Transcript Document 7306990

Pakistan Agriculture Industry:
Livestock Sector- New Opportunities
University of Veterinary and Animal Sciences, Lahore
16th July 2012
Agriculture Sector in Pakistan – An Overview
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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.
Pakistan’s Major Crops
Production value in 2007
Rice
US$ 1.70 bln
Cotton
US$ 3.36 bln
Wheat
US$ 302 mln
US$ 2.94 bln
Maize
Major Crops
Citrus
US$ 3.01 bln
US$ 324 mln
Live
Mango
Stock
Sugarcane
US$ 418 mln
Source: http://faostat.fao.org/site/339/default.aspx
Milk and milk
products
US$ 1.02 bln
Agriculture Sector in Pakistan - Endowments
Pakistan’s Agriculture is
The
Largest
Producer
of Kinnow
3rd
3rd
5th
5th
5th
Largest
Largest
Largest
Largest
Largest
Herd of
Livestock
Producer
of Dates
Producer
of Mango
Producer
of Cotton
Producer
of Milk
Agricultural Sector – Key Statistics
• Contribution to GDP
(more than US$37 billion to the national economy)
• Labor Force Employment
• Average Growth past 6 years
• Contribution of different Sub-Sectors in Agriculture
1. Crops (Wheat, Rice, Cotton, Sugarcane)
2. Livestock
3. Fisheries
4. Forestry
• Share in Export Earnings (Raw/Processed)
1. Cotton + Cotton Based Products
2. Fruits, Rice, Fish, Leather
3. Others
21.8%
45.0%
3.7%
32.8%
53.2%
4.0%
2.0%
64.7%
18.2%
17.1%
Livestock Sector - Endowments
Pakistan’s Livestock
1st
2nd
3rd
4th
5th
Largest
Largest
Largest
Largest
Largest
Segment of
rural economy
Sector of
economy
Herd of
Livestock
Exports
Products
Producer of
Milk
Livetsock
11%
Livestock
45%
55%
Livestock
contributes 55.1% of
Agriculture sector.
Agriculture
Livestock
accounts for
11.5% of GDP.
Other
89%
Livestock Sector – Key Statistics
• Contributed approximately 55.2% of agriculture value
added and 11.4% to national GDP in 2010‐11.
• Gross value addition of livestock at current factor cost
has increased from Rs. 1304.6 billion (2008‐09) to Rs.
1537.5 billion (2009‐10) showing an increase of 17.8 %.
• Pakistan earned USD717 million from leather exports in
FY09 and a meager USD96 million from meat exports.
• The food industry attracted Foreign Direct Investment of
US$ 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
ShareinRuralEconomy
Contribu on of Sub Sectors
7.00%
1.30% 1.60%
42.00%
42.00%
55.10%
Crops
Live Stock
Fisheries
Forestry
51.00%
Livestock
Agric
Others
POPULATION TRENDS
Human
Population
1980
1990
2000
2015
(million)
250
200
81.230
109.900
141.256
204.267
150
Human Population
Cattle+Buffalo
Sheep+Goat
Livestock Population
100
Cattle &
Buffalo
26.585
Sheep & Goat
46.392
35.050
44.473
53.759
50
61.144
71.500
94.545
0
1980
1990
2000
2015
Product
1990
2000
2015
Product
Pakistan
Punjab
%
Meat Pro
1.485 MT
2.061 MT
4.107 MT
Milk
42.199 MT
26 MT
62 %
Meat Con
1.313 MT
1.682 MT
3.247 MT
Beef
1.549 MT
0.589 MT
43 %
Milk Pro
14.723 MT
28.355 MT
43.307MT
Mutton
0.578 MT
0.283 MT
49 %
Milk Con
11.889 MT
21.142 MT
35.889 MT
Poultry Meat
0.601
0.333 MT
70 %
Dairy Sub-sector
 Total milk production (09-10)
36.299 m tons
 Milk market:
 Producers (self or direct selling)
 Informal market (Gawala operated)
 Formal dairy industry
68.0 %
28.5 %
3.5 %
 Dairy industry:
 Main products are UHT and Pasteurized milk, Milk powder, Yougurt,
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
Cream, Cheese, etc.
3.0 million litres per day being procurement
Rs 63 million daily going to rural economy
25 out of 49 dairy plants are operational
Main players are Nestle, Engro, Haleeb, Engro, Millac
Milk Production (Buffalo + Cow)
2010-11
Meat Sub-sector
 Total meat production (09-10)
 Beef Production
 Mutton Production
 Poultry Meat
2.965 ml. tons
1.655 ml. tons
0.603 ml. tons
0.707 ml. tons
 Meat market
 Butchers operated shops, many slaughter at shops
 Main players at slaughter house are artees
 Fresh meat sold, only a few chilled meat selling establishments
 Meat industry
 80 % slaughtering done outside out side slaughterhouses
 11 private sector slaughter houses registered by Animal
Quarantine Deptt.
