University of Veterinary and Animal

Sciences, Lahore

Agriculture Sector in Pakistan An

Overview

Vital sector of Pakistan's economy

Accounts for 21 percent of GDP
Directly supports three-quarters of the
country's population, employs half the
labor force, and contributes a large share of
foreign exchange earnings
Main agricultural products are cotton, wheat,
rice, sugarcane, fruit and vegetables, in
addition to milk, beef, mutton, and
poultry.
Pakistan depends on one of the world's

US$ 1.70
bln

US$ 3.36
bln

US$ 2.94
bln

US$ 302
mln

US$ 324
mln

US$ 418
mln

Source: http://faostat.fao.org/site/339/default.aspx

US$ 3.01
bln
Milk and milk
products

US$ 1.02
bln

Pakistans Agriculture is
The
Larg
est
Producer
of
Kinnow

3rd

3rd

5th

Larg
est

Larg
est

Larg
est

Herd of
Livestoc
k

Producer
of Dates

Producer
of

Mango

5th

5th

Larg
est

Larg
est

Producer
of

Cotton

Producer
of Milk

Agricultural Sector Key

Statistics

Contribution to GDP
21.8%
(more than US$37 billion to the national economy)
Labor Force Employment
45.0%
Average Growth past 6 years
3.7%
Contribution of different Sub-Sectors in Agriculture
1. Crops (Wheat, Rice, Cotton, Sugarcane)
32.8%
2. Livestock
53.2%
3. Fisheries
4.0%
4. Forestry
2.0%
Share in Export Earnings (Raw/Processed)
1. Cotton + Cotton Based Products
64.7%

Pakistans Livestock
1

st

nd

Large
st

Larges
t

Segment of
rural
economy

Sector of
economy

Livestock
contributes
55.1% of

3rd
Larges
t

Herd of
Livestock

4th
Large
st

Exports
Products

Livestock
accounts for
11.5% of GDP.

5th
Large
st
Producer
of Milk

Livestock Sector Key

Statistics
Contributed
approximately 55.2% of
agriculture value added and 11.4% to national
GDP in 201011.

Gross value addition of livestock at current

factor cost has increased from Rs. 1304.6
billion (200809) to Rs. 1537.5 billion (2009
10) showing an increase of 17.8 %.
Pakistan earned USD717 million from leather
exports in FY09 and a meager USD96 million
from meat exports.

Livestock Sector Key

Statistics
This sector generates employment
(direct/indirect) and income for about 1.5
million people.

Population growth, increase in per capita

income and export revenue is fuelling the
demand for livestock and livestock products.
Poultry sector is one of the organized and
vibrant segments of agriculture industry of
Pakistan.
Poultry meat contributes 23.8 percent of the

Livestocks Contribution
ShareinRuralEconomy

Contribu onofSubSectors
7.00%

1.30% 1.60%
55.10%

42.00%

42.00%
Crops
LiveStock
Fisheries
Forestry

51.00%

Livestock
Agric
Others

Human
Population

1980

1990

2000

2015

81.230

109.900

141.256

204.267

(million)

Livestock Population
Cattle &
Buffalo

26.585

35.050

44.473

53.759

Sheep & Goat

46.392

61.144

71.500

94.545

Product

1990

2000

2015

Product

Pakista
n

Punjab %

Meat Pro

1.485 MT

2.061 MT

4.107 MT

Milk

42.199 MT

26 MT

62 %

Meat Con

1.313 MT

1.682 MT

3.247 MT

Beef

1.549 MT

0.589 MT

43 %

Milk Pro

14.723 MT

28.355 MT

43.307MT

Mutton

0.578 MT

0.283 MT

49 %

Milk Con

11.889 MT

21.142 MT

35.889 MT

Poultry Meat

0.601

0.333 MT

70 %

Dairy Sub-sector
Total milk production (09-10)

36.299 m tons

Milk market:
Producers (self or direct selling)
Informal market (Gawala operated)
Formal dairy industry

68.0 %
28.5 %

3.5 %

Dairy industry:
Main products are UHT and Pasteurized milk, Milk powder,

Yougurt, Cream, Cheese, etc.

3.0 million litres per day being procurement
Rs 63 million daily going to rural economy
25 out of 49 dairy plants are operational
Main players are Nestle, Engro, Haleeb, Engro, Millac

Meat Sub-sector
Total meat production (09-10)
2.965 ml. tons
Beef Production
1.655 ml. tons
Mutton Production
0.603 ml. tons
Poultry Meat
0.707 ml. tons
Meat market
Butchers operated shops, many slaughter at shops
Main players at slaughter house are artees
Fresh meat sold, only a few chilled meat selling
establishments
Meat industry
80 % slaughtering done outside out side slaughterhouses
11 private sector slaughter houses registered by Animal
Quarantine Deptt.
Total export is <0.6 percent of the production

