Chicken More Affordable Than Daal in Pakistan?

Pakistan's finance minister Ishaq Dar has suggested to his countrymen to eat chicken instead of daal (pulses or legumes). Does the minister sound like Queen Marie-Antoinette (wife of France's King Louis XVI) who reportedly said to hungry rioters during the French Revolution:  “Qu'ils mangent de la brioche”—“Let them eat cake”? Let's look into it.

It is indeed true that some varieties of daal are priced higher than chicken. For example, maash is selling at Rs. 260 per kilo, higher than chicken meat at Rs. 200 per kilo. But other daals such as mung, masur and chana are cheaper than chicken.

The reason for higher daal prices and relatively lower chicken prices can be found in the fact that Pakistan's livestock industry, particularly poultry farming, has seen significant growth that the nation's pulse crop harvests have not.

Poultry Farm in Pakistan

Pakistan's poultry industry achieved 127% growth in the total number of birds produced, 126% growth in the total meat production and 71%growth in terms of total eggs produced between 2000 and 2010, according to government data. As a result, the cheapest sources of animal protein in Pakistan are the eggs and meat from the poultry sector.  As of 2013, the per capita availability of poultry meat in Pakistan is 5 kg. In addition, Pakistanis consume 51 eggs per year per capita.

Major Pulse Producing Nations in 2011

Poultry share of meat consumption in Pakistan has steadily increased over the years.  In 1971, the market share of beef was 61%, mutton was 37%, and poultry meat a mere 2-2.5%. In 2010 the market share of poultry meat had increased to 25%, while beef and mutton declined to 55% and 20% respectively.  This increase in the overall size of the poultry sector has decreased the gap between the supply and demand of animal proteins and helped stabilize beef and mutton prices, making meat relatively more affordable to more people.

Production of daal, another important source of protein in Pakistan, has not kept pace with demand. Domestic production is not enough to provide 6-7 kilos of daal per person consumed in the country. Pakistan is forced to resort to imports to meet demand. Pakistan spent $139 million to import 628,000 tons of pulses in fiscal year 2010-2011. Pulse imports jumped to $224 million in July 2014 to January 2015 period, according to a report.

Overall, livestock contribution to agriculture in Pakistan has now risen to 58.55 percent, with the rest coming from crops, fisheries and forestry, according to Economic Survey of Pakistan 2015-16. The agriculture sector accounts for 19.82 percent of GDP and 42.3 percent of employment with strong backward and forward linkages. Dairy farming has grown in Pakistan by leaps and bounds, making the country the third largest milk producer in the world.

Services sector now accounts for 59.16% of Pakistan's GDP,  the largest sector of the economy, followed by industrial sector that contributes 21.02%. Manufacturing is the most important sub-sector of the industrial sector containing 64.71 percent share in the overall industrial sector.

There has been significant progress in increasing animal protein supply via growth in Pakistan's livestock sector over the last few decades. Nations' policymakers now need to focus on increasing plant protein sources to close the gap between protein supply and demand in an affordable manner.

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Comment by Riaz Haq on May 21, 2022 at 7:20pm

Our total consumption of wheat and atta is about 125kg per capita per year. Our per person per day calorie intake has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2,580 in 2020-21

By Riaz Riazuddin former deputy governor of the State Bank of Pakistan.


https://www.dawn.com/news/1659441/consumption-habits-inflation

As households move to upper-income brackets, the share of spending on food consumption falls. This is known as Engel’s law. Empirical proof of this relationship is visible in the falling share of food from about 48pc in 2001-02 for the average household. This is an obvious indication that the real incomes of households have risen steadily since then, and inflation has not eaten up the entire rise in nominal incomes. Inflation seldom outpaces the rise in nominal incomes.

