Meat Export Strategy 3 Web 1

GOVERNMENT OF PAKISTAN
Pakistan
Export Strategy
Meat
2023-2027
This Meat sector strategy is part of the National Priority Sectors Export Strategy (NPSES)
initiative which contributes to the implementation of Pakistan’s Strategic Trade Policy
Framework (STPF) 2020-2025.
ITC is the joint agency of the World Trade Organization and the United Nations. As part of the
ITC mandate of fostering sustainable development through increased trade opportunities, the
Trade Development Strategies Programme offers a suite of trade-related strategy solutions to
maximize the development payoffs from trade. ITC-facilitated trade development strategies
and roadmaps are oriented to the trade objectives of a country or region and can be tailored
to high-level economic goals, specific development targets or particular sectors. This docu-
ment was developed on the basis of the process, methodology and technical assistance of
the International Trade Centre (ITC) within the framework of its Trade Development Strategy
programme.
This document has been developed as part of the Revenue Mobilisation, Investment and Trade
project (ReMIT) funded by the Government of the United Kingdom and implemented by ITC.
The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products
and product brands does not imply the endorsement of ITC.
This document has been produced with the financial support of the Foreign, Commonwealth &
Development Office. The contents of this document can in no way be taken to reflect the views
of the Government of the United Kingdom.
The International Trade Centre
Street address: ITC, 54–56, Rue de Montbrillant, 1202 Geneva, Switzerland

Postal address: ITC, Palais des Nations, 1211 Geneva, Switzerland
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Pakistan
Export Strategy
Meat
2023-2027
ii Pakistan Export Strategy 2023-2027 • MEAT
Forewords
Message from the Ministry of Commerce
Increasing international trade is not only a means as identified by all the stakeholders of the Meat
of boosting economic growth and the nation’s sector in Pakistan.
welfare, but also contributing to strengthening in- Despite challenges in the international trade
ternational relations. The stabilization of economic scenario and the global business environment,
and political affairs paves the way for reinforcing I am confident that this initiative will serve as an
friendly relations based on mutual interests with a action-oriented blueprint to enhance trade perfor-
wide range of trade partners. Trade is thus one of mance and to develop a coordinated mechanism
the most important forms of exchange between with participation from both the public and private
countries and fostering this will lead to connections sector, increasing its competitiveness in the inter-
such as foreign investments, better employment national market.
opportunities, and scientific and technical ex- To maintain the momentum sparked by the con-
changes, all of which will contribute to Pakistan’s sultations, the Ministry of Commerce is commit-
growth and prosperity. ted to play a constructive and facilitative role, while
The Government of Pakistan has taken a series making it our top priority to execute the activities
of initiatives to promote exports to achieve sus- and reforms requested of both our ministries in
tainable and inclusive economic growth, poverty the plan of action. We are particularly committed
reduction and improvement in the living standard to continue keeping the private sector in the driv-
of Pakistani people. This is also aligned with the ing seat for the implementation process through
government’s vision of the Strategic Trade Policy the Sector Specific Council on Meat & Dairy. The
Framework (STPF) 2020-25 for ‘Pakistan to be- Government of Pakistan is fully committed to pro-
come a dynamic and efficient domestic market as moting export-led economic growth and encour-
well as a globally competitive export-driven econo- ages all to join hands and would encourage all to
my’. In this context, the Ministry of Commerce sup- join hands and work together in making the vision
ported the preparation of the Meat Export Strategy, of a flourishing Meat sector a reality.
a priority export sector under the STPF, which will
contribute to export diversification of Pakistan.
This sector export strategy has been formulated
in close consultation with all the stakeholders; and
the Ministry of Commerce appreciates all those
involved in the process, particularly the private
sector.
As a priority export product within the framework
of the STPF 2020-25, Meat sector presents a new
export avenue and an opportunity for Pakistan.
The strategy encompasses trade-related factors
such as ensuring export quality, greater market
access and product diversification. In addition,
substantial investment to expand export potential
and grow foreign trade requires strategic target-
ing. All activities in the strategy design framework
have outlined a detailed five-year plan of action to
tackle issues and facilitate export procedures, and
iii
Message from All Pakistan Meat Exporters

