Pakistan Meat Industry Experiencing Strong Growth

Pakistan per capita meat consumption has nearly tripled from 11.7 kg in 2000 to 32 kg in 2016. It is projected to rise to 47 kg by 2020.

Rising Incomes and Meat Consumption:

Pakistan's per capita meat consumption has nearly tripled from 11.7 kg in 2000 to 32 kg in 2016. It is projected to rise to 47 kg by 2020, according to a paper published by the United States National Library of Medicines at the National Institutes of Health (NIH).  Organization for Economic Development (OECD) explains that meat demand increases with higher incomes and a shift - often due to growing urbanization - to food preferences that favor increased proteins from animal sources in diets.

Meat Production in Pakistan. Source: FAO

The NIH paper authors Mohammad Shoaib and Faraz Jamil point out that Pakistan's meat consumption of 32 Kg per person is only a third of the meat capita meat consumption in rich countries like Australia and the United States.

A study published in Proceedings of the National Academy of Sciences and Nature magazine reports that Pakistanis are among the most carnivorous people in the world.  After studying the eating habits of 176 countries, the authors found that average human being is at 2.21 trophic level. It put Pakistanis at 2.4, the same trophic level as Europeans and Americans. China and India are at 2.1 and 2.2 respectively.

Increasing Meat Exports: 

Pakistan's meat exports are growing about 30% a year, up from $29 million in 2005 to $243.5 million in 2015, according to report in Globalmeatnews.com.

Pakistan Meat Exports. Source: Express Tribune

Rapid growth in meat production and exports is supported by an ongoing livestock revolution in the country.  The Pakistani livestock sector now contributes about 56.3% of the value of agriculture and nearly 11% to the overall gross domestic product. Milk is the single most important commodity in this sector.

Future Growth:

“In the next three to five years, livestock sector should grow 4-5% per annum and its contribution to GDP looks set to remain in double digits”, says a senior official of the Ministry of National Food Security and Research according to Dawn newspaper. In FY16, livestock growth was 3.6% and its 11.6% contribution to GDP value-addition.

Downside:

While the global meat industry provides food and a livelihood for billions of people, it also has significant environmental and health consequences for the planet. The key is moderation in meat consumption to maintain good health and protect the environment.

Summary:

Pakistan's per capita meat consumption has nearly tripled since 2000. It has grown with higher per capita incomes and increasing urbanization.  Meat exports are also accelerating at a rate of 30% a year. Meat consumption and exports are supported by an ongoing livestock revolution in the country.  The Pakistani livestock sector now contributes about 56.3% of the value of agriculture and nearly 11% to the country's overall gross domestic product. Milk is the single most important commodity in this sector.

Related Links:

Haq's Musings

Meat and Dairy Revolution in Pakistan

Pakistanis Are Among the Most Carnivorous

Eid ul Azha: Multi-Billion Dollar Urban-to-Rural Transfer

Pakistan's Rural Economy

Pakistan Leads South Asia in Agriculture Value Addition

Median Incomes in India and Pakistan

Views: 2226

Comment by Riaz Haq on April 5, 2020 at 10:41pm

Pakistan fat intake 67 g/person/day

India 48 g/person/day

World: 79 g/person/day
Developed countries: 131 g/person/day
Developing World: 66 g/person/day
Sub-Saharan Africa: 46 g/person/day

http://chartsbin.com/view/1156


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Livestock accounts for the biggest contribution to agriculture sector and there has been a quite interesting trend in the livestock products where every single product has witnessed a handsome growth in production except mutton. In case of mutton production, there has been a shift in trend, first increasing production from 2001-2004 followed by a sharp decline in 2005-06 and then increasing again. First look at the data suggest that this sharp decline in the production of mutton is due to the substitution effect as the production of its close substitutes (beef and poultry meat) has experienced a sharp increase for the same year but this notion requires detailed analysis (see, Figure 3). Beef production has seen a growth of 100 percent from 2001-2016 while it’s the poultry products which has seen the sharpest growth with the growth of 245 percent in poultry meat and 116 percent in the production of eggs. Increasing by every year, milk production in the country has observed a growth of 67 percent from 2001-2016.

https://mpra.ub.uni-muenchen.de/83522/1/MPRA_paper_83522.pdf

Comment by Riaz Haq on April 6, 2020 at 1:38pm

Agriculture Development
in the Central Asia Regional
Economic Cooperation Program
Member Countries
Review of Trends, Challenges,
and Opportunities
INTERNATIONAL FOOD POLICY RESEArch INSTITuTE
DECEMBER 2019

Food Intake
The average daily per capita calorific intake was estimated at 2,440 kcal in 2013. Figure A.62 displays the
proportion of calorific intake contributed by each of the major food groups. Cereals accounted for 48% of
daily calorific intake in 2013. Calorific intake from animal sources comprised 22%, while fruit and vegetables
accounted for 2%. The average daily per capita protein consumption was estimated at 65.5 grams, while the
average dietary energy supply adequacy was estimated to be 108% in 2015–2017.


https://www.adb.org/publications/trends-agricultural-development-ca...

