Pakistan Meat Industry Experiencing Strong Growth

Pakistan per capita meat consumption has nearly tripled from 11.7 kg in 2000 to 32 kg in 2016. It is projected to rise to 47 kg by 2020.

Rising Incomes and Meat Consumption:

Pakistan's per capita meat consumption has nearly tripled from 11.7 kg in 2000 to 32 kg in 2016. It is projected to rise to 47 kg by 2020, according to a paper published by the United States National Library of Medicines at the National Institutes of Health (NIH).  Organization for Economic Development (OECD) explains that meat demand increases with higher incomes and a shift - often due to growing urbanization - to food preferences that favor increased proteins from animal sources in diets.


Meat Production in Pakistan. Source: FAO

The NIH paper authors Mohammad Shoaib and Faraz Jamil point out that Pakistan's meat consumption of 32 Kg per person is only a third of the meat capita meat consumption in rich countries like Australia and the United States.

A study published in Proceedings of the National Academy of Sciences and Nature magazine reports that Pakistanis are among the most carnivorous people in the world.  After studying the eating habits of 176 countries, the authors found that average human being is at 2.21 trophic level. It put Pakistanis at 2.4, the same trophic level as Europeans and Americans. China and India are at 2.1 and 2.2 respectively.

Increasing Meat Exports: 

Pakistan's meat exports are growing about 30% a year, up from $29 million in 2005 to $243.5 million in 2015, according to report in Globalmeatnews.com.

Pakistan Meat Exports. Source: Express Tribune

Rapid growth in meat production and exports is supported by an ongoing livestock revolution in the country.  The Pakistani livestock sector now contributes about 56.3% of the value of agriculture and nearly 11% to the overall gross domestic product. Milk is the single most important commodity in this sector.

Future Growth:

“In the next three to five years, livestock sector should grow 4-5% per annum and its contribution to GDP looks set to remain in double digits”, says a senior official of the Ministry of National Food Security and Research according to Dawn newspaper. In FY16, livestock growth was 3.6% and its 11.6% contribution to GDP value-addition.

Downside:

While the global meat industry provides food and a livelihood for billions of people, it also has significant environmental and health consequences for the planet. The key is moderation in meat consumption to maintain good health and protect the environment.

Summary:

Pakistan's per capita meat consumption has nearly tripled since 2000. It has grown with higher per capita incomes and increasing urbanization.  Meat exports are also accelerating at a rate of 30% a year. Meat consumption and exports are supported by an ongoing livestock revolution in the country.  The Pakistani livestock sector now contributes about 56.3% of the value of agriculture and nearly 11% to the country's overall gross domestic product. Milk is the single most important commodity in this sector.

Related Links:

Haq's Musings

Meat and Dairy Revolution in Pakistan

Pakistanis Are Among the Most Carnivorous

Eid ul Azha: Multi-Billion Dollar Urban-to-Rural Transfer

Pakistan's Rural Economy

Pakistan Leads South Asia in Agriculture Value Addition



Comments

Riaz Haq said…
Pakistan launches its biggest halal plant
01-Jun-2016 By Shahid Husain, in Karachi
Pakistan’s largest conglomerate, the Fauji Group, has launched the country’s biggest halal abattoir, meat processing and exporting unit near Port Qasim, Karachi.
HTTPS://WWW.GLOBALMEATNEWS.COM/ARTICLE/2016/06/01/PAKISTAN-LAUNCHES-ITS-BIGGEST-HALAL-PLANT

Fauji Meat — a subsidiary of Fauji Fertiliser that commenced operations in April 2015 — and Al-Shaheer Corporation, an old meat exporting company, are doing big business in meat marketing at home and abroad.

Both companies have their own large animal breeding farms to ensure uninterrupted supply of healthy animals for regular slaughtering.

Exports of meat and meat preparations have grown rapidly — from 72$m in FY09 to $269m in FY16 though a decline has set in during the first seven months of FY17, due to a growing consumption in local markets and smuggling of live animals to neighbouring countries.

