Pakistan

LAHORE: De-regulation of meat prices in local market is a prerequisite to improve the product’s supply in the country and to increase the country’s share in the $1.3 billion global Halal food trade, said a study.

“The first and fundamental step for increasing meat export is to de-cap price in the local market,” the Center for Applied Policy Research in Livestock at University of Veterinary and Animal Sciences (UVAS) said in the research study.

The research paper, titled ‘Pakistan Meat Exports: Strategising Productivity Enhancement’ was conducted after gathering inputs from all the stakeholders. Outlining short, medium and long term measures for enhancing share in global meat market, the study said the local market of meat has been developing at a very slow pace because of price capping.

It said Pakistan’s meat exports have a huge potential in the world. The country’s geographical location favours livestock farming. Pakistan has a significant number of animals, reasonable number of meat processors/abattoirs, and exporters but the bottleneck is lack of effective marketing and supply chain, it added.

The study said global Halal food trade is estimated at approximately $1.3 billion a year, which was $0.5 billion five to six years ago.  The policy paper highlights the country’s meat export scenarios within the existing resources, including farmers, meat processors, exporters, supply chain management, marketing approaches and funds.

It said local exporters are vying for 8-10 percent share in global carcass (meat with bones) market, but neglecting 90-92 percent share of frozen boneless and value-added meat products internationally.

India has become the world’s largest exporter of meat products in 2017 with 1,925,000 metric tonnes exports, largely comprising boneless meat, while China’s growing population and demand for food products have made the country one of the world’s biggest importers of meat/meat products of 950,000 metric tonnes, according to the United States Department of Agriculture. The animal protein consumption by human will rise to 37-kilogramme by 2030 from the present 25.5-kg.

The center recommended short-term measures, including complete identification of meat in local market indicating its source and international standardisation of meat products in assistance with UVAS.

The research study called for a ban on export of less than 150-kg carcass, terming it vital to enhance output of every single animal being exported and increase meat output of each animal.

It also stressed a need to establish backward linkages of meat exporters with feedlot farmers for consistent export of quality meat, in addition to registration of feedlot fattening farms with meat processing and exporters association along with livestock departments for traceability.

Efficient customs and quarantine assistance through sea shipments are also required along with credit insurance for exporters and establishment of a database of feedlot farmers registered with an authority connecting exporters for supply chain development.

The study also called for a national policy for eradication of foot and mouth disease to enable export to countries, like Indonesia, Russia, China and Brunei.  Easy loans are also needed to set up a supply chain from feedlot farmer to local meat brands and/or meat exporters.

It also highlighted the importance of establishing disease free zones to produce healthy and disease free meat products as per the international standards. The study attaches the topmost importance to breed improvement and establishment of a meat product development center at UVAS, which can develop ready to cook meat products. Top meat exporters can be provided with subsidy on taxation/duties as incentives and motivation for others, it said.

Originally published on www.thenews.com.pk

KARACHI (Daily Dunya) – A recent study by Karachi Chamber of Commerce and Industry states that Pakistan’s meat industry is growing at annual rate of 27pc.

In 2003, the trade volume of halal food was $14 million which had piled up to $244 million in 2015 with 708,968 tons of meat exported. The above mentioned stats make Pakistan 19th largest exporter of meat in the world.

Analysts call for comprehensive policy to tackle challenges pertaining to meat industry. It is pertinent here to mention that New Zealand, which is much smaller than Pakistan in both size and population, is world leader in the halal export market.

originally published on www.dunyanews.tv

LAHORE: Halal food can take the country’s exports to new heights, but the government continues to ignore it. Halal food, particularly beef and meat is another potential where Pakistan enjoys huge advantage. The global trade of halal food has exceeded $300 billion.

Halal beef, mutton and chicken markets are dominated by non-Muslim economies, as most of the Middle Eastern Muslim economies import halal food from Australia, Brazil and other non-Muslim countries.

Abdul Basit, president of the Lahore Chamber of Commerce and Industry (LCCI) said that halal food has substantial market in non-Muslim regions, as well. Europe, for instance, imports halal meat worth $66 billion. France with the imports worth $17 billion is the largest importer of halal meat among European countries.

Punjab Halal Food Board chairman former justice Khalilur Rehman said that global halal food market is up for grab for Pakistan. Halal food and Pakistan are synonymous, as only pure halal meat and other foods are consumed by its entire population.

Still, he said, to export halal food, the exporters need certification from the world Halal Food Board that not only ensures that proper process of slaughtering is practiced, but also the global food hygiene standards are adhered to.

Rehman said that there is a discrepancy that has to be addressed in line with the Shariah laws. Non-Muslim countries stun the animal or birds before slaughtering, he said, adding that in Pakistan, stunning has been declared against the Shariah.

There is a need to create awareness among Muslim countries that slaughtering after stunning is against the spirit of Shariah, he said, adding that this message has been propagated and accepted by some Muslim countries.

Now, the government has to facilitate halal food exporters by making some amendments in the law and quick decisions at the bureaucratic level. There are a few issues on halal practices in Pakistan, but the major concerns of the exporters are head and mouth disease in cattle and bird flu in birds, he added.

Rehman said that after study it was found out that India resolved this issue by creating zones for cattle stocks. A UN-sponsored body visits each zone and after getting satisfied declares that particular zone is free from foot and mouth disease, he added.

That removes the hurdle on the suitability of meat consumption if exports were made from cleared zone. He said after hectic efforts these zones have been established in Punjab, at least. Now, the UN team has been invited to give its report.