Coming back to eating habits, our main food spending is on milk. Of the total spending on food, about 25pc was spent on milk (fresh, packed and dry) in 2018-19, up from nearly 17pc in 2001-01. This is a good sign as milk is the most nourishing of all food items. This behaviour (largest spending on milk) holds worldwide. The direct consumption of milk by our households was about seven kilograms per month, or 84kg per year. Total milk consumption per capita is much higher because we also eat ice cream, halwa, jalebi, gulab jamun and whatnot bought from the market. The milk used in them is consumed indirectly. Our total per person per year consumption of milk was 168kg in 2018-19. This has risen from about 150kg in 2000-01. It was 107kg in 1949-50 showing considerable improvement since then.

Since milk is the single largest contributor in expenditure, its contribution to inflation should be very high. Thanks to milk price behaviour, it is seldom in the news as opposed to sugar and wheat, whose price trend, besides hurting the poor is also exploited for gaining political mileage. According to PBS, milk prices have risen from Rs82.50 per litre in October 2018 to Rs104.32 in October 2021. This is a three-year rise of 26.4pc, or per annum rise of 8.1pc. Another blessing related to milk is that the year-to-year variation in its prices is much lower than that of other food items. The three-year rise in CPI is about 30pc, or an average of 9.7pc per year till last month. Clearly, milk prices have contributed to containing inflation to a single digit during this period.

Next to milk is wheat and atta which constitute about 11.2pc of the monthly food expenditure — less than half of milk. Wheat and atta are our staple food and their direct consumption by the average household is 7kg per capita (84kg per capita per year). As we also eat naan from the tandoors, bread from bakeries etc, our indirect consumption of wheat and atta is 41kg per capita. Our total consumption of wheat and atta is about 125kg per capita per year. Our per person per day calorie intake has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2,580 in 2020-21. The per capita per day protein intake in grams increased from 63 to 67 to about 75 during these years. Does this indicate better health? To answer this, let us look at how we devour ghee and sugar. Also remember that each person requires a minimum of 2,100 calories and 60g of protein per day.

Undoubtedly, ghee, cooking oil and sugar have a special place in our culture. We are familiar with Urdu idioms mentioning ghee and shakkar. Two relate to our eating habits. We greet good news by saying ‘Aap kay munh may ghee shakkar’, which literally means that may your mouth be filled with ghee and sugar. We envy the fortune of others by saying ‘Panchon oonglian ghee mei’ (all five fingers immersed in ghee, or having the best of both worlds). These sayings reflect not only our eating trends, but also the inflation burden of the rising prices of these three items — ghee, cooking oil and sugar. Recall any wedding dinner. Ghee is floating in our plates.

Comment by Riaz Haq on June 9, 2022 at 5:07pm

Pakistan Economic Survey: Health & Nutrition 2021-22

https://www.finance.gov.pk/survey/chapter_22/PES11-HEALTH.pdf

Infant Mortality Rate (IMR) in Pakistan has declined to 54.2 deaths per 1,000 live births
in 2020 from 55.7 in 2019, while Neonatal Mortality Rate declined to 40.4 deaths per
1,000 live births in 2020 from 41.2 in 2019. Percentage of birth attended by skilled
health personnel increased to 69.3 percent in 2020 from 68 percent in 2019 (DHS & UNICEF). Maternal Mortality Ratio fell to 186 maternal deaths per 100,000 births in
2020, from 189 in 2019 (Table 11.1).
With a population growing at 2 percent per annum, Pakistan’s contraceptive prevalence
rate in 2020 decreased to 33 percent from 34 percent in 2019 (Trading Economics).
Pakistan’s tuberculosis incidence is 259 per 100,000 population and HIV prevalence rate
is 0.12 per 1,000 population in 2020.


