10/9/2018. History. Basic Terms. Scope of beef production in Pakistan

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1 Scope of beef production in Pakistan by Kashif Ishaq PhD, DVM 2 History Domesticated around 5500 BC In US development trigger in 1780s In 1862 Abraham Lincoln signed three acts 1955 first Beef cattle improvement association in Virginia National Cattlemen s Beef Association (NCBA) in 1996 Basic Terms animal tissue considered especially as food Meat Meat from cow is --- Beef Production: the making of goods available for use or Process of growing animals for food Beef cattle are cattle raised for meat production (as distinguished from dairy cattle, used for milk production). The meat of adult cattle is known as beef. In beef production there are three main stages: cow-calf operations, back grounding, and feedlot operations. 3 1

2 4 Beef Production 5 SWOT Analysis 6 Strengths 2

3 Why meat production in Pakistan Agriculture sector is backbone of economy Provides raw materials This sector contributes approximately 18.9% in gross domestic product (GDP) Employer absorbing 42.3% total labor force Contributes about 58.9% to agriculture value added 11.3% to overall GDP Gross value addition from livestock Rs billion Rs. exhibiting a growth of 3.8% 7 8 Contd... By-products especially leather Whose export earned billions of dollars for Pakistan ---- country listed as 3 rd largest export after cotton and rice 9 Top 10 export of Pakistan Article Worth Share in Export Miscellaneous textiles, worn clothing US$4 billion 18.1% Cotton $3.5 billion 16% Knit or crochet clothing, accessories $2.5 billion 11.5% Clothing, accessories (not knit or crochet) $2.5 billion 11.3% Cereals $1.8 billion 8% Leather/animal gut articles $632 million 2.9% Sugar, sugar confectionery $511.9 million 2.3% Optical, technical, medical apparatus $410.6 million 1.9% Fish $406.9 million 1.9% Salt, sulphuric, stone, cement: $385.5 million 1.8% 3

4 World Top Cattle Meat Producing Countries 10 USA Brazil China, mainland Argentina Australia Mexico France 1900 Russia Germany India Colombia Canada United Kingdom 844 Pakistan Meat consumption/capita/yr (kg) China Australia USA Argentina Bahamas Samoa New Zealand Per capita/protein/day

5 13 World Buffalo Popullation Series India Pakistan China, mainland Nepal Egypt Myanmar World Cattle Popullation 14 Series Brazil India China, mainland USA Ethiopia Argentina Pakistan 15 Meat consumption trends across world Inclusion of meat and meat products in the diet Culture Economic status Religious norms Higher per capita meat consumption by developed than developing countries Food choices affects the cuisine of people meat demand but at a slower rate in developed nations 5

6 16 Contd.. Global annual per capita meat consumption is expected to reach 35.3 kg by year 2025 Per capita meat consumption in Pakistan is---21 kg (2016)- Per capita meat supply of World 17 Per Capita meat Supply in Pakistan 18 6

7 Shifting Preferences to consume meat Additional demand -- contributed mainly from poultry due to availability, cheaper price, shorter production time Urbanization, economic growth, industrialization as well as eating pattern resulting increased per capita meat in the future years (Chartsbin, 2017). Awareness to population Meat Consumption in Pakistan Rich traditions & cultural festivities Growing demand and Govt. Initiatives Beef, mutton, poultry, camel, goat etc. Poultry is the cheapest Red meat -- desired meat around the Globe because its taste, flavor and juiciness creates a high demand in developing economies (Binnie et al., 2014). 21 Future of Beef Production in Pak Pakistan --with vast & variable atmosphere round the year Has extensive cattle and goat farming Availability of pasture in northern areas and cholistan Natural animal rearing capability, Meat producing breeds an Favorable climatic conditions. 7

8 22 Meat Trends and Business Opportunities Livestock are main supplier Integral part of rural economy (8 million families) Meat industry is not able to make mark internationally Hilal food market (Demand) Pakistani entrepreneurs World's 3rd largest livestock population Livestock 4.2% against human growth of 2.9% Livestock feeding ~ 100% Halal & Agro-based No beef breed in Pakistan 23 Global Meat Trade; Pakistani Prospective Meat production growth is driven by increase in economic activity leading toward increased purchasing power tied with population growth. Current Global meat production is ~320.7 million tons Developed countries accounted for 15% of world population but consume 37% of world meat production Evaluated based on three parameters, quality, safety and nutritional status 24 8

9 Contd.. Pakistani red meat export market has showed rise by an average of 68.6% per year exporting million tons of red meat Pakistan has extraordinary natural capabilities Hilal Meat Industry 27 World Scenario Food is the essential requirement to sustain human life food habits vary among regions, religions and tribes. Halal is an Arabic term meaning permitted or lawful, while Haram means not permitted. Must meet the Islamic dietary code called Halal 9

10 Contd.. Muslims population is estimated between billion (23% of total population) Forecasted to represent 27% of the world population by 2030 Halal meat is among the fastest growing segments of food. Beef trade grew at the rate of 10.4% to reach over $30 billion during the time span of Halal beef exports to Middle East and South Asia grew by above 18.2% 28 Contd.. Globally, major meat supplier are non-muslims countries such as Australia, Brazil, Canada, USA, Brazil are considered largest halal chicken suppliers, USA and Australia are leading halal beef exporters India has emerged as top competitive Asian countries like Malaysia, Turkey making Pakistan ranked 19th position (Pakistan s share 0.26%) Pakistan s meat industry is reached to $ 244 million in Year 2015 from $ 14 million in Year 2003 showing overall growth of 27%. increase is minimal considering Pakistan potential 29 Contd.. 30 Halal meat importing countries like Afghanistan, Central Asia and Middle East, captivating the grand total export of 470 million Halal meat export of Pakistan has been increased to vs 229 million dollar (2015) Pakistan exported Halal mutton contributing to US $ 58.9 million and US $ million in terms of Halal beef 14 Pakistani companies are successfully exporting leading ones are PK Livestock Company, Quick Food Industries, Anis Associates, Al-Shaheer Corporation, The Organic Meat Company, Lahore Meat Company, and Ever fresh Meat known with Shafi Group 10