& Processors of Pakistan (APMEPA)
As the representatives of the Islamic Republic of Pakistan – and rising middle-class incomes drive
Pakistan’s meat industry, we were pleased to see changing food consumption patterns, this strat-
that the Strategic Trade Policy Framework (STPF) egy will focus on capitalizing on emerging growth
2020-25 has identified the meat industry as a prior- trends, while continuing to strengthen current
ity focus export sector for growth and development competencies.
for the next five years. Being an agrarian econo- Our association is keen to make the industry
my, approximately 70% of Pakistan’s population more technology-oriented and innovative. While
is dependent on agriculture for their livelihood. we have begun initiatives to improve production,
Within agriculture, livestock is the most important we are encouraged by the activities envisaged in
subsector, contributing more than 60% to the total the strategy that will support overall sector devel-
agricultural economy, 11.5% towards the country’s opment. This is important particularly due to the
overall gross domestic product (GDP) in 2020-21, predominant small and medium-sized enterprises
and 0.9% of total exports. Given its high employ- (SME) presence in the sector, who need tailored
ment and spillovers potential, a thriving meat sec- support for improvement. We see growth pros-
tor would have a profound socioeconomic impact, pects in new segments, including building skills
contributing to rural development and job creation for value-added beef products, strengthening
for Pakistan’s women and youth. branding and packaging, setting up disease-free
Our industry faces challenges regarding animal zones and implementing a tagging system to cater
sourcing, low carcass yields, and the prevalence to international demand. These will require con-
of foot and mouth disease (FMD), which limits ex- certed and consistent steps towards upgrading the
ports from the country to a few geographical des- industry throughout all aspects of the value chain.
tinations. This high concentration of Pakistan’s As the sector’s apex industry stakeholders,
export basket in terms of products and markets we stand behind this strategy and look forward
leaves the industry exposed to product- and part- to working with the industry and relevant public
ner-specific shocks. bodies on the implementation of the plan. We are
In this regard, the strategy shines a light on the committed to making Pakistan an emerging leader
direction that we must take to stay ahead of the in the meat sector to cater to regional and global
global challenges of environmental responsibility, markets while meeting domestic demand.
animal care, production technology, the nurturing Finally, I would like to thank all stakeholders who
of our people and our ongoing battle for market played an important role in preparing this strategy.
share around the world. This strategy’s plan of ac- The Meat Export Strategy’s recommendations are
tion focuses on three strategic themes (raw mate- a combined effort of the public and private sector
rial supply, quality of livestock and market access) to optimize strengths and overcome constraints to
indicative of all the steps of the meat and livestock achieve the vision of developing the Pakistani meat
industry domestically and internationally. industry to have the highest food safety standards
As the global meat sector continues to for international markets.
grow – especially in the regions neighbouring
Syed Hassan Raza

