Development Team. Food Technology. Module:01 Status and scope of meat, poultr and seafood industry in India. Subject:Food Technology

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1 Subject: Paper : 08 Technology of meat, poultry, fish and Seafood products Module:01 Status and scope of meat, poultr and seafood industry in Development Team Principal Investigator: Prof. Vijaya Khader Paper Coordinator: Content Writer: Dr.D.C.Saxena Romee Jan Content Reviewer: 1

2 Table of Contents Introduction:... 3 The sector is characterized by the following:... 4 STATISTICS ON THE INDIAN SEAFOOD MARKET:... 8 Major Markets of n Marine Products ( ):... 8 SUGGESTED READINGS:

3 Introduction: The n meat industry inspite of big potential due to its large livestock population has not taken its due share, although has acquired number one status in the world contributing around 15% of world s milk production during , the meat production, which vibes well with dairy is very low. Meat production is around 2% of the world meat production. The processing status is one of the major key issues of concern in the meat sector of. Quality and hygiene levels are very low along with tremendous waste of meat, contamination/deterioration of meat and also the avoidable cruelty to the animals. Meat and poultry production in has been about 4.6 Mt per year with goats and sheep contributing 54%, buffalo and cattle 26%, poultry 13% and pig 7%. It is mostly used fresh. Efforts are on to develop infrastructure for export of both fresh and processed meat and poultry. It is believed that the n Poultry Industry is 5,000 years old, since last 4 decades it began to witness remarkable growth from backyard to poultry industry. The organized sector of poultry industry is contributing nearly 70% of the total output and the rest 30% in the unorganized sector. The broiler industry is well dominated in southern states in our country with nearly 60-70% total output coming from these states. The layer industry once again is represented more in southern states especially, Andhra Pradesh, Tamil Nadu and Maharashtra producing nearly 70% of the country s egg production. s 75% of egg produce is consumed by the 25% population living in urban and semi-urban areas. Presently about 800 hatcheries are operating in the country. has emerged as the only country in the developing world a self-reliant, technology driven industry, with capability to produce every essential input for successful poultry farming including indigenous genetic resource and breeding, world class poultry vaccines and medicines, specific pathogen free eggs (SPF), farms and hatchery automation systems, pelleted feed, egg processing, poultry processing, nationwide network of disease diagnostic laboratories and facilities for entrepreneurial development and training in both private and public sectors. Rural poultry production constitutes important component of agricultural economy in, small poultry holder are practically capable of more significant contribution to alleviate malnutrition, poverty and unemployment. A spectacular progress has been made from subsistence to sustainable production system. n backyard population increase is only by 16% in the last 30 years from 60 to 70 million. China s 76% of total egg comes from rural backyard production. requires both mass production as well as production by masses. produces 3.6% of global egg production, i.e., 61 million tones. The annual growth rate of egg is 5 to 8%. has the lowest cost of egg production in the world at 2.55 US cents per egg. However, the poultry production and consumption in the 3

4 domestic market is slated to grow. n poultry industry has been a major contributor to the food-processing sector in the country. From backyard activity to major commercial operation the poultry sector has undergone a paradigm shift. Poultry farming in has transformed from a mere tool of supplementary income and nutritious food for the family to the major commercial activity generating the required revenue. The growth of the industry with steady production of 1,800 million kg of poultry meat, 40 billion eggs per year and employment generation of about 3 million people indicates the future prospects for the industry. Changing food habits, rising income of the middle class n, presence of private players, rising market demand of the n poultry produce in the export market are some of the contributing factors to the growth of the industry. Even though has abundant availability of raw material and vast network of manufacturing facilities all over the country as well as manpower with expertise, still the low availability of adequate infrastructural facilities, inadequately developed linkages between R&D labs and industry and unawareness about hygienic practices the n Meat and Poultry Market stands at a low position in respect to the global markets. Production is essentially decentralized and rural based. Poultry has done well remaining in rural sector and developing network of marketing in distant remunerative markets. Hygiene in slaughter houses and use of blood, viscera and other wastes is not satisfactory. The meat from culled birds, goats and buffaloes is tough textured, better suited for processed meat products. However, there is no tradition of using processed meat products in, yet. Poultry meat is the fastest growing animal protein segment in. The sector is characterized by the following: Prevalence of small and unorganized players with only a few organized players selling branded processed products (e.g. Godrej Real Good Chicken, Venky's Chicken) High feed and labor costs (which account for almost per cent and 20 per cent respectively of the total production cost). Despite the low labor cost, competitiveness of the n poultry industry has been adversely affected due to the high feed costs (price of n poultry products is almost 50 per cent higher than global price levels). n poultry are exported mainly to the Middle East and the Maldives and more recently Japan. Thailand's competitiveness in the international market has been adversely affected of late due to increase in labor costs, 4

