DR Sadia

Executive Certificate in Agribusiness Management (Term - C)
Submitted To:
Dr Tanveer Shehzad
LAHORE UNIVERSITY OF MANAGEMENT SCIENCES

Rausing Executive Development Centre
EXPORT OF CHILL BEEF TO UNITED ARAB EMIRATES

Dr Sadia Yaseen
UAE consists of seven states, population over 9.27 Millions and exits large diversity of population that
include inhabitants of all continents. UAE is world major oil producing country and an important member
of oil producing counties. However, UAE is not only dependent on oil production, it has diversified its
economy towards tourism, business and commercial sectors. Major sectors contributing to UAE economy
are energy, real estate, retail, logistics and tourism Table (A) shows the contribution of individual sectors
towards GDP growth of the country.
Table: (A )UAE GDP CONTRIBUTION

Other; 11%
Logistics; 8%
Energy; 38%
Tourism; 9%
Retail ; 12%
Real Estate; 22%
Energy Real Estate Retail

Tourism Logistics Other
The UAE has been following a largely successful, stringent diversification strategy away from oil
dependence and has been equally committed to its outward-orientated growth policy. The UAE’s vision
to define itself as a regional financial center and international trading hub is gradually being realized and
as a result both because, and irrespective of oil, the UAE economy has been booming. High capital
productivity has filtered into high levels of gross domestic product (GDP) and sustained remarkable
growth rates over the past decade. Composite economic performance indicators simply substantiate the
success and prosperity of the current UAE economy.
AGRICULTURE SECTOR IN UAE

UAE however consists of vast desert and very low annual average rain fall. Despite these harsh arid conditions,
the country has move towards agriculture. Country has adopted modern techniques to collect and save water
from deep water aquifers and desalination plants and has made it possible to grow crops over its lands.
Government has taken valuable initiatives for the famers and cultivators such as provisions of free farm lands,
and subsidies. The results of efforts of Governmental policies has significantly enhance the crop productions
and growth rate continued at 17% annual over 25 years from 1975 to 2000. The share of employment remained
between 4.3% to 5.1% for years between 1997-2005. There are about 900 companies working in agriculture
sectors in different states of country. Country has embarked on production of vegetables, eggs, poultry and other
dairy products and has enormous increase in date palms plantations.
Country is producing significant quantities of tomatoes, cabbage, cauliflowers, lettuce and cucumbers. There
has been increase in production of vegetables from 495000 tons to 1.3 millions tons. The production per unit
land area also increased due to use of modern agricultural techniques. The production of fruits such as mango,
citrus, papaya and water melons also being produced in the country. Country meets 25% of its meat
requirements and 60% of eggs. Country has embarked significantly towards domestic demands for vegetables,
meat and meat products and its fruits. UAE is an exporter of vegetables and fruits and its dates palms to various
countries of the world.
EXPORTS AND IMPORTS OF UAE
The United Arab Emirates is the 30th largest export economy in the world and the 59th most complex
economy according to the Economic Complexity Index (ECI). In 2015, the United Arab Emirates
exported $147B and imported $217B, resulting in a negative trade balance of $70B. In 2015 the GDP of
the United Arab Emirates was $370B and its GDP per capita was $70k.
The top exports of the United Arab Emirates are Crude Petroleum ($46.8B), Refined
Petroleum ($18.9B), Gold ($13.4B), Diamonds($8.66B) and Petroleum Gas ($8.06B), using the 1992
revision of the HS (Harmonized System) classification. Its top imports are Broadcasting
Equipment ($14.2B), Gold ($12.8B), Jewelry ($11.9B), Cars ($11.1B) and Planes, Helicopters, and/or
Spacecraft ($9.2B).
The top export destinations of the United Arab Emirates