Secretary General, APMEPA
iv Pakistan Export Strategy 2023-2027 • MEAT
Acknowledgments
The Meat Export Strategy forms an integral part of Pakistan’s Strategic Trade
Policy Framework (STPF). It was developed under the aegis of the Government
of Pakistan and the leadership of the Ministry of Commerce (MoC) and the
Trade Development Authority of Pakistan (TDAP), in close collaboration with
Ministry of National Food Security & Research (MNFSR) and the All Pakistan
Meat Exporters & Processors of Pakistan (APMEPA).
The document benefited particularly from the inputs and guidance provided
by the sector stakeholders that steered the strategy’s formulation, namely the
following key sector institutions:1
Institutions
Animal Quarantine Department
Anis Associates (Pvt) Ltd, Lahore
Big Bird Group
Hilal Meat Processing
K&Ns
Livestock and Dairy Development Board
Ministry of National Food Security & Research
Pakistan Agricultural Research Council
Pakistan Standards & Quality Control Authority (PSQCA)
Punjab Agriculture & Meat Company
Small and Medium Enterprises Development Authority (SMEDA)
Syed Traders
Tata Best Foods Ltd
Tazij Meats & Food
The Organic Meat Company Limited
University of Veterinary and Animal Sciences, Lahore
Technical support and guidance from ITC was rendered by the following people :
Name Designation
Syed Tauqir Shah Revenue Mobilization, Investment and Trade project (ReMIT) project coordinator
Muhammad Shoaib
Project advisor
Zafar
Tariq Humbal National sector consultant
Charles Roberge Senior Officer Export Strategy
Alexandra Golovko Advisor, Export Strategy and Competitiveness
Victor Deleplancque Agriculture strategy specialist
Aishwarya Nahata International consultant
1.– The full list of public–private stakeholders that participated in the consultations and their names is available in Annex I.
v
Note for the reader
In order to boost export growth, the Ministry of Commerce (MoC) has developed
the Strategic Trade Policy Framework (STPF) 2020-25, which was approved
in November 2021. ITC provided technical support to MoC and the Trade
Development Authority of Pakistan (TDAP) to design selected sector export
strategies of the STPF priority sectors. This initiative, called the National Priority
Sectors Export Strategy (NPSES), focused on 10 of the 18 STPF priority sectors
through a consultative process.
The Meat Export Strategy was developed on the basis of a participatory ap-
proach, during which more than 30 Pakistani industry leaders, small business
owners and public sector representatives held consultations to reach consensus
on key sector competitiveness issues and priority activities. These inclusive con-
sultations were held in a hybrid model owing to the travel restrictions imposed
due to the COVID-19 pandemic.
Besides in-depth qualitative and quantitative research and value chain analysis,
these consultations were complemented by visits and interviews by the national
consultants with domestic firms to guide the strategy with insights and market
intelligence as well as buyers’ requirements in terms of quality standards, food
safety, packaging, distribution channels and prices, etc.
The Meat Export Strategy builds on the ongoing initiatives in the areas of private
sector development, regional integration, investment and economic empow-
erment of youth. Equally importantly, the sector strategy is complemented by
an effort to establish the proper implementation responsibilities among key
stakeholders early on to ensure timely implementation of activities, whether by
the public sector, private sector or international development agencies. This strat-
egy’s principal output is an endorsed, coherent and comprehensive document
with a five-year detailed plan of action (PoA) and implementation management
frameworks.
This document was approved as the official export strategy for the Meat Sector
2023-2027 by the Sector Specific Council on Meat & Dairy and endorsed by the
Ministry of Commerce of Pakistan.
vi Pakistan Export Strategy 2023-2027 • MEAT
Contents
EXECUTIVE SUMMARY 1
A GLOBAL MEAT INDUSTRY THAT KEEPS GROWING AND EVOLVING 5
A BOOMING GLOBAL MARKET DOMINATED BY THE FROZEN MEAT SEGMENT. . . . . . . 5

INCREASING DEMAND FOR FROZEN MEAT IN DEVELOPING COUNTRIES IS DRIVING
THE MARKET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
GLOBAL TRADE OF BOVINE MEAT IS DOMINATED BY A HANDFUL OF PLAYERS. . . . . . 8
GLOBAL TRENDS IN THE SHEEP AND GOAT MEAT MARKET. . . . . . . . . . . . . . . . . . . . . 9
PAKISTAN’S MEAT SECTOR : A DEEPLY ROOTED INDUSTRY WITH HIGH EXPORT

