This presentation puts light on current scenario & future potential for investment in Slaughter House Industry in India

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
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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
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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
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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
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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 year’s
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.
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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
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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
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12. Indian Meat Industry
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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%
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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
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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
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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
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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
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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
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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.
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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
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24. Slaughter House Process Flow
Slaughtering
Blood
Processing
ETP
Bio
Composting
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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
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26. Equipment in slaughter-house
 Dispatch rail work
 Insect killers
 Cleaning table
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27. Indian Slaughter House
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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
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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
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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.
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34. SWOT analysis of
Indian Slaughter houses
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35. Strengths
 Huge livestock population
 Halal methods of slaughter
 Largest producer of buffalo meat & has 58% world’s
buffalo population
 Cheap & Quality meat
 Nearly organic meat
 Less cholesterol in meat (buffalo meat)
 Rinderpest-free and BSE-free
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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
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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
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39. Government Schemes
& Regulations for
Slaughter Houses
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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
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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
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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
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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.
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44. Potential of Indian
Slaughter House
Industry
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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.
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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.
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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
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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
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