1. Focus Report On Buffalo Meat Prepared By: Birender Kumar Sr. Business Analyst Logicsoft International Pvt. Ltd. Logicsoft International Private Limited 28, 3rd Floor, Jia Sarai, Hauz Khas, New Delhi - 110016, India Tel. +91-11-64623381/82 Fax +91-11-26851219 Website: http://www.lsipl.com

2. Content Introduction Production of Buffalo Meat in the World Production of Buffalo Meat in India Global Trade of Buffalo Meat Global Trade Analytical Report on Buffalo Meat (Table) Major Destination of Indias Buffalo Meat Indias Export Scenario of Buffalo Meat (2011) Import Tariff of Buffalo Meat in Major Importing countries Consumption of Buffalo Meat in India Conclusion 3. Buffalo Meat Introduction: Buffalo is one species being seen today as a savior animal to meet mans increased requirements of food in the coming times. Traditional buffalo meat products are highly relished in all buffalo rearing countries of Asia, Africa, Australia, Europe and South America. Due to great regional diversity, this product display variations in processing method and sensory quality. Although increasing urbanization and change in lifestyle have changed in the past few years, the liking for traditional meat products such as buffalo meat, sheep/goat meat and poultry meat still exists among people. The production of buffalo meat has high growth possibilities and poses a minimal level of risk from pesticides and veterinary drugs when compared to beef production in developed countries Buffalo meat is produced primarily in Asia. As the meat produced is mainly from spent animals, it is coarse and fibrous. The demand for buffalo meat is high as it is relatively lean with a fat content below 2 per cent and it is free from Mad Cow Disease as the animals are only fed grass and farm by- products. The functional proprieties of buffalo meat for product processing could be improved by increasing its popularity on the world market. Buffalo meat is the most famous and the most widely used meat cuisine. It is basically widely consumed in America, Australia, Europe, Africa and a few parts of Asia. Many people around the world eat beef and it is very popular among all the developed countries According to the FAO, there were 195.26 million buffalo in the world during 2011, Asia has the largest region in buffaloes in the world leading by India with 57.83% share in the total buffalo production, followed by Pakistan and China with 16.25% and 11.97% respectively, nearly 98% of water buffalo in Asia and the pacific region are raised by small farmers owning less than two hectares of land and fewer than five buffaloes. World buffalo production (in 000 numbers) Country 2009 2010 2011 %age Share Rank India 109438.00 111891.00 112916.00 57.83 1 Pakistan 29883.00 29413.00 31726.00 16.25 2 China 23271.36 23602.12 23382.13 11.97 3 Nepal 4680.49 4836.98 4993.65 2.56 4 Egypt 3838.72 3818.24 3800.00 1.95 5 Philippines 3321.00 3270.40 3075.30 1.57 6 Myanmar 2900.00 2874.86 2977.15 1.52 7 Viet Nam 2886.60 2877.00 2712.00 1.39 8 Thailand 1670.51 1622.65 1698.00 0.87 9 Bangladesh 1304.00 1349.00 1394.00 0.71 10 Other Countries 7030.52 7202.99 6591.95 3.38 World Total 190224.20 192758.25 195266.18 Source: FAO 4. Production of Buffalo Meat in the world: World production (in 000 tonnes) and slaughtered (in 000 no.) of Buffalo meat Country 2009 2010 2011 %age share in Production RankSlaughtered Production Slaughtered Production Slaughtered Production India 10599.00 1462.66 10793.00 1489.43 10890.00 1502.82 42.80 1 Pakistan 6080.00 730.00 6267.00 752.00 6455.00 775.00 22.07 2 Egypt 1228.00 411.91 1262.00 398.35 