In the meantime, he said, PHA received a request from Chinese halal meat importers to visit Pakistan and set up quarantine facilities before exports are allowed.

The Chinese just needed an official invitation from Pakistan in this regard, he said, adding that PHA has requested P&D Department of the Punjab government to issue the invitation, but to no avail.

Basit said that the processed poultry imported by Muslim countries is conditional to the use of spices of certain specifications that are not produced in Pakistan.

The government has imposed a cumulative duty of 68 percent. This increases the cost of processed meat, he said. It is ironic that processed chicken import from countries with which Pakistan has signed free trade agreements (FTA) are allowed at zero duty.

He said these countries use same inputs on which local processors pay 68 percent duty. “It is unfortunate that instead of exporting halal meat, we are promoting import of halal meat from non-Muslim countries.” If duty on those inputs is abolished, the import from even zero-rated countries would stop and Pakistan would embark on sustained export path. Only halal meat exports could double Pakistan’s exports in the next five years, he added.

Originally published on www.thenews.com.pk

The abysmal reality on the ground is just another matter, though. A 2016 study by the KCCI placed Pakistan as the 19th largest meat exporter with beef being a preferred commodity.

It also claims that meat industry here has grown at an annualised rate of 27% from $14 million in 2003 to $244 million in 2015 with 708,968 tons of meat exported. New Zealand, remote and much smaller in size compared to Pakistan, is the world leader in the halal export market.

PAKISTAN’S meat exports are on the decline despite a global trend of rapid growth. The Trade Development Authority of Pakistan (TDAP) figures that the country’s meat exports have dropped to $140.345m in the first eight months of the ongoing year, from $188.345m a year ago.

International meat trade on the other hand has risen by 16pc to touch the $700bn mark.

A look at the country’s monthly exports are decelerating. In February 2017, the meat exports dropped 42.67pc as compared with the figures in the same month of the last fiscal year.

The decline is despite the fact that the country has taken measures to regulate, facilitate and bring the halal business in line with the internationally acceptable standards. It has also signed MoUs for supply of halal meat to the Gulf states.

Those in meat business believe that Pakistan’s meat export volumes can be tripled with the right policies and incentives within a couple of years and they blame the government for its failure to maintain a smooth and reliable supply chain.

The number of cattle should be double the number of the human population to enter the meat export trade, says Naseeb Ahmed Saifi, one of the major players in halal meat exports.

Presently, the country has over 169m heads of quality livestock with 74m cows and buffaloes and 95m sheep and goats. It is producing 73,000 tonnes buffalo meat, 70,600 tonnes cow meat, 270,000 tonnes goat meat and 154,000 tonnes sheep meat every year.

Mr Saifi claims that the government is cautious in supporting the export of meat fearing shortage in the local market.

But an official of the Punjab Livestock Department argues that the number of animals is not less than what is required for smooth supplies for meat exports. Over 80m or almost half of the country’s total animals population is hosted by Punjab.

This official, however, admits that there are issues with genetic pollution, nutrition and vaccination of the animals.

He says only 7pc buffaloes and 26pc cows are genetically pure (not mixed breeds), while 71pc farmers are either landless or each owns less than five acres of land. They don’t have land to grow fodder for their cattle. And only 16pc animals have vaccination cover, thus ailments reduce their weight.

Ban on slaughtering of female cows and goats and consequently a rise in the prices of male animals in the province is being presented as another reason behind the declining exports.

“The ban has resulted in at least Rs100/kg increase in mutton’s prices,” says Agha Naimat, another meat exporter. “We cannot compete in the mutton export market against India and other international players.”

Mr Saifi also says that, unlike India, where meat exporters are being offered Rs3/kg rebate through one-window operation, as and when an exporter submits an invoice; here we have to run from pillar to post to get a rebate.

The UAE’s allowing transportation of halal products from Pakistan through the sea has also failed to stir enthusiasm among meat exporters, though the measure will cut freight charges by at least one-third.

Mr Saifi says this facility carries risk since chilled meat does not have more than four days of shelf life. “Most of the meat exports to the UAE and other Gulf countries are in chilled form and not frozen. The export through ships will take at least a day and a half leaving only almost the same period for its onward supply and consumption. In case of any accidental delay in transportation, the consignment will run its shelf life and will be rejected.”

Optimistic about the future of the halal food exports, Justice Khan says some quarters are not aware that the UAE authorities have agreed to accept two-week shelf life of chilled meat.” From the UAE, he says, a Pakistani businessman is ready to airlift the consignment for onward delivery to Europe.

Being a Muslim-majority country and with almost a 100pc halal food chain, he says, Pakistan has an edge over the non-Muslim players, particularly India whose meat is of inferior quality than that of Pakistan’s.

The halal certification and safety regulations, complying with international standards, are set to strengthen Pakistan’s position in the meat export business, he adds.

Though his organisation has nothing to do with marketing, he added, it is working to promote halal food through awareness campaigns and trainings of potential investors and butchers.

By getting affiliation with Jakim — a halal food certification company of Malaysia — the PHDA has helped in sending the first consignment of 2,550 tonnes of mutton and 34,794 tonnes of beef to Malaysia last year.

It is also coordinating with the federal authorities for organising a visit of local meat and chicken plants by Chinese officials and businessmen in June, hoping opening of the Chinese market for local halal foods.

Originally published on www.dawn.com