Start Red Meat Export Business: Concept & Licenses Required

In India, the word “beef” instantly conjures images of sacred and holy cows, but in reality, the beef and livestock industries act as a significant component of the Indian economy in terms of Employment, Income, and Foreign Exchange earnings. Further, based on several reports and analysis, it is clear that the traditional Indian agricultural exports have been overtaken by new dynamic sector, known as the meat export industry. As a result, nowadays, the budding entrepreneurs are keener towards to start red meat export business rather than the normal export business.

In this blog, we will discuss the concept, process, and licenses required to start red meat business in India, together with the latest updates and ongoing growth statistics of the industry.

Reasons to Start Red Meat Export Business

The demand for the Indian Cara Beef, Beef, and Goat Meat has suddenly and considerably increased in the foreign market like never before. As a result, the Indian Meat Export Companies are at present, holding shares of more than 35% in the world’s total meat producing status.

Further, the reasons to Start Red Meat Export Business in India are as follows:

1. Continuous Rising Demand;
2. Relatively Low in Cost as compared to other countries;
3. India has one of the Largest Water Buffalo Herd in the World;
4. Low Market Competition;
5. Due to COVID 19 pandemic, Foreign Consumers have shifted towards Beef than Chicken;
6. Emerging Industry in the Market;
7. Indian Meat is 93% Chemical Lean and Mixes well with other Ingredients;
8. Indian Beef is Low in Cholesterol and Fat content;
9. Indian Red Meat is free from Radiation;
10. India is the Topmost Exporter of Beef, so numerous opportunities are available;

Growth of Red Meat Export Business in India

The growth of Red Meat Export Business in recent years can be summarised:

1. As per a report named “Export Value of Buffalo Meat from India Financial Year 2015 to 2020”, published by STATISTA, on 16.10.2020, India has exported buffalo meat of worth around the US $3 in the financial year 2020;
2. Based on a report named “World Beef Exports: Ranking of Countries”, published by Beef 2 Live, on 02.01.2021, India has ranked at 3^rd position in the race of the largest beef exporter in the world in the Financial Year 2020;
3. According to a report, named “Asia’s Beef Market 2020”, published by Global Trade, on 09.08.2020, India dominated the Asian Beef Trade, accounting for approx. 1.1M tones, which was about 85% of the total Asian exports in the year 2019;

Major Players of Meat Export Sector

The major player of the Meat Export Sector in India are as follows:

1. Uflex Limited;
2. Flavors of Kerala;
3. Eastern Condiments Private Limited;
4. Aarabhi Exports;
5. Rena KutzKitchenwares Pvt. Ltd;
6. Atc Tires Private Limited;
7. LobaChemie Private Limited;
8. Tastel Fine Food Private Limited;
9. Huhtamaki PPL Limited;
10. Intergrow Brands Private Limited;
11. Arabian Exports Pvt. Ltd;
12. M.K.R Frozen Food Exports Pvt Ltd;
13. P.M.L Industries Pvt. Ltd;

Major Importers of Red Meat From India

The major importers of the Indian Red Meat variety are as follows:

Buffalo Meat

As per a report issued by the AgriXchange, APEDA, the latest top 30 importers of Buffalo Meat in the year 2019 are as follows:

Country Name	Total Quantity	Total Value (In Lacs)
Vietnam Republic	371236.88	756900.88
Malaysia	133351.55	268277.77
Egypt	132046.98	236489.02
Indonesia	73136.00	165196.60
Iraq	71490.44	120786.03
Saudi Arab	38403.09	87356.01
Hong Kong	41664.75	85726.35
Myanmar	35526.55	66919.74
United Arab Emirates	30969.71	60447.50
Philippines	31638.29	56172.37
Thailand	24679.65	50402.22
Algeria	24855.00	50188.50
Russia	19165.89	45508.64
Oman	12513.91	27774.31
Jordan	11804.14	22329.26
Bangladesh	11898.82	19602.18
Bahrain	6501.70	14434.61
Kuwait	6602.11	13577.05
Qatar	7023.18	13461.34
Iran	5193.50	12311.86
Angola	10027.00	10676.68
Congo	8002.77	9443.76
Georgia	4726.93	8343.30
Mauritius	2763.44	6917.41
Brunei	2996.00	6805.57
Senegal	3510.00	6252.64
Gabon	3940.92	6248.97
Lebanon	2455.85	5017.03
Maldives	2083.60	4814.76
Cambodia	2200.01	4667.59

