History of Poultry Industry in Pakistan and Poultry Industry Problems
Poultry industry problems, challenges in poultry farming and their solutions. History of poultry industry and history of poultry production. Dr. Masood Sadiq discussed the poultry history in details. Besides this, he also highlighted the different issues related to poultry sector. Moreover, he suggested solutions.
This article of mine will provide information about the achievements of Pakistan Poultry Association and also guide poultry experts and policy makers for easy and strategic planning and also show the way to determine future directions and meet the challenges.
History of Broiler and Commercial Poultry
History of Poultry Industry in Pakistan: Beginning of Commercial Poultry Farming
Commercial poultry farming started in Pakistan in the early 60s (1962) and has grown rapidly over the decades. The initial growth of this sector was the result of farmer-friendly policies of the government and the persistence of the poultry farming community. The government of the time considered the poultry production chain as an important part of the food processing industry and gave special incentives to this sector. For this reason, the poultry sector was declared free from sales and income tax and was also exempted from import duties for several years.
Poultry Companies in Pakistan; Poultry Farming and Poultry Industry
History of Poultry Industry Growth During the 1970s and 1980s
In the 70s, this sector grew at an annual rate of 20-30%, and in the 80s it continued to grow at a rate of 10-15%. The most important reason for this growth was the emergence of a vibrant local market, due to which the consumption of poultry meat increased by more than 4% annually.
Poultry Industry in Pakistan: Investment, Employment and Economic Contribution
The poultry industry is an important and vibrant sector of agriculture in Pakistan with an investment of more than Rs. 1180 billion. This industry is providing quality protein as well as providing direct and indirect employment to more than 1.5 million people in Pakistan. Poultry production is one of the most dynamic and organized sectors in Pakistan, contributing 45% of total meat production, 5.76% of the agricultural sector and 1.6% of the total GDP.
Poultry Pharmaceutical Companies in Pakistan
History of Poultry Development Through Government Support
The poultry sector has made remarkable progress in the last few years. This is due to the income tax exemption from income earned from poultry farming by the previous governments, permission to import poultry equipment and parent flock under tax exemption, lease of government land at the lowest rates, subsidy on feed ingredients to make low-cost and high-quality feed, declaration of all meat other than chicken meat as naga on Tuesday and Wednesday to promote chicken consumption, establishment of Poultry Research Institute, Directorate of Poultry Production and Federal Poultry Board, facilitation of loan availability to farmers through various financial institutions and other measures.
History of Poultry Industry Modernization
When the poultry industry started to stabilize in the late 1990s by obtaining poultry products at better profit margins, new investors entered the industry and adopted modern technology. At this stage, the industry received huge investments from new investors and poultry farming started shifting from open houses to new state-of-the-art control houses.
All About World Egg Day – History, Themes and More
History of Poultry Industry Challenges
Until 2004, the poultry industry had grown rapidly with good profit margins, however, the emergence of avian influenza in Southeast Asia and its spread to Pakistan halted this growth. The situation was further worsened by the imposition of a ban on the import of poultry products by Middle Eastern countries.
Pakistan Poultry Association and the Growth of Poultry Production
Despite this volatility and the COVID-19 pandemic, Pakistan’s poultry industry still saw a 9.4% increase in total number of birds produced, 9.2% in total meat production and 5.7% in total eggs produced between 2010 and 2021. This phenomenal growth is due to the strong foundation of the Pakistan Poultry Association, which has ensured that eggs and meat from the poultry sector are the most affordable sources of animal protein in Pakistan.
Poultry Meat Consumption and Protein Gap in Pakistan
Despite showing excellent potential and growth in the past years, the per capita availability of poultry meat in Pakistan is still 6.22 kg and 63 eggs per year, while in developed countries these figures are 41 kg of meat and 300 eggs. According to the World Health Organization (WHO), the average daily requirement of animal protein is 27 grams per person, while in Pakistan it is only 17 grams. Out of this 17 grams, the share of protein from poultry is only 5 grams, i.e. a difference of 10 grams per person per day.
If calculated on an annual basis, considering the current population of Pakistan (200 million), this gap is 788,000 tons of meat. The share of beef and mutton in the total domestic meat production is stable or continuously decreasing, while the poultry sector has the potential to fill this gap. Poultry production has continuously increased its share in the total domestic meat production of the country. The market share of beef and mutton is 55% and that of poultry is 45%.
History of Poultry Industry Growth and Future Potential
If we look at the relationship between human population and poultry industry, the human population in Pakistan is growing at a rate of 2.03% per annum. There is a strong correlation between human population and poultry growth in Pakistan. This estimate shows the potential for future growth of this industry in Pakistan.
It was this dynamic growth in the overall size of the poultry sector that reduced the gap between the demand and supply of animal protein in Pakistan, and also helped stabilize the prices of beef and mutton, making meat available at a reasonable price to the majority of the Pakistani population.