Marketing infrastructure of dairy and meat products has also seen a big improvement over the years. Large milk processing companies are successfully operating hundreds of milk collection centres in the country. Small dairy farmers also have more access to better ways of dairy farming and marketing now than in the past, thanks to targeted public-private partnership programme.

In January this year, dairy farmers in Punjab celebrated successful completion of a five-year $21m project of sustainable dairy development. Through a partnership with the Punjab government and Nestle Pakistan, the project improved the lives of over 50,000 small dairy farmers through its skills-based training programmes, resulting in a 17pc increase in the average milk yield and an over 10pc boost in farmers’ incomes, according to media report.

The project generated income for small farmers and created jobs for rural men and women. The project also upgraded 118 farms, now serving as training hubs for small dairy farmers.

It also helped install a pilot 50 cubic metre biogas plant for a dairy cooperative milk chiller in Vehari and constructed a 375 cubic metre biogas plant at the government-owned Bahadurnagar Farm in Okara.

https://www.dawn.com/news/1318665
Riaz Haq said…
How big is Pakistan’s meat trade and who’s buying its exports?

https://www.salaamgateway.com/en/story/correctionhow_big_is_pakistans_meat_trade_and_whos_buying_its_exports-SALAAM11092017080303/

*Corrects percentage of Pakistan's 10 biggest meat and edible meat offal (MEMO) export buyers to their overall MEMO imports in 2016, from 2.67 percent of $9.258 billion to 2.58 percent, which is equivalent to $238.99 million

Pakistan’s government is exploring new markets for export of meat and dairy products with a focus on the halal trade, according to local press reports.

How big is Pakistan’s meat and dairy trade now and where are its exports going?

EXPORTS

According to ITC Trade Map data, in 2016, Pakistan exported $313.538 million in three categories: 1. Meat and edible meat offal (internal organs) ($239.74 million), 2. Dairy produce; birds’ eggs; natural honey; edible products of animal origin ($67.471 million), and 3. Live animals ($6.327 million).

These three categories account for 1.53 percent of Pakistan’s $20.5 billion exports of all products to the world in 2016.

Meat and edible meat offal (MEMO) is the biggest of the three categories, accounting for 76.5 percent of the three’s exports.

Pakistan’s biggest export is textiles and textile articles, which brought in $9.481 billion in nine months from November 2016 to July 2017, according to most recent data from the State Bank of Pakistan.

BIGGEST MEMO BUYERS

Pakistan exported $238.99 million, or 99.69 percent, of all its MEMO in 2016 to 10 countries: UAE, Saudi Arabia, Kuwait, Vietnam, Bahrain, Oman, Afghanistan, Qatar, Thailand, and Malaysia.

However, Pakistan is a small MEMO export player. Its 10 biggest MEMO export markets imported a total of $9.258 billion of MEMO in 2016, out of which only 2.58 percent came from Pakistan.

BEEF, MOSTLY

Fresh or chilled beef is Pakistan’s biggest MEMO export, making up 56.86 percent, or $136.319 million, of its MEMO exports in 2016. This is followed by $44.726 million of chilled or frozen meat of sheep or goats, and $31.554 million of frozen meat of bovines.

Only around $3.06 million, or 1.28 percent, of Pakistan’s MEMO exports are poultry-based.

The nation hopes to change this by targeting an increase in poultry-based MEMO sales to UAE, its biggest MEMO export market, after the GCC country lifted its ban on Pakistan’s poultry and its products in February this year. UAE imposed the ban in 2006 after an outbreak of avian influenza in Pakistan.

UAE imported an estimated $725.247 million of poultry products in 2016, 66.2 percent, or $480.224 million, of which came from Brazil.
Riaz Haq said…
Dressing (Preferred meat) vs Offal (Orhan meats etc) percentages in a study in Peshawar Pakistan


Data on age wise proportion of cattle slaughtered at Peshawar suggested that largest counts (24.35 %) ofcattle were slaughtered at the age of 41- 50 months followed by 21-30 and 51- 60 months age groups (Table I).Animals of age 41-50 months were higher in slaughter proportion and most within this group were females. Lowermilk yield during their first lactation might be a cause for their removal from the herd and sale to butchers. Animalsolder than 61 months age group showed the lowest proportion, because older meat is not preferred by consumers inPeshawar. They mostly prefer meat from animals aged 21-50 months.

