1. By Suvin Advisors Pvt. Ltd. 1 Indian Slaughter House Industry

2. Contents Global Meat Industry Indian Meat Industry Concept of Slaughter House Indian Slaughter Houses SWOT Analysis of Indian Slaughter House Industry Government Schemes & Policies for Slaughterhouses Potential of Indian Slaughter House Industry 2 3. Global Meat Industry 3 4. Introduction to Global Meat Industry Livestock production is growing rapidly as a result of the increasing demand for animal products Global meat production and consumption will rise from 233 million tonnes in year 2000 to 300 million in year 2020 Over the last few decades, the increasing demand has been largely met by the world wide growth in intensive livestock production, particularly poultry This is expected to continue as real income grows in the emerging economies 4 5. Introduction to Global Meat Industry Global meat (beef, pork, poultry) exports have grown over 40 percent in less than 10 years, with 2014 forecast at another record on rising incomes and stronger demand Beef and broiler meat are expected to reach new records and pork is forecast at near record levels 5 6. Introduction to Global Meat Industry Mounting demand from East Asia is expected to lift beef and pork significantly For broiler meat, growth continues from the Middle Eastern and Sub-Saharan African regions Broiler meat demand is expanding at a faster rate because it is highly price competitive with other meat proteins 6 7. Global Meat Industry : Beef & Veal Global production for 2014 is forecast up marginally at 58.6 million tons as most major producers are expected to benefit from cheaper feed supplies and rising import demand (mostly from China and Hong Kong) However, the United States is forecast to drop 6 percent because cattle inventories continue to shrink Global consumption forecast slightly above last years record, at 57.0 million tons, while international trade is7 8. Global Meat Industry : Beef & Veal Exports are forecasted at 9.2 million tons, expanding 24 percent in just 5 years, with Brazil and India accounting for most of that growth. 8 9. Global Meat Industry : Beef & Veal Strong demand for dairy products encourages continued expansion in the bovine herd, as higher dairy prices spur the development of more commercial farms As a result, the herd forecast to grow 1 percent to almost 330 million head 9 10. Global Meat Industry : Pork Global pork production for 2014, continuing its decade long expansion at a fairly consistent rate, is projected at a record 108.9 million tons on lower expected feed costs and growing demand 10 11. Global Meat Industry : Broiler Meat For 2014, global production continues to hit new records surging 18 percent in just five years Global exports have now expanded by over 25 percent in the past five years, with more than 80 percent of that growth attributed to Middle Eastern and Sub- Saharan African demand 11 12. Indian Meat Industry 12 13. Introduction to Indian Meat Industry The livestock sector is an important component of Indian agriculture & India has a huge livestock population Efficient utilisation of these resources including production and utilisation of livestock products is important to earn increased returns and sustain livestock production activities During the last three to four decades, India has witnessed the green, white, yellow and blue revolutions The time has come to realise one more revolution i.e. red/pink revolution in the form of meat production.13 14. Introduction to Indian Meat Industry In fact, in spite of big potential because of large livestock population, the meat industry in India has not taken its due share The present production of meat is estimated at 6.27 million tons in 2010 , which is 2.21% of the world's meat production The contribution of meat from buffalo is about 23.33%, while cattle contributes about 17.34%, sheep 4.61%, goat 9.36%, pig 5.31%, poultry 36.68% and other species 3.37% 14 15. Introduction to Indian Meat Industry The compounded average growth rate (CAGR) during the last two decades works out to be 4.5% It is noticed that about 10.6% cattle, 10.6% buffaloes, 24.1% sheep, 58.7% goats, 95.0% pigs and 190.0% chicken are slaughtered each year The value of meat and by-products is Rs 79,889 crore including skin and hides, while the export value of meat and meat products work outs to be more than Rs 6,000 crore in the year 2009-10 The contribution of buffalo meat accounts for more than 75% of total exports/foreign earnings15 16. Concept of Slaughter House 16 17. Slaughter House The meat animals are slaughtered in specially constructed establishment/place/premises/building wherein food animals are slaughtered for production of meat and slaughter by-products with licensing from the concerned authority is called as slaughter-house Modern abattoir is also a slaughter-house where animals are slaughtered under humane and hygienic conditions for production of wholesome and safe meat for human consumption 17 18. Slaughter House Recently, "meat plant" is the word which has been introduced in the place of "slaughter houses" and "abattoirs" for following reasons To obviate the bad feelings about