University of Veterinary and Animal Sciences, Lahore

16th July 2012

Vital sector of Pakistan's economy Accounts for 21 percent of GDP Directly supports three-quarters of the country's

population, employs half the labor force, and contributes a large share of foreign exchange earnings

Main agricultural products are cotton, wheat, rice, sugarcane, fruit and vegetables, in addition to milk, beef, mutton, and poultry.

Pakistan depends on one of the world's largest irrigation systems to support production.

Agriculture Sector in Pakistan – An Overview

US$ 2.94 bln

US$ 3.01 bln

Milk and milk products

US$ 324 mln

US$ 1.02 bln

US$ 1.70 bln

US$ 302 mln

US$ 418 mln

US$ 3.36 bln

Source: http://faostat.fao.org/site/339/default.aspx

3rd Largest

3rd Largest

Producer of Dates

Herd of Livestock

5th Largest

Producer of

Mango

5th Largest

Producer of

Cotton

5th Largest

Producer of Milk

The Largest

Producer of

Kinnow

Pakistan’s Agriculture is

Agricultural Sector – Key Statistics

• Contribution to GDP 21.8% (more than US$37 billion to the national economy)• Labor Force Employment 45.0%• Average Growth past 6 years 3.7%• Contribution of different Sub-Sectors in Agriculture

1. Crops (Wheat, Rice, Cotton, Sugarcane) 32.8%2. Livestock

53.2%3. Fisheries

4.0%4. Forestry

2.0%• Share in Export Earnings (Raw/Processed)

1. Cotton + Cotton Based Products 64.7%2. Fruits, Rice, Fish, Leather

18.2%3. Others

17.1%

Livestock contributes 55.1% of Agriculture sector.

Livestock accounts for 11.5% of GDP.

2nd Largest

3rd

LargestHerd of

LivestockSector of economy

4th

LargestExports

Products

5th Largest

Producer of Milk

1st Largest

Segment of rural

economy

Pakistan’s Livestock

Livestock Sector – Key Statistics• Contributed approximately 55.2% of agriculture value

added and 11.4% to national GDP in 2010 11.‐

• Gross value addition of livestock at current factor cost has increased from Rs. 1304.6 billion (2008 09) to Rs. ‐1537.5 billion (2009 10) showing an increase of 17.8 %.‐

• Pakistan earned USD717 million from leather exports in FY09 and a meager USD96 million from meat exports.

• The food industry attracted Foreign Direct Investment of US$ 108.3 million in 2009-10.

Livestock Sector – Key Statistics• This sector generates employment (direct/indirect) and

income for about 1.5 million people.

• Population growth, increase in per capita income and export revenue is fuelling the demand for livestock and livestock products.

• Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan.

• Poultry meat contributes 23.8 percent of the total meat production in the country.

Livestock’s Contribution

Human Population

1980 1990 2000 2015

81.230 109.900 141.256 204.267

Livestock Population

Cattle & Buffalo

26.585 35.050 44.473 53.759

Sheep & Goat 46.392 61.144 71.500 94.545

(million)

0

50

100

150

200

250

1980 1990 2000 2015

Human Population

Cattle+Buffalo

Sheep+Goat

Product Pakistan

Punjab %

Milk 42.199 MT 26 MT 62 %

Beef 1.549 MT 0.589 MT 43 %

Mutton 0.578 MT 0.283 MT 49 %

Poultry Meat 0.601 0.333 MT 70 %

Product 1990 2000 2015

Meat Pro 1.485 MT 2.061 MT 4.107 MT

Meat Con 1.313 MT 1.682 MT 3.247 MT

Milk Pro 14.723 MT 28.355 MT 43.307MT

Milk Con 11.889 MT 21.142 MT 35.889 MT

Dairy Sub-sectorTotal milk production (09-10) 36.299 m

tons

Milk market:Producers (self or direct selling) 68.0 % Informal market (Gawala operated) 28.5 %Formal dairy industry 3.5 %

Dairy industry:Main products are UHT and Pasteurized milk, Milk powder,

Yougurt, Cream, Cheese, etc.3.0 million litres per day being procurementRs 63 million daily going to rural economy 25 out of 49 dairy plants are operationalMain players are Nestle, Engro, Haleeb, Engro, Millac

Meat Sub-sectorTotal meat production (09-10) 2.965 ml. tons

Beef Production 1.655 ml. tonsMutton Production 0.603 ml. tonsPoultry Meat 0.707 ml. tons

Meat marketButchers operated shops, many slaughter at shopsMain players at slaughter house are arteesFresh meat sold, only a few chilled meat selling

establishments

Meat industry80 % slaughtering done outside out side slaughterhouses11 private sector slaughter houses registered by Animal