Meat Production

000 Tons

Year

Beef

Mutton

Poultry

Total

2001-02

1034

683

355

2072

2002-03

1060

702

370

2132

2003-04

1087

720

378

2185

2004-05

1115

739

384

2238

2005-06

1449

554

512

2515

2006-07

1498

566

554

2618

2007-08

1549

578

601

2728

2008-09

1601

590

652

2843

2009-10

1655

603

707

2965

2010-11

1711

616

767

3094

Economic Survey of Pakistan 2010-11

Pakistan Export of Meat & Meat

2009-10

2010-11

Quantity
(MT)

In million
US Dollar

Quantity
(MT)

In million US
Dollar

20,081

53.9

29,281

82.3

EXPORT OF LIVE ANIMALS

Per Capita Meat Consumption (KG)

1983-2020

Countries

1983

1993

2020

Developed world

74

76

83

Developing
world
Pakistan

14

21

30

11

16

47

Source: Delgado, et al 1999, Livestock to 2020 The Next Food Revolution & GOP 2003, TCP-Pak-0168: Livestock
Action Plan Draft Report MINFAL

Punjab
Punjab Vision 2020
To create enabling environment for

raising livestock production and use

it as a vehicle for social security,
poverty

alleviation

development

and

ultimately

rural
leading

Mission of L&DD
Support livestock development in a

towards domestic food security and

policy & regulatory environment that

creation of exportable surpluses.

enables farmers to realize the

dividends of livestock farming by
smartly deploying public investments
in core public goods & inducing
private capital / initiative in the sector
for poverty alleviation, food security &
generation of exportable surpluses

Focus
Pro-poor growth ~ poverty alleviation
Services to smallholders
Providing key services
Creating enabling environment for private sector
Redirecting public investments
Creating food security & exportable surpluses

Livestock Population
Buffaloes = 30.8 million ( 18 million in Punjab)
Cattle = 34.3 million

(14.41 million in Punjab)

Goats = 59.9 million

(37.1 million in Punjab)

Sheep= 27.8 million

( 24.3 million in Punjab)

Rural Livestock
Livestock Production 2nd biggest economic

activity
67% rural population ~ 30-35 million
engaged in livestock
88 % livestock raised by small and landless farmers
30 35 million rural population engaged in livestock
40% dependent on livestock for income

More focus on Buffaloe

165.72m Buffalos (75%

of them habitat in Asia)

Pakistan has 14% of the
worlds Buffalo
Population.
Black Gold(Nili Ravi).

Livestock Products
Milk Production =

39 million tonnes annually.

Beef Production = 16 million tonnes / anum

Mutton Production =
6 million tonnes / anum
Poultry Meat =
7 million tonnes/ anum

Exportable Commodities:
Meat = 60.2 million US $( year 2009-10 )
Animal Export = 13.9 million US $ ( 2009-10 )
( Total export is about 40 billion rupees 11% of the
total foreign exchange)

Potential

 Productivity Enhancement
Value Addition

Milk Processing Plants

Modern Abattoirs & Processing Units

Building Supply Chains ~ market linkages

Genetics ~
improvement

Artificial

Insemination,

breed

Vaccine, Drugs, Semen & Embryo Production

& Marketing Units

 Global Halal market

Global Market for Halal

World Muslim population of 1.83 billion in 2009 out of 6.5 billion

World population
With average annual growth rate of about 1.80% per annum.

approximately 117,000,000 per yr. increase which does not

include conversion which on the rise currently.
Global Halal products market is estimated at US$2.3 trillion

excluding Islamic banking. * F&B (67%), pharmaceutical ( 22%), personal

care & cosmetics ( 10%)

If we include service sectors for the Halal market, the potential

size of total market is ASTRONOMICAL

Global Market for Halal

The trade in Halal food is enormous with est. annual halal food

value at US $347 billion globally

HALAL lucrative market and huge opportunities.

Awareness and interest in Halal products has increase

tremendously among Muslim and Non-Muslims as well.

Huge purchasing power among Non-Muslim countries.
Consumers views on Halal products are not only confined to

religious viewpoint but the CONFIDENCE that comes with the

Halal Branding.
Halal : HEALTHY, WHOLESOME & HYGIENE

Muslim Population by Regions

PEW Research Centres Forum on Religion & Public Life.Mapping the Muslim
Population. October 2009

Muslim Population by Regions

Estimated 2009
Muslim Population

Percentage of
Population that is
Muslim

Percentage of
Population Muslim

Asia-Pacific

972,537,000

24.1

61.9%

Middle East-North
Africa

315,322,000

91.2

20.1

Sub-Saharan Africa

240,632,000

30.1

15.3

38,112,000

5.2

2.4

4,596,000

0.5

0.3

1,571,198,000

22.9

100.0

Europe
Americas

World Total

Global Halal Market

Key Halal Market
Algeria
Iraq
Morocco
Tunisia

Bahrain
Jordan
Oman
Turkey

Egypt
Kuwait
Qatar
UAE

Indonesia
Lebanon
Saudi Arabia
Yemen

Iran
Malaysia
Syria
Pakistan

Combined population of key Halal markets : 652 Million

Key Halal Markets in Non-Muslim countries

India
China
USA
Phillippines

140million
40 million
8 million
6 million

France
Germany
UK
Canada

6 million
3 million
1.5 million
800,000

Some Notable Players

Nestle worlds largest food manufacturing corporation
McDonalds the worlds largest leading restaurant chain
KFC fully integrated poultry chain
Tesco & Carrefour worlds number one & two retail chain
Port Rotterdam Europes largest & the worlds 3rd largest port
Westports one of SEA top 10 ports
MISC the world second biggest shipping company
CIMB SEA biggest investment bank
Allanasons Indias biggest meat exporter
Al-Islami UAE halal food produces

Some Products.