1271.00 395.80 11.27 3 China 3091.75 309.43 3101.70 310.42 3094.72 308.43 8.78 4 Nepal 712.60 156.62 737.00 162.21 763.00 167.86 4.78 5 Philippines 455.00 98.90 485.00 105.65 481.30 105.60 3.01 6 Viet Nam 491.00 105.56 490.00 105.35 462.00 99.33 2.83 7 Indonesia 164.00 34.76 164.00 35.90 164.00 37.50 1.07 8 Myanmar 233.60 32.93 230.00 34.56 228.00 34.32 0.98 9 Thailand 89.26 33.74 108.64 46.10 91.83 23.23 0.66 10 Other countries 451.92 57.72 464.42 59.86 481.21 61.70 1.76 11 World Total 23596.13 3434.27 24102.77 3499.85 24382.07 3511.60 Source: FAO 43% 22% 11% 9% 5% 3% 3% 1% 1% 1% 2% %age Share of Buffalo Meat Producting countries India Pakistan Egypt China Nepal Philippines Viet Nam Indonesia Myanmar Thailand Other countries 5. Production of Buffalo meat in India Multiple uses for buffaloes and favorable export demand have driven the increase in buffalo meat production. The demand for Indian buffalo meat is gradually growing in exports markets due to cost competiveness, lean character, and perceived organic nature. Indian exporters are optimistic that the global economic recession will not impact meat exports from India as buffalo meat is very cost competitive in international markets. Production of Buffalo Meat in India (in 000' tons) Year Production 2007-08 557 2008-09 623 2009-10 670 2010-11 805 Source: State/UT Animal Husbandry Department Buffalo meat production is comparatively new area of buffalo production. India holds top rank in buffalo meat production. The country produce 805 (000 tonnes) of buffalo meat during the 2010-11 Production of buffalo meat in India are spread over almost all parts of the country with varying density of population in different states and union territories. The majority of the buffalo meat production in India is concentrated in the north and western states where most of the milch breeds of 0 100 200 300 400 500 600 700 800 900 2007-08 2008-09 2009-10 2010-11 557 623 670 805 In000tons Growth of Buffalo Meat Production in India 6. buffaloes are found comprising Utter Pradesh, Andhra Pradesh, Maharashtra, Punjab, Bihar, Kerala, Madhya Pradesh, Rajasthan, and Tamil Nadu. Details of Estimates of Meat Production from Buffalo for 2008-09 to 2010-11 Sr. No. States/ Uts Est. Number of animals Slaughtered Meat Production %age share in Meat Production (2010-11) (in 000) (000 Tons) 2008-09 2009-10 2010-11 2008-09 2009-10 2010-11 1 Uttar Pradesh 1728.00 1748.00 2318.00 211.00 213.00 300.00 37.27 2 Andhra Pradesh 748.00 922.00 996.00 77.00 95.00 102.00 12.67 3 Maharashtra 703.00 711.00 716.00 98.00 99.00 99.00 12.30 4 Punjab 378.00 429.00 662.00 53.00 66.00 89.00 11.06 5 Kerala 436.00 410.00 427.00 44.00 42.00 44.00 5.47 6 Bihar 630.00 679.00 677.00 39.00 42.00 42.00 5.22 7 Delhi 129.00 159.00 229.00 22.00 24.00 34.00 4.22 8 Rajasthan 331.00 444.00 324.00 13.00 18.00 23.00 2.86 9 West Bengal 82.00 99.00 109.00 11.00 14.00 15.00 1.86 10 Madhya Pradesh 96.00 103.00 104.00 12.00 13.00 13.00 1.61 11 Nagaland 69.00 71.00 66.00 12.00 12.00 11.00 1.37 12 Other States 265.40 284.90 263.53 30.49 33.56 31.32 3.89 Total 5597.00 6061.00 6890.00 623.00 670.00 805.00 100.00 Source: State/UT Animal Husbandry Department 37.27 12.6712.30 11.06 5.47 5.22 4.22 2.86 8.74 Major Buffalo Meat Producing States in India (%age share) Uttar Pradesh Andhra Pradesh Maharashtra Punjab Kerala Bihar Delhi Rajasthan Other States 7. Global Trade of Buffalo Meat: Almost all the body parts of a buffalo can be eaten including the tongue and the tail but some body parts can be dangerous for the health and they may cause diseases. Some body parts, which