Goat/Sheep Meat

As per a report issued by the AgriXchange, APEDA, the latest top 13 importers of Goat/Sheep Meat in the year 2019 are as follows:

Country Name	Total Quantity	Total Value(In Lacs)
United Arab Emirates	9884.44	45432.08
Qatar	1308.37	6198.92
Kuwait	1303.50	6163.68
Saudi Arab	596.66	2771.45
Oman	443.17	1832.72
Maldives	343.93	1125.56
Bahrain	227.15	1072.79
Seychelles	14.72	52.60
Nepal	5.75	15.30
Gambia	1.00	3.37
Germany	0.07	0.28
Turkey	0. 07	0.27
U S A	0.02	0.10

Other Meat

As per a report issued by the AgriXchange, APEDA, the latest top 9 importers of Other Meat in the year 2019 are as follows:

Country Name	Total Quantity	Total Value(In Lacs)
Bhutan	706.50	1197.75
Vietnam	201.00	309.34
Myanmar	29.00	49.70
Nepal	5.89	27.02
Liberia	29.00	17.41
Egypt	27.00	14.61
Bahrain	29.00	14.47
Oman	3.00	1.75
U S A	0.02	0.13

Processed Meat

As per a report issued by the AgriXchange, APEDA, the latest top 16 importers of Processed Meat in the year 2019 are as follows:

Country Name	Total Quantity	Total Value (In Lacs)
Myanmar	116.00	475.39
United Arab Emirates	85.42	349.01
Thailand	116.00	319.92
Qatar	57.49	178.16
Bhutan	38.22	82.62
Nepal	11.43	24.72
Kuwait	8.93	24.12
Singapore	1.99	6.27
Bangladesh	1.81	5.45
Vietnam	0.72	2.42
U S A	0.45	2.34
Canada	1.05	1.53
Ghana	0.05	0.20
Hong Kong	0.04	0.06
Sudan	0.00	0.02
Kenya	0.      00	0.01

Factors To Consider To Start Red Meat Export Business In India

The factors to consider to start red meat export business in India are as follows:

1. Register a Company or Firm;
2. Obtain the Licenses Required to Start Red Meat Export Business in India;
3. Purchase Robust Equipment and Machinery;
4. Choose a Target or Focus Country;
5. Engage with Suppliers;
6. Find Concerned Buyers;
7. Examine Market Competition;
8. Decide the Profit Margin;
9. Analysis of the Laws and Payment Method of the Focus Country;
10. Determine the Mode of Transportation;

Latest News Update on Export of Red Meat From India

The Agri Export Body of APEDA has revised the “Red Meat Manual”, issued by the APEDA (Agricultural and Processed Food Products Export Development Authority). In the revision, the export body has removed the term “Halal” and explained that for the purpose of export, the animals are slaughtered based on the requirement and conditions of the meat buyer or importing country, so there is no need to add the word Halal.

Also, Read: Steps to Take your Business to the International Market with IEC

Documents Required To Start Red Meat Export Business in India

The documents required to start red meat export business in India are as follows:

1. Certificate of Registration (COR);
2. PAN Card of the Applicant Company;
3. Meat Export License;
4. Identity Proof of the directors or partners, in the form of Driving License, Aadhar Card, Voter ID, etc.;
5. Address Proof of the Registered Office of the company, in the form of Sale Deed or Rent Agreement and Utility Bills;
6. A copy of MOA (Memorandum of Association);
7. A copy of AOA (Articles of Association);
8. In the case of LLP (Limited Liability Partnership), a copy of the LLP Agreement;
9. In the case of a Partnership Firm, a copy of the Partnership Deed;
10. Certificate of GST Registration;
11. FSSAI License;
12. Import Export Code (IEC);

Licenses Required To Start Red Meat Export Business in India

The licenses required to start red meat export business in India are as follows:

Company Registration

To start red meat export business in India, the first and the foremost requirement is to register a company/ LLP/ or firm in India.