Poultry Industry Problems: Seasonal Price Fluctuations
Seasonal variation in poultry prices The supply and demand mechanism of poultry products in Pakistan controls the price of poultry products, but there is always a large variation in the price of poultry products on a monthly basis, indicating that the effects of seasonal variations are more pronounced than any other aspect. During the hot summer months (May to July) and cold winter months (November to January), the prices of day-old chicks are generally the lowest.
This is due to the increased cost of rearing in winter and the high mortality rate in summer. The high rate can be attributed to the high price. The highest farm gate rates for commercial broilers are observed in the months of March and April as these are the months of wedding celebrations in Pakistan, which increases the demand for broiler meat. December and January, being the coldest months, result in increased egg consumption and cost.
History of Poultry and PPA Role in Consumer Awareness
Seasonal fluctuations in the prices of poultry products have become a regular feature and need to be addressed to ensure the sustainability of the industry. In this regard, the Pakistan Poultry Association, under its aegis, tries to educate the public about the benefits of chicken meat and eggs by organizing consumer education seminars, annual conferences, advertisements on print and electronic media.
Poultry Industry Growth and Government Tax Policies
According to the State Bank, the total output (value) of the poultry industry increased by 12.8 percent during the fiscal year 2021, which was only 3.5 percent the previous year. Interestingly, instead of encouraging this growth and new investment in the industry, the government has brought the industry to the brink of collapse by imposing a potential sales tax on the poultry industry, intending to shift the burden of IMF on the shoulders of the working and poor farmers.
Poultry Exports from Pakistan and Export Potential
Chicken from a Muslim country can be sold to the halal market worth over $6 billion as a guarantee of halal meat. In this regard, the Pakistani industry has the potential to export raw and value-added meat products. In the past years, Pakistan’s poultry sector has shown little activity in terms of exports of live and processed poultry products. Exports of Rs 1.08 billion were made in the year (2010-11) but in the following year (2011-12) it decreased to Rs 365 million as government circles instead of showing interest in taxes.
The poultry industry has to overcome price fluctuations and maintain a steady income, which means moving towards value-added products. There is no doubt that some companies have been successful in their ventures in value-added poultry products, but this requires continuous efforts to create awareness among consumers regarding the overall quality and safety of value-added products.
The major markets for Pakistani chicken products are Afghanistan, Iran, Turkey, Bahrain, Vietnam and Hong Kong. It still has the potential to export value-added products, eggs from breeder stock and day-old broiler chicks, but this needs to be realized to maximize its potential.
Market Dynamics and Farmer Profitability
The Pakistan poultry industry provides high-quality protein food to the Pakistani people in the form of chicken meat and eggs at very reasonable prices.
As mentioned earlier, the prices of chicken products are determined purely on the basis of market demand and supply. Thus, sometimes the prices of chicken products fall below the cost of production of the farmers and they are forced to sell their products at a price lower than their cost of production and consequently suffer losses. This trend of low and high prices helps the farmer’s business in achieving an average annual price that may be slightly better than his input cost, where he is able to earn some profit provided his performance is good.
Poultry Industry Problems in Pakistan
There is a long list of problems associated with the Pakistani poultry industry and proper strategies are needed to address them in order to show an effective presence in the international markets.
The general economic situation in Pakistan has contributed to the slow growth of the local poultry industry, especially in the last 10 years due to prolonged power shortages and especially extreme hot weather, which have caused real damage to the growth of the poultry industry. Pakistan has not been able to produce Specific Pathogen Free (SPF) chickens. Increasing the production of local ingredients, namely maize, for the best feed and giving tax exemptions on imported ingredients can also lead to a boost in the industry.
Local poultry farmers need advice on choosing suitable sites for building poultry farms, as the clustering of poultry farms in a particular area has led to a high incidence of disease. Poor control of temperature, humidity and ventilation, as well as lack of implementation of biosecurity plans, have further worsened the situation.
Impact of Sales Tax on Poultry Sector
Recently, the federal cabinet approved a supplementary budget in which it withdrew sales tax exemption in the poultry sector and imposed new duties as part of fiscal austerity measures to secure funding from the IMF. The items on which the government has imposed a 17% sales tax worth Rs 343 billion include grandparent chickens and eggs, machinery used in the poultry sector, branded chicken meat, pharmaceutical raw materials, 100% cash margin ban on pharmaceutical imports and sunflower/canola seeds.
Future of Poultry Industry in Pakistan and The Way Forward
In my view, the way forward is for the government to improve the poultry sector and provide a conducive business environment. Along with this, in an effort to reduce input costs, sales tax and import duty should be abolished on all the above items. The imposition of 17% sales tax on poultry items will have a serious impact on the cost of production and once again will harm the farmers, resulting in a decrease in production and ultimately the worst damage will be caused by a long-term increase in the prices of poultry products.
This will affect the overall production and market prices. I, as the Executive Member of the Pakistan Poultry Association, humbly request the Government of Pakistan It is requested that sales tax should not be imposed on the above items and every possible effort should be made to provide relief to the poultry industry so that the consumption of poultry meat can contribute to the mental development of the common man, which is specifically stated in our government’s manifesto.