New Sectors
Quality Assurance & Certification
Export Orientation
Supply Chain Management ~ backward &

forward linkages
Land
New animals ~ Ostrich
New fields ~ blood rendering, hormones,

gelatin,.
Breed Development

MILK PROCESSING PLANTS

33.23 billion liters of milk provide a promising enterprise, where

only 3% is being processing.

Small scale farming is not covering the full economic cost.

Significant element of economies of scales exist resulting in cost

reduction by 30-50% between the small and large scale farms.

Cost of milk production yet favorable for mass scale milk collection
and processing.

Huge consumer market exists.

Creation of milk collection network and transportation facilities in

the milk catchments ~ Nestle

Establishment of milk processing plants leading to production of

value added exportable products like reconstitute able milk
powder, cheese, butter and yogurt.

Establishment of mini pasteurization plants in Peri-Urban Areas.

ESTABLISHMENT OF MODERN
ABATTOIRS

27.335 million buffalo, 29.559 million cattle, 26.488 million sheep

and 53.787 million goats are being maintained for meat and milk
production.

1.237 MT of beef and 0.827 MT of mutton is being produced

annually.

Less then 5% id being processed and packed for local

consumption and export purpose.

6.5 million cattle and buffalo marketable calves are available for
strategic interventions in meat processing.

Hide & Skin processing for value addition as leather goods exists.

Establishment of Modern Abattoirs in 10 big cities of Pakistan for

value addition of the meat.

Creation of disease free zones for supply of quality meat.

Construction of mini slaughter houses in mutton production areas

of Pakistan.

Organization of the environmentally controlled meat markets &

provision of cold chain facilities.

Establishment of leather tanning units in Punjab.

MEAT MARKETING NETWORK

AND COLD CHAIN IN BIG
CITIES

137.17 million ruminants are being maintained in a manner

where an average herb size is 1-4 animals per house hold (71%
of total).

Small herb size owes to high cost of production and basic

impediment in commercialization of the livestock enterprise.

Corporate livestock farming through induction of better quality

especially exotic meat breeds into the livestock production
systems is likely to enhance the productivity.

Introduction of certified/ tested technologies through corporate

livestock farming by Public Private Partnership.

Corporate livestock farming through Public Private Partnership

for introduction of better quality beef breeds.

Feed lot fattening of four batches of (one thousand each) cattle

calves for value added meat products.

Establishment of sheep development farms through introduction

of exotic sheep breeds.

Introduction of two stages meat production system in goat

farming through private sector.

VACCINE, DRUGS, SEMEN

137.17 million large animals and 407 million poultry birds require
adequate vaccination and drugs for prophylaxis and treatment
respectively.

Livestock Farmers keeping 20.00 million breed able cattle and

buffalo are facing dire shortage of breeding services.

Breeding Bulls and Artificial Insemination Services are at low ebb.

Less then 10% breed able cattle and buffalo are being provided with
Artificial Insemination Services while less then 60% are being bred
with breeding bull.

Introduction/Marketing of exotic Semen & Embryos may lead to

Breed Improvement of cattle and buffalo.

Marketing of Exotic Bovine Semen & Embryo for Breed

Improvement of indigenous cattle.

Establishment of Holstein Friesian Semen Production Units.

Establishment of Exotic Beef Breed Semen Production Units.

Establishment of Bovine Embryo Transplantation Centers in

Pakistan.

Organization of animal disease vaccine production units in

Pakistan.

Establishment of medicine production centers in Pakistan

POULTRY MEAT PROCESSING

PLANTS

407 Million Poultry birds are being maintained. (372 million

commercial while 35 million rural).

0.514 million metric ton poultry meat and 9618 million eggs are
produced which is very low when compared to production standard
of the developed countries.

Every family in rural areas and every fifth family in urban areas is
associated with poultry production activities.

Great scope for interventions in Grand Parent, Breeder &

Commercial Poultry Breeding exists for foreign investment.

Establishment of Exotic Poultry Grand Parent, Breeding Services

in Pakistan.

Introduction and Marketing of Modern Hatcheries for Grand

Parent and Breeder Poultry.

Establishment of Poultry Meat Processing Plants in Pakistan.

Establishment of Poultry Disease Diagnostic Laboratories in

Pakistan.