POTENTIAL 11
THE SOCIOECONOMIC IMPORTANCE OF PAKISTAN’S LIVESTOCK SECTOR . . . . . . . . . 11

PAKISTAN IS ONE OF THE LARGEST PRODUCERS OF MEAT IN THE WORLD . . . . . . . . 13
DEFINING THE SECTOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
PAKISTAN IS WELL POISED TO BECOME A MAJOR SUPPLIER OF RED MEAT
TO INTERNATIONAL MARKETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
PAKISTANI MEAT EXPORTS ARE CURRENTLY CONCENTRATED IN THE CHILLED
CARCASSES SEGMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
VALUE CHAIN AND COMPETITIVENESS DIAGNOSTIC 23
VALUE CHAIN MAPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

CURRENT INITIATIVES, POLICY AND REGULATORY FRAMEWORK . . . . . . . . . . . . . . . . 26
CURRENT GOVERNMENT INITIATIVES 29
COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

DEEPER DISCUSSION OF SELECTED PRIORITY ISSUES . . . . . . . . . . . . . . . . . . . . . . . . 32
vii
THE WAY FORWARD 35
KEY DRIVERS OF CHANGE PUSHING THE GLOBAL DEMAND FOR MEAT. . . . . . . . . . . . 35
THE STRATEGIC FRAMEWORK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
IMPLEMENTATION FRAMEWORK 47
PLAN OF ACTION ( 2023-2027 ) 51
ANNEXES 59
ANNEX I: LIST OF PARTICIPANTS IN THE PUBLIC-PRIVATE CONSULTATIONS 60

ANNEX II: DETAILED VALUE CHAIN ASSESSMENT 61
REFERENCES 64
viii Pakistan Export Strategy 2023-2027 • MEAT
Figures
Figure 1 : Global imports of fresh or chilled and frozen bovine meat ( HS 0201 and HS 0202 ) 5
Figure 2 : Share of fresh or chilled and frozen beef in global bovine meat imports, in value 5
Figure 3 : World imports of fresh or chilled bovine meat, by product category, in value ( 2020 ) 6
Figure 4 : World imports of frozen bovine meat, by product category, in value ( 2020 ) 6
Figure 5 : World imports of edible bovine offal 6
Figure 6 : Main importers of prepared or preserved bovine meat or offal ( excluding sausages )
( HS 160250 ) 7
Figure 7 : Main importers of bovine meat, in value ( 2020 ) 8
Figure 8 : Evolution of bovine meat imports by main importing markets, in value 8
Figure 9 : Exports of bovine meat from the Top 5 exporters, by category ( 2020 ) 9
Figure 10 : World import of sheep and goat meat, fresh or chilled and frozen, in value 10
Figure 11 : World imports of sheep or goat meat, in value ( 2020 ) 10
Figure 12 : Production of bovine meat in the main production areas, in million tons 13
Figure 13 : Carcass weight of cattle in the main production areas, in kg / animal ( 2019 ) 15
Figure 14 : Sales of frozen processed red meat in Pakistan ( 2015–20 ) ( PKR million ) 15
Figure 15 : Product map for meat products in Pakistan 15
Figure 16 : Pakistani products with potential 16
Figure 17 : Pakistan’s exports of meat of bovine animal and edible offal, in value ( 2011-20 ) 18
Figure 18 : National export growth and international demand for fresh or chilled bovine meat
exported by Pakistan in 2020 19
Figure 19 : Pakistan exports of bovine meat and edible offal, by products, exported value in 202019
Figure 20 : Pakistan exports of fresh or chilled bovine animals meat, by destination ( 2020 ) 21
Figure 21 : Pakistan’s exports of sheep or goat meat ( HS 0204 ), in value ( 2011-20 ) 22
Figure 22 : Simplified meat industry value chain 23
Figure 23 : The value chain 24
Figure 24: Ride Two Curves exercise 38
Figure 25 : Future value chain 39
Figure 26 : Key drivers of change 45
ix
Tables
Table 1 : Agricultural subsectors’ contribution to the national economy 12

