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Indian Challenge over Cheaper Beef Exports

17 October 2013

INDIA – Beef traders are to meet 'stiff competition' for market share in the Middle East, Africa and South East Asia, from cheaper alternatives largely from India,according market experts at the Chicago Mercantile Exchange.

The industry analysts say that India, where halal preferences are catered for, is able to provide an abundance of cheap meat is provided.

Steve Meyer and Len Steiner have said that, although the current foot and mouth disease status of the country, India’s potential future effects on the global beef trade could be marked.

The pair stated that India has the largest bovine herd in the world with numbers at an estimated 327 million head, of which 210 million are the cattle and the remainder buffaloes.

“There are two reasons for having bovines in India, milk production and draft power –most rural families own one or two” said Scott Meyer. “But as herds have expanded since in recent years and domestic beef consumption is minimal due to Indian religion, the supply for beef has expanded.”

This expansion largely relates to water buffalo meat which has been accepted by large Muslim countries with halal standards, where India is the largest supplier of beef.

Brazil is the second option in Middle Eastern countries, said Mr Meyer, adding that US exports remain relatively small.

He said India also looks set to send more beef to China and, for the time being, foot and mouth issues are the only major thing holding back Indian beef breaking into Japan.

“For now, disease issues prevent Indian beef from breaking in markets such as Japan,” he said. “But future demand growth is in the developing world, and those are markets that India is already successfully competing in.”


Daily Livestock Report - Copyright © 2008 CME. All rights reserved.

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