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Pakistan Agriculture Industry: Livestock Sector- New Opportunities University of Veterinary and Animal Sciences, Lahore 16th July 2012 Agriculture Sector in Pakistan – An Overview 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, 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…. • • • • • • • • • • • 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