Comment by Riaz Haq on April 6, 2020 at 4:48pm

Highlights (food security, nutrition and health conditions)

http://www.fao.org/3/ca5585en/ca5585en.pdf

• Pakistan’s food security and nutrition status has much room to improve (slide 12).
• In 2015–2017, one-fifth (20.5 percent) of its population was undernourished; the percentage
was higher than the Southern Asian average (15.2 percent), the Asian average (11.5 percent)
and the world average (10.8 percent).
• In 2012, 45.0 percent of children in Pakistan were stunted (chronic malnutrition); the
percentage was higher than the Southern Asian average of 37.9 percent, the Asian average of
27.1 percent and the world average of 24.9 percent.
• In 2016, 52.1 percent of Pakistan’s women of reproductive age (15–49 years) were anaemic; the
percentage was much higher than the world average (32.8 percent).
• Pakistan’s total protein intake increased from 59.4 g/day per capita in 1993 to 65.5 g/day in 2013
(slide 13). Its 65.5 g/day per capita total protein intake in 2013 was slightly higher than the Southern
Asian average (61.7 g/day), yet much lower than the world average (81.2 g/day) (slide 14).
• Pakistan’s life expectancy at birth in 2017 was 67 years (68 years for women and 66 years for men),
which was lower than the Southern Asian average (69 years), the Asian average (73 years), the
developing regions average (71 years) and the world average of 72 years at that time (slide 15).

Pakistan: 20.5 percent of the population (nearly 40 million people) were undernourished in
the mid-2010s – the percentage was higher than the Southern Asian average (15.2 percent),
Asian average (11.5 percent) and world average (10.8 percent); a large proportion (45 percent
in 2012) of children were stunted.

Pakistan: Total protein intake increased from 59.4 g/day per capita in 1993
to 65.5 g/day per capita in 2013; the share of animal protein in total protein
increased from 33.4 percent to 41.6 percent, yet the share of fish and
seafood declined from 1.3 percent to 0.9 percent.

Pakistan’s total protein intake in 2013 was 65.5 g/day per capita, slightly higher than the Southern Asian
average (61.7 g) but only 80 percent of the world average (81.2 g); its animal protein was 41.6 percent of
total protein, slightly higher than the world average (39.6 percent) and much higher than the Southern
Asian average (22.5 percent); its fish protein was 0.9 percent of total protein, much lower than the
Southern Asian average (3.1 percent) and world average (6.5 percent).

Pakistan: In 2017, life expectancy at birth was 67 years, lower than the Southern Asian
average (69), developing regions average (71) and world average (72); women are
expected to live longer than men in Pakistan (68 years versus 66 years).

Highlights (contribution of fish to food and nutrition)
• Pakistan’s 27.3 g/day per capita animal protein intake in 2013 was slightly lower than the world average
(32.1 g/day) but twice as much as the Southern Asian average (13.9 g/day) (slide 18), yet fish
contributed only 2.2 percent of the country’s animal protein intake in 2013 (slide 19), declining from
3.8 percent in 1993 (slide 20), much lower than the Southern Asian average (13.7 percent) and world
average (16.3 percent) (slide 19).
• In 2013, 82.8 percent of Pakistan’s fish production was food fish for direct human consumption, and
17.2 percent was for non-food uses (slide 21).
• In 2013, 98.8 percent of Pakistan’s food fish supply was from domestic production, and food fish import
accounted for 1.2 percent (slide 21).
• In 2013, 67.1 percent of Pakistan’s food fish utilization was for domestic consumption, and 32.9 percent
was for export (slide 21).
• Only one-third of the increase in Pakistan’s food fish supply during 1993–2013 went to domestic
consumption; the other two-thirds were accounted for by net export. The 28 percent increase in total
fish consumption during the period is only half of the 56 percent growth in its population, resulting in a
decline in its per capita fish consumption from 2.8 kg in 1993 to 1.9 kg in 2013 (slide 22).

