Export and Sales of. Rhodes Grass Hay. May 22, 2016 Rhodes Grass Workshop. Fraz Shafique Director, Training Pakistan Private Limited
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1 Export and Sales of 1 Rhodes Grass Hay May 22, 2016 Rhodes Grass Workshop Fraz Shafique Director, Training Pakistan Private Limited
2 2 OUR NETWORK Indusland Enterprises & GGW General Trading LLC (Dubai-based Companies) Golden Gate World ( USA based alfalfa / Bermuda and Timothy hay company ALFALFA HAY RHODES GRASS HAY BERMUDA GRASS HAY TIMOTHY GRASS HAY
3 3 KEY DRIVERS EXPORTED ~90 % RHODES GRASS Water Scarcity (Rhodes grass used 3 out of every 5 liters of water for agriculture (ADFCA)) Traditionally preferred fodder for camels Low oil prices reduction in government subsidies
4 4 BUYERS & END USERS: in UAE/GCC Wholesale local cattle & fodder markets in different cities Yard-lots located in desert areas along major roads Abu Dhabi state backed buyers (Al Dahra) UAE Dairy Farms: nutrition analysis mandatory Pakistani Dairy Farms Camel Farms Exporters & Traders
5 5 UAE market by Numbers 18,000+ livestock farmers 2014: Million Metric Tonne (MMT) of Hay import Livestock population: Camel Cattle Sheep Goat 393,000 50,104 2,080,000 1,850,000 Source:
6 6 Middle East Livestock Population Country Camel Population* Cattle Population* United Arab Emirates 378,000 50,104 Saudi Arabia 896, ,000+ Oman 124, ,500* Qatar 49,809* 13,849* Kuwait 3,462* 20,555 Bahrain 1,016* 13,444* Jordan 60,623* Source: & Arab Organization for Agri Dev (AOAD) & * *dates of statistics vary from
7 7 EXPORT MARKETS & FODDER EXPORT MARKETS UNITED ARAB EMIRATES QATAR KUWAIT SAUDI ARABIA BAHRAIN JORDAN KOREA CHINA
8 8 Market analysis for Pakistani Rhodes Grass STRENGTHS 1. Logistics 2. Long (warm) growing season 3. Water and Skilled labor 4. Agriculture-based economy 5. Networks of Pakistani buyers in place in GCC
9 9 Market analysis for Pakistani Rhodes Grass WEAKNESSES 1. Quality controls 2. Consistency in quality 3. Lack of proper machinery for baling 4. Non commercial uses
10 10 Market analysis for Pakistani Rhodes Grass THREATS 1. Sudanese Rhodes grass 2. New potential sources: a) South Africa / Southern Africa b) Ukraine / Russia 3. Excessive poor / low quality Rhodes grass 4. Drop in fuel subsidies
11 11 Market analysis for Pakistani Rhodes Grass OPPORTUNITIES 1. Saudi Arabia phasing out cultivation of crops 2. Water scarcity issues potentially emerging in Oman 3. Reduction in subsidies for fodder in UAE
12 12 UNITED ARAB EMIRATES - SUBSIDIES 25% decrease in subsidies Rhodes grass sale now at 0.40 fils / kg (11.5 PKR / kg) Previous price was at 0.30 fils / kg
13 13 BALE TYPES kg square bales kg square bales kg bales MOST POPULAR BALE TYPE
14 14 REBALING PROCESS Take apart square bales Use local balers and make round bales Traditionally preferred by local livestock owners
15 15 ONLY 3 QUALITY STANDARDS 1.MUST BE GREEN IN COLOR 2.MUST BE SOFT (20-25 DAYS CUT) 3.MUST BE GREEN IN COLOR
16 16 LOGISTICS & LOW QUALITY HAY Advantages in Logistics for Pakistani Rhodes Grass Producers Stockpiling Rhodes grass hay bales inside farmers in Pakistan especially B and C grade bales Transferring the B & C grade bales to Dubai / GCC in January - February
17 17 LOGISTIC COSTS (estimated April 2016) Land to Karachi (per container) 40, Karachi - Jabal Ali Dubai (per container) 9, Custom Clearance - KHI (per container) 5, B/L Fee (per consignment) 5, COO Certificates (per invoice) Fumigation 2, Wharfage Charges 20, ANF/DEC (per container) 6, Shipment Handling 2, Total 90,450.00
18 18 ANNUAL PRICE VARIATIONS Month January February March April May June July August September October November December Avg. Price / 300 kg bale 420 aed (11,760 pkr) 430 aed (12,000 pkr) 380 aed (10,640 pkr) 370 aed (10,360 pkr) 330 aed (9,240 pkr) 320 aed (8,960 pkr) 300 aed (8,400 pkr) 310 aed (8,680 pkr) 290 aed (8120 pkr) 300 aed (8400 pkr) 320 aed (8960 pkr) 370 aed (10,360 pkr)
19 AED 300 kg x 36 bales / container 19 Annual Wholesale Price Trends 300 KG bales in Dirham (AED) AED JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC AED Month
20 PKR 20 Annual Wholesale Price Trends 300 KG bales in PKR PKR 13, , , , , , , , , , , , , , , , , , , JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC PKR 11, , , ,360. 9, , , , , , , ,360. Month
21 PKR 21 Annual Wholesale Price Trends PKR / KG basis Per KG - PKR 14, , , , , , , JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Per KG PKR 11,760 12,000 10,640 10,360 9,240. 8,960. 8,400. 8,680. 8,120. 8,400. 8, ,360 Month
22 22 Annual Wholesale Price Trends PKR / KG basis (minus logistics costs) JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC Per KG
23 23 Ratio of GOOD:BAD Hay Good hay produced: 70% - 80% Bad hay produced: 20% - 30%
24 24 SALE STRATEGY FOR EXPORT Sale pricing should be handled accordingly Stack up on the bad hay during AUG / SEPT / OCT / NOV Start shipping bad hay containers in December
25 25 Stacking Hay
26 26 Training Pakistan Services 1) Assist in Quality Control of Hay making 2) Grade hay at site 3) Market and Sell to buyers in the UAE & GCC 4) Sales within Pakistan
27 27 THANK YOU!
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