Dressing percentage data of the above mention breeds of animals showed that Dajal male gave the highest value (55.7%) followed by non- descript males (54.0%) and Lohanni males (53.6%) (Table II). Mekasha et al.,(2011) studies the African zebu cattle Ogaden bull and reported that dressing percentage was 54.7. Jabbar et al.,(2009) obtained a similar trend in their studies. According to their study the Dajal breed cattle showed highest (5 8.0)dressing percentage. The higher DP value of the Dajal in their study was probably because animals were fed for 92days on mixed concentrate diet and especially reared for body weight gain, whereas, the in present study animal

DRESSING PERCENTAGE AND OFFAL PRODUCTION... (PDF Download Available). Available from: https://www.researchgate.net/publication/273724540_DRESSING_PERCENTAGE_AND_OFFAL_PRODUCTION_OF_VARIOUS_BREEDS_OF_ZEBU_CATTLE_SLAUGHTERED_AT_THE_PESHAWAR_ABATTOIR [accessed Apr 21 2018].
Riaz Haq said…
YIELDS AND DRESSING PERCENTAGES

http://smallfarms.cornell.edu/2012/07/10/yields-and-dressing-percentages/


It is important for anyone direct marketing meat to determine how much meat a market animal provides. The pounds of meat a farmer should get from an animal will be dependent upon the dressing percentage and the carcass cutting yields. A handy formula has been developed to help:

Pounds of Meat= (Dressing percent x Carcass cutting yield) x Live weight

The dressing percentage is the percent of the live animal that ends up as carcass. Generally, the carcass weight is taken immediately after skinning and evisceration and is commonly known as the hot hanging weight. There are a number of factors that will affect the percentage including how much the animal has eaten before it is weighed, and how much mud or fiber is on the animal. These factors negatively correlate to the dressing percentage, by reducing the dressing percentage. The amount of fat and muscling will positively affect dressing percentage; the heavier or fatter an animal, the higher the dressing percentage. The dressing percentage can be calculated as such:

Dressing Percentage (DP)= (Carcass Weight / Live Weight) x 100

Different species tend to average different DP’s. Beef cattle 58-62% (heifers generally about 1% lower than steers), hogs 74% and market lambs 54%. Farmers can expect a 1000 pound steer to result in a 620 pound hanging carcass or a 140 pound market hog to produce a 103 pound carcass (140 x .74).

The carcass-cutting yield is the percentage of the carcass that actually ends up as meat. The carcass cutting yield is calculated by:

Carcass Cutting Yield = (Pounds of meat/ Carcass weight) x 100

Cutting yields can vary significantly depending on cutting specifications; cuts that are bone-in or boneless will produce very different cutting yields. If the animal is excessively fat, then the cutting yield will be lower because the fat is removed and discarded. A more muscular animal will have a higher cutting yield. Aging, leaving the carcass to hang for an extended period of time, will also impact cutting yields, as the carcass tends to shrink during the process. Cutting losses on a side of beef may range from 20% to 40%, and average around 28%.

Yield grades can help can help predict cutting yields. A yield grade measures the amount of boneless, trimmed retail cut from various parts of the carcass: the round, the loin, the rib and the chuck. The higher the yield grade, the lower the carcass cutting yield percentage. A lower yield grade indicates a higher cutting yield. To employ the help of a yield grade to determine the amount of salable meat let’s consider the following example. A yield grade 2 on a 400 pound carcass would indicate salable meat of 79.8% or 319 pounds of meat. If more cuts were left bone-in, then the actual carcass cutting yield would be higher than 79.8% and the pounds of meat would be higher than 319.
---

