New mar­kets for live­stock

Enterprise - - Exports -

In fi­nan­cial year 2011, live­stock farm­ing in Pak­istan ac­counted for nearly 11.5 per­cent of the GDP. The sec­tor is a po­ten­tial gold­mine and, if prop­erly de­vel­oped, can lead to greater in­crease in GDP share. It is the sec­ond most important mode of in­come for the ru­ral pop­u­la­tion con­sti­tut­ing about 65 per­cent of the to­tal pop­u­la­tion.

Pak­istan is mostly an agrar­ian so­ci­ety with live­stock farms con­tribut­ing around 39 per­cent of the pro­duced value added goods. Pak­istan on av­er­age has nearly 110,055 mil­lion an­i­mals that are reared as live­stock. The an­i­mals com­prise cows, buf­faloes, sheep, goats, camels and chicken.

Ex­ports and byprod­ucts from live­stock gen­er­ate a steady rev­enue stream for the coun­try. Meat ex­ports alone have shown a 15 per­cent in­crease in re­cent years. Over the years, Pak­istan has, in fact, emerged as one of the top meat ex­port­ing na­tions. Coun­tries buy­ing meat from Pak­istan in­clude Afghanistan, Kuwait, UAE, Oman and re­cently Iran has also been added to the list. The in­tro­duc­tion of the ‘ Ha­lal’ la­bel in meat ex­ports as­sists Pak­istan in de­vel­op­ing a strong mar­ket in the Mid­dle East­ern na­tions and other Mus­lim ma­jor­ity coun­tries.

While In­dia is also a large ex­porter of meat, it does not of­fer beef for ex­port. Pak­istan has steadily de­vel­oped its beef ex­ports which amount to nearly 50 per­cent of its to­tal meat ex­ports. It is fol­lowed by mut­ton, 23 per­cent and poul­try, 17 per­cent.

Around eight slaugh­ter­houses are work­ing in Pak­istan that sup­ply nearly $ 60 mil­lion worth of frozen meat prod­ucts for ex­port. Pak­istan is also in the run for ex­port of live an­i­mals for meat to other coun­tries. To fur­ther pro­mote the rear­ing and ex­port of live an­i­mals, the gov­ern­ment of Pak­istan has re­moved the need for ex­porters to be is­sued a per­mit from the Min­istry of Live­stock and Dairy De­vel­op­ment for com­mer­cial ex­ports. As a re­sult, ex­port of meat and meat prod­ucts showed a net in­crease from Rs. 7.5 bil­lion to Rs. 11.8 bil­lion last year.

Pak­istan is also rated as the world’s fourth largest pro­ducer of milk. Cows and buf­faloes reared es­pe­cially for their milk are bred se­lec­tively to im­prove milk qual­ity. The dairy in­dus­try pro­duces nearly 34.4 mil­lion tonnes of milk. Many pri­vate com­pa­nies have shifted their fo­cus to milk pro­duc­tion and have made ar­range­ments with live­stock farms for steady sup­plies. These com­pa­nies have their own pro­cess­ing plants, where the milk is pack­aged and used for var­i­ous dairy prod­ucts. The first pri­vate com­pany to par­tic­i­pate in the mod­ern­iza­tion of dairy farm­ing is Nes­tle, with many oth­ers fol­low­ing suit, the most re­cent be­ing En­gro.

Of­ten these plants are backed by their own live­stock farms where they breed an­i­mals. The milk is used to pro­duce var­i­ous dairy prod­ucts such as cheese, but­ter, yo­gurt, pow­dered milk, ice cream, etc. These prod­ucts are sold lo­cally and are also ex­ported.

The milk pro­cess­ing plants owned by pri­vate com­pa­nies are in­creas­ing their out­put through the live­stock farms and im­prov­ing the qual­ity of milk and its prod­ucts.

The coun­try’s live­stock pop­u­la­tion also plays an important role in its econ­omy by pro­duc­ing around 13.0 mil­lion hides and 47.4 mil­lion skins per year. The skins and hides are of good ex­port qual­ity. The types of sheep skins avail­able in Pak­istan are bet­ter in re­spect of grain, sub­stance and com­pact­ness of fi­bre. Re­cently, China has also ex­pressed im­mense in­ter­est in pur­chas­ing leather goods from Pak­istan. In May 2011, the vol­ume of leather ex­ports re­ported an in­crease of 15.9 per­cent, reach­ing a to­tal of nearly $ 1bil­lion. Ex­ports of fin­ished leather are val­ued at $ 50.1 mil­lion whereas leather prod­ucts like bags, belts, shoes, etc. are val­ued at al­most $ 43.6 mil­lion in the in­ter­na­tional mar­ket. The in­dus­try is play­ing a pos­i­tive role in in­vig­o­rat­ing the WTO regime with qual­ity and com­pli­ance with in­ter­na­tional stan­dards

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