livestock Census
- National Project on Rinderpest Eradication
- Abattoir modernization scheme
- 15 marks
- Discuss the negative impact of Avian influenza on Indian poultry business. Enumerate the steps taken by Indian government to combat this disease.
- Discuss the Upstream issues affecting Indian poultry business and suggest remedies.
- Lack of backward integration in the buffalo meat supply chain, has hampered the growth of meat processing industry in India. comment
- List the initiates taken by Department of Animal Husbandry, Dairying & Fisheries for promotion of meat and poultry industry.
- Innovations that are guided by smallholder farmers, adapted to local circumstances, and sustainable for the economy and environment will be necessary to ensure food security in the future. Comment
- Factory farming is one of the biggest contributors to the most serious environmental problems. comment
- Physical bravery is merely an animal instinct; moral bravery is much higher.
- Throughout the history, evil has survived through concealment.
- Man is the only animal for whom his own existence is a problem which he has to solve.
- Man-The only animal in the world to fear.