Pakistan Meat Export

Pakistan Meat Export

The global halal food trade is believed to be currently valued at $1.3 billion annually, which rose from $0.5 billion just five years ago. The global meat and veal trade is growing with every passing year, according to the United States Department of Agriculture. This is a great opportunity for Pakistan to play its role in the meat market, especially the halal meat market. Considering the global demand Pakistan has failed to capitalize from this opportunity. In line with its national economic surge it is no surprise that India has become the largest exporter of meat products, with 1.9 million metric tons exported in 2017, according to the USDA. The biggest importer of meat is currently China, whose demands for food products have reached an approximation of 950,000 metric tons (per year?). CPEC offers Pakistan a chance to become a top competitor in the global meat export world, but lack of necessary skills in meat production, processing, supply chain management and marketing are the foremost challenges it must overcome. This writeup is based on a Case Study conducted by the University of Veterinary and Animal Sciences and outlines possibilities for Pakistan to become a meat exporting giant benefitting from the regional position the country holds.

Pakistan has a geostrategic position where it can effectively serve as an economic gateway for Russia, Central Asian States, China, South Asia and Far East Asia once CPEC is functional. Indigenous resources like soil, water, climate, crops, livestock, and a huge work force provide the country an edge to compete with the international trade and commerce in the meat industry. Pakistan’s agriculture is the backbone of its economic activity and development. The share of Livestock sector has increased from 39% in 2002 to 58.6%. If we compare the significance of livestock in national GDP of our neighboring countries, Pakistan is again at the top with 11.8% contribution as compared to Pakistan is ahead of India, Bangladesh, and Sri Lanka with a contribution of 11.8% in national GDP. Livestock productivity reflects the overall condition of a nation’s agribusiness due to its dependence upon  various agriculture products and by products. Although the statistics point to growth in meat exports for Pakistan; it is only a fraction of the potential of the local meat sector.

Pakistan’s meat export industry is largely comprising of chilled carcass meat, and in 2015, was worth $244 million. The global demand is much higher for frozen meat goods, which is being fulfilled by other global exporters like India, Australia, New Zealand, Brazil, and Africa. Some of the main target markets for Pakistani exporters are Dubai, Saudi Arabia, Kuwait, Bahrain, Qatar, Muscat, Malaysia, Iran, and occasionally China (through Vietnam). The Gulf States are recipients of 89% of Pakistani chilled meat carcass and only 3% of frozen meat value added products, while their demand for these products is much higher.

The world demand for value added and boneless cuts is constantly on the rise, which can predominantly be exported in frozen form through sea transit. This is the gap where Pakistan needs to strengthen the capacity of our meat value chain. The country’s exports hardly meet 0.5% of the total global demand despite having one of the largest herds of cattle, buffaloes, sheep, and goats.

There are several issues with Pakistan meat export sector, especially option for the farmer.

Lack of sufficient feedlot fattening farms shows an ugly picture of the whole meat value chain. There are no definite disease-free zones where the animals can be reared, protected from Foot & Mouth Disease (FMD) and other diseases. Such disease-free zones are essential for international meat trade.

Pakistan can seize this opportunity presented by CPEC only if it develops a strategy targeted in favor of national interest.

In the short term any plan should include de-capping of meat product prices in local markets to improve the availability and quality of meat; meat traceability to the farm and the animal itself; standardization of meat products in local markets with internationally accepted models. A policy for the eradication of FMD and other common bovine diseases by developing disease free zones should be developed on a national and provincial scale. This would enable exports to countries like Indonesia, Russia, China and Brunei, who legally enforce these standards. Ultimately it is breed improvement which can provide sustainability to a vibrant meat export market.

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Based on a Policy Paper by University of Veterinary and Animal Sciences, Lahore Punjab

M.Shoaib Sarwar