Table 2 : Livestock population in Pakistan, in million heads 12
Table 3 : Cattle population ( 2019 ) ( head, millions ) 12
Table 4 : Goat population ( 2019 ) ( head, millions ) 12
Table 5 : Pakistan meat production, in volume ( thousand tons ) 13
Table 6 : Main products exported by Pakistan’s red meat industry in Pakistan in 2020,
in value ( HS 0201, 0202 and 0204 ) 20
Table 7 : Longlist of competitiveness constraints 30
Table 8 : Key global trends in the meat sector 35
Boxes
Box 1 : Trade and investment support institutions supporting Pakistan’s meat industry 26
x Pakistan Export Strategy 2023-2027 • MEAT
Acronyms and abbreviations
Unless otherwise specified, all references to dollars ($) are to United States
dollars, and all references to tons are to metric tons.
AQD Animal Quarantine Department OIE World Organisation for Animal Health
(Office International des Epizooties)
CAGR Compound annual growth rate
PARC Pakistan Agricultural Research Council
EU European Union
PCP-FMD Progressive Control Pathway for Foot and
FAO Food and Agriculture Organization
Mouth Disease
FMD Foot and mouth disease
APMEPA All Pakistan Meat Exporters &
GCC Gulf Cooperation Council Processors of Pakistan
HS Harmonized System PoA Plan of action
ITC International Trade Centre PSQCA Pakistan Standards & Quality Control
LDDB Livestock and Dairy Development Board Authority
MNFSR Ministry of National Food Security STPF Strategic Trade Policy Framework
& Research TDAP Trade Development Authority of Pakistan
MoC Ministry of Commerce
1
EXECUTIVE SUMMARY
The present strategy outlines a proposed path for the development of Pakistan’s meat sector. It is a
five-year endeavour that was defined through a consultative process between public and private sec-
tor stakeholders. The strategy addresses constraints in a comprehensive manner and defines con-
crete opportunities that can be realized through the specific steps detailed in its plan of action (PoA).
The Meat Export Strategy is an integral part of Pakistan’s Strategic Trade Policy Framework (STPF).
A VIBRANT GLOBAL MARKET FOR MEAT beef are non-Muslim countries, they have nevertheless
PRODUCTS DOMINATED BY THE FROZEN become leaders in the main halal meat markets and
possess halal certifications.
MARKET SEGMENT
World imports of bovine meat amounted to $54 billion
in 2020, growing at an average robust annual growth THE MEAT INDUSTRY IN PAKISTAN :
rate of 6.3 % in 2016-20 ( UN Comtrade, 2020 ). Under A PROMISING SECTOR FOR EXPORT
the impetus of the booming demand for frozen meat
emerging from the Chinese market and other devel-
GROWTH THAT PLAYS AN IMPORTANT
oping countries in Asia, the global market for bovine SOCIOECONOMIC ROLE
meat is shifting from fresh or chilled meat to the fro-
zen market segment. This upward trend is notably Pakistan is endowed with one of the largest livestock
driven by population growth and the expanding urban populations in the world, from which an immense ex-
middle class with rising disposable incomes in these port potential for meat products is yet to be derived. An
countries. Consumers in high-income countries, on estimated population of 94 million bovine animals and
the other hand, have a preference for fresh or chilled 112 million goats and sheep are currently present on
meat, and are willing to pay a premium for better-qual- the Pakistani territory. Livestock in Pakistan is mainly
ity products. In both the fresh or chilled and frozen reared by smallholder farmers for dairy production,
market segments, the global demand for bovine meat with an estimated 35 million people and more than 8
products is concentrated in the boneless meat catego- million families engaged in rural subsistence livestock
ry. Following the same trends, the fast-growing global production. Livestock is by far the most important sub-
market for sheep and goat meat reached $7.2 billion sector of agriculture, contributing more than 60 % of
in 2020 ( UN Comtrade, 2020 ), boosted by its frozen the total agricultural economy in 2020-21. The country
market segment, and dominated by the demand for is also one of the largest meat producers in the world,
‘sheep cuts with bone in’. mainly catering for the domestic market needs, with
less than 3 % of the 2.2 million tons of cattle meat pro-
The global trade of bovine meat is dominated by a duced being destined to international markets ( Food
handful of highly competitive players. These include and Agriculture Organization, 2019 ).
