India is one of the world's largest exporters of buffalo meat (Carabeef). Production and export of meat started in 1969. Over the last 49 years, there has been massive growth in the quantity of meat exported from India and the number of its importers worldwide.
For small or new enterprises in India, however, setting up a meat export business is a difficult task. The truth is that initial documents and clearances require your undivided attention, and it is anything but simple to approach buyers and manage shipping costs.
Sometimes people are clueless regarding where to begin when it comes to starting a new venture. We have gathered all of the information and provided step by step explanations in this article, for your better understanding of the meat export business and have explained how to start import export business; this will assist you in developing an effective plan of action and explain how to start meat export business.
How to start import and export business?
The steps for starting an import and export business are as follows:
Step 1: Import-export business plan
The first step in starting the import and export business is to have an import-export business plan. It helps to determine the next steps of the business. Planning is essential for every business. It helps to streamline the various components of the business such as the name, logo, registration process, finances, cost of investment, working capital, etc.
Step 2: Registration Process
APEDA (agriculture and processed food products export development authority) has been working tirelessly to improve animal husbandry infrastructure and the red meat export business in India. It helps people realise their import and export business ideas. In India, the demand for processed meat has grown rapidly as a result of a greater awareness of a protein-rich diet. Processed meat categories in the market are also helping to boost the industry. The major certificates and licenses required are as follows:
- Registration Certificate: It is a certificate issued by the Indian government that verifies the credentials and authenticity of your enterprise. All information about your business, such as an address, owners, etc., is included in the registration certificate.
- IEC Code: IEC code is essential for international trading. It is a 10 digit business description number required for importing and exporting goods and services. It is also required while filling the RCMA.
- GST Registration: GST registration is essential for all businesses. It opens various opportunities for the business and assists in getting your business recognised. GST plays an essential role as it contributes to the economy’s GDP.
- Trade License
- Establishment License
Step 3: Approaching clients
The next step is to approach potential buyers after your paperwork has been completed. To export, a target market with a high demand for meat must first be identified. Buyers can be approached once you have identified the high-demand markets. If you are sure that things are working, you can look at it online, purchase import data, email purchase data, call them or visit. These are some of the most traditional approaches that buyers adopt worldwide.
Quick communication with purchasers is of great benefit; generally, if communications are delayed, purchasers might forget your deal or miss the email/call; however, the deal starts immediately if handled promptly.
Step 4: Managing finances
The next step is to submit the samples for approval after obtaining the order. It is a key step in a transaction as orders can be revoked if the buyer’s requirements are not fulfilled. Subsequently, payment terms should be discussed appropriately.
Payment terms are generally discussed later in domestic orders, but these terms are specified before the order is processed when dealing with international clients. There is a risk to credit in export orders; ask for advance payments or a loan letter to guarantee the genuineness of the purchaser. OkCredit is a financial accounting service that ensures that you accurately manage all the financial tasks involved with your import-export business.
Step 5: Meat processing
A minimum of 1,500 square feet is required to start a meat processing plant. When deciding on a location for such a plant, ensure that it is accessible to both the market and the raw material supplier. Moreover, make sure that the area has amenities such as water supply, drainage, and electricity.
How you process your meat is the way it will be received by the end consumer. Any contact with bare hands should always be avoided. The meat should be refrigerated at all steps of the process, even a little body heat can activate any bacteria present in the meat.
Sanitation is paramount, not just for the sake of the consumers but your employees themselves. A little misstep can cause a major disaster, whether it be disease, infections or any allergic reactions. Also, meat processing machinery is pretty hazardous to work with if not properly trained. If they are not, please ensure that all your employees are amply trained before they start work. The raw material required for meat processing includes edible oil, livestock, sauces and spices.
Step 6: Packaging
The next step is the packaging. The meat order is processed according to the payment and quality inspection terms, exporting meat may be difficult because it is a perishable item. Therefore, select shipping insurance, quality assurance and use palletised packaging to reduce the risk of contamination. These steps will guarantee the correct conservation of the meat during transit.
- Plastic Wrapping
- Vacuum wrapping
Step 7: Machinery and equipment requirement
The machinery required includes an automatic rapid patty maker with a meat grinder, sterilisers for dehydration and hydration, meat blender, vacuum sealer for sausage links, slaughtering arrangements and chillers for sausage stuffers, electronic rail scale slaughtering arrangements and chillers, captive bolt stunner and splitting saw, plastic barrels, pressure exerting pumps, trolley rack and hydraulic lift, weight scales, bacon slicer, vacuum tumbler, band saw knife sharpener, meat injectors and mixer.
Step 8: Transportation
After selecting the machinery and tools for the business, the next step is to transport the products to the clients. Transportation is required to deliver the products from one place to another. So, it is essential to have a reliable source of transport.
The demand for processed meat is growing by the day. Hence, meat processing plants have high market potential for meat export. The meat business is one of the best export business ideas to start. It is a highly profitable business idea. If you are looking to start a meat export business, you can refer to the step-by-step ultimate guide mentioned above. It will help you give a clear picture of each step in detail.
Q. How much meat does India export?
Ans. India's exports of animal products were Rs. 26,383.99 crores, which include major products such as beef (buffalo meat) which accounted for Rs. 22668.47 crores, sheep and goat meat which accounted for Rs. 646.69 crores, poultry products which accounted for Rs. 574.58 crores, animal casing (Rs. 398.50 crores), dairy products (Rs. 1341.01 crores), egg albumin and milk (Rs. 82.35 crores) and processed meat (Rs. 14.72 crores).
Q. Which country is No. 1 in beef exports?
In 2020, Brazil was the world's largest beef exporter, followed by Australia, the United States, India, and Argentina. (Carabeef is one of India's beef exports.)
Q. Does India export goat meat?
Ans. India is the world’s largest exporter of sheep and goat meat, with 14,128.85 MT of sheep and goat meat exported for Rs. 646.69 crores/90.77 USD millions in 2019–20.