China clampdown on unlawful meat places $2 billion commerce in danger

By Pratik Parija

China’s crackdown on unlawful meat imports has left India, one of many greatest exporters of buffalo meat, scrambling for a brand new purchaser.

China has adopted stricter border controls resulting from African swine fever, that means Indian buffalo meat exports into China that often circulate by means of Vietnam has all however stopped. Indian exporters at the moment are hoping Indonesia can greater than triple its meat imports from the South Asian nation to make up for the heavy losses this yr.

Falling Shipments

Tighter border controls in China have harm a black market meat commerce that’s usually price about $2 billion a yr. India can’t immediately promote buffalo meat to China resulting from a ban by Beijing since 2001 following an outbreak of foot-and-mouth illness.

China, the largest client of pork, has boosted beef and different meat imports as shoppers search options following the lethal swine illness that’s killed thousands and thousands of pigs.

Indian shipments of buffalo meat and offal to China by way of Vietnam, Myanmar, Thailand and Hong Kong, has slumped 23% from a yr earlier to 14,645 containers this yr to October, in line with information compiled by the All India Meat and Livestock Exporters Affiliation. Authorities figures confirmed exports to Vietnam, India’s greatest purchaser, dropped 34% to 202,873 tons within the six months led to September.

Concentrate on Indonesia

Exporters wish to increase gross sales to Indonesia to 300,000 tons a yr from 80,000 tons now, mentioned Fauzan Alavi, vice chairman of the affiliation. The group has been pushing for the federal government to speak to Indonesia to get the import quota elevated, he mentioned, including that the affiliation was anticipating a constructive final result quickly. India has additionally requested that China raise its ban on imports, Alavi mentioned.

The affiliation has additionally been urgent the Indian authorities to chop export taxes on uncooked hides to stay aggressive within the world market.

The processors are struggling to promote uncooked hides regardless of a discount in India’s export obligation to 40% in July from 60%, Alavi mentioned. Australia, the U.S. and Canada have zero export duties, whereas there’s only a 9% tax in Brazil, he mentioned.

The obligation removing is essential for the survival of the trade at a time when most tanneries are shut and a few are working at decrease capacities, mentioned Alavi, who’s additionally a director with Allanasons Pvt., India’s greatest buffalo meat exporter.

“Even when China takes time to permit imports from India, greater gross sales to Indonesia and a minimize in uncooked cover duties will preserve us afloat,” Alavi mentioned in an interview.