animal slaughter To denote factory system of operations by which the animals are handled humanely and the total operations are done hygienically and methodologically Many a times, in a forward integration manner which include operations like carcass cutting, production of custom-designed retail and lean cuts, their packaging and dispatch 18 19. Slaughter House Evolution Initially, slaughtering was a backyard proposition Every meat trader used to slaughter his food animals in the space adjacent to his selling premises Slaughter operations produced lot of blood and animal wastes and, if these are not cleaned properly, they would stink because they are all perishable materials of organic origin As awareness about the implications of meat on human health grew and the deleterious effects on the environment were realised more and more, governments considered "meat inspection" as one of their obligations to the society 19 20. Slaughter House Evolution Centralised premises were constructed for slaughter of food animals Acts and ordinances were promulgated on meat inspection to the effect that sale of carcasses and offal's meant for human consumption should have been produced only from animals slaughtered in these special premises and passed through meat inspection procedures Backyard slaughtering was banned and slaughter houses came into existence Existing conditions of slaughter-houses for domestic supply The existing condition in the majority of the traditionally 20 21. Modern slaughter-house concept It is therefore necessary to establish modern slaughter-houses to bring improvements in Meat-handling practices Recovery and proper utilisation of by-products Waste treatments for pollution control for re-organisation and strengthening the meat industry on scientific line to provide wholesome and safe meat to the domestic consumer as well as to play a major role in international meat trade/market. 21 22. Modern slaughter-house concept The modern slaughter-houses need not to be large ones They can be small/medium/large to slaughter from 10 animals upto 10,000 animals on modern scientific basis They can cater the need of Indian consumer from rural and urban areas They can also meet the export demands to earn the foreign currency to strengthen not only the meat22 23. Modern slaughter-house concepts The slaughter house should be located away form residential area Access for animals ( Rail/ Road /Stock route) must be assured The slaughter house should be located where flooding is impossible An abundant supply of portable water as well as adequate facilities for treatment & disposal is important The land acquired for proposed slaughter house should 23 24. Slaughter House Process Flow Slaughtering Blood Processing ETP Bio Composting 24 25. Equipment in slaughter-house Killing box Bleeding latform Elevator Fixed dressing platform with knife sterilizer & hand wash basin Dressing rail Trolley Dressing hooks Electrical control panel Hose rack High pressure jet pump 25 26. Equipment in slaughter-house Dispatch rail work Insect killers Cleaning table 26 27. Indian Slaughter House 27 28. Indian Slaughter House In India, there are about 4,000 registered slaughter houses with the local bodies and more than 25,000 unregistered premises, where animals are slaughtered to fulfill the demands of domestic consumers There are about 20 integrated abattoirs-cum-meat processing plants with state-of-the-art facilities for hygienic meat production to meet the export demands, where animals are received from the suppliers who procure the animals from the weekly markets Backyard slaughtering was banned and slaughter houses came into existence 28 29. Indian Slaughter House Acts and ordinances were promulgated on meat inspection to the effect that sale of carcasses and offal's meant for human consumption should have been produced only from animals slaughtered in these special premises and passed through meat inspection procedures 29 30. Current scenario: Indian Slaughter house The existing condition in the majority of the traditionally slaughter-houses is far from satisfactory Most of the slaughter-houses are lacking basic facilities like water, electricity, ventilation, drainage, ceramic flooring, overhead rails and waste disposal. Animals are slaughtered in traditional ways on the open ground with/without further processing or dressing on the floor/rails are the common practices in a majority of the slaughter-houses30 31. Current scenario: Indian Slaughter house Carcasses are exposed to heavy contamination from dung and soil. Situation is further aggravated by inadequate ante-and post-mortem inspection practices. The quality of meat produced in these existing slaughterhouses is unhygienic and carries high levels of microbial contamination Enormous quantities of by-products are not utilised efficiently and economically31 32. Need of time: Indian Slaughter house There is urgent need to upgrade these slaughter- houses with minimum basic facilities such as Water Electricity Inspection Proper drainage Good flooring Finish of walls Trained abattoir workers Amenities for personnel in the slaughter-houses etc 32 33. Need of time: Indian Slaughter house The aim of 'upgradation' of slaughter-houses should be Scientific, humane and hygienic slaughter of meat animals To produce wholesome and safe meat for human consumption Proper utilisation of by-products Proper disposal of waste emanating from he slaughter operations. 