Quarantine Deptt.Total export is <0.6 percent of the production

Meat Production

Economic Survey of Pakistan –2010-11

000 Tons

YearYear BeefBeef MuttonMutton PoultryPoultry TotalTotal

2001-022001-02 10341034 683683 355355 20722072

2002-032002-03 10601060 702702 370370 21322132

2003-042003-04 10871087 720720 378378 21852185

2004-052004-05 11151115 739739 384384 22382238

2005-062005-06 14491449 554554 512512 25152515

2006-072006-07 14981498 566566 554554 26182618

2007-082007-08 15491549 578578 601601 27282728

2008-092008-09 16011601 590590 652652 28432843

2009-102009-10 16551655 603603 707707 29652965

2010-112010-11 17111711 616616 767767 30943094

Pakistan –Export of Meat & Meat

2009-102009-10 2010-112010-11

QuantityQuantity

(MT)(MT)

In million In million US DollarUS Dollar

QuantityQuantity

(MT)(MT)

In million US In million US DollarDollar

20,08120,081 53.953.9 29,28129,281 82.382.3

EXPORT OF LIVE ANIMALS

Per Capita Meat Consumption (KG) 1983-2020

CountriesCountries 19831983 19931993 20202020

Developed world 74 76 83

Developing world

14 21 30

Pakistan 11 16 47

Source: Delgado, et al 1999, Livestock to 2020 The Next Food Revolution & GOP 2003, TCP-Pak-0168: Livestock Action Plan Draft Report MINFAL

Punjab

Mission of L&DDMission of L&DD‘Support livestock development in a

policy & regulatory environment that

enables farmers to realize the

dividends of livestock farming by

smartly deploying public investments

in core public goods & inducing

private capital / initiative in the sector

for poverty alleviation, food security &

generation of exportable surpluses’

Punjab Vision 2020Punjab Vision 2020

“To create enabling environment for

raising livestock production and use

it as a vehicle for social security,

poverty alleviation and rural

development ultimately leading

towards domestic food security and

creation of exportable surpluses”.

Focus Pro-poor growth ~ poverty alleviation

Services to smallholders

Providing key services

Creating enabling environment for private sector

Redirecting public investments

Creating food security & exportable surpluses

Livestock PopulationBuffaloes = 30.8 million ( 18 million in Punjab)

Cattle = 34.3 million (14.41 million in Punjab)

Goats = 59.9 million (37.1 million in Punjab)

Sheep= 27.8 million ( 24.3 million in Punjab)

Rural LivestockLivestock Production 2nd biggest economic

activity67% rural population ~ 30-35 million

engaged in livestock88 % livestock raised by small and landless farmers

30 – 35 million rural population engaged in livestock40% dependent on livestock for income

More focus on Buffaloe165.72m Buffalos (75%

of them habitat in Asia)Pakistan has 14% of the

world’s Buffalo Population.

Black Gold(Nili Ravi).

Livestock Products • Milk Production = 39 million tonnes

annually.• Beef Production = 16 million tonnes / anum• Mutton Production = 6 million tonnes / anum • Poultry Meat = 7 million tonnes/ anum

Exportable Commodities: Meat = 60.2 million US $( year 2009-10 )Animal Export = 13.9 million US $ ( 2009-10 )( Total export is about 40 billion rupees 11% of

the total foreign exchange)

Potential

• Productivity Enhancement

• Value Addition

• Milk Processing Plants

• Modern Abattoirs & Processing Units

• Building Supply Chains ~ market linkages

• Genetics ~ Artificial Insemination, breed improvement

• Vaccine, Drugs, Semen & Embryo Production & Marketing Units

• Global Halal market

World Muslim population of 1.83 billion in 2009 out of 6.5 billion World population

With average annual growth rate of about 1.80% per annum.

approximately 117,000,000 per yr. increase which does not include conversion which on the rise currently.

Global Halal products market is estimated at US$2.3 trillion excluding Islamic banking. * F&B (67%), pharmaceutical ( 22%), personal care & cosmetics ( 10%)

If we include service sectors for the Halal market, the potential size of total market is ASTRONOMICAL…

Global Market forfor Halal

The trade in Halal food is enormous with est. annual halal food value at US $347 billion globally

HALAL – lucrative market and huge opportunities.

Awareness and interest in Halal products has increase tremendously among Muslim and Non-Muslims as well.

Huge purchasing power among Non-Muslim countries.

Consumer’s views on Halal products are not only confined to religious viewpoint but the CONFIDENCE that comes with the Halal Branding.

Halal : HEALTHY, WHOLESOME & HYGIENE

Global Market forfor Halal

Percentage of Muslim population

24.1%

47.81%

7.0%

1.06%1.5%

Asia Pacific

Middle East-NorthAfrica

Sub-Saharan Africa

Europe

Americas

Muslim Population by Regions

PEW Research Centre’s Forum on Religion & Public Life.Mapping the Muslim Population. October 2009

Estimated 2009Muslim Population

Percentage of Population that is

Muslim

Percentage of Population Muslim

Asia-Pacific 972,537,000 24.1 61.9%

Middle East-North Africa

315,322,000 91.2 20.1

Sub-Saharan Africa 240,632,000 30.1 15.3

Europe 38,112,000 5.2 2.4

Americas 4,596,000 0.5 0.3

World Total 1,571,198,000 22.9 100.0

Muslim Population by Regions

Key Halal Market Algeria Bahrain Egypt Indonesia Iran Iraq Jordan Kuwait Lebanon Malaysia Morocco Oman Qatar Saudi Arabia Syria Tunisia Turkey UAE Yemen Pakistan