Comment by Riaz Haq on January 7, 2021 at 11:02am

Advances in farming technology and intensification of animal agriculture increase the cost-efficiency and production volume of meat. Thus, in developed nations, meat is relatively inexpensive and accessible. While beneficial for consumer satisfaction, intensive meat production inflicts negative externalities on public health, the environment and animal welfare. In response, groups within academia and industry are working to improve the sensory characteristics of plant-based meat and pursuing nascent approaches through cellular agriculture methodology (i.e., cell-based meat). Here we detail the benefits and challenges of plant-based and cell-based meat alternatives with regard to production efficiency, product characteristics and impact categories.

https://www.nature.com/articles/s41467-020-20061-y


Global production and consumption of meat continue to surge as demand is driven upward by population growth, individual economic gain, and urbanization1,2. In 2012, the Food and Agriculture Organization (FAO) of the United Nations projected the global demand for meat would reach 455 M metric tons by 2050 (a 76% increase from 2005)3. Likewise, the global demand for fish is projected to reach 140 M metric tons by 20504. The majority of this incline is attributed to middle-income countries (e.g., China), as consumption in higher-income countries is relatively stagnant or marginally decreasing (e.g., United Kingdom) and in lower-income countries, the rate of consumption is fairly constant (e.g., India)1. This pattern is consistent with a proposed theory that the relationship between meat consumption and income follows an “inverted U-shaped” trend; consumption initially increases with rises in income but eventually reaches a turning point at which consumption stagnates or declines5. This observation may be rationalized by correlations between high income and increased concern for the consequences of animal agriculture5.

This rising demand is problematic as current methods of large-scale animal husbandry are linked to public health complications, environmental degradation and animal welfare concerns. With regard to human health, the animal agriculture industry is interconnected with foodborne illness, diet-related disease, antibiotic resistance, and infectious disease6,7. Notably, zoonotic diseases (e.g., Nipah virus, influenza A) are linked to agricultural intensification and meatpacking plants in the United States were hotspots for COVID-19 outbreaks7,8. Animal agriculture also contributes to environmental issues including greenhouse gas emissions, land use, and water use1. The United Nations Intergovernmental Panel on Climate Change released a 2018 report asserting that greenhouse gas emissions must be reduced 45% by 2030 to prevent global temperatures from increasing 1.5 °C; a target that could mitigate catastrophes associated with a 2.0 °C increase9. Conventional mitigation techniques include improvements in reforestation, soil conservation, waste management as well as tax policy, subsidies, and zoning regulations10. While these strategies remain important, the urgency of climate change may require more transformative approaches. Lastly, with regard to animal welfare concerns, each year billions of animals are killed or suffer either directly (e.g., farm animal slaughter, seafood fishing) or indirectly (e.g., fishing by-catch, wildlife decline due to habitat destruction) in relation to human food systems11,12.

Comment by Riaz Haq on June 25, 2021 at 11:21am

Pakistan exports around four percent of beef and veal produced in a year. Being the world’s top-10 beef and veal producers, the country produces approximately 1.8 million tons.

https://www.thenews.com.pk/print/853605-malaysia-clears-third-pakis...

Exports of meat and meat preparations amounted to $306 million in the first 11 months of the current fiscal year, around 10 percent up over the preceding fiscal year. That was 1.4 percent of the country’s total exports of $22.6 billion.

The global halal food market was valued at $715 billion in 2018, and is expected to grow at an average 12.7 percent between 2019 and 2027, according to an estimate.

The trade balance is in favour of Malaysia, and the volume of bilateral trade could be multiplied within next few years if certain adjustments are made in the free trade agreement with Pakistan.

China in April allowed another Pakistani firm to export meat to one of the world’s biggest markets after lifting quarantine restrictions.

The Organic Meat Company received an approval from Chinese customs authorities for export of heat-treated meat to China.

The company has pioneered the heat treatment process whereby foot and mouth disease virus can be removed from beef meat. China is one of the world’s largest beef consumers and that imports half a million tons annually to reduce gap in demand and supply.

Chinese authorities had imposed quarantine restrictions on Pakistan’s meat which has the world’s lowest price. Pakistan exports beef to Vietnam in bulk and from there it enters into China without any restrictions.

Comment by Riaz Haq on June 25, 2021 at 1:31pm

With 1.32 billion birds, #Pakistan has the world's 5th largest #poultry population. #meat #eggs #protein https://www.statista.com/statistics/263961/top-countries-worldwide-...

https://twitter.com/haqsmusings/status/1408522023186227202?s=20

Comment by Riaz Haq on November 6, 2021 at 7:18pm

Record meat exports at 95,991 tonnes in FY21

https://www.dawn.com/news/1647843

KARACHI: Pakistan exported 95,991 tonnes (worth $333 million) meat and meat preparations in FY21 — an all-time high figures — against 83,749 tonnes ($304m) a year ago. However, the average per tonne price (APT) remained low at $3,473 as compared to $3,631 in FY20.

