Study of Indian & Netherland Meat Sector

7/29/2019 Study of Indian & Netherland Meat Sector

1/20

1

The Role of Multinational Enterprises in the growth anddevelopment of Food Sector in India

A Comparative Case Study of the Meat Sector in India and Netherlands _____________________________________________________________________________________

1. INTRODUCTIONIndian economy is agriculture based and majority of people are involved in farming or allied activities.Till today, the agriculture continues to be the primary employment providing sector in rural India.

According to the Economic Survey 2011-12, the share of agriculture and allied sectors to GDP declinedto 13.9 per cent in 2011-12 from 14.5 per cent in 2010-11. During the current Five Year Plan theagricultural growth rate is estimated at 3.28 per cent against the target of 4 per cent. This continuous

diminishing contribution of agriculture to GDP is an area of concern. As major effectors in Indian GDPgrowth, agriculture and allied activities need a booster. Until a growth rate of 4 percent is achieved inagriculture sector, the overall GDP growth of 8-9 % per annum cannot be achieved. Food processingprovides the much awaited and much desired business model for the agricultural operations in thecountry . Food processing results in value addition, reduction of wastages, and creation of large scaleemployment & enhancement of farmers income. It aims to make the country a global leader inproduction, consumption and export of safe, nutritious and quality processed food leading to growth of rural income and national GDP at large. India ranks No. 1 in the world in production of milk, pulses,fresh fruits and buffalo meat . Despite the wide production base, low productivity, food inflation, foodsecurity and food quality are the vital issues which are of major concern for the policy framers in India.

The major reason is harvest and post harvest losses of agricultural produce in the country. Withadequate and modern processing facilities, much of the waste can be reduced to a large extent, therebyincreasing the income of the farmers and ensuring the supply of quality food in sufficient quantity to theconsumers. Though India has a strong raw material base, it has been unable to tap the potential forprocessing. Only about 2 % of the fruits and vegetables in India are processed, which is much lowerwhen compared to countries like USA (65 %), Philippines (78%) and China (23) %. In terms of meatproduction, India stands at 5 th rank among world's meat production with an estimated MeatProduction of 6.3 million tonnes, and accounts for 2.2% of the total meat production of 220 milliontonnes, which is much lower when compared to countries like China (25.6%), USA (16.7 %), Brazil (5.8%),France (3.8%), Germany (2.9%), Russia (2.8%) whereas it is higher than Netherlands which accounts for

just 1.4%. (Source: Food & Agriculture Organisation

FAO)

2. STATUS OF MEAT SECTOR IN INDIALivestock is one of the important elements of Indian Economy. Especially for Exports, the livestocksector has seen massive growth in the last two decades and; the economic growth and domesticincrease in income has further supported this International demand for Indian livestock.

Total export earnings from livestock, poultry and related products was Rs. 4,734 crore in 2003-04. Thevalue of output from meat group (as per estimates of Central Statistical Organisation (CSO) at currentprices in 2010-11 was Rs. 72,444.22 crore.

Since India has about 13% of worlds' cattle population and 56% of world's buffalo population, amonglivestock sector, cattle and buffalo play a major role in India's economy . This large population of animals


2/20

2

are mostly maintained by rural families within small area of 1-2 acres. Apart from cattle and buffalo,India further has 104.5 million goats, 71.5 million sheep and 11 million pigs for meat and fibreproduction (GOI-2007). That is why it has been said that the socio- economic life of India, animalproducts plays an important role. It is a rich source of high quality of animal products such as milk, meatand eggs. Buffalo meat, Sheep/ Goat meat, Poultry products, Animal Casings, Milk and Milk productsand Honey etc are the items that comes under the exports of Animal Products.

India's export of Animal Products was Rs. 15,109.43 Crores in 2011-12, which mainly include the majorproducts like:

Buffalo Meat: Rs. 13725.23 Crores, Sheep/ Goat Meat: Rs. 255.22 Crores, Poultry Products: Rs. 457.81 Crores, Dairy Products: Rs. 289.36 Crores, Animal Casing: Rs. 27.05 Crores, Processed Meat: Rs. 30.01 Crores

( Source: APEDA)

In International market, the demand for Indian buffalo meat has been going up which leads to increasein the meat exports. With a contribution of over 86%, Buffalo meat dominated the exports. During thefinancial year 2011-12, the product has registered 60 % growth in export as compared to the sameperiod of last year. Vietnam Social Republic, Malaysia, Egypt Arab Republic, Saudi Arabia and Jordan arethe main markets for Indian buffalo meat and other animal products.

During the financial year 2011-12, export of Poultry Products and Processed Meat from India hasrecorded a growth of 46% & 54% respectively, over the same period of last year. USA, Oman, SaudiArabia, Germany, Afghanistan, Pakistan, Vietnam Social Republic, Maldives and Angola etc. are amongstthe major importing countries for these products. Meat Production is estimated at 6.3 million tonnes,5 th in rank of worlds meat production and accounts for 3% of the total worlds production of 220 milliontonnes. Buffaloes in India contribute about 31% of the total meat production. The contribution by cattle,sheep, goats, pigs and poultry is 31%, 5%, 10%, 10% and 11% respectively. The share of bovine meat isabout 62% as against the small ruminants of 15%. The share of Red Meat is 77%.In spite of big potential because of large livestock population, on account of negative perceptions themeat industry has not grown sufficiently. The meat production which jibes well with dairying is stilllagging behind and is at 5 th position (6.3 million tonnes) despite India has acquired number one status inthe world, contributing 13% (117 million tonnes) of the world's total milk production. The trends inlivestock population, slaughter rate.