To help a farmer price his product, it is also important to know the average cut weights expected from breaking down a carcass. A 1000 pound steer will produce a 600 pound carcass. 400 pounds are lost in hide, blood, and inedible organs. From this 600 pound beef carcass a farmer should expect around the following: 27.5% chuck, 3.2% shank, 3.8% brisket, 9.8% ribs, 8.5% short plate, 17.7% loin, 5.3% flank, and 22.8% round. He could also expect 425 pounds in retail cuts at a yield grade 3 (70.8%). These figures provide only an approximation, and are to be used as a guide. Farmers should keep good records of dressing percentages and carcass yields to help with farm management and the decision making process.
Riaz Haq said…
India ranks 43rd in the global ranking in average per capita tea consumption with 0.73 kg compared with 7.54 kgs in Turkey, 4.34 kgs in Morocco, 2.74 kgs in United Kingdom and 1.01 kgs in Pakistan.

https://www.business-standard.com/article/markets/tea-board-on-promotional-drive-to-increase-per-capita-tea-consumption-116073000191_1.html

Per capita consumption of tea
Country Quantity (Per KG)
Turkey 7.54
Morocco 4.34
Ireland 3.22
United Kingdom 2.74
UAE 1.89
Kuwait 1.61
Russia 1.21
Iran 1.07
Pakistan 1.01
India 0.73
Source: Industry, Wikipedia


--------

A massive increase of 35.8 per cent in per capita consumption of tea in Pakistan has been recorded from 2007 to 2016.

According to the current market situation and medium-term outlook, published by the Food and Agriculture (FAO) of the United Nations, Pakistan is among the seven countries where per capita consumption of tea has been increased.

The highest increase was seen in Malawi with 565.2pc, followed by China 128.6pc, Rwanda 110.2pc, Turkey 25.9pc, Indonesia 26.6pc and Libya 39.8pc.

Currently, black tea consumption in Pakistan has been estimated at 1,72,911 tonnes which is expected to increase to 2,50,755 tonnes in 2027, the FAO report projects. This showed in next 10 years, tea consumption will increase by 77,844 tonnes.

https://www.dawn.com/news/1415762
Riaz Haq said…
#Pakistan #Poultry Sector Thriving With Annual Production Of 1.02b Broilers. making Pakistan the 11th largest producer of poultry meat. Poultry production in Pakistan is providing direct job opportunities to over 1.5 million people. #chicken #meat https://www.urdupoint.com/en/agriculture/pakistan-poultry-sector-thriving-with-annual-482696.html


"Pakistan has become the 11th largest poultry producer in the world with a production of 1.02 billion broilers annually whereas current investment in poultry sector is more than Rs 200 billion," according to official documents.

Today, Poultry has been a balancing force to keep check on the prices of mutton and beef, but also serving as backbone of agriculture sector as it consumes over seven million tons of agro- residues.

Pakistan is an ideal country for investment in poultry sector as its meat contributed 30pc of the total meat production in the country.

Poultry sector has shown around 8 to 10pc growth rate annually, which reflected its inherent potential to grow further besides goal oriented policies of Government to promote livestock and poultry sector in the country.

Poultry has contributed 1.4pc of GDP during 2015-16 while its contribution in agriculture and livestock value-added stood at 6.9 pc and 11.7 pc respectively. Its value added at current factor cost has increased from Rs 140.5 billion in 2014-15 to Rs 151.2 billion in 2015-16, showing a record increase of 7.6pc compare to last year.

Dr Aasal Khan, Director Planning and Economics Development told APP on Friday that poultry sector in KP has grown tremendously during last five years in Khyber Pakthunkhwa.

He said large number of people especially in rural areas was associated with poultry sector and special financial incentives for them would help promote this hard earned business to new heights.

Livestock Department KP has chalked out a comprehensive plan to encourage commercial and domestic poultry farming in the province to cater the needs of meat requirement of ever growing population.

He said strengthening of commercial and domestic poultry services was a major component of the new livestock policy 2018 and solid efforts are being made to increase poultry production in the province.

The KP government has accorded high priority to livestock and poultry sectors by focusing on establishment of model poultry farms to promote this business keeping in view of dependence of a large number of people of rural areas on it.

He said thousands of poultry farms were existed in all districts of KP and technical assistance and necessary training would be provided to farmers to bolster poultry production in the province.