11 31 China Comparative Advantage Large domestic market Religious limitations Limitations to ensure Halal animals feeding & slaughtering India Large domestic market Multi-religious society (Cow, etc.) Limitations to ensure Halal animals feeding & slaughtering South America Limitations to ensure Halal animals feeding & slaughtering Pakistan 100% Halal animals feeding & slaughtering Practicing Islamic society Animal loving people ~ Livestock rearing a way of life & livelihood 32 Weaknesses of Beef Industry 33 Background Information Numerous factors involved in prospects of livestock Large animal especially cattle populations Agricultural raw materials... as feed and fodder Large scale meat slaughtering Failure of crop sector Lowering per capita land holding Livestock policies of government.. 11

12 34 Development of Beef Breed No proper beef breed Plan started in 1969 Droughtmaster cows & one bull imported from Australia Kept at Beef production research centre, Sibi 35 Large Livestock Herds Pakistan is one of post large livestock population containing country Trends of population of cattle and buffalo increasing Scattered population i.e., fragmented Feeding resources are decreasing Many mouths but no feed Less part in export 36 Improper Slaughtering and Transportation lack of modern abattoirs processing units Major meat sold -- open market lack proper sanitation system untrained staff slaughtering on floor Improper disposing of blood and waste water Deterioration in meat quality 12

13 37 TOP BOVINE MEAT EXPORTER Series WORLD TOP BOVINE MEAT IMPORTERS Series

14 40 Opportunities 41 Future Potential and Strategies Demand for meat and meat products will further increase in developed and developing countries Developing countries will see a robust growth than developed due to increasing population, per capita income growth, urbanization and nutritional shifts. In Pakistan, per capita consumption is to rise Kissan Package worth Rs. 341 billion 42 Crisis of Animal Protein FDA/WHO standards defines g daily req. of protein Crisis is about quality in Pakistan Half of it should be from animal source Per capita meat consump. is only 21 kg (Pak Econ. Surv,16-17) 42 kg is average world meat consumption (FAOSTAT, 2012) 14

15 43 Sustainability Fulfilling Demands Supply Demand Curve Climate Concerns Increase in production due to maintenance dilution effect Use of Omics and future Interventions & Improvements Animal production facilities Developing cutting edge research technologies Improving efficiency of livestock Enhancing local abattoirs facilities Staff training Cold supply chain management & value addition Implementing HACCP, ISO etc. standards New and improved packaging techniques Proper distribution sys- tem as well as inspection Grading system to meat global markets Controlling trans boundary animal diseases Opportunities Four-year exemption on income tax policy for installation of halal meat production Organization of Islamic Countries (OIC) ranked Pakistan only after Malaysia on the Halal Food Indicator(HFI) Global Islamic Economy Indicator (GIEI) ranking placed Pakistan at 5 th Competitive advantage like Muslim population, cheap labor, resourceful agriculture based country Pakistan Halal Authority (PHA) bill has been passed by National Assembly of Pakistan in 2015 to set up halal authority 15

16 46 THREATS 47 Pros and Cons in Pakistan Meat Industry Issues Addition of water in carcass, supply of non- branded meat antibiotic residues Lack of consistent and high quality meat production Rectification Punjab food Authority Innovation in meat processing sector to enhance quality characteristics, extend shelf-life and storage stability. Breeding Policy Involvement of corporate sector Farmers oriented research Dissemination Contd.. 48 Issues lack of modern abattoirs processing units Major meat sold -- open market lack proper sanitation system untrained staff slaughtering on floor Improper disposing of blood and waste water meat industry not taken care seriously 2 nd buffalo, 8 th cattle herd, 3 rd goat & 9 th largest sheep very scattered so expensive -- decrease the meat quality Rectification Restricted slaughtering like, big birds, Fauji meat etc. Developing better lairage Introduced to both small and large scale production system 16

17 Contd.. Issues lack of proper supply chain system, consumer must be capable to identify what opting Proper legislation and implementation Biggest challenge is regulatory requirements 49 Rectification Lahore meat processing complex (LMPC) under the umbrella of Punjab agriculture and meat company (PAMCO) mechanical slaughtering lines for beef and mutton, hygienic processing facilities, blood rendering plant, waste water treatment plant, cooling system as well as value addition through meat and meat based products developments Additionally, PAMCO is ISO, HACCP and Halal certified Conclusion 50 Pakistan majority population consist of Muslims (96%) thereby, production of halal meat and meat products is prerequisite. Demand of halal meat is increasing due to its escalating popularity and acceptance halal as a brand Meat is essential component of Pakistani diet industry needs improvisation Pakistan being an agricultural and Muslim majority country, has potential innovative technologies for animal breeding, proper animal s welfare and feeding system, mechanized slaughtering, processing and improved packaging provision of supply chain system as well as strictly following the safety and quality legislation yield fruitful outcomes 51 Additional Material An Insight of Meat Industry in Pakistan with Special Reference to Halal Meat: A Comprehensive Review ( 17

18 52 Reading Assignment # 1 A4 (one page summary) 18