Combined population of key Halal markets : 652 Million

Key Halal Markets in Non-Muslim countries India 140million France 6 million China 40 million Germany 3 million USA 8 million UK 1.5 million Phillippines 6 million Canada 800,000

Global Halal Market

Nestle – world’s largest food manufacturing corporation

McDonalds – the world’s largest leading restaurant chain

KFC – fully integrated poultry chain

Tesco & Carrefour – world’s number one & two retail chain

Port Rotterdam – Europe’s largest & the world’s 3rd largest port

Westports – one of SEA top 10 ports

MISC – the world second biggest shipping company

CIMB – SEA biggest investment bank

Allanasons – India’s biggest meat exporter

Al-Islami – UAE halal food produces

Some Notable Players

Some Products….

Quality Assurance & CertificationExport OrientationSupply Chain Management ~ backward & forward

linkagesLandNew animals ~ OstrichNew fields ~ blood rendering, hormones, gelatin,….Breed Development

New Sectors

MILK PROCESSING PLANTS

• 33.23 billion liters of milk provide a promising enterprise, where only 3% is being processing.

• Small scale farming is not covering the full economic cost.

• Significant element of economies of scales exist resulting in cost reduction by 30-50% between the small and large scale farms.

• Cost of milk production yet favorable for mass scale milk collection and processing.

• Huge consumer market exists.

• Creation of milk collection network and transportation facilities in the milk catchments ~ Nestle

• Establishment of milk processing plants leading to production of value added exportable products like reconstitute able milk powder, cheese, butter and yogurt.

• Establishment of mini pasteurization plants in Peri-Urban Areas.

ESTABLISHMENT OF MODERN ABATTOIRS

• 27.335 million buffalo, 29.559 million cattle, 26.488 million sheep and 53.787 million goats are being maintained for meat and milk production.

• 1.237 MT of beef and 0.827 MT of mutton is being produced annually.

• Less then 5% id being processed and packed for local consumption and export purpose.

• 6.5 million cattle and buffalo marketable calves are available for strategic interventions in meat processing.

• Hide & Skin processing for value addition as leather goods exists.

• Establishment of Modern Abattoirs in 10 big cities of Pakistan for value addition of the meat.

• Creation of disease free zones for supply of quality meat.

• Construction of mini slaughter houses in mutton production areas of Pakistan.

• Organization of the environmentally controlled meat markets & provision of cold chain facilities.

• Establishment of leather tanning units in Punjab.

MEAT MARKETING NETWORK AND COLD CHAIN IN BIG

CITIES

• 137.17 million ruminants are being maintained in a manner where an average herb size is 1-4 animals per house hold (71% of total).

• Small herb size owes to high cost of production and basic impediment in commercialization of the livestock enterprise.

• Corporate livestock farming through induction of better quality especially exotic meat breeds into the livestock production systems is likely to enhance the productivity.

• Introduction of certified/ tested technologies through corporate livestock farming by Public Private Partnership.

• Corporate livestock farming through Public Private Partnership for introduction of better quality beef breeds.

• Feed lot fattening of four batches of (one thousand each) cattle calves for value added meat products.

• Establishment of sheep development farms through introduction of exotic sheep breeds.

• Introduction of two stages meat production system in goat farming through private sector.

VACCINE, DRUGS, SEMEN

• 137.17 million large animals and 407 million poultry birds require adequate vaccination and drugs for prophylaxis and treatment respectively.

• Livestock Farmers keeping 20.00 million breed able cattle and buffalo are facing dire shortage of breeding services.

• Breeding Bulls and Artificial Insemination Services are at low ebb.

• Less then 10% breed able cattle and buffalo are being provided with Artificial Insemination Services while less then 60% are being bred with breeding bull.

• Introduction/Marketing of exotic Semen & Embryos may lead to Breed Improvement of cattle and buffalo.

• Marketing of Exotic Bovine Semen & Embryo for Breed Improvement of indigenous cattle.

• Establishment of Holstein Friesian Semen Production Units.

• Establishment of Exotic Beef Breed Semen Production Units.

• Establishment of Bovine Embryo Transplantation Centers in Pakistan.

• Organization of animal disease vaccine production units in Pakistan.

• Establishment of medicine production centers in Pakistan

POULTRY MEAT PROCESSING PLANTS

• 407 Million Poultry birds are being maintained. (372 million commercial while 35 million rural).

• 0.514 million metric ton poultry meat and 9618 million eggs are produced which is very low when compared to production standard of the developed countries.

• Every family in rural areas and every fifth family in urban areas is associated with poultry production activities.

• Great scope for interventions in Grand Parent, Breeder & Commercial Poultry Breeding exists for foreign investment.

• Establishment of Exotic Poultry Grand Parent, Breeding Services in Pakistan.

• Introduction and Marketing of Modern Hatcheries for Grand Parent and Breeder Poultry.

• Establishment of Poultry Meat Processing Plants in Pakistan.

• Establishment of Poultry Disease Diagnostic Laboratories in Pakistan.