are Japan ($21B), India ($19.4B), China ($10.3B), Oman ($10B) and Saudi Arabia($8.5B). The top
import origins are China($37.1B), India ($30B), the United States($17.4B), Germany ($15.8B) and the
United Kingdom ($10.4B
Recent trends in UAE BEEF Market
The beef market in UAE widened towards 550 millions pounds in 2016. In year, 2015, country produced
115000 tons of meat and imported 98000 millions tones that shows the significant demand of beef is
being meet through outside world. Table 1 shows the volume of meat market over the past few years. It is
evident that market for chilled beef has expanded at the rate of 7% compared to 2.6% for frozen meat.
Chilled meat is the predominant in many retailers while frozen beef is supplied through HORECA
market. That shows chilled beef has relatively better acceptance compared to frozen beef. In importing
beef in country the retailers are polarized import mainly from regions of their established relations. The
few companies target Austraila and Newzleand while other corporations focus more on Pakistani and
Indian beef markets. This scenario provides ample space for exporting chilled beef from Pakistani market
to UAE retailers.
FEASIBILITY FOR EXPORT OF CHILL MEAT
PURCHASIN
G
Live Animal Purchasing rate / Kgs. 150 PKR
Live Animal Qty. / Cont. 14 Pcs.
Live Animal weight in Kg. 300 Kgs.
Total weight of 14 Animals = (14 x 300) 4200 Kgs.
Total purchasing amount of live Animals = (4200 x 150) 630000 PKR
After slaughtering the weight of animal will remain half kgs =
(4200 / 2) 2100 Kgs.
purchasing amount per slaughtered meat per kg. = (735000 / 2100) 300 PKR
Weight of slaughtered animal = (300 / 2) 150 Kgs.
SLAUGHTER
ING
Slaughtering fee per animal 200 PKR
Slaughtering fee per Kg =( weight of animal / 200 ) 1.33333 PKR
Chilling & Blasting per kg 33 PKR
Packing & Loading Charges per Kg. 2 PKR
Carcass cloth Beef per piece 50 PKR
Carcass cloth Beef per Kg =(150Kg /4piece = 37.5kg / 50 PKR) 1.33333 PKR
Chilled transportation to Lahore Air port per container 15000 PKR

Chilled transportation to Lahore Air port per Kg. = (15000 / 1500) 10 PKR
Airline Charges per Kg. 80 PKR
meat purchasing rate per Kg 300 PKR
Slaughtering fee per Kg =( weight of animal / 200 ) 1.33333 PKR
Chilling & Blasting per kg 33 PKR
Packing & Loading Charges per Kg. 2 PKR
Carcass cloth Beef per Kg =(150Kg /4piece = 37.5kg / 50 PKR) 1.33333 PKR
Chilled transportation to Lahore Air port per Kg. = (15000 / 1500) 10 PKR
Airline Charges per Kg. 80 PKR
Gross purchasing rate of meat per Kg. 427.667 PKR
Gross purchasing rate of meat per container 641500 PKR
By Products (Khaal + Paye + Organs + head) per animal = 4500 Rs. 61600 PKR
Net purchasing value per container =(Gross purchasing value -
Byproducts) 579900 PKR
Net purchasing value per Kg. 386.6 PKR
Net purchasing value per Kg in AED. 13.4236
DOLL
Net purchasing value per Kg in US Dollar. 3.65318 AR
Retailing
Price per Kg 20.50 AED
Price per Kg 588 PKR
Price per Container 44100 AED
12,3400
Price per Container 0 PKR
The whole cycle of purchasing of one container and its shipment to UAE takes less than a month. In a
year shipment of 12 containers to UAE may generate a net profit of PKR 78,49200 which is quite
handsome.

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DR Sadia

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Executive Certificate in Agribusiness Management (Term - C)

LAHORE UNIVERSITY OF MANAGEMENT SCIENCES

EXPORT OF CHILL BEEF TO UNITED ARAB EMIRATES

Table: (A )UAE GDP CONTRIBUTION

Real Estate; 22%

Energy Real Estate Retail

AGRICULTURE SECTOR IN UAE

EXPORTS AND IMPORTS OF UAE

The top export destinations of the United Arab Emirates

Recent trends in UAE BEEF Market

FEASIBILITY FOR EXPORT OF CHILL MEAT

Chilled transportation to Lahore Air port per container 15000 PKR

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