2.1 Contribution of livestock and meat to GDPTable 2.1 Value of output of different meats to meat group (2007-08)

Sl. No. Items Value(Rs. in crores)

% share

1. Beef 6,276 9.80 2. Mutton 21,787 34.003. Pork 3,228 5.044. Poultry meat 24,759 38.645. Meat Products 2412 3.736. By-Products (Hides, skins

& others)5611 8.76

Total 64,073 100.0Source: Central Statistical Organisation, Dept. of Statistics, GOI (2009).


3/20

3

The above table clearly shows that poultry meat with 38.64% and mutton with 34% share, within themeat group, are the major items. These two items chip in nearly 73% of the total value of output frommeat group.

2.2 Processing of Meat

When it comes to meat processing, there is very low processing. Among the total meat produced in thecountry, hardly 1% is used for processing. There are 37 Integrated Modern Meat Processing Exportoriented units and nearly 800 smaller and not so modern meat processing plants which cater to thedomestic market. These 800 plants invariably suffer from lack of access to latest technology, latestmechanised plants and trained man-power. They hardly adhere to Good Health Practices (GHP), GoodManufacturing Practices (GMP) and Hazard Analysis and Critical Control Points (HACCP). Thereefficiency, productivity and quality levels need substantial improvement. There are no Multi-NationalEnterprises now with Meat sector in India. For the elite market, Pork and Poultry meat are used forproduction of ham, sausages, patties etc. Some of the meat processors like Venky, Government BaconFactories etc, produce these products. For production of traditional Kebabs (Seekh and Shami Kebab)meat from small ruminants, namely, sheep and goat is also used.

For preparation of curries and kebabs in the household, basically Buffalo meat is used. To make thedishes delicious, it is also mixed with vegetables like potatoes, cabbages, turnips, sugar beat, to name afew, besides the irresistible Biryani, which is a mix of meat and rice. Buffalo steaks are also a deliciousproduct. Both Seekh and Shami Kebabs are delicacies prepared from buffalo meat only, which is liked byall classes of people in India. The buffalo meat is used for industrial purposes in the production of sausages, patties, nuggets, corn beef, ham etc. as it has a great water holding and binding properties. Inthe countries like Philippines, Thailand, Iran etc., a large part of the meat is used for the production of ham and corn beef.

2.3 Production and export of meat

As per the report of DAHD (2010), total meat production has been estimated at about 4.02 milliontonnes(MT) which includes meat from cattle 0.223 mt, buffaloes 0.647 mt, sheep 0.229 mt, goats 0.531mt, pigs 0.236 mt and poultry 2.026 mt. Because of non-addition of slaughter in unrecognizedslaughterhouses the meat production from cattle and buffaloes has been estimated lower.

On the contrary, according to the FAO data (2009), India annually produces 0.886 lakh tonnes of cattlemeat, 1.427 lakh tonnes of buffalo meat, 0.479 lakh tonnes of goat meat, 0.240 lakh tonnes of sheepmeat, 0.481 lakh tonnes of pig meat and 0.727 lakh tonnes of poultry meat. Though India claims nearly

16% of world livestock population, but it produces only 2.2% of the total global meat production. Thereis need to have a study for estimating the meat production from different species of animals consideringslaughter of animals both in recognized and unrecognized slaughterhouses. Table 2.2 Export of meat and meat products (2010-11)Sl. No. Product Category Quantity

(MT) Value (Rs. million) Share

1. Buffalo meat 709437.49 84127 93.122. Sheep/goat meat 11908.38 2532 2.803. Poultry products 619150.80 3013 3.334. Processed meat 1366.16 211 0.23

5. Swine meat 1115.35 105 0.126. Animal Casings 1809.42 351 0.39

Total 1381655 90343 100.0


4/20

4

Source: APEDA, 2010.

The total export value of meat and meat products during 2010-11 accounts for Rs.90343 million. Out of this total value, buffalo meat accounts for 93%, followed by poultry products 3.33% and sheep and goatmeat 2.8%. This clearly shows that buffalo meat is the most significant item in the total export of meatand meat products from our country. In countries like Vietnam, Malaysia, UAE, Kuwait, Saudi Arabia andPhilippines there is a strong demand for buffalo meat.

2.4 Status of Meat Sector in Netherlands

Based on the first hand information collected from The Product Boards for Livestock, Meat and Eggs(PVE), the Netherlands the status of meat sector in Netherlands is as follows:

The Production Value of Meat in Netherlands accounts for 5.6 billion Euro which includes the shareof Pork (44.0%), Veal (15.1%), Poultry (14.2%) and Other (26.7%).

Beef Sector: Some of the key facts of Dutch Beef Sector are:o They have 8 slaughterhouse, around 34,198 farms and 2,700,000 animals.o Slaughtering a year 508,000 from which they exports worldwide around 2,30,000 tonnes. Quality and Safety guarantees audits by: Food and Consumer products Safety Authority (Voedsel enWaren Autoriteit producten or VWA) , General Inspection Services (Algemene Inspectie Dienst or AID) andSKV (Stichting kwaliteitsgarantie Vleeskalversector or The Foundation for Quality Guarantee of the VealSector)

Some of the key facts of Dutch Pork Sector (2010) are : o They have 12,187,000 number of Pigs, 6,508 number of farms, 9 Slaughter Companies and total

15 pig slaughterhouses.o Slaughtering a year 13,900,000. 1,283,000 tonnes is the total production of Pork meat among

which they export 8,51,000 tonnes of pork meat.

Netherlands major Export Markets for meat are Germany (21.2%), Italy (19.2%), Greece (11.7%), UK(11.5%) and Russia (1.7%) Poultry Sector: Total Production of poultry meat is 768,000 tonnes among which production of

Boilers is 7,22,000 tonnes and others is 46,000 tonnes. Total Export of Poultry Meat is 785,000 tonnes. Major market for poultry meat is Germany (23.4%),

UK (18.2%), Other EU (37.3%), Hong Kong (1.5%), Russia (3.4%), Ukraine (3.2%) and other (11.1%).