The new fiscal started with a twist as the APT price soared to $4,234 in July-August 2021-22 from $3,444 in the same period in the last fiscal year despite drop in quantity to 11,702 tonnes ($49m) from 14,974 tonnes ($51.5m) in the same period FY21, down by 22pc in quantity and 4pc in value.

Exports have been facing a downward trend from July 2021. As per figures of Pakistan Bureau of Statistics (PBS), in July 2021, exports plunged to 5,889 tonnes ($25m) from 8,176 tonnes ($28m) in July 2020. The APT price stood at $4,182 in July 2021 versus $3,465 in July 2020.

In August 2021, exports stood at 6,047 tonnes ($25m) as compared to 6,798 ($23m) in the same month in 2020. The APT went up to $4,213 from $3,418 in the above period.


In the last 10 years, exports hovered in the range of 56,000-85,000 tonnes.

Pakistan’s meat exports have been struggling to compete with the exporters of African countries who have been offering competitive prices for shipments to the Middle East markets than local exporters, Managing Director of PK Livestock Tariq Mehmood Butt said.

However, massive rupee devaluation against the dollar from May 2021 till to date has provided a much breathing space for the exporters, he said. However, high local meat prices have diluted the positive impact of rupee fall against the greenback. One dollar was equal to Rs152 in May 2021 as compared to Rs169 now in the interbank market, Mr Butt added.

He explained that the cattle mandi and quarantine fees were taken by the government, thus pushing up costs and decreasing competitiveness of exportable items.

Pakistan exports 98pc of meat and meat preparations to the ME markets by air. The share of beef is 95pc of total exports; he said adding that Tanzania, Kenya, Ethiopia and Sudan are giving a tough time to Pakistani exporters.

Comment by Riaz Haq on November 6, 2021 at 7:38pm

Pakistan’s Meat Exports Records 100% Growth in A Decade

https://propakistani.pk/2021/06/07/pakistans-meat-exports-records-1...

Pakistan’s exports of meat and meat preparations are gradually penetrating different countries in terms of volume and value as it recorded a staggering increase of over 100 percent over a decade.

Pakistan’s annual meat exports have doubled over the last decade from $152.4 million in FY11 to $304.2 million in FY20. More recently, in H1-FY21, the export of meat and meat preparations has grown by 3.6 percent to $161.5 million from $155.8 million in H1-FY20, according to a quarterly report by the State Bank of Pakistan (SBP).

By the end of 10 months of the current financial year 2022-2021, the exports of meat and meat preparations have surged to $280 million, which is almost nine percent higher than the corresponding period of the last financial year, according to the Pakistan Bureau of Statistics (PBS).

The exports of the meat sector have had gradual growth over a period of decades, with new markets being opened through market players who are working to comply with the food standards of various exporting countries coupled with bringing advanced machinery and new practices to Pakistan.

The meat exports include raw and frozen beef, mutton, lamb, and chicken. The export of by-products includes casing, bones, horns and hooves, gelatin, etc.

The exports of meat and meat products are largely concentrated to Gulf countries including Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Bahrain. Export of meat is also increasing to countries such as Hong Kong, Maldives, and Vietnam.

In recent months, Pakistani exporters also received access to lucrative markets like Malaysia and China for the export of beef. The volume of the Malaysian meat market is estimated at $2 billion per annum whereas China’s demand for only beef is huge at $15 billion per year.

The promising rise in the export of meat and meat preparations is an indicator of the pickup in livestock production.  The livestock sector represented 60.6 percent of value addition in agriculture and 11.7 percent of the GDP in FY20, and contributed around three percent to the total export earnings; livestock production also engages nearly eight million rural households, making it an important sector in terms of employment outcomes, according to the SBP’s report.

Comment by Riaz Haq on September 13, 2022 at 10:14am
Al-Shaheer Corporation Limited (ASC), a major meat exporter, on Tuesday announced that it has become the first local company to sign a business relationship agreement with McDonald's Pakistan for the supply of beef products.
The company, in a notice sent to the Pakistan Stock Exchange (PSX), said the beef products would be supplied through its frozen food facility located in Lahore.
“It is our great pleasure to announce that ASC is the first-ever Pakistani company to enter into a business relationship agreement with McDonald's Pakistan for the supply of beef products,” it said in the PSX notice.

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