can be dangerous for us, include the brain and the heart of a buffalo. The countries of USA, Japan, Brazil and China are the worlds largest consumer of beef or buffalo meat. The buffalo meat is a very much varied and very different food, which is prepared and cut in many different manners in all the countries where buffalo meat is eaten. The different countries have many different cuts and all have different names and are used in different kinds of products. Now there are different ways of cutting of beef or buffalo meat. According to the data of UNCOMTRADE the worlds total export of Buffalo Meat stood at 8562.35 th. tonnes with the worth of USD 41424.79 million during 2011. The meat of Bovine Animal as Fresh/ Chilled, boneless represent a major demand in International Market. The product-wise details of Buffalo Meat in Internatioanl Market are given below: Product wise Trade of Buffalo Meat in the World International Trade of Buffalo Meat Qty in 000 MT., Value in US$ Mill HS-Code Product 2009 2010 2011 Qty Value Qty Value Qty Value 020230 Meat of Bovine Animals, Frozen, Boneless 3628.01 12099.35 4260.39 14574.93 3439.78 14987.40 020130 Meat of Bovine Animals, Fresh/Chilled, Boneless 2199.82 11832.98 2367.18 13104.20 2250.29 14325.65 020120 Meat of Bovine Animals, Fresh/Chilled (Excl. of 0201.10), Bone-In 827.27 4020.13 962.81 4368.32 1002.46 5189.95 020110 Carcasses/Half-Carcasses of Bovine Animals, Fresh/Chilled 550.48 2551.25 556.50 2276.90 530.98 2513.30 020629 Edible offal of Bovine Animals (Excl. Tongues & Livers), Frozen 643.87 1346.46 670.97 1420.77 654.23 1720.31 020220 Meat of Bovine Animals, Frozen (Excl. of 0202.10), Bone-In 282.83 821.29 327.89 1084.87 341.70 1307.48 020610 Edible offal of Bovine Animals, Fresh/Chilled 137.01 511.18 120.97 491.85 124.56 603.31 020622 Livers of Bovine Animals, Frozen 171.27 258.77 517.94 278.38 138.71 339.40 020621 Tongues of Bovine Animals, Frozen 50.67 234.33 52.31 282.26 52.31 322.88 020210 Carcasses/Half-Carcasses of Bovine Animals, Frozen 51.64 180.50 40.45 147.22 27.26 115.11 Total 8542.90 33856.24 9877.47 38029.70 8562.35 41424.79 Source: UNCOMTRADE According to the UNCOMTRADE data Australia is the largest Buffalo Meat Exporter in the world, with 1359.39 th. tonnes during the year of 2011, followed by USA and Brazil with 969.23 th. tonnes and 802.16 th. tonnes representing the second and third position in Buffalo Meat Export during the same period. India stood at 13th position in World Buffalo Meat Export during the same period As compared to India most other major buffalo meat exporting countries can be considered mature export industries. 8. Country-wise International Trade of Bovine Meat Qty in 000 MT, Value in US$ Mill Exporting Country Importing Country 2009 2010 2011 Qty Value Qty Value Qty Value Australia All 1477.38 5104.76 1376.03 5648.3 1359.39 6501.12 USA All 705.89 2854.73 892.55 3725.56 969.23 5098.16 Brazil All 903.84 3113.92 1134.22 4113.49 802.16 3465.56 Netherlands All 437.63 2606.81 481.79 2765.05 434.30 2945.74 New Zealand All 591.46 1800.69 578.17 2116.62 553.66 2479.97 Germany All 401.79 2051.39 484.20 2091.2 461.84 2385.72 Ireland All 508.30 2505.57 574.71 2792.88 400.52 2344.37 Canada All 663.30 1938.76 722.65 2358.6 580.82 2290.72 France All 251.35 1281.89 296.53 1322.98 302.64 1587.81 Argentina All 472.48 1959.33 231.06 1260.07 223.50 1339.85 Uruguay All 299.90 1213.32 277.51 1255.24 247.34 1310.77 Poland All 227.95 915.48 283.03 982.25 293.38 1226.41 India All 398.77 1002.61 453.65 1269.84 397.24 1186.61 Mexico All 65.80 323.74 105.15 527.39 174.28 879.43 