3. ISSUES WITH THE INDIAN MEAT SECTOR

3.1 Challenges and Opportunities for Indian Meat Industry

State of Art-Abattoir-cum-Meat Processing Plants Packaging of Technologies to raise male Buffalo Calves for Meat Production Buffalo Rearing under Contractual Farming as Backward Integration To the Modern Abattoirs for

Meat Production Establishing Disease-Free Zones for Rearing Animals Quality assurance (consumer awareness)/meat inspection Traceability Meat adulteration Meat animal welfare Cold chain

Conservation and sustainable supply of meat animals Prices control Backward and forward linkage


5/20

5

Farm to fork concept Lack of Integrated Practices for Rearing, Slaughtering, of Male calf and Processing of its Meat.

In the past, India had achieved the Green Revolution, White Revolution and Blue Revolution which led toself-sufficiency in Food grain sector, India occupying the no. 1 position in Milk production in the worldand increase in fish production respectively. Indian farmers have been able to achieve these mammoth

targets only with correct guidance and full support by multiple authorities like scientists, corporatefirms, policy makers, local authorities, institutions etc. For instance, Corporate firms like PepsiCo Indiahave associated themselves with 21,000 farmers in 2009 and target to increase it to 50,000 by 2012(source: PepsiCo India website; http://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with- farmers.html) . Similarly, NIFTEM (National Institute of Food Technology Entrepreneurship and Management) hasinitiated a village adoption programme wherein students have to identify a village and establish a work plan toorganize resources by providing vital linkages, micro credits, Govt. Policies. And also, provide access andtraining programme to farmers through KVK (Krishi Vigyan Kendras) which disseminates information onAgricultural technologies which are low cost and also promote good agricultural practices. ( source: NIFTEMwebsite: http://www.niftem.ac.in/NIFTEM/downloads/1.pdf) . It is only through such initiatives that India canachieve another revolution in the meat sector. So while, there are a lot of challenges and weaknesses inthe Meat sector but the sector has a lot of untapped potential which can be achieved by providingadequate guidance to the farmers. Similarly, the entry of Meat Multinationals from abroad will also helpthe nascent Indian Meat Industry to improve their productivity, efficiency and quality as would bediscussed later in this paper.

3.2 Current status of traditional large animal abattoirs

In a survey conducted by NABCONs, it has been found that:-For domestic meat consumption large animals are slaughtered in the public slaughterhouses followingtraditional method of slaughter. All these slaughterhouses are characterized by poor facilities and

unhygienic slaughter practices.

In all the eight slaughterhouses studied terminal livestock market was not present. No separate lairagewas there, but in 6 slaughterhouses animal holding area was present with minimum facilities for feedingand watering. Except one slaughter house, Ante-mortem facilities and isolation pens were absent in all.Halal method of slaughtering is followed in all the slaughterhouses. Only in two slaughterhouses,carcass hanging facility was available. Only in three slaughterhouses i.e. Thirussur, Hyderabad andKolkata, the water taps and hose pipe systems were found acceptable. Slaughter halls were cleanedonce a day after completion of the operations for the day. Personal hygiene was pitiable. In general,ante-mortem and post-mortem inspections were not found to be satisfactory in all the slaughterhouses

and no records were maintained. In neither of the slaughterhouses the meat inspection lab wasavailable. In 6 out of 8 slaughterhouses stray dogs had free access. Only in three slaughterhouses i.e.Bangalore, Hyderabad and Kolkata the Effluent Treatment Plant was available and wastewater is left outin the open areas in other slaughterhouses. No rendering plant was available in any of theslaughterhouses. No equipment was to be seen other than the slaughter building and surrounding area.Financial parameters were not available in all the slaughterhouses excepting monthly expenditure whichvaried from Rs.65, 000 to 10 lakhs. Other than one slaughterhouse i.e. Thirussur, remaining hadveterinarians and a skeleton staff .

3.3 Current status of modern large animal abattoirs

As said earlier, there are about 32 integrated modern abattoir-cum-meat processing complexesapproved by APEDA for meat export. Buffalo meat exports which has started with very small quantity of 2000 tonnes in the year 1973-74 has increased to 63361 tonnes by 1990; 288028 tonnes by 2000 and
http://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.htmlhttp://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.htmlhttp://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.htmlhttp://pepsicoindia.co.in/purpose/environmental-sustainability/partnership-with-farmers.html


6/20

6

13.81 lakh tonnes by 2011. Among total meat exports, Buffalo meat exports accounted for more than93%. In the NABCONs study, current status of modern large animal abattoirs is brought out by collectingrelevant information from three corporate abattoirs (Hind Agro, Ind Agro and Al-kabeer) and two publicabattoirs (Deonar and Ghazipur).All the five plants had the necessary facilities stipulated under the following eight points i.e. Pre-slaughter care, slaughter and dressing operations, forward integration, quality adherence practices,

quality control measures, byproducts utilization, waste disposal and effluent treatment. Howeverforward integration facility was absent in public abattoirs.

In the surveyed large animal modern abattoirs, the quality adherence practices followed were coveredunder following three major quality parameters viz.

1. Sanitation facilities,2. Personal hygiene and3. Sanitation practices.

In terms of sanitation facilities, all three corporate plants and MCD Ghazipur slaughterhouse had all thefacilities. However, Deonar slaughterhouse lacked in some points. In all the slaughterhouses Personal

hygiene was highly satisfactory with the sole exception of Deonar abattoir. In sanitation practices,cleaning frequency of slaughter floor, cleaning and sanitation procedures using detergents & sanitizersand clear demarcation of clean &unclean operations were observed. All the above points were foundsatisfactory in all the five modern slaughterhouses studied.To assess quality control measures the following points were considered:

Ante-mortem examination, Post-mortem examination, Meat inspection lab, Carcass trimming, Carcass washing,

Carcass decontamination, Disposal of condemned meat/offal and Stray dogs menace in slaughter hall plant premises.