Dr Aasal said KP Govt has allocated Rs 2573 million for uplift agriculture, livestock, poultry, fisheries and cooperatives department for 40 projects including 30 ongoing with allocation of Rs 2217.999 million and 10 new costing Rs 355.001 million in budget 2018-19 to further strengthen this key sector.

The new projects including control of livestock diseases, eco-friendly management of fruit flies, database development through information and communication technology in crop reporting service, solarization of agriculture tubewells, establishment of trout villages in Malakand and Hazara divisions would strengthening of poultry services.

He said most of farmers are unaware from where to get veterinary services and suffer great economic losses in case of viral disease outbreak.

Poor marketing and coordination between institutions and poultry owners besides lack of technical know how challenges if addresses, livestock and poultry sector can achieve many laurels in days to come.

He said owing to goal oriented policies of present government, eggs, meat, milk and poultry production had registered substantial increase during last five years in Khyber Pakhtunkhwa and people are now easily getting these commodities at their doorsteps.
Riaz Haq said…
PAKISTAN’S red meat consumption tripled from 11.7 kilograms per person in 2000 to over 32kg in 2016. It is set to go further up to 47kg by 2020 because of two main reasons: higher incomes and a changing lifestyle due to growing urbanisation in the last two decades, enabling people to go for protein-rich food.

https://www.dawn.com/news/1432040


No apparent efforts are being made by either public or private sector to meet growing demand for red meat. We are illegally slaughtering female animals at private abattoirs and less-monitored municipal facilities to fill the gap. The practice is depleting our livestock reserves, which currently stand at around 169 million head. Of them, 74m are cows and buffaloes and 95m are sheep and goats. It is feared that if this trend is not checked, the livestock-surplus country may face a shortage of animals in the near future.

In order to maintain a healthy stock of cattle head and sustain the provision of quality meat for domestic consumption and exports, experts and consumer representatives suggest abolishing the official capping of meat prices, which is discouraging investment in the sector.

Farmers say they cannot supply quality meat at the government-notified rates

Consumer Solidarity Forum’s Mohsin Bhatti claims that at least 50 per cent of around 20,000 animals slaughtered in Lahore every day are female. Their illegal slaughter is carried out at homes of butchers, service stations and in villages at night.

ARTICLE CONTINUES AFTER AD

Low meat prices make herd owners sell their 12- to 14-month-old animals, both male and female. They should ideally wait until animals are 22 months old, he says. This deprives consumers of healthy meat.

“The sector holds great investment potential, which may bring prosperity to livestock farmers in the countryside provided the artificial price-setting mechanism that is holding it hostage is done away with,” says Dr M Hayat Jaspal, chairman of the Meat Science and Technology Department at the Lahore Veterinary University (UVAS).

He argues market forces will ensure that quality red meat is available at the cheapest rate to consumers just like in the poultry sector, which is free from the official price mechanism. “Whenever governments intervene in any sector through price regimes, they destroy it.”

However, meat exporters apprehend that if the official price mechanism is abolished, the commodity will become dearer and hurt exports that are already on the decline for the last couple of years. “We’re already facing higher production costs due to various reasons. Uncapping meat prices will lead to a hike in local animal markets, thus making export consignments more expensive and uncompetitive in the world,” says Shehzad Aslam Ghauri, a Lahore-based exporter of red meat.

But Dr Jaspal dispels the price hike fears. “If prices play such a big role, then why is the meat export volume on the decline even at the existing low official rates?” He says the price may go up in the short run, but will stabilise after a year. “That’s because by then new investment will improve the supply side and, like in the poultry industry, market forces will regulate prices and ensure a balance between supply and demand.”

Even if new farms are not set up by that time, meat production will double as farmers will use feedlots to fatten up their cattle, which is not feasible at the present price level.

Endorsing these views, Dr Sher Ali of UVAS says that quality meat from fattened animals will help exporters earn at least 25pc more from their existing consignments, which are sent to low-end foreign markets because of poor meat quality. At the current officially notified rates, he says, it is impossible to produce quality meat. “The university itself, despite enjoying certain subsidies, could produce quality beef at Rs550 per kg in its ongoing pilot project while the official rate of beef is around Rs400.”

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