Belgium All 93.95 550.08 379.25 641.44 142.94 762.68 Other Countries 10,43.00 4,633.16 16,06.90 5,158.79 12,19.04 5,619.87 Total 85,42.89 33,856.24 98,77.46 38,029.70 85,62.35 41,424.79 Source: UNCOMTRADE %age share of Major Exporting countries of Bovine Meat in the World (2011) 16% 12% 8% 7% 6%6% 6% 6% 4% 3% 3% 3% 3% 2% 2% 14% Australia USA Brazil Netherlands New Zealand Germany Ireland Canada France Argentina Uruguay Poland India Mexico Belgium Other Countries 9. GlobalImportScenarioofBovineMeat Qty.inMT;ValueinUSDMillion MajorExportingCountries(%ageShareinImport) NewZealand(5.99) Nicaragua(5.64) NA Canada(2.18) Poland(6.67) Paraguay(7.50) Austria(5.66) Poland(8.05) Belgium(9.09) Germany(2.97) Canada(7.14) India's(inWorld)Rankasexporter=13Value=1186.615(USDMillion)%ageShare=2.86 Source:UNCOMTRADe,datahasbeentakenonthebasisofImportingCountries Netherlands(7.11) Mexico(10.79) Mexico(1.10) Mexico(2.90) Ireland(10.81) USA(8.32) Poland(5.94) Ireland(8.62) Italy(9.15) Uruguay(4.40) Argentina(7.48) Brazil(8.37) NewZealand(22.09) NewZealand(9.30) NewZealand(6.13) Germany(12.88) Australia(10.63) France(10.29) UK(10.90) Ireland(13.90) Australia(4.42) Australia(9.52) USA(12.31) Australia(25.62) USA(38.96) USA(28.07) Netherlands(18.39) Uruguay(11.52) Argentina(17.05) Belgium(11.49) Germany(21.00) Netherlands(7.38) USA(15.48) Australia(15.69) Canada(31.45) Australia(50.64) Australia(60.40) France(19.62) Brazil(35.68) Netherlands(26.47) Germany(21.59) Netherlands(31.44) Ireland(68.13) Brazil(46.53) India'sstatusasExporter India's Position 13 NA NA NA NA NA NA NA NA NA 16 %ageShare inValue 2.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.07 Value 1186.61 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.82 Quantity 397240.80 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 371.91 TotalImport Value 41424.80 6134.81 3352.56 3056.21 2978.96 2629.66 2384.84 1963.09 1906.11 1398.24 1253.15 Quantity 8562355.38 1368717.19 687716.24 561423.11 436939.99 720854.95 338085.65 399906.99 324529.85 258620.06 365953.31 ImportingCountry WorldTotalImport USA Rep.ofKorea Japan Italy RussianFederation Germany Netherlands France UK China,HongKongSAR 10. Major destination of Indias Buffalo Meat According to the UNCOMTRADE data, Indian buffalo meat is exported to more than 35 countries during the year 2011. Prominent among these are emerging markets in Malaysia, Egypt, Algeria, Philippines and Jordan. Most meat exports to South Asian countries cater to demand for processed buffalo meat products due to high water holding capacity and good blending properties. India's Export of Buffalo Meat to World Qty in 000 MT., Value in US$ Mill Exporting Country Importing Country 2009 2010 2011 Qty Value Qty Value Qty Value India Malaysia 86.43 215.92 88.59 235.71 99.30 296.03 India Egypt 43.76 194.88 64.74 280.83 55.47 226.18 India Saudi Arabia 100.76 248.87 118.95 331.09 62.68 191.30 India Algeria 0.00 0.00 13.94 41.84 36.48 105.76 India Philippines 46.94 89.47 50.28 106.69 40.16 102.67 India Jordan 7.24 34.51 17.02 44.49 20.32 59.66 India Oman 12.75 27.49 12.31 30.14 13.25 34.21 India Thailand .016 0.03 1.52 3.77 11.41 30.38 India Armenia 10.24 17.35 4.57 10.07 9.86 23.15 India Lebanon 12.73 30.13 8.97 24.84 7.68 23.04 India Other Countries 77.89 143.94 72.72 160.37 40.58 94.24 Total 398.77 1002.59 453.65 1269.84 397.24 1186.62 Source: UNCOMTRADE %age share of major markets of Indias buffalo Meat (2011) 25% 19% 16% 9% 9% 5% 3% 2% 2% 2% 8% Malaysia Egypt Saudi Arabia Algeria Philippines Jordan Oman Thailand Armenia Lebanon Other Countries 11. India'sExportScenarioofBuffaloMeattotheworld Qty.inMT;ValueinUSDMillion MajorExportingCountries(%ageshareinImport) Brazil(0.27) Colombia(1.00) Pakistan(5.47) Ireland(1.12) USA(4.73) USA(4.79) Australia(2.83) Argentina(0.46) Canada(0.36) Paraguay(3.22) Source:UNCOMTRADE,(dataasreportedbyImportingCountriestill31-Jan.