In all the five modern slaughterhouses studied, most of the above points were found to be highlysatisfactory. However, for residues analysis, laboratory facilities were not available anywhere. In allcorporate abattoirs, Meat inspection and microbiology lab facilities were available. In corporateabattoirs stray dogs menace inside the campus was not reported. However, inside the campus of Deonar abattoir stray dogs were seen. In case of modern abattoirs, an additional quality controlparameter of quality protocols and accreditations comprising six points on GHP, GMP, HACCP, FSMSManual, IS0 22000 and SPS was also covered. Three corporate plants and Ghazipur plant of MCD have all

the mentioned accreditations, whereas Deonar practiced only GHP and GMP.Under waste disposal, the following four points were noted:1. Blood collection and processing,2. Disposal of solid wastes,3. Availability of Effluent Treatment Plant (ETP) and4. Presence of obnoxious smell in the slaughter premises.On waste disposal, all corporate abattoirs and Ghazipur slaughterhouse were meeting the stringentstipulations. However, in case of Deonar, blood is allowed to mix with other effluents and treated in theeffluent treatment plant. Obnoxious smell was absent in the plant premises in all the places. Wellmanaged ETPs were observed in all the modern plants had.

Under infrastructure and equipment regarding plant area and equipment used were enquired. All theequipment listed in the structured schedule was being used in the three corporate plants and MCD


7/20

7

slaughterhouse. Most of the plants are fully integrated where healthy animals are slaughtered andcarcasses are deboned. The deboned meat is frozen and exported. These plants have rendering plantsand effluent treatment plants attached to them. Some of the processing plants in Sahibabad, UP, KirtiNagar Industrial Area in Delhi and Mumbai in Maharashtra, do not have their own slaughter houses, butreceive the carcasses of the slaughtered animals from the Government approved Municipal slaughterhouses. These plants do small business.

4. METHODOLOGY - CASE STUDIES

In the present study, a comparative case study of Indian meat industry and meat industry in Netherlandshas been done. The case study approach has been adopted where in the study of some meat sectorunits in India by NABCONS has been taken to show the present conditions of Indian Meat Processingsector. On the other hand, first hand study of some of modern meat processing Industry of Netherlands,namely, Van Drie Group , Vion Group , Meat Processing System (MPS) Group, Vriescentrale AstenGroup , Sonac Son Group, Storteboom Group and Myen Group has been undertaken to bring out thecomparison on one hand and to indicate the areas of learning for the Indian Industry on the other.

Some Facts about the NetherlandsIn Netherlands, industrial activity is predominantly in food processing, chemicals, petroleum refiningand electrical machinery. A highly mechanized agriculture sector employs only 2% of the labour forcebut provides large surpluses for the food processing industry and for exports. The country has been oneof the leading European nations for attracting FDI and is one of the four largest investors in the US.When it comes to the value of agricultural exports, the Dutch rank third worldwide.

Fig: 4.1 A brief outline of the industries managed by corporate in Netherlands that has been coveredin the study has been mentioned as under:S.No. Company Core

Competence

Brief Profile

1. Van DrieGroup

VealSlaughterHouse andVealContractFarm

Company deals with slaughtering process of calves rightfrom rearing of the claves to their transportation toslaughter house, slaughtering, deboning and processing

2. Vion Group PorkSlaughter

house

Pork slaughtering, deboning, cutting into primal cuts andprocessing

3. MeatProcessingSystemGroup (MPS)

Slaughterhouseequipmentmanufacturer

Full line supplier, Turnkey capabilities, Control software,global coverage and experience

4. VriescentraleAsten Group

Cold Store Established in year 1989 and is the largest European coldstore

5. Sonac SonGroup

RenderingPlant

Sole rendering plant in the Netherlands, established wayback in 1941. It receives all the fallen and some

slaughtered carcasses within one working day after theirmortality. Dehiding of the carcasses is done followed bybeing subjected to a process of high temperature high


8/20

8

time pasteurization, sterilization, deboning and crushing.This results in reduction of the carcasses to a minimumand hence are properly disposed off.

6. StorteboomGroup

PoultrySlaughterhouse

Slaughtering process of chicken ranging from deboningand cutting to processing

7 Myen Group Poultryslaughterhouseequipmentmanufacturer

Construction of poultry slaughter house equipment andassemblage of tailormade slaughterhouse equipmentsuch as live bird handling, slaughtering, evisceration,chilling, cutting up, deboning, Packaging and dispatch,Planning and IT, weighing and measurement, By producthandling and installation of poultry slaughterhouse plant.

Indian IndustriesS.No. Company Core Competence Brief Profile1. Hind- agro Only company in India to have

the unique facilities of slaughtering the animals whichhave been bred and reared onstrict guidelines set by theO.I.E. Paris.

Hind Agro Industries Limited

is the first company in India tohave Asia's one of the mostmodern abattoir-cum-meatprocessing plant at Aligarh inthe State of Uttar Pradesh inNorth India. It is a jointventure of Hind IndustriesLimited, Govt. of UttarPradesh and assisted by Govt.of India.

2. Allanasons World's Largest Producer andExporter of Frozen HalalBoneless Buffalo Meat.

India's largest exporter of processed food products andagro commodities. TheCompany has beendesignated as the Five StarTrading House by theGovernment of India.

There are about 37 integrated meat processing plants which are approved for export of meat besides 67processing plants. These 32 integrated modern meat processing plants approved for export of meat.These plants are eco-friendly and are world class following the sanitary and phytosanitary (SPS)

guidelines given in Codex Alimentarius for Quality safe meat.

