22 August 2008

Oppurtunity available in Bihar


Bihar ranks fourth in term of meat production in India. There is,however, no abattoir and no processing facility within the state. No value addition is currently taking place.

Most of the meat is slaughtered in municipal slaughterhouses and sold fresh to cater to the local demand. It is envisaged that modern slaughter houses (abattoirs) with processing facilities having due backward and forward linkage can contribute significantly to the growth of value added products in this sector. The buffalo meat production in India is growing at a CAGR of 5 per cent and the outstripping of demand vis-à-vis supply of lamb and mutton presents a huge opportunity for Bihar to tap into its large livestock resources.

Poultry meat is the fastest growing animal protein in India with a CAGR of 11 per cent during the last 15 years. Bihar with negligible share in national poultry meat trade thus has every thing to gain by investing into and creating the right climate to spur the production of poultry and value added products.

Only 9–10 per cent of milk produced is processed by COMFED (Sudha Dairy at 11 places in Bihar —Barauni, Muzaffarpur, Samsastipur, Patna, Gaya, Arra, Bhagalpur and Kaimur) and another 2–3 per cent in the organised private sector. Although, milk processing capacity in India is growing at a CAGR of 4 per cent, it has shown negligible growth in Bihar.

Milk processing presents a huge potential in Bihar even if it were to reach half of the country processing level or around 17–18 per cent. This would mean doubling the existing processing capacities. The technology being used in the processing facilities is now decades old, with no primary processing/cooling facility at the farm/village level.

Fish is one of the popularly consumed items in Bihar, particularly in Mithila region and it is the fastest growing sub sector indicating a growth rate of over 10 per cent per annum (NABARD, 2006). An area of 1,13,664 ha is available in Bihar in the form of tanks/ponds, mauns (ox-bow lakes), chaurs (flood plains) and reservoirs. In addition to this, there is big potential in the large low-lying area of about 3,38,745 ha, which can be suitably developed for various aquaculture activities. Against the huge water resources potential available, only 26,000 ha (7.68 per cent) of water areas have been developed for fish culture.

No processing, however, takes place and there are no fish processing industries in the state. Another more serious handicap in the development of fisheries is the absence of a proper marketing system. At present, only about three per cent of the total fish landings are handled by organised sector Given that these sectors are growing very fast nationally – consumption of milk and milk products is growing at 7.6 per cent, poultry meat consumption at 26 per cent, and freshwater
fish consumption at 3.5 per cent (likely to grow to 3.9 per cent). They present a huge opportunity for the state to cash in with appropriate strategies and market linkages.

Thanks to Mr. Abhay for showing such a great opportunity in these fields.

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