5 thereby providing an opportunity for to tread into the highly attractive Japanese market. Investment in better poultry breeds, adoption of improved management practices, effective and efficient feed formulations are expected to bring success in both the domestic as well as international markets and present an attractive investment option. Investments in modern abattoirs, processing, packaging and distribution systems are also the need of the hour and merit investments. has the world's largest cattle population (1/2 of the total buffalo population and 1/6 th of the total goat population of the world). Most meat production is undertaken by the unorganized sector. Increased emphasis on quality and changing consumer tastes require greater investments in modern slaughter facilities and development of cold chains. Changing consumer lifestyles has meant increased willingness to explore ready-to-eat and semi processed meat products, thus creating greater opportunities within the segment. Since the 1970s, global production, consumption, and trade of poultry meat have grown faster than that of any other meat. During the 1990s, when demand growth slowed for other meats, including fish, demand growth for poultry meat accelerated and poultry continued to lead the expansion of meat trade.1 Although demand for poultry meat was strong relative to demand for other meats in developed countries during the 1990s, the rapid global gains in poultry meat supply, demand, and trade were led by gains in developing countries. Expansion has been most rapid in the developing Asia region, including China, South Asia, and Southeast Asia, as well as in Latin America. The emergence of the poultry sectors in developing countries, such as, has the potential to affect global and U.S. markets for poultry products, feeds, and related inputs. With a population of more than 1 billion and real per capital incomes now growing 3-4 percent annually, constitutes a large potential market for poultry meat. Poultry production and consumption in appear to be expanding rapidly, fueled by rising incomes as well as changes in the structure of poultry production and marketing. The key structural changes purring production growth is the emergence of integrated producers, which are combining breeding, feed milling, contract growing, and marketing activities,and fostering improved productivity and reduced marketing costs. Although the country s expanding poultry sector now relies on local supplies of corn and soybean meal, it is unclear whether will evolve over the longer term as an importer, or as a competitive producer, of poultry and feed. Development of the sector may depend on the pace of change in the structure of poultry production and marketing, as well as government policies toward production and trade of poultry and feeds. 5

6 , with its 7,500 km long coastline and an exclusive economic zone of 2.02 million square km; 191,024 km of rivers & canals and 4.4 million hectares of reservoirs and fresh water lakes has an enormous potential for fisheries. In 1999, the country had an estimated 1, 81,284 traditional fishing crafts; 44,578 motorized traditional crafts, 53,684 mechanized fishing boats and about 200 deep-sea vessels in operation. However, it ranks second in terms of inland fisheries. 's production is only 1/6 th that of China (the world leader). Almost, 60% of the fish production is from marine sources and shrimp is the major component of marine exports.the existing post-harvest, processing and packaging technologies in the n fishing industry are grossly inadequate. While Individual Quick Freezing (IQF) plants have recently been established, their capacity is still largely insufficient. Since, processed IQF marine products fetch better prices than conventional block frozen materials in the foreign markets; investment in this segment is an attractive option. Also, the deep sea fishing industry today stands on a very weak footing. Investment in deep sea fishing vessels for prawns, shrimp, squid, tuna, cuttlefish, octopus, red snappers, ribbon fish, mackerel, lobster, cat fish etc. is required. Other aspects requiring greater attention are quality improvement, technology up gradation, development of value added products, development of infrastructure and improved methods of handling and preservation. There is a significant opportunity for US players for re-exports of these marine products to EU countries. Livestock production performance has been more impressive than that of food grain production. Milk, egg, meat, and fish showed impressive growth rates of 5to10%. Livestock represents the only way in which the natural vegetation that covers large parts of can be converted in to products that can be used by man. It provides drought power and manure to the crop enterprise and this in turn provides feed and fodder. Fortunately is blessed with a tremendous livestock wealth. It has the largest population of cattle and buffalo in the world and its breeds are admired for heat tolerance and inherent resistance to diseases and ability to thrive under different climatic condition. The cattle population of is very large; according to 1991 census the cattle population was estimated at million this comprised of million catties, 83.1 million buffaloes 50.7million sheep, million goats and 12.1 million pigs. The others were estimated at 3.6 million. The poultry population constituted a 400 million. The world seafood industry plays a significant role in the economic and social wellbeing of nations, as well as in the feeding of a significant part of the world s population. Fishing and fish farming has emerged as one of the major food processing occupations of mankind. In ancient times, economically and socially backward 6

