government of pakistan . ministry of food, agriculture and livestock
Pakistan Agriculture Industry: Livestock Sector- New Opportunities
description
Transcript of Pakistan Agriculture Industry: Livestock Sector- New Opportunities
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.