-2013) China(2.06) Australia(1.92) Australia(5.73) Denmark(1.82) Brazil(7.31) China(8.84) USA(3.09) USA(1.12) Brazil(1.17) China(3.27) NewZealand(5.14) USA(22.45) USA(6.11) France(5.68) NewZealand(13.21) Brazil(17.78) NewZealand(8.48) NewZealand(11.25) France(1.82) Australia(10.50) Australia(19.81) India(28.79) Brazil(31.46) Brazil(22.46) Australia(30.36) Australia(17.89) Pakistan(13.43) Australia(31.95) Netherlands(1.86) India(14.50) India(72.21) Brazil(43.23) India(46.60) India(64.45) India(42.39) India(46.25) India(64.44) India(54.08) India(93.54) Brazil(60.58) India'sStatusasexporter India's Position 1 2 1 1 1 1 1 1 1 2 %ageShare invalue 72.21 28.79 46.6 64.46 42.39 46.24 64.46 54.07 93.57 14.5 Value 296 226.2 191.3 105.8 102.7 59.66 34.21 30.38 23.15 23.04 Quantity 99306.05 55471.47 62682 36484.39 40163.34 20329.63 13250.86 11418.81 9866.89 7686.64 TotalImport Value 409.96 785.73 410.54 164.08 242.2 129.01 53.07 56.19 24.74 158.9 Quantity 127343.33 170802.06 110073 48703.21 90710.51 35441.52 17701.33 18734.96 10932.06 27965.43 ImportingCountry Malaysia Egypt SaudiArabia Algeria Philippines Jordan Oman Thailand Armenia Lebanon 12. ImportTariffinMajorImportingCountriesofBovineMeat (2012) Imports DutyFreein% 8.30 25.30 3.10 3.20 0.30 9.90 100.00 2.80 56.00 0.00 73.50 87.40 52.30 2.90 0.00 2.70 5.70 Source:WTO Sharein% 0.40 0.40 1.70 3.00 0.50 0.20 1.20 1.20 0.60 1.70 1.40 0.40 0.60 0.10 0.70 0.50 0.20 MFNappliedduties Max 140.00 26.00 472.00 80.00 89.00 25.00 0.00 254.00 621.00 6.00 30.00 50.00 20.00 16.00 45.00 >1000 40.00 DutyFreein% 23.80 31.00 43.80 11.30 2.40 10.10 100.00 5.20 64.40 0.00 21.70 87.50 7.40 7.90 0.00 11.50 7.10 AVG 23.00 2.40 15.70 24.70 22.10 14.80 0.00 41.20 30.50 6.00 15.50 3.80 4.70 8.90 17.80 156.40 16.10 FinalBoundDuties Bindingin% 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 96.30 100.00 100.00 100.00 100.00 100.00 100.00 Max 140.00 26.00 540.00 89.00 25.00 0.00 254.00 621.00 25.00 80.00 190.00 168.00 50.00 55.00 50.00 >1000 40.00 DutyFreein% 20.60 31.00 45.70 0.40 10.40 100.00 0.00 46.20 0.00 0.00 8.50 7.90 0.00 5.40 0.00 11.30 7.20 AVG 24.30 2.40 15.00 26.10 14.90 0.00 61.70 29.50 25.00 45.00 115.30 30.90 43.70 37.80 37.60 161.00 14.80 CountryName EuropeanUnion USA Japan RussianFederation Rep.ofKorea China HongKong,China Mexico Canada Chile Egypt Israel Malaysia Indonesia Brazil Philippines Switzerland VietNam 13. Consumption of Buffalo Meat in India: Indias per capita buffalo meat consumption is estimated at approximately two kilograms per year. Increases in local consumption are marginal, reflecting population growth and Indias preference for vegetarian and dairy-based protein sources. For non-vegetarian Indians, poultry, fish, and mutton are the most preferred meats. As incomes grow, meat consumption increases will likely occur primarily in the poultry segment. However, as previously stated, this increase will be overshadowed by the general preference for dairy and pulses. The rise of quick service restaurants in India is also a driver for meat consumption. However, these types of restaurants primarily focus on poultry products. For these reasons, CY 2013 buffalo meat consumption in India is forecast at 2 million tons (on a carcass weight equivalent basis), CY 2012 buffalo meat consumption is estimated at 1.98 