Opportunities for Scaling up Bovine Meat Exports in Pakistan
Pakistan's bovine meat export sector has potential for growth, with a focus on chilled bovine meat. The country currently holds a limited share in the global market, exporting mainly to GCC countries, Afghanistan, and Vietnam. Within the GCC market, Pakistan has significant market share in both chilled bovine meat and chilled carcasses categories. There are opportunities for Pakistan to increase its exports and expand its market reach in the bovine meat sector.
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SCALING UP BOVINE MEAT EXPORTS OF PAKISTAN A REVIEW OF OPPORTUNITIES IN THE BOVINE MEAT SECTOR
The Pakistan Business Councils Members By Sector Number of PBC Members Large-ScaleManufacturing Number of PBC Members Services Agro Industries 1 Cement 2 E-Commerce 1 Chemicals/ Fertilizers 10 Financial Service 12 Energy 2 Hospitality 1 Engineering 9 Insurance 2 Fast Moving Consumer Goods 18 Logistics / Courier 2 Packaging Material 2 Telecommunication 2 Utilities 1 Pharmaceuticals and Healthcare 6 Total Members in the Services Sector 21 Sports Gear 1 Conglomerates 5 Textiles 10 Total Members in Large-Scale Manufacturing 61
01 PAKISTAN S BOVINE MEAT EXPORTS
Pakistan has a limited share of global bovine meat market with a focus on chilled bovine meat USD 230 Million Export Value of Chilled and Frozen Bovine Meat 0.44% Of Global Trade of Chilled and Frozen Bovine Meat 91.6% Exports were of Chilled Bovine Meat Source: International Trade Center. Trade Map
Pakistan export market is limited to the GCC countries, Afghanistan and Vietnam with 87% of exports destined to the GCC countries PAKISTAN S EXPORT MARKETS GCC Countries Afghanistan Vietnam Others 5%2%6% Afghanistan Vietnam 87% Gulf Cooperation Council Source: International Trade Center. Trade Map
Within the GCC market, Pakistan has 26% market share of the chilled bovine meat category and 56% of chilled carcasses category GCC IMPORTS OF CHILLED BOVINE MEAT AND PAKISTAN S SHARE (2018) Total Boneless Cuts Bone-in Cuts Carcasses 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Pakistan's Share in GCC Imports Proportion of GCC's Chilled Imports Source: International Trade Center. Trade Map
02 GLOBAL BOVINE MEAT MARKET
Demand for Boneless cuts, both chilled and frozen, is the highest in the global market GLOBAL EXPORT OF CHILLED BOVINE MEAT 8% Carcasses 18% Bone in Cuts Boneless Cuts 74% GLOBAL EXPORT OF FROZEN BOVINE MEAT 1%9% Carcasses Bone-in Cuts Boneless Cuts 90% Source: International Trade Center. Trade Map
Brazil is the largest exporter of frozen bovine meat whereas, China is the largest importer
Brazils strategy of capitalizing domestic resources and developing meat conglomerates Macroeconomic re-adjustments FMD free with Government financing providing a favourable exchange vaccination except three through MODERAGE and rate for exports zones MODERINFRA Collaboration of Brazilian Beef Establishing National Champions by Successful cross- Processors and Exporters Association investing in meat processing companies breeding programmes and the government to promote the and providing debt financing Brazilian beef brand
China is the largest bovine meat market, neighboring Pakistan Rising income levels, higher disposable income, and rapid middle class expansion has increased consumption Outbreak of African Swine Flu led to a shift in demand from pork to bovine meat Cattle farming is still in its nascence China gave market access to 16 additional countries during the last 5 years for import of bovine meat
03 OPPORTUNITIES, CHALLENGES AND SOLUTIONS TO INCREASE EXPORTS
Opportunities to increase bovine meat exports from Pakistan 01 DIVERSIFY INTO FROZEN MEAT CATEGORY 02 EXPORT OF DIVERSIFY INTO BONELESS MEAT CATEGORY BOVINE MEAT 03 ACCESS CHINESE MARKET FROM PAKISTAN 04 UTILIZE SEA ROUTES
Several challenges impede the growth of domestic production of bovine meat Limited stock of livestock Lack of animal traceability Low yield breed High yield cattle is mostly reared for dairy production (Holstein) rather than beef production (Angus) Limited supply of livestock reared for the purpose of beef production Cattle rearing is informal and undocumented which makes tracebility difficult
Several challenges impede the growth of bovine meat export Limited access to international markets Limited export focus Price competitiveness Export focus is limited to carcasses due to lack of capacity for de-boning and freezing Due to prevalence of FMD, Pakistan s export market is concentrated in eight countries only High cost of air transport coupled with cargo capacity concerns, limits price competitiveness
Developing backgrounding and feedlot fattening farms will address issues associated with lack of aggregation WHY? To ensure animal traceability and open several international markets To reduce the number of animals that are culled prior to reaching their prime age To improve the quality of meat available for export and domestic market
04 POLICY RECOMMENDATIONS
Develop a cohesive policy framework with focus on increasing production and exports Disease-free zones Lease land for feedlots Price control regime Subsidized credit Provide subsidized credit- working capital and long- term financing to establish feedlot farms Remove price control and meatless days to encourage investment in the sector Establish disease- free zones (as in Cholistan) to transition to stage 3 of FMD-PCP Lease land in DFZs to private sector for development of feedlot farms
Develop a cohesive policy framework with focus on increasing production and exports Cost efficient varieties of animals High-yielding breeds Silage prices Animal sale by weight Technology acquisition & investments Import high- yielding breeds and semen for artificial insemination Promote rearing cost-efficient animals which have higher weight gain to food input Sale animal by weight rather than physical appearance to incentivize fattening Regulate silage prices to bring at par with the international prices Encourage JVs with international companies to ease acquisition of technology
THANK YOU! Access the report here https://www.pbc.org.pk/research/scalin g-up-bovine-meat-exports-of-pakistan-a- review-of-opportunities-in-the-bovine- meat-sector/