the Federative Republic of Brazil ( capturing 15 % of
world exports of bovine meat in 2020 ), Australia ( 14 % ) Though from a relatively low basis, Pakistan was one of
and the United States of America ( 13 % ) ( UN Com- the fastest-growing meat exporters in the past decade,
trade, 2020 ). Interestingly, while the largest suppliers of capitalizing on the country’s competitive advantage to
2 Pakistan Export Strategy 2023-2027 • MEAT
supply meat to the Gulf Cooperation Council ( GCC ) export-oriented meat processors are currently oper-
countries. With approximately $300 of export revenues ating at 25 %–40 % of their maximum capacity. The
generated in 2020, of which $245 million worth of bo- sector’s competitiveness in international markets is
vine meat exports, meat – and beef in particular – has particularly affected by the high costs of sourcing
progressively emerged as a leading agricultural export animals and the low yields observed in the livestock
product. Despite this recent surge in meat exports, Pa- sector. This is due to the lack of meat breeds, the high
kistan is still a minor player on the global scene, only costs and limited availability of quality fodder, the insuf-
capturing a market share of approximately 0.5 % in the ficient adoption of good husbandry practices as well
bovine meat market in 2020 ( UN Comtrade, 2020 ). as inefficient and outdated methods and technologies
used in aggregating and selling animals, among other
Meat exports from Pakistan are largely concentrated factors. At the moment, high costs of livestock make it
in the fresh or chilled market segment, and more par- difficult for local processors to compete with the largest
ticularly in the carcases and half carcasses category. exporters in a global marketplace that is highly price
This is in direct contrast with the global trends and the competitive, particularly in the frozen market segment.
increasing demand for frozen meat cuts. Pakistan’s Another – and perhaps the most – critical issue imped-
exports from the sector are primarily limited to GCC ing Pakistan’s export growth is limited market access
countries, taking advantage of its capacity to supply for locally processed meat, mainly due the prevalence
these markets with affordable halal chilled meat at rel- of foot and mouth disease in Pakistan. This concern,
atively competitive transportation costs. Pakistani meat coupled with the lack of traceability of livestock and
has a lot of acceptance in Gulf countries due to a large the incapacity of a number of meat processors to com-
expatriate population, in particular in the Kingdom of ply with quality and food safety requirements, result in
Saudi Arabia and the United Arab Emirates. This analy- restricted access of Pakistani meat in most importing
sis is valid for both the bovine meat and the sheep and countries.
goat meat markets. The concentration, in terms of both
products and markets, of Pakistan’s export bundle is, In order to unlock the Pakistani meat industry’s tremen-
however, leaving the country exposed to exogenous dous export potential and move up the global value
economic shocks in this market. chain through greater product and market diversifica-
tion, the sector will need to work collectively to achieve
the necessary structural improvements at all stages of
A NUMBER OF LIMITING FACTORS the value chain, starting at farm level.
ALONG THE VALUE CHAIN ARE
IMPEDING EXPORT GROWTH THE STRATEGIC FRAMEWORK
While Pakistan is well poised to become a major sup-
plier of red meat to international markets, a number of To achieve the Pakistani meat sector’s development,
bottlenecks and challenges are preventing the meat the present strategy provides a roadmap and a plan of
industry from fully exploiting its productive potential. action ( PoA ) geared at achieving the following overall
In this regard, various sources estimate that Pakistan vision.
“
To develop the Pakistani meat industry with the highest food
safety and halal standards to serve international markets
”
with value-added products.
This vision statement, which was agreed on by all meat leveraging opportunities comprehensively. To this end,
value chain stakeholders in Pakistan, delineates this specific efforts will be made in the following strategic
strategy’s proposed vision and strategic objectives. directions.
The strategy’s plan of action ( PoA ) responds to this
vision by addressing the sector’s constraints and
Executive summary 3
THE STRATEGIC OBJECTIVES
Strategic Objective 1: Ensure