 Total export is <0.6 percent of the production
Meat Production
000 Tons
Year
Beef
Mutton
Poultry
Total
2001-02
1034
683
355
2072
2002-03
1060
702
370
2132
2003-04
1087
720
378
2185
2004-05
1115
739
384
2238
2005-06
1449
554
512
2515
2006-07
1498
566
554
2618
2007-08
1549
578
601
2728
2008-09
1601
590
652
2843
2009-10
1655
603
707
2965
2010-11
1711
616
767
3094
Economic Survey of Pakistan –2010-11
Pakistan –Export of Meat & Meat
2009-10
2010-11
Quantity
(MT)
In million
US Dollar
Quantity
(MT)
In million US
Dollar
20,081
53.9
29,281
82.3
EXPORT OF LIVE ANIMALS
350000
314974
300000
250000
182347
200000
69180
150000
63024
100000
50000
423
0
2009-10
Cattle
Buff
2008-9
S&G
Camel
Total
2008-9
2009-10
Per Capita Meat Consumption (KG)
1983-2020
Countries
1983
1993
2020
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
Punjab Vision 2020
“ To create enabling environment for
raising livestock production and use
it as a vehicle for social security,
poverty
alleviation
and
rural
Mission of L&DD
leading
‘Support livestock development in a
towards domestic food security and
policy & regulatory environment that
creation of exportable surpluses”.
enables farmers to realize the
development
ultimately
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’
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 Population
 Buffaloes = 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 Livestock
Livestock Production 2nd biggest economic activity
67% rural population ~ 30-35 million engaged in
livestock
88 % livestock raised by small and landless farmers
30 – 35 million rural population engaged in livestock
40% dependent on livestock for income
More focus on Buffaloe
 165.72m 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 =
• Mutton Production =
• Poultry Meat
=
16 million tonnes / anum
6 million tonnes / anum
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
Livestock has significant potential for
poverty reduction, growth and export
Increase in Livestock Product use in
domestic and international market
Livestock Strategy
Document Strategic Review
Population growth increases food
safety and security threshold
Livestock for Livelihood
OPPORTUNITIES
• Productivity Enhancement
• Value Addition
•
Milk Processing Plants
•
Modern Abattoirs & Processing Units
• Building Supply Chains ~ market linkages
• Genetics ~
improvement
Artificial
Insemination,
breed
• Vaccine, Drugs, Semen & Embryo Production
& Marketing Units
OPPORTUNITIES
• Global Halal market
GLOBAL HALAL MARKET
Global Market for Halal
 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 for 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
Muslim Population by Regions
Percentage of Muslim population
1.06%1.5%
24.1%
7.0%
Asia Pacific
Middle East-North
Africa
Sub-Saharan Africa
Europe
Americas
47.81%
PEW Research Centre’s Forum on Religion & Public Life.Mapping the Muslim
Population. October 2009
Muslim Population by Regions
Estimated 2009
Muslim 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
1,571,198,000
22.9
100.0
World Total
Global Halal Market
 Key Halal Market
 Algeria
 Iraq
 Morocco
 Tunisia
Bahrain
Jordan
Oman
Turkey
Egypt
Kuwait
Qatar
UAE
Indonesia
Lebanon
Saudi Arabia
Yemen
Iran
Malaysia
Syria
Pakistan
 Combined population of key Halal markets : 652 Million
 Key Halal Markets in Non-Muslim countries
 India
 China
 USA
 Phillippines
140million
40 million
8 million
6 million
France
Germany
UK
Canada
6 million
3 million
1.5 million
800,000
Some Notable Players
 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 Products….
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Livestock Farmers & Producers
Halal Products Buyers and Sellers
slaughtering and processing equipments
Animal health and pharmaceutical products
Breeding animal enterprises
Forage grass and feed
Animal farm equipments.
Livestock Breeding
– Cattle, Sheep, Goats
– Animal Husbandry
Genetics and Selection
– Herd Management
– Race Registration
– Artificial Insemination
Animal Health and Hygiene
– Laboratory and Veterinary Instruments
– Veterinary Medicine and Vaccines
– Obstetric & Gynecology Instruments
– Ultrasound & X-Ray Instruments
– Care Products and fertilizer
Farm Buildings and Equipments
– Farm Houses and constructions
– Scrapers & Mats
– Barns, Sheds and Buildings
– Anti - freeze Drinkers
•
•
•
•
– Mowers & Swathes
– Farm Vehicles
Animal Feed & Animal Nutrition
– Seeds
– Vitamins and minerals
– Silos & Elevators
– Mill & Mix Machinery
– Grain handling Equipments
Dairy Farm
– Milking Systems
– Cooling Tanks
– Logistic systems
– Handling and Packaging Equipments
Counseling Services
– Turn - key projects
– Bank - and Insurance Companies
– Sector Universities and Education
– IT and Software Systems
– Public Organizations
– Associations, Unions, Chambers)
– Laboratory and Test services
– Patent and Brand rights
Alternative Energies and Environment
NEW SECTORS
New Sectors
 Quality Assurance & Certification
 Export Orientation
 Supply Chain Management ~ backward & forward
linkages
 Land
 New animals ~ Ostrich
 New fields ~ blood rendering, hormones, gelatin,….
 Breed Development
MILK PROCESSING PLANTS
SCOPE OF INVESTMENT
•
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.
INVESTMENT PLANS
•
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
SCOPE OF INVESTMENT
•
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.
INVESTMNET PLANS
•
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
SCOPE OF INVESTMENT
•
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.
INVESTMNET PLANS
•
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
SCOPE OF INVESTMENT
•
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.
INVESTMNET PLANS
•
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
SCOPE OF INVESTMENT
•
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.
INVESTMENT 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.
THANK YOU