Current Pork Production vis-à-vis Meat Production

Meat is an integral part of a healthy diet and meat consumption continues to increase steadily, while the world’s producers of livestock for red meat production are finding it difficult to cope with the increase in demand. Pig meat and then beef are the most important red meats consumed. World trade in meat has increased steadily over the years and will continue to do so in the future even though the recent commodities boom that contributed to lower livestock and meat prices and declining consumer demand for meat has ended. Food safety concerns and the need for hygienically processed meat products have resulted in the development of modern meat processing facilities in many parts of the world, although there are still areas where slaughter facilities are very rudimentary or have not been modernized. Further investment is required in the meat processing industry, although margins in this sector are low compared with the margins in many other economic sectors, making it difficult to generate sufficient funds for investment purposes.

Pork production scenario in the world

China dominates global pig meat production, accounting for 44% of total production, and has also been by the far the main contributor to global growth in production during the last ten years. The United States accounts for 9% of total production and is an important consumer country and exporter. Pig meat is the most important meat produced in the EU. The EU accounts for 23% of global production, with Germany and Spain being the largest EU producers. Pig meat production has increased in Canada during the last ten years and is helped by a growing export demand. Meat prices show large differences from country to country. There are differences not only in product specifications (with prices generally higher for chilled meat versus frozen meat) but also in meat quality. Unlike some commodities, meat is far from being a product with uniform characteristics. Production and processing costs as well as the level of demand influence meat prices.

Pig meat is the most widely consumed meat, being the preferred meat in many parts of the world, including the EU, which has the highest level of per capita consumption. More than half of the pig meat is consumed in further processed form in a wide range of products, while fresh pork is normally consumed in much smaller quantities. Pig meat is the preferred red meat in both developed and developing economies but in developed countries the per capita consumption is about 150% higher than per capita consumption in developing countries in spite of a high level of consumption in China (more than 25 kg per capita). In the developed economies, per capita consumption of pig meat is expected to be stable or increase slightly at the expense of per capita beef and veal consumption that could even edge down over the long term. In the developing economies, per capita beef and veal consumption is expected to edge up, while the per capita consumption of pig meat is expected to rise by almost 1% per year and to reach 10 kg by 2028.

Trade in pig meat is the most important trade and this is mainly due to the high level of trade within the EU. In regional trade, such as within the EU, where distances are relatively short, most pork is traded in chilled form. Chilled pork has a shorter shelf life than chilled beef. In inter-regional trade, most port is traded in frozen form, both bone-in and boneless. In the importing countries, most frozen pork is used in further processing for products such as smoked or cooked sausage. There is also a large world trade in further processed products. Pig meat sausages are the most important product, followed by preparations of pig meat, especially canned preparations. Trade in bacon and ham is also important. The export trade in chilled and frozen pork is dominated by the EU and North America. Brazil is the only other major exporter. EU countries are also major importers, while both Japan and the Russian Federation have a substantial import requirement.

The main import of the EU countries is pork for further processing plus limited quantities of pork for the fresh market. Almost all of the pork imported by EU countries is imported from other EU countries. Japan imports chilled pork from North America for the fresh meat market and frozen pork for further processing in Japan. The Russian Federation imports lower-quality frozen pork for further processing. EU exporters dominate trade in the different types of further processed pig meat products, with Denmark in the lead, supplying other EU countries but also exporting to non-EU markets. The only other major exporter is China. Outside of the EU, the main importers of further processed pig meat products are Japan and China.

Livestock production in India

Livestock production in most livestock economies includes bovines (especially cattle and buffalo), ovines (sheep), caprines (goats) and pigs. Livestock production is extremely widespread throughout the world whether resource availability is high or low (i.e. agricultural potential of areas), with different types of livestock suited to different environments. The production of pigs, which are produced solely for meat, is much greater than production of the other livestock species. Bovine meat accounts for 36% of total output. Ovine meat is less widely produced and only accounted for 7% of total output. The present production of meat in India is estimated at 9.8 million tons, which is 2.74% of the world’s meat production. The contribution of meat from poultry is about 51%, while buffalo contribute about 18%, cattle contribute about 2%, sheep 10%, goat 15%, and pig 4%. Rising incomes and aspirations of consumers are contributing to the growing demand for meat and this trend can be expected to continue.