7 people were employed in this profession. The advent of modern mechanized fishing vessels has brought vast changes in the attitude of the public fishing and seafood processing. From low income and socially backward communities the profession has shifted to the hands of industrialists and technologists. Today fishing and processing activities provide employment to millions of people around the world. There are several product categories from seafood industry, based on raw material type (fresh/frozen) and value-addition (degree of processing and value content). The following figure depicts few seafood product categories in a seafood industry. Important canned fish products are tuna packed as solid pack, chunks, flakes, grated or shredded in water or oil, sardines or sardine-like fishes in oil, tomato sauce or other types of sauce, pre-smoked sardines in oil or tomato sauce, kippers (pre-smoked herring), salmon, mackerel, fish paste products and pet food. is the third largest fish-producing nation in the world, exporting to 73 countries. It has the potential to grow further in view of the growing demand in trading blocks such as the European Union, United States, Canada and Middle East. There has been huge transformation in the n seafood industry over the last few years many of which have not been highlighted or marketed in the international arena. In 1997 the EU banned n seafood, citing lack of hygienic and phyto-sanitary measures in the industry, this was a landmark as thereon has come a very long way. The challenge was on and spearheaded quality control and HACCP was put into place. Today we have excellent facilities, competitive labour and our infrastructure is catching up fast. With 8,129 km of sea-coast, the n seafood industry is the 3 rd largest seafood market in the world. 7

8 STATISTICS ON THE INDIAN SEAFOOD MARKET: 1. The overall export of marine products reached a record figure of $1.6bn during Exports have shown an increase of 11% in quantity and value. 3. Frozen shrimp continues to be the largest item exported in terms of value at 59%. 4. Fresh fish is the largest export item in terms of quantity with 36% of total export volume. 5. with a fishery production of nearly 6m tones a year is now the 3 rd largest fish producing country in the world. However, it is ranked 16th in terms of seafood exports with a 4% share in global marine trade 6. Aquaculture is growing globally, is ranked 2 nd in aquaculture production but currently only 6% of the coastline is utilized for this purpose. The potential for future growth is significant. 7. has the largest number of EU approved processing plants in the world with a 3m tones annual capacity, however, only 20% is being currently utilized. 8. Tuna fish farming is growing in importance. has the resource potential of 213,000 tones but currently lands less than 10% a year. 9. The MPEDA and n Government are currently focused on enhancing production and boosting exports to make the top global seafood exporter. Major Markets of n Marine Products ( ): Country Qty (MTs) Value in US $ million EU % % USA % % Japan % % China % % SE Asia % % M. East % % Others % % 8

9 TOTAL % % Product wise export : Aquaculture is the fastest growing food producing sector in the world. The aquaculture industry has been identified as a sunrise area, the potential is impressive. has yet emerged as the 2nd largest world producer of farmed fish (aquaculture) according to FAO but its total production is one twentieth of China which is the number one exporter. still promotes Black Tiger rather than Vannamei unlike other countries. Black Tiger is a high value product unlike Vannamei. Apart from Black Tigers has cultivated 30,000 tones of fresh water scampi which is said to increase. There is an immense potential for shrimp farming. is also one of the countries where eco-friendly cultivation is going on. We have small farms with low stocking densities, low use of chemicals and sustainable practices. The rising demand for seafood and other marine produce will lead to a collapse of today's commercial fish stock by the year 2050 unless better management of sustainable 9

10 developments are in place. For today's, environment and sustainability is not a trend but a standard business issue. Pijikay is a huge proponent of sustainability. The world seafood market, which encompasses fresh, canned and frozen seafood products, is expected to excess $370 billion by 2015, according to Global Industry Analysts. It is predicted the market will be fuelled by a rising global population, increased discretionary incomes, and technological advances such as packaging and improved transportation. Demand will be particularly strong in developing regions including Latin America and Asia-Pacific. The overall market for aquaculture and fisheries is predicted to exceed 135 million tons by 2015, reports Global Industry Analysts. Other factors driving the market include a growing trend towards healthy eating. Thanks to the high protein content of fish, it is becoming an ever-more popular choice for health conscious consumers wishing to avoid the health drawbacks of meat. The number of specialty fish stores and restaurants are on the rise, and there is greater spending on research and development, which has also been boosting overall salmon consumption. The industry is hampered somewhat by environmental hazards and biological risks. Though the industry is beginning to recover following the financial crisis, it has not been left unscathed, as many consumers cutting back on luxury expenses steered away from fish during the crisis. Species particularly affected included shrimp and oyster varieties. SUGGESTED READINGS: Iwuoha C. I and Onyekwere S. Eke. (1996). Nigerian indigenous fermented foods:their traditional process operation, inherent problems, improvements and current status. Food Research International~ Vol. 29, Nos 5-6, pp , 1996 Kobayashi I. Takeno T. Sugawara M. (2004). Data transmission code towards international EDI for seafood supply chain. Int. J. Production Economics 87 : Sathiadhas R. Socio Economic Scenario of Marine. Fisheries in Kerala - Status and Scope for Improvement. CMFRI, 2005, Marine Fisheries Census, 2005, Part I, Kerala. 10

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