Table 11.1: Health Indicators of Pakistan
2019 2020
Maternal Mortality Ratio (Per 100,000 Births)* 189 186
Neonatal Mortality Rate (Per 1,000 Live Births) 41.2 40.4
Mortality Rate, Infant (Per 1,000 Live Births) 55.7 54.2
Under-5 Mortality Rate (Per 1,000) 67.3 65.2
Incidence of Tuberculosis (Per 100,000 People) 263 259
Incidence of HIV (Per 1,000 Uninfected Population) 0.12 0.12
Life Expectancy at Birth, (Years) 67.3 67.4
Births Attended By Skilled Health Staff (% of Total)** 68.0 (2015) 69.3 (2018)
Contraceptive Prevalence, Any Methods (% of Women Ages 15-49) 34.0 33
Source: WDI, UNICEF, Trading Economics & Our World in data
-----------

Food and nutrition

Calories/day 2019-20 2457 2020-21 2786 2021-22 2735

-------

Table 11.9: Availability of Major Food Items per annum (Kg per capita)
Food Items 2019-20 2020-21 2021-22 (P)**
Cereals 139.9 170.8 164.7
Pulses 7.8 7.6 7.3
Sugar 23.3 28.5 28.3
Milk (Liter) 168.7 171.8 168.8
Meat (Beef, Mutton, Chicken) 22.0 22.9 22.5
Fish 2.9 2.9 2.9
Eggs (Dozen) 7.9 8.2 8.1
Edible Oil/ Ghee 14.8 15.1 14.5
Fruits & Vegetables 53.6 52.4 68.3
Calories/day 2457 2786 2735
Source: M/o PD&SI (Nutrition Section)

Comment by Riaz Haq on June 20, 2022 at 8:10am

#Pakistan #poultry industry growing 10-12% a year. 15,000 poultry farms throughout the country with capacities ranging from 5,000 to 500,000 broilers. The industry produces 1.3 million tons of #chicken meat annually. #food #protein #calories https://profit.pakistantoday.com.pk/2022/06/06/poultry-industry-gro... via @Profitpk

Poultry is one of the fastest-growing industries in Pakistan with investments of about Rs1.1 trillion.

According to the Pakistan Poultry Association (PPA) report, the industry is the largest agro-based segment, generating employment and income for about 1.5 million people directly and indirectly.

The sector is growing at a fast pace of 10-12% per annum. At present, around Rs190 billion worth of agriculture products are being used by the poultry industry, speeding up the growth in the agriculture sector.

There are estimated 15,000 poultry farms throughout the country with their capacity ranging from 5,000 to 500,000 broilers. Pakistan’s poultry industry produces 1,245 million kilograms of chicken meat annually.

Ali Hasnain, a supervisor of the poultry sector, said that Pakistan’s poultry industry was no less than the international standards. “The poultry industry meets 50% of the total demand for meat in the country, and the rest is met by other meat products like beef, mutton and fish.”

“With the introduction of advanced technologies, more investments are coming around to cater to market needs and earn handsome revenues,” said Ali Hasnain, adding the poultry industry still had a lot of potential to contribute to the economy.

As per the PPA report, meat consumption per capita in Pakistan is less than the developed countries. The consumption of meat and eggs per capita is 6.2 kilograms and 56 eggs annually. In the developed world, the per capita meat consumption is 40 kilograms and 300 eggs annually.

According to the World Health Organisation, a person needs 27 grams of animal protein per day, while most people in Pakistan only consume 17 grams.

To meet the international standards of meat consumption, the supply and production need to be increased and prices need to be brought down so that consumers can get the required meat and egg consumption levels. An increase in production will certainly require more investments in the industry.

To boost production and bring down product rates, imports of poultry-related equipment should be exempted from duties and taxes.

In addition, as growers increasingly need land to establish sheds, the government should provide state land to investors at nominal rates to generate investments and more production.

Haniful Hassan, owner of a poultry farm, said that the current increase in prices of chicken was due to rise in prices of poultry feed. “The price of a feedbag has risen by 900 per bag in the last five months. We want the government to bring down the poultry feed rates to offset the price spiral,” he added.

Haniful Hassan called for establishing poultry research institutes, production directorates and a federal poultry board to provide research and training to farmers.

The government should also ensure easy availability of loans to people related to the industry.

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