These plants have HACCP and ISO: 9000 certification. Many integrated plants have SGS Certification alsoand follow Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP). The integratedplants have facilities for holding of animals, lairage, race, knocking box, stunning facilities, abattoir withslaughter line for bleeding, de-hiding, splitting, washing and weighing facilities. The plants have alsofacilities for chilling, deboning, plant freezing, blast freezing, modern packing and cold storage. Theprocessing plants have bio-security built in the plant where there are two zones, namely, black andwhite zones. The plants have modern facilities for by-products processing, proper and efficient solidwaste disposal, effluent treatment, bio-methanation and rendering plants. There efficiency, productivityand quality are matching to the Multinational Enterprises of Netherlands.


9/20

9

5. STUDY OF INDIAN MEAT UNITS:

5.1. ProcessingThe whole process of animal slaughtering and meat processing is done in the following manner in theseexport oriented plants:-

a. The animals are brought from the disease free zone which is about 100 km area around eachexport oriented plant where all the disease control programmes are in place and monitored bythe State Government Veterinary Department.

b. The animals are brought to the slaughter house from the local livestock markets with individualanimal's identification tags to ensure traceability as to the origin of the animal. The transport of livestock is as per the guidelines given by the SPCA Act of 1960 and BIS Standards of 2007 whichtakes care of animal welfare while being transported. The Veterinary Doctor issues the AnimalHealth Certificate during the transit of the animal from livestock market to slaughter house.

c. In the plants, the trucks with live animals are passed through the foot bath with 1%farmaldehyde to disinfect the truck tyres from the black zone. The animals have a forwardmovement in the plant where live animals are passed through to black zone and finished productis packed and dispatched from the white zone. The animals are unloaded at the unloading areaand kept for 24 hours in the resting pens where drinking water is made available. Here, antemortem examination of live animals is conducted by the veterinarians. As per the norm, oneveterinarian is assigned to conduct 96 ante mortem examinations per day in a shift of 8hours/day. The animals passed by the Veterinarian in ante-mortem inspection are passedthrough lairage and race where they are washed with water before sending for slaughter.

d. The animals for slaughter are held in the K nocking Box where they cannot see the animals beingslaughtered. First they are stunned either by electric/pneumatic stunner as per the requirementsof the importing countries. Some countries do not allow slow stunning. All the animals areslaughtered by HALAL method in the presence of Holyman assigned by the All India JamiatUlema-e-Hind as per Islamic Shariyat, for certification.

e. After slaughter, the animals are allowed to completely bleed in the slaughter line, where afterlegs are cut, de-hiding is done and the carcass is split into two halves. Here, the Veterinaransconduct the post mortem examination in the abattoir. After it is found fit for humanconsumption, the carcass is washed, stamped and transferred to chiller. The chiller has atemperature range of 2-4C where carcasses are kept for 24 hours. When the debonedtemperature is achieved at 7C and pH has gone down below 6C, the carcass is brought todeboning hall having room temperature between 12C-15C for deboning and preparation of prime cuts.

f. Various prime cuts and prepared as per the buyer's requirements. The packed cartons are passedthrough the metal detector to check for external contaminants. Thereafter, the cartons arefrozen at -40C for 10-12 hours to bring the deep bone temperature to -18C to -20C. Thecartons can also be frozen in Blast freezers having a temperature of -40C. The cartons arelabelled about the date of production, shelf life, contents of the product, country, country of export etc. as per the requirements of the country. After Freezing, cartons are brought to thecold storage. Here, they remain till they are cleared by the in-house laboratory about the safetyof the batch after microbial analysis.

5.2. Quality Assurance


10/20

10

The quality and safety are assured by monitoring the Critical Control Points (CCPs) of HACCP and ISO:9000. The in-house laboratory conducts at random the microbial examinations of samples of meat,water, air, personal swabs from the worker's hand, etc, so as to keep tabs on the hygienicenvironment and personal hygiene.After the clearance from the in-house laboratory, the cartons with frozen meat are loaded in therefrigerator containers having -18C to -20C, sealed and transported to the Mumbai / Chennai /

Kolkata seaports for onward transmission to the importing countries. In the production process coldchain is maintained since the carcasses are chilled to the end users namely, processing plants /individual consumers.

5.3. Study of Indian Export Oriented UnitsHind Agro Industries Limited is the first company in India to have Asia's one of the most modernabattoir-cum-meat processing plant at Aligarh in the State of Uttar Pradesh in North India. It is a jointventure of Hind Industries Limited, Govt. of Uttar Pradesh and assisted by Govt. of India. This plant atAligarh is approved by the Agricultural and Processed Food Products Export Development Authority(APEDA), Ministry of Commerce, Govt. of India for export of meat and meat products. Hind Agro

Industries Limited is the only company in the country to have the unique facilities of slaughtering theanimals which have been bred and reared on strict guidelines set by the O.I.E. Paris. Farmers areencouraged to rear male buffalo calves specially for supplying to the company under the contractualfarming.

Chilling of carcasses after post mortem for 24hours to bring ph below 6 at Hind Agros

Deboning of meat at Hind Agros integrated meat Processing plant

Chilling of carcasses after post mortem for 24 hours tobring ph below 6 at Hind Agros Integrated meat

Processing plant

Freezing of meat packed in cartons in plate freezer at18 degree celsius at Hind Agros Integrated meat

Processing plant


11/20

11

AllanasonsAllanasons is India's largest exporter of processed food productsand agro commodities. The Company has been designated as theFive Star Trading House by the Government of India. Allana Grouphas achieved enviable growth in its exports, clocking 44% over thelast two years. They are the world's largest producer and exporter

of frozen halal boneless buffalo meat. For its new range of valueadded, branded consumer frozen food products to be launchedshortly, the Group is constructing additional Food Processing Plantswith large investments in machinery and manpower. The Grouphas made substantial investments in creating world-class integrated food processing complexes. Facilities,which have been certified for quality and product safetysystems under ISO 9001:2000 and HACCP, ISO 14001(Environment Management System) and OHAS 18000too.