33 34. SWOT analysis of Indian Slaughter houses 34 35. Strengths Huge livestock population Halal methods of slaughter Largest producer of buffalo meat & has 58% worlds buffalo population Cheap & Quality meat Nearly organic meat Less cholesterol in meat (buffalo meat) Rinderpest-free and BSE-free 35 36. Weakness Lack of scientific approach to rearing of meat animals Un-organised nature of meat production and marketing Inadequate infrastructure facilities and poor post- harvest management. 36 37. Opportunities Advantage of liberalised world trade to benefit the Indian meat industry by harmonisation of standards Incentive to farmer for quality livestock production Increasing demand of domestic & global markets for meat Technology up-gradation & modernisation in sluagther house concepts 37 38. Threats Illegal butcher shops Insistence of domestic consumers to buy freshly cut meat from the wet market, rather than processed or frozen Socio-economic taboos associated with meat eating 38 39. Government Schemes & Regulations for Slaughter Houses 39 40. Government Schemes The scheme has been scaled up during 12th Five- Year Plan to cover setting up of 25 new & modernisation of 25 existing slaughter houses ( abbattoirs) for first two years i.e. 2012-13 & 2013-14 The scheme will be implemented with the involvement of local bodies ( Municipal Corporations & Punchayats) /Public Sector Undertakings/ Co- operatives/ Board under Government & will have flexibility of involvement of private investors on PPP basis 40 41. Government Schemes The scheme envisages a grant of 50% in general areas & 75% in difficult areas for cost of Plant & Machinery and Technical Civil Work & other eligible items subject to maximum Rs.15 Crore per abattoir Difficult areas include North Eastern States including Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand & ITDP notified areas of the States 41 42. Regulations for Safe Meat Exports The Indian meat export are regulated as per Export Act 1963 (Quality Control and Inspection), Raw Meat (Chilled and Frozen), the Government of India has laid down standards for export of meat, which include standards for abattoir, processing plants and for various meat products Registration and licensing of abattoirs and meat processing plants is done by the Agricultural and Processed Food Export Development Authority (APEDA), ministry of commerce and industry, Export Inspection Council and Food Safety and Standards 42 43. Regulations for Safe Meat Exports Inspection of the meat processing plants is carried out by a committee of experts as per the standards laid down in the Meat and Meat Products Order (1973) of FSSAI, Government of India. Inspection focus is on hygiene and sanitary conditions maintained by the plant, ante-mortem and post-mortem inspections, infrastructure facilities and the other parameters compromising expert members from the diverse groups in meat industry and related fields. Each export consignment has to be passed the compulsory quality check before the dispatch with animal health status certificate duly from veterinarian. 43 44. Potential of Indian Slaughter House Industry 44 45. Areas of Improvement Livestock development is not in coherence with the requirements of meat consumption and meat business Productivity of meat breeds has not tapped adequately. Livestock farmers are unaware of the potential of meat business. Many middle men are involved in livestock marketing. 45 46. Areas of Improvement Livestock marketing is not well organised. There is no integration of animal farming, meat producers, processors and marketing. Potentiality of male buffalo for meat production is not realised. 46 47. Way Ahead : Indian Meat Industry There is urgent need to take advantage of liberalised world trade to benefit the Indian meat industry by Harmonisation of standards Incentive to farmer for quality livestock production Stringent quality control measures Develops long-term strategy for exports Popularise and develop traditional products technology Regular monitoring for chemical residues and microbial quality Defends SPS measures which are irrational Make disease-free zones etc 47 48. About us.. Suvin Advisors Pvt. Ltd. (Pavitra Group) A consulting firm at Thane in India, with a vision to become global leader in Management consulting Process management Design engineering Our team comprising of almost 30 professionals with domain expertise in process and design engineering We believe in collaborative approach and has already partnered with global brands for business tie-ups with US, Japanese and European based companies 48 49. 49 For further assistance, please contact us on: Suvin Advisors Pvt. Ltd. 7th Floor, Amfotech, Opp. MIDC (VARDAN) (Old Passport office), Wagale Estate, Thane West - 400604 Tel : +91 22 67220000 Fax : +91 22 67220001 www.suvinindia.com Let us carve out better tomorrow