Indian pork consumption segments

1. The vast majority takes place in the informal sector in the form of locally raised fresh pork. This meat is not widely distributed in the organized retail sector. Given cultural perceptions and consumer perceptions about pork meat, consumption of fresh local meat is limited to north eastern India where pork consumption is more prevalent.
2. The second segment of the pork market deals with high-value processed pork products. These products include cured meats such as sausages, ham, bacon and canned meat products, as well as small quantities of frozen meat.

Currently, the per capita pork consumption is very low in India, with the exception of the north-east while it is a major item elsewhere. In the European Union, 42.6 kg pork is consumed per person every year, while in the US, 29.7 kgs are consumed. Pork is a staple for Chinese, and so over 35 kg are consumed per person per year. India’s consumption levels of pork are significantly low when compared to other meats, for example, 1.9 kg per person per annum for poultry meat. The total world consumption of meat is estimated to be of the order of 357 million tons per annum and India’s share of consumption is only 2.74%. However, in the next ten years, it is predicted that the total consumption of pork in the country will double from its present numbers. As per capita income of individuals rises, they tend to spend on improving their lifestyle and food consumption habits.

Regional pork demand in India

1. North-East India: The eight states in North East India (Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura) are ethnically and culturally akin to South East Asia and has much higher pork consumption that the rest of the country. Of these states, Nagaland has the highest per capita consumption. Traders in both Assam and Nagaland reported that the demand for pork was increasing along with prices.
2. South India: Pork consumption is again high in the southern states viz. Goa, Karnataka, Andhra Pradesh, Tamilnadu and Kerala.

Key production parameters

Key parameters for livestock production include the cost and availability of feed, the availability of water, and the availability of animal health services, which in turn has an impact on the animal disease situation. In India, bovines are produced both extensively and intensively. Extensive bovine production is the most important. It relies on forage and is best suited to areas where large grazing lands are available. Intensive bovine production, normally involving feedlots, is prominent only in organized export-oriented units. Sheep and goats are mainly produced extensively.

Pigs are more suited to intensive production as they have a much higher feed conversion than ruminants and this in turn results in reduced feed costs. In an efficient pig production system, a pig for slaughter can put on 1 kg in live weight using less than 3 kg of feed while cattle per head can put on 1 kg in live weight using at least 5 kg of feed. So unless a high-value market is being supplied and/or feed prices are low, ruminants are best suited to forage. World pig production has now become mainly intensive with backyard production (such as in India and China) falling steadily in importance. Intensive pig production is best located in grain producing areas or in proximity to ports if there is reliance on imported feed. Disease and animal health issues play an important part in determining the location of livestock production and livestock productivity. They can also have an impact on trade as some countries may not allow meat imports from countries where certain diseases are prevalent.

Quality of livestock for meat production

There can be large differences in the yield and quality of livestock for red meat production. Livestock yield and quality will depend upon a number of factors, including a) the weight of the slaughter animal and hence the yield of meat; b) the degree of finish (influenced by the feeding regime) and hence proportion of lean meat; and c) the age of the animal as a younger animal will normally produce a higher quality of meat. Such variations can be related to the breed of animal, the availability of feed and forage, and management practices. If animals are transported to the abattoir and then held there before slaughter, it is important that they are not stressed as stress has an impact on meat quality. Stress can occur as a result of transportation over long distances, food and water deprivation, and rough handling or fighting. It can result in the meat being tough or in the case of pigs, it can result in the meat being pale, soft and exudative (referred to as PSE), with a loss in muscle structure. In addition, when an animal is stressed less lactic acid is produced, resulting in a high pH value and encouraging rapid bacterial growth.