5.4. Other Meat Processing Units in India:

In addition to the export oriented Integrated Meat Processing Plants, nearly 800 licensed MeatProcessing plants are there in India which basically cater to Domestic market. Most of them suffer fromthe following deficiencies:-

1. Lack of Hygienic source of Meat supply.2. Lack of Modern Hygienic slaughter facility.3. Lack of Integrated Slaughter, Storage, Processing and Packing facility.4. Lack of access to modern technology to slaughter, process, store, pack and transport the

meat/meat product in a hygienic manner.5. Lack of access to trained manpower6. Non-Adherence to Good Hygienic Practices (GHP)7. Non-Adherence to Good Manufacturing Practices (GMP)

Most of these Meat Processing Units are dependent on 4000 registered slaughter houses (Registeredwith the Local Municipal Board) or more than 25,000 unregistered slaughterhouses. Butchers whoslaughter the animals and trade in Carcass or meat buy the animals normally from unregulated,unhygienic and unlicensed local animal market. Then they slaughter these animals in very unhygienicand cruel conditions and supply the whole carcass or meat to the Meat Processing units (nearly 800 innumber as mentioned above). These meat processing plants operate at a much lower level of efficiencyand productivity as compared to the Export units and quality of their products always has a questionmark. In all these parameters these units are much below that of the Multinational enterprises of Netherland.

5.5. Conditions of Slaughter HousesBased on the study of slaughter facilities and slaughter procedures, NABCONs has classified Abattoirsunder three groups as show below.

Traditional technology abattoirs:These are abattoirs that have primitive facilities and follow time-old floor slaughter and dressingprocedures. Hygiene is neglected and it involves intense human labour.

Intermediate technology abattoirs:

Allanasons prominent retail Brand SAFFA , under which they offer Halal Non-Veg products likeFrozen Mutton, Buffalo Meat, Institutional Cuts,Fresh Chilled, Chilled Vacuum Pack and Ready toCook Products.


12/20

12

These are traditional abattoirs in which some investments have been made to improve theinfrastructure facilities with twin objectives of enforcing hygiene and reducing manual labour. It alsoincludes newly built low cost non-mechanized abattoirs with overhead railing system or abattoirs withinnovative off-the-floor slaughter facilities.

The overall effect is that a fairly satisfactory level of improvement is achieved in terms of reduction in

manual labour, reduction in the number of floor slaughter steps, perceivable hygiene and erasing of stigma such as ghastly slaughter scenes, dirty environment and off odours, etc. that are usually noticedin traditional abattoirs.

Modern technology abattoirs:These are abattoirs that have modern facilities and follow online procedures forSlaughter and dressing with required facilities for receipt of animals at one end of overhead rails anddelivery of carcasses at the other end and for removal of offals at various points. Hygiene is meticulouslyfollowed at each step. The essential facilities include:1. Lairage

2. Stunning3. Overhead rail system with full range of advanced abattoir equipment4. Rendering plant5. Effluent treatment plant

The slaughter is either fully or partially mechanized with less of manual labour. If the abattoir meets allthe above requirements (even without stunning on religious compulsion), it will be considered underthe category of modern technology abattoir.

Based on the Survey done by NABCONs in India and first hand information collected from VanDrieGroup, Netherlands, a comparative table is placed at Annexure-1 wherein the detailed comparison of Indian modern slaughterhouses with Netherlands modern Slaughterhouses on various parameters hasbeen presented.


13/20

13

6. NETHERLANDS INTEGRATED UNITS STUDIED

The VanDrie Group, Netherlands

The VanDrie Group is the largest privately owned agro company in the Netherlands. The groupcomprises more than twenty businesses, making it the largest integrated veal producer in the world.They produce 25% of all European veal.

Company has fixed-contract arrangements with 1,200 veal

farmers, it owns feed companies that produce calf milkpowder in the Netherlands, Germany and Italy they haveslaughterhouses in the Netherlands, Belgium and Franceand a company which processes the skins. Traditionalmethods are also applied to the slaughter and processingof the meat. Of their approximately 1,700 employees,two-third work in the Netherlands. Our Dutch companyhas thereby grown to become the global market leader inthe veal industry.

VanDrie Group's Contract Farm(photo credit: Dr. Rashmi Kumar)


14/20

14

The calves the VanDrie Group purchase for veal production are not purpose-bred they are calves thatcannot be used in the dairy industry, After all, the production of milk, butter and cheese is inextricablylinked to the birth of claves. In order for a cow to give milk, she must bear a calf once a year. In the past,the animals were often killed immediately after birth. Nowadays, these animals are brought from thedairy farm to the veal farm two weeks after birth. They subsequently remain there for six to twelvemonths before going to the slaughterhouse. In this way, they add value to animals that the dairy farm

cannot use-in respectful way.

Turnover of VanDrie GroupThe VanDrie Group has an annual turnover of approximately 1.5 billion Euro. Approximately95% of this turnover comes from Europe.

Quality and accountability throughout thechainQuality is not achieved without efforts; itrequires a well-considered approach founded upon a solid cooperation between all the links in thechain. The VanDrie Group has an Internal benchmarking system enabling the various business units tolearn from each other and make improvements. The VanDrie Group has its own Quality system: SafetyGuard.

Additionally, they are working with other chain partners to build solid, verifiable and transparent chainquality systems for all business activities, such as the Veal Calf Quality Guarantee foundation (SKV) andintegrated Chain Management (IKB). These chain systems are the backbone of the company and fromthe basis for sustainable and socially responsible veal production.

Safety Guard: Food safety, food quality and animalwelfareIn order to optimise the Safety guard system, theVanDrie Group has integrated the ISO 22000 standardwithin chain quality system-was implemented at all of the VanDrie Groups locations to further safeguardfood quality and safety.

