A Survey of the Meat Market in Mauritius

1. A Survey of the Meat Market in Mauritius Yacob Aklilu, Abbas Mohammed, Peter Ithondeka October 2008

2. Objectives of the Mission • To assess the potential for initiating meat exports to Mauritius • In-depth understanding of SPS requirements in Mauritius • Follow-up on the end use of Kenyan live cattle exports • Assess the perception of Gov officials and importers on livestock exports from COMESA member states

3. Mauritius at a Glance • Land area = 1,8652 KM • Population = 1.2 million • Economy: sugar (92% of cultivated area) with annual prodn of 600-700,000 tons of sugar; textiles and tourist industry and currently property development • Sugar and textile mainly exported to Europe and US • High class tourists of over 750,000 per year • Deliberate policy of discouraging backpackers

4. Cont’d • Religion: mainly of Hindu, Muslims and some Christians • Compliance with Halal for all meat imports save pork • Land and water constraints for irrigation • Potential threats include cyclones and drought

5. Trade liberalization • Live animals and meat are part of the commodities excluded from ‘import restrictions’ under the liberalization policy • This in effect has reduced the country’s self sufficiency in beef from 10 to less than 1% and that of milk from 5 to 2% due to imports in the last 7 years • Prompting a policy on ’the strategic option in crop diversification and livestock sector (2007-2015)’

6. Policy directions • Recognition that beef farming is not feasible due to land shortages although two dairy units are being established • Policy strategy focuses on value adding by importing weaning calves for feedlots in addition to cattle imports for slaughter • Gov has set aside 1B rupees to support small holders for 3 years – access to finance, guaranteed markets and prices • This is aimed at counterbalancing the live animal import monopoly

7. Self sufficiency in meat prodn

8. Meat Imports

9. Live Animal Imports

10. Sourcing • Influenced by historical and colonial ties (India, Australia, South Africa,) and previously Mad and Zimbabwe • Concerns with the disease status of source country • Shifting of product and sources due to price (from Beef to Buffalo, from Australia to Brazil, for ex) • Links to particular sources by 20 or so meat importing companies • Not fully aware of potential livestock resources in EA + fear of disease prevalence (OIE List)

11. Imports and distribution patterns • Imports, nearly 90% frozen • Chilled meat, directly flown from Australia (about 10 hours) and SA; constitutes 5-10% of total meat imports • Chilled meat imported directly by high class hotels (for marbled cuts) and meat importers • Meat from imported live animals distributed thru traditional butcheries • Direct competition between chilled meat and live animal importers

12. Consumption patterns • Mainly chicken due to affordability (70% of total meat consumed) • Shifts to buffalo meat in lieu of beef due to high world market price (not preferred but no choice) • Preference for SA and Madagascar beef and for Australian lambs • Kenyan beef not marketed as ‘Kenyan’ and not known by consumers (pos & neg. aspects) • Beef price in supermarkets = 14-20USD/KG • Preference for chilled/fresh meat challenged by unaffordable price

13. SPS • Mauritius is free of FMD without vaccination • Therefore, only de-boned meat imports from Africa (except SA, Botswana and possibly Namibia) • No transhipments • Outbreaks of ASF and LSD in the last 10 years (suspects Madagascar and Zimbabwe) • No problems so far with live animal imports from Kenya • Concerns over RVF

14. SPS Cont’d • Meat samples tested in food lab before release to the public (3-5 days) • Public health concerns (MoH), temp, etc • Concerns that abattoirs have to be EU certified • But, this could be negotiated under a protocol

15. Opportunities • Satisfaction with the status of cattle imported from Kenya – keep the standard • Willingness to import from Kenya • Gains could be made from increased numbers of live cattle and goats exports + increased live weight at FOB • Interest to import dairy stocks, weaners and UHT milk • Interest to import frozen beef, mutton and goat meat, corned beef and mutton • Some possibilities for chilled meat and for camel meat (which could replace buffalo meat) exports

16. Challenges • Competitive pricing (CIF costs of 2-2.5 USD/Kg for buffalo meat)?? • USD 3.50/Kg for boneless goat meat/mutton?? • Credit lines (90 days for frozen imports) • Non-direct sea-freight services (cost + SPS implications) • airfreight costs to be assessed for chilled beef • Need to condition cattle with concentrates before embarkation

17. Follow up • Assess KMC capacity for de-boned frozen meat + canned beef exports and others for dairy stocks, UHT milk and weaners • Assess FOB costs for all items • Invite Mauritius veterinary officials to visit facilities and agree on protocols • KLMC to facilitate contacts with importers and Gov. officials in Mauritius for Kenyan meat, pork, dairy etc exporters

18. Kenyan cattle in Mauritius

19. Cont’d

20. Cont’d