Vital sector of Pakistan's economy Accounts for 21.4 percent of GDP Directly supports three-quarters of the country's

population, employs 45% of 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.

Provider of raw material to industry, stimulates domestic demand and major source of income for rural population (80% of rural population directly or indirectly depends upon agriculture for income and livelihood)

Agriculture Sector in Pakistan – An Overview

Agriculture in PakistanPakistan's principal natural resources are

arable land and water.About 25% of Pakistan's total land area is

under cultivation and is watered by one of the largest irrigation systems in the world.

Pakistan irrigates three times more acres than Russia

Has shown growth of 3.3% in FY 2012-2013Export of Mangoes increased by five times in

2013Two seasons i-e Kharif and Rabi

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

Forms of Agriculture in PakistanLivestockFishingCrops

Agricultural Sector – Key Statistics

• Contribution to GDP 21.4% (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

55.4%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%

CropsThe most important crops

are wheat, sugarcane, cotton, and rice.

Pakistan's largest food crop is wheat.

Pakistan exports rice, cotton, fish, fruits (especially Oranges and Mangoes), and vegetables, wheat, cotton, pulses and consumer foods.

US, EU, China are first 3 major export destinations

WheatWheat being the staple diet of

most of the people of Pakistan it dominates all crops in acreage and production.

It accounts for over 70 % of the gross cereals and over 36 % of the country's acreage is devoted to wheat cultivation.

Wheat is the most popular cash crop of Pakistan.

Support price was increased to 1200 from 1050,

Growth of 3.2% than last year

RiceRice holds an important position

among the cash crops of Pakistan.2nd largest staple food2.7% of Agriculture contributionIt fulfills the food requirements of

our country but we also earn a lot of foreign exchange from its export.

Besides it is an important raw material for manufacturing grain as well as its husk is also used as fodder for cattle.

Cultivation area decline by 10.1% compare to last year

Reasons being monsoon rain, late receding of water and prolonged sowing

CottonCotton is considered to be the

most important cash crop of Pakistan.

Pakistan ranks fifth in world cotton production.

Cotton is also known as the "Silver Fiber".

7% of GDPProduction declined by 4.2%

compared to last year

Sugarcane3.2% of AgricultureArea under cultivation

increased by 6.2% Due to increased economic

returnIncreased of 5.9(%

Other CropsOilseeds:

Other crops:

FishingFishery and fishing industry

plays an important role in the national economy of Pakistan.

With a coastline of about 814 km, is also a major source of export earning.

15.3% export increased compared to last year earning US $ 222.6 million

EU has lifted ban

LivestockThe livestock sector

contributes about half of the value added in the agriculture sector, amounting to nearly 11 per cent of Pakistan's GDP.

The world's fifth largest milk producing country and Asia’s largest camel market.

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 55.4% of agriculture value added and 11.9% to national GDP in 2012 13.‐

• 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 26.8 percent of the total meat production in the country.

• Annual growth of 7-8%

Livestock’s Contribution

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

Pakistan –Export of Meat & Meat

2009-102009-10 2010-112010-11QuantityQuantity

(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

Livestock Products • Milk Production = 49 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)

Problems of AgricultureWater logging and salinityWater shortage / DroughtIrrigationLack of fundsMonopoly Of Foreign CompaniesSoil erosion Hoarding and Smuggling

Outcome is Food Insecurity, Incompetitiveness, low productivity

Waterlogging and salinityIt is caused when the water

table rises to 1.5 meter.Water evaporation leave salt

on surface making land unproductive.

Stagnant water then adversely effect the growth of plants.

Solution: Install tubewells pump out extra and access water from agricultural land.

Deploy drainage systems for control of water in farms.

Water shortage / DroughtIt is caused by poor

irrigation system and unpredictable rainfall.

Solution: Government should improve irrigation system.

Take legal notice on stealing of water.

Improve canals, dams and barrages.

Poor fertilizers and pesticidesThe quality of pesticides

and fertilizers in Pakistan is poor.

Although the available fertilizers and pesticides in Pakistan are out of reach of small farmers.

Solution: Pakistani government should build chemical fertilizer and pesticide industries.

Control price of fertilizers.

Lack of fundsThe farmers in Pakistan

are not financially strong to manage their cultivation.

Improper loan system by government.

Solution: Government should improve system of providing loan.

Also help farmers to purchase machinery and acquire latest technology.

Modernization and Green Revolution

Corporate Farming:Farm mechanization is one of the

packages of Green Revolution.Farm mechanization means the use of

mechanical technology in the varied farming operations.

This technology includes Chemical, Hydrological and Mechanical Technology.

The policy has been framed to accelerate the pace of agricultural mechanization in the country.

Latest mechinery should be provided to the farmers to increase the per acre yield on easy installments

If possible subsidy should be given by the government of modern machinery

This includes drip irrigation and sprinkle irrigation methods.

By using this technique the farmers can save a huge some of money which he pays for irrigation through tubewells and tracktors.

Potential

• Productivity Enhancement

• Value Addition

• Milk Processing Plants• Modern Abattoirs & Processing Units

• Building Supply Chains ~ market linkages

• Genetics, 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.

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

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

Global Market forfor Halal

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

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

MILK PROCESSING PLANTS

• 49,512 million tonnes 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.

• 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

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

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

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

• Establishment of leather tanning units in Punjab.

POULTRY MEAT PROCESSING PLANTS

• 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.