Environmental issues

The meat processing sector (slaughtering and downstream processing) is a heavy user of water, especially during the slaughtering process, and energy, especially during refrigeration and further processing. The slaughtering process also generates considerable quantities of waste material that have little or no economic value. The waste is often disposed of with little or no treatment (landfill). This is particularly the case in outdated slaughtering facilities that have little or no modern equipment, a feature of the meat processing industry in many parts of the world. Such practices are increasingly unacceptable. Much of the waste could have an economic value such as use in power generation, soil improvement and even a food source if properly processed.

Description of the pork processing chain

The main stages in the pork processing chain are the following:

Primary processing that involves:

• taking live animals into lairages (the resting of animals prior to slaughter) and conducting a preslaughter inspection (including sometimes recording of the live weight);
• slaughtering/dressing, which in larger plants takes place at the point where the animal is stunned and exsanguinated (bled). The carcass is then moved along a mechanized line (suspended from an overhead rail) to specific workstations at which the various processes involved in converting live animals into carcasses are undertaken. In plants that handle multispecies, there is a separate slaughter line for each species;
• chilling of carcasses in refrigerators to specified deep-muscle temperatures (the specified temperature is 7^oC for carcass meat and 3^oC for offal);
• cutting of deboned primal (chilled carcasses or half or quarter carcasses) and then vacuum packing, boxing and palletizing the products; and storing in refrigerators. Refrigerated storage is used for the short-term storage of the meat before sale as fresh product or before transfer for secondary processing. It is also used for the ageing/maturation of meat to improve the eating quality. For longer life, products need to be frozen.

Secondary processing that involves:

• cutting up primals into smaller, fresh cuts of meat such as consumer portions of steaks and chops. This process ends with the packing/labelling of the product for sale through either the retail sector or food services;
• preparing and dicing and mincing meat to produce, for example, comminuted meat (packed and chilled or frozen for longer life) for sale as fresh product or for use in further processing;
• preparing fresh meat and recipe products such as burgers, sausages and reformed products, and ready-to-cook convenience meats breaded and coated, with flavourings or seasonings; and
• cooking, curing, drying/smoking or canning fresh meat to produce manufactured products that include prepared foods and ready meals for which meat is an ingredient.

In smaller, low-throughput “artisanal” plants, the whole slaughtering process is usually carried out in one small “slaughter hall” and accompanied by basic chilling (although some of the fresh meat is sent for butchering soon after slaughter), with meat products (typically dried/cured sausages) being produced in an adjoining room.

Differences in the dressing process for pigs

• The process for buffalo/sheep/goat and pigs differs after bleeding, when pig carcasses are then subjected to thorough additional treatment to clean and remove the bristles from the skin. In larger plants this process involves immersing the carcass in a tank of very hot water or in a steam chamber to scald the skin and soften the bristles, which are then removed with rotating scrapers. The carcass is then singed (passing it by flame jets) to remove any surplus bristles and finally polished (by softer rotating paddles). If the skin is to be removed, it will be done at this point before evisceration (usually by machine).
• In some small, low throughput plants, carcasses are sometimes only washed and the bristles are shaved off.
• In addition, the head and feet of pigs are usually left on the carcasses.

Key variable cost factors in red meat production

There are three major areas of variable costs that are of crucial importance to the commercial viability of an abattoir/meat processing facility:

• Labour: This is a very important element of the operational cost of an abattoir/meat processing facility. It is not only the cost of the labour involved in slaughtering and cutting but also the higher cost of the more highly skilled labour involved in veterinary inspection and quality control (including carcass assessment and grading).
• Waste disposal: The waste material (as defined above) with commercial potential can be processed to derive a return rather than to constitute a disposal cost.
• Energy and water: The costs of energy and water can vary significantly from country to country but the long-term environmental objective must be to reduce these costs. Water usage per animal slaughtered can also vary considerably and in modern plants can be one-half of the normal average usage.