Livestock

Pakistan’s livestock sector has exhibited tremendous growth in the past - in a matter of only 15 years i.e. from 1996 to 2011, its share in the agricultural sector has grown from 25% to a robust 60%. Further growth in the sector is estimated at 4.5 – 5%, while still being below the country’s potential. The Livestock sector employs more than 35 million people and produces almost USD 500 million worth of products.

Potential

  • Growth potential in the dairy sector is as high as 20% since the industry is almost entirely based on informal channels (97%) and large portions are still not structurally connected to the formal market mechanism.
  • Current annual shortage for milk is 618 million liters. The demand- supply gap is likely to widen further in future years with annual demand i.e. 200 million liters expected to grow by a steady 20%, thus hinting at lucrative investments in milk processing and production.
  • Pakistan is ranked to be among the countries with lowest cost of production in the world, for milk production. This is an important factor for profit in private sector investment.
  • The demand supply gap in meat production is expected to widen at 4.1% per annum. Demand alone is estimated to grow at 6% each year.

Export

  • Both global and domestic demand for meat and dairy products is on the rise. Punjab’s volume of meat and milk production coupled with the demand for quality assurance in these markets provides investors with an excellent opportunity to provide for a rapidly increasing consumer base both in Pakistan and abroad.
  • Being the 5th largest milk producer and strategically located between milk deficit countries in the Middle East and South East Asia, Pakistan’s dairy sector carries immense export potential.
  • Pakistan’s meat sector too has considerable potential for export, particularly because the world meat market is growing and countries like Saudi Arabia and Malaysia are importing ever-increasing quantities. Pakistan enjoys an ideal location, providing its meat sector competitive advantages in tapping major markets in the Middle East, Egypt and Malaysia.
  • The global Halal meat market is estimated at USD 350 billion- with relevant packaging and accreditation and transport infrastructure development, Pakistan’s enormous livestock sector can become a giant provider in the Halal meat industry.

Investment Opportunities

  • Milk pasteurization
  • Commercial poultry and dairy farms
  • Value added product lines like processed cheese and curd
  • State of the art slaughter houses
  • Cold chain/ frozen meat
  • Processed meat products
  • Halal meat products export