VanDrie Integrated Veal Slaughterhouse(photo credit: Dr.Rashmi Kumar)

Dr. Rashmi Kumar at VanDrie Integrated Veal Slaughterhouse

Packing contains the whole lifecycledetail of the product

(Photo credit: Dr. Rashmi Kumar)

Dr. Rashmi Kumar at VanDrie Integrated Processing Plant


15/20

15

Re-use and disposal of residual productsAt all production sites, the different waste streams are collected separately and transported accordingly.The objective is to re-use as many different types of waste products as possible. Markets are sought foras many waste stream as possible, so that those substances that are no longer useful to the VanDrie

group can be used by others like in the pharmaceutical industry, manure from slaughterhouses is usedto generate electricity through fermentation etc. With recycling, less than 10% of the residual productsare disposed of as waste.

VION GroupVION Food Netherlands is a specialist producer of high-quality pork and beef products as well as derivedconvenience products (Fresh Meat and Convenience) brought to consumers via the retail, industrial andfoodservice sectors. Due to the high degree of self-sufficiency of the Netherlands, VION FoodNetherlands is strongly export-oriented. For example, the UK (bacon) and Italy (ham) are importantexport countries.

- Turn-over: 9.6 billion- Employees : 35,500- Head Office: Eindhoven, The Netherlands- Core activities: VION Food & VION Ingredients- Mission: VION wants to anticipate on and fulfill customer and consumer needs with high quality

and innovative Food and Ingredients.- Objective: VION wants to become a leader in (selected) Food and Ingredients Market segments

VION Pork Slaughter House(photo credit Dr. Rashmi Kumar)

By-products treatment area at VanDrie Group'sIntegrated Meat Processing Plant (Photo credit: Dr. Rashmi Kumar)

VanDrie Group's specially designed truck for carrying the live animals

(Photo credit: Dr. Rashmi Kumar)


16/20

16

2 Sisters Food Group, Netherlands

2 Sisters Food Group having its headquartered in Birmingham, was established in 1993 by their Chief Executive, Ranjit Singh, and remains a privately owned company. During this period the company has

evolved from a small scale frozen retail cutting operation to a world class food company, serving theretail, foodservice and manufacturing sectors. Today the group are a diversified food manufacturer withstrong market positions in Poultry, Chilled, Bakery and Frozen categories. They focus on delivering thehighest quality product to their customers at the lowest cost. Their UK customers include Aldi, Asda,British Airways, Costa, Harrods, KFC, Lidl, Marks & Spencer, Morrisons, Sainsburys, Tesco and Waitrose.Mission Statement: Produce more for less!!! Core figures 2 Sisters Food Group:

13 production locations in the UK 7 production locations in the Netherlands 1 production location in Poland

About 7000 employees Turnover about 1.25 billion euros Slaughtering of 6 million chickens per week

The Meat Processing System (MPS)

MPS Red Meat Slaughtering is the market leader for the supply of process machinery, transport systemsand controls for the slaughter line processing of pigs, cattle, claves and sheep. Based on extensiveexperience, MPS Red Meat Slaughtering designs, manufactures and installs bespoke and effectivesolutions for customers worldwide, from an individual machine, through detailed solutions, to acomplex, integrated project.

MPS Red Meat Slaughtering are experts at providing traditional products quality with modern slaughterline processes. Development is also very important and it is not surprising that MPS Red MeatSlaughtering has the reputation for being the industrys pre -eminent innovator. MPS is a full-linesupplier, which means that they design, manufacture and install process equipment, transport systemsand control systems that meet the customers requirements. MPS Red Meat Slaughtering produces

The 2 Sisters Group's integrated poultry processing plant (photo credit: Dr. Rashmi Kumar)


17/20

17

slaughter lines for pigs, calves, cattle and sheep including the various component parts that are highlyefficient, hygienically designed, economical to maintain and easy to operate.

Pigs: full-line solutions for 40 1,600 pigs an hour Cattle: full-line solutions for 10 - 150 cattle an hour Sheep: full-line solutions for 100 1,000 sheep an hour

Automated slaughtering solutions: kill floor automated solutions for 200-1300 pigs an hour

Ritual Stunning Systems Chilling & Cooling

Cutting andDeboning

7. ANALYSIS

The information regarding the Indian Meat Sector has been collected through secondary sources andthe data for the Netherland Meat sector has been collected through first hand primary study; the datawere analysed and following results emerged :

(i) The Indian meat sector is highly unorganised and fragmented wherein millions of famers spread allover the country rear one or two animals like buffalos, goats, sheep's, pigs etc. The rearing is noton very scientific line as the farmers are mostly illiterate the knowledge of Good Hygienic Practices(GHP) is totally absent. There are very few large farms which rears 100-500 buffalos but that it isdone only for milk production purpose and not for meat production purposes.

On the other hand the meat sector in Netherlands is fully organised and rearing of animal is donein large farms (500-1000 animals) where the animals are raised for meat purpose on scientific linefollowing GHP and monitoring their growth in well defined manner. detailed record of each animalis kept right from its birth (including the details of its parents), the type of feed being giving tothem, healthcare being provided, their weight gain is meticulously recorded. this results in muchhygienic source of meat with clear traceability.

In India in some private sector export oriented units they maintain their own animal rearing farmsin the same manner as that of in Netherlands. But these are few in numbers where the totalnumber of animals being reared by all the animals taken together doesn't go beyond 5000 to 6000at any given point of time. These are only used for export while the source for meat for domesticmarket are those million of animals being reared by millions of farmers all over the country infragmented manner and in an unscientific manner. there is no question of traceability possible inthese cases.