Further, for obtaining a Private Limited Company Registration, one needs to apply under the provisions of the Companies Act 2013. In the same for obtaining Limited Liability Partnership Registration or Partnership Firm Registration, one requires to file an application under the provisions of the Limited Liability Partnership Act 2008 or the Indian Partnership Act 1932 respectively.

However, the most appropriate business format to start red meat export business in India is the Limited Liability Partnership Registration, as it provides benefits and privileges of both a Partnership Firm and Private Limited Company.

Import Export Code

Another most crucial license to start red meat export business in India is Import Export Code (IEC). Further, an applicant or a business entity can obtain IEC Registration in India by furnishing an online application on the official portal of DGFT (Director General of Foreign Trade). Also, it shall be noteworthy to take into the record that without a valid IEC code, an individual or a company cannot start red meat export business in India.

APEDA Registration

It shall be noteworthy to mention that, every applicant or a business entity who wants to start red meat export business in India or wants to deal in the schedule products requires to compulsorily acquire APEDA registration from the concerned authorities. Further, the term “Schedule Products” include the categories as follows:

1. Meat & Meat Products;
2. Pickles, Papads, & Chutneys;
3. Floriculture & Floriculture Products;
4. Honey, Sugar, and Jaggery Products;
5. Dairy Products;
6. Cereal & Cereal Products;
7. Poultry & Poultry Products;
8. Confectionery, Biscuits,& Bakery Products;
9. Guar Gum;
10. Fruits, Vegetables,& their Products;
11. Cocoa and Coco Products;
12. Groundnuts, Peanuts,& Walnuts;
13. Alcoholic & Non Alcoholic Beverages;
14. Herbal & Medicinal Plants;

FSSAI License

Any person or a business entity that wants to start red meat export business in India needs to apply for FSSAI License on a compulsory basis from the FSSAI (Food Safety and Standards Authority of India).

Further, the main reason behind the same is in India every FBO, or a food related business needs to obtain FSSAI Registration to ensure that the said food product or item is safe to use and is not harmful for consumption.

Also, that means an individual cannot start red meat export business in India without the said license.

ISO Certification

The term ISO certification stipulates that every company or an individual who wants to start red meat export business in India must assure the quality and hygiene of the same. Consequently, there is a necessity for every applicant who desires to start red meat export business in India to apply for ISO Certification.

GST Registration

As per the provisions and regulations of the GST or Goods or Service Tax Act, it is compulsory for every Import Export Code or IEC holder to apply for GST Registration Online in India, regardless of its aggregate annual turnover.

Meat Export License

The last but the most important certificate or license to start red meat export business in India is the Meat Export License. Further, this license is issued by the Department of Agriculture, Water, and Environment Grants. Further, this department ensures that said business entity has duly complied with all the guidelines which are prescribed to start red meat export business in India, together with the set standards.

However, it shall be relevant to record that the “Gulf Countries, such as Saudi Arabia, Oman, United Arab Emirates, Kuwait, etc., do not entertain suppliers without a valid Meat Export License.

Conclusion

In a nutshell, the efforts and attempts made by the government (both the Central Government and State Government) to promote, encourage, and stimulate foreign trade and export by way of various schemes, subsidies, grants, and aids are paying off now. That means the food and the food related sector can now easily step forward to discover the unmapped and new markets worldwide that holds huge scope and possibility both in terms of customer base and revenue generation.

However, it shall again be pertinent to record that starting a red meat export business in India is subject to numerous legal, intricate, and complicated compliances, for which it is advised that the applicant must contact for professional assistance.

At Swarit Advisors, our proficient and skilled experts of various domains and fields will not only offer you the top-notch advice but will assist in the procedure of acquiring registrations, permits and licenses as well.

Also, Read: Halal License Certificate: How to obtain it for Meat Shops in India?