million tons, and CY 2011 buffalo meat consumption is kept unchanged at 1.95 million tons. Note that despite an increase in overall consumption, per capita consumption may not rise due to Indias growing population. Conclusion: According to the latest report published by USDA, Indian buffalo meat exports have grown to record levels in the last two years, making India the 13th largest country in the world to export more than 1 million tons of bovine meat annually. As a result, CY 2013 buffalo meat exports are forecast at 2.15 million tons (on a carcass weight equivalent basis), around 30 percent over 1.66 million tons in CY 2012. CY 2011 buffalo meat exports are revised up to a record 1.29 million tons. Indias bovine herd continues to grow in response to strong demand for dairy products, with calendar year 2013 combined stocks forecast at 327 million head and CY2012 combined stocks estimated at 323.74 million head. Indian federal and state laws prohibit the slaughter of cattle for religious concerns. Buffalo slaughter is allowed, although it is restricted to bulls and unproductive heifers. Due to the profitability of meat production in India, farmers now have an incentive to salvage and sell buffalo bull calves which were previously unused. Given this option, some farmers are fattening calves for slaughter, although the practice is still uncommon and Indian slaughter yields remain low. The government of India also has programs to expand production of male buffalo calves. Under the 11th five year plan (2007-2012) the goal was to increase beef meat output by 10 percent per year. The Agricultural Attach estimated growth of beef production at 12 percent in 2012 and projects 14 percent growth in 2013. A buffalo fattening industry is developing, but yields remain low. Export-oriented processing facilities have developed to serve the industry. Programs are likely to be continued in a 12th five year plan (2012-17). Whatever the yearly increase in beef production in India, almost all of the increase will enter the export market. Domestic consumption has been growing 1-2 percent per year and that is not expected to change in the years immediately ahead 14. Indian buffalo beef competes on a price basis because of low costs of production as an off- shoot of the expanding dairy industry. It is considered a lean meat good for blending and is produced according to halal standard. The World Organization for Animal Health (OIE) considers India in the negligible risk classification for BSE and free of rinderpest. Indian exporters have voluntary vaccination programs to combat foot and mouth disease (FMD), and the government has launched a U.S. $800 million program against FMD. While these programs are positive steps, FMD remains a significant hurdle for expanding market access. With a growing middle class and a population growth rate of 1.3 percent per year India has a growing demand for protein. For vegetarians that is met by pulses and oilseed crops. Per capita consumption of protein is still low compared to most developed countries and many developing ones. Buffalo beef has found a growing market in exports to other markets. That growth could continue as traditional Indian diets and religious practices limit demand for the new protein source. If those practices were to change, there would be a ready market at home for the protein. The 1.3 billion people of India continue to have an impact on agricultural and non- agricultural markets around the world as exporters and importers. A rising demand for protein has been a normal part of a growing middle class.