(ii) In India there is no organised animal market from where animals could be bought and slaughteredfor meat purposes. In most of the cases the farmers bring one or two animals to a traditional open
http://mpsredmeat.tradeindia.com/ritual-stunning-systems.htmlhttp://mpsredmeat.tradeindia.com/ritual-stunning-systems.htmlhttp://mpsredmeat.tradeindia.com/chilling-cooling.htmlhttp://mpsredmeat.tradeindia.com/chilling-cooling.htmlhttp://mpsredmeat.tradeindia.com/cutting-deboning.htmlhttp://mpsredmeat.tradeindia.com/cutting-deboning.htmlhttp://mpsredmeat.tradeindia.com/cutting-deboning.htmlhttp://mpsredmeat.tradeindia.com/cutting-deboning.htmlhttp://mpsredmeat.tradeindia.com/cutting-deboning.htmlhttp://mpsredmeat.tradeindia.com/chilling-cooling.htmlhttp://mpsredmeat.tradeindia.com/ritual-stunning-systems.html


18/20

18

air market near their village and sell the animals to the butcher. These markets do not have theclean resting places for the animals, clean drinking water, clean feeding stalls and any facility foranimal health check-up before purchase. There is hardly any system of contract rearing in India.

While in Netherlands, it is always a contract farming of animal where the rearing farms is under acontract with the slaughter house or integrated meat processing unit. This naturally improves the

quality of meat which is been made available to the consumers.

(iii) In Netherlands, the transportation of animals takes place in a well constructed and comfortabletransport truck while in India the animals are transported in a very crowded, cruel and unhygienicmanner which bring lot of injuries to the animals.

(iv) In India, there is no integrated meat processing plant for the domestic consumers. there are onlyfew integrated processing plants which cater to the demand of export as discussed earlier in thepaper. For the domestic market in India animals are slaughtered either in the slaughterhouseslicensed by Municipal bodies, which are mostly traditional in nature with no modern facilities,where the hygienic conditions are dismal. Facilities for collection and proper disposal for bloodand offal's are absent as has been found in the NABCONS study. The butchers who work in thesetraditional slaughterhouses are not trained in the scientific manner and they do the slaughtering invery cruel and unhygienic manner as shown in some of the photographs. In addition, Slaughteringis done anywhere and everywhere in a very unhygienic manner.

On the other hand, we have one of the most modern integrated meat processing plants inNetherlands which have a slaughterhouse, meat processing unit and packaging unit and atransportation unit as well so as to produce hygienic meat for the consumer.

(v) Because of the unhygienic slaughtering and handling of meat in India, the quality of meat has a bigquestion mark. It is always said in a lighter vein "because we cook the meat at a very hightemperature and then eat it, we survive otherwise if we start eating cold meat like it is done in thewest, all of us would die".

In the export oriented units based in India the production of meat is done in a good hygieniccondition as it is done in Netherlands and they always adopt GHP, GMP and HACCP. almost all of these units have their own testing laboratory to check the quality of meat by them before it ispacked and shipped.

In Netherlands all the meat production units are integrated as mentioned earlier, are mostmodern and mechanised to a great extend with least human interference, their quality of meat isof very high standard. they strictly implement GHP, GMP, HACCP and have rigorous quality controlmeasures.

(vi) In India the meat is carried in open carts or smaller vehicle after slaughter and hence is alwaysprone to bacterial infection. While in Netherlands the meat is transported in a air-conditionedspecifically designed truck so that the quality of meat could be maintained.

(vii) In India the meat processing units (other than the export oriented units) are still not up to themark in maintaining the level o f workers personal hygiene, implementing of GHP, GMP as well as

HACCP. There are very few large units which have laboratories for quality control but most of them are in poultry sector like M/s Alchemist, M/s Venkeys, M/s Suguna etc.


19/20

19

(viii) In India, the workers working in slaughterhouse or meat processing units are never trained andnever skilled compromising the quality of meat and meat products.

While it has been found in primary survey that the meat units in Netherlands have very rigoroustraining and skill/knowledge development programme for their workers, manager etc. thisautomatically improves the productivity , efficiency of unit and quality of their products.

(ix) The retail outlets for meat in India are mostly traditional in nature with not much facilitate forhygienic storage and preservation of meat and meat products. This also creates an issue of quality.Some meat and poultry processing units have started establishing their chain of modern retailoutlets which have much better arrangements for selling quality products.


20/20

8. CONCLUSION

On the basis of the comparative study and the analysis presented earlier in the paper, the followingconclusion have been reached:

(A) Since the Export oriented Integrated Meat Units of India compare equally well with the

Multinationals Meat Enterprises of Netherland, there will not be any benefit to them by the entryof MNEs in India. Rather they may have a very strong confrontation which would force them toimprove the productivity, efficiency and quality of meat.

(B) The other smaller Meat Processing units of our country will have an opportunity to learn from thecoming MNEs in India and this will help them in improving their efficiency, productivity and qualitylevels.

(C) The strong competition being put up by the entering MNEs will also force these Meat Units toimprove their products quality and pricewise by discarding their inefficiencies. Off-course the units

which do not improve, may be forced out of business.

(D) The consumers will be immensely benefitted in getting much better product quality-wise andprice-wise.

(E) Our Meat industry will get motivated to adopt GHP, GMP and HACCP practices which will benefitthem to a great extent in the long run.

(F) The modern abattoirs of MNEs will create conducive condition for modernising of our traditionalabattoirs.

(G) The models adopted by MNEs for backward-forward linkages, transportation of animals andfinished meat products will lead to modernising our systems also.

(H) Crores and crores of male buffalo calf which are left to die in our country can become productivemeat supply source on the model of Veal Integrated Meat units and contract farming of Veal calf.This will result in Billions Rupees with lean meat of male buffalo calf which have huge demandabroad.

(I) The meticulous training /skill up-gradation regime being followed by the MNEs will show the wayto our meat industry to do the same for the butchers/other workers and managers of the meatindustry. This will enhance their efficiency, productivity and quality substantially.

Study of Indian & Netherland Meat Sector

Documents