access to competitive raw •Increasing the supply of livestock reared for meat
production, either higher meat yeilds and at competitive
material to increase the prices, is a prerequisite to improve the Pakistani meat
attractiveness of Pakistani meat industry's competitiveness.
products on global markets
Stratigic Objective 2: Ensure a •Improving Pakistan market access to new destinations in a

sustainable way through improved traceability of meat
supply of disease-free, quality throughout the value chain, progressive eradication of FMD,
and traceable livestock and the provision of better grade processed meat.
Strategic Objective 3: Improve •Securing greater access to international markets for

Pakistani meat products and allowing export-oriented meat
market access conditions for processors to compete on the domestic market on a level
Pakistani meat products playing field.
IMPLEMENTATION MANAGEMENT • Implement a cross-breeding programme to develop

high-meat-yielding beef breeds, including through
The strategy process considered current capabilities, importing high-yielding breeds and semen for arti-
constraints, and future shifts and opportunities for ficial insemination ;
Pakistan’s meat sector, and industry stakeholders ex- • Build small-scale farmers’ skills on good farming
tensively evaluated future orientations and upgrading practices for animal production food safety and
trajectories. The strategy presents a pragmatic and orient them towards rearing cost-efficient animals
forward-looking roadmap for upgrading and interna- exclusively for meat production through back-
tionalization, and can be driven successfully through grounding of beef calves ;
timely and appropriate resource allocation and effec- • Work towards improving the traceability of the ani-
tive public–private collaboration for implementation. mals through the introduction of a basic tagging sys-
tem for animal identification that is accessible to all
Accordingly, a public–private sector specific council farmers, the conduct of a national census and the
for the meat sector is established, operationalized development of a national livestock database ;
and empowered. The meat sector specific council is • Enforce regulations allowing export-oriented meat
responsible for overall coordination, provision for rap- processors to sell leftovers from exports in the do-
id and viable solutions to regulatory and procedural mestic market. This should be implemented hand in
bottlenecks, policy guidance and the monitoring of hand with comprehensive meat industry regulations;
industry development against the strategy’s objectives. • Negotiate market access for Pakistani meat and
meat products in previously identified key target
The following key areas of intervention are priorities to markets that are readily accessible to Pakistani meat
facilitate the strategy’s implementation : processors.
©ITC
5
A GLOBAL MEAT INDUSTRY

THAT KEEPS GROWING
AND EVOLVING
A booming global market dominated

by the frozen meat segment
The booming global market for bovine meat is shifting The global demand for bovine meat products is con-
from fresh or chilled beef to the frozen market segment. centrated in the boneless meat category, in both the
The size of the global market for trade in bovine meat fresh or chilled and frozen market segments. Among
amounted to $54 billion in 2020 (UN Comtrade, 2020). the three main product categories, namely carcass-
The industry has shown dynamism in recent years, grow- es ( including half carcasses ), cuts with bone in and
ing at a healthy compound annual growth rate (CAGR) boneless meat, the latter accounts for 92 % and 73 % of
of 6.3% in 2016–20. This upward trend is notably driven the world’s imports of frozen and chilled bovine meat
by the rapid developments in the frozen bovine meat respectively ( see Figure 3 and Figure 4 ). On the other
segment (the other segment being the fresh or chilled hand, the global demand for carcasses, which current-
one), which has witnessed a formidable average annual ly account for the bulk of Pakistan’s beef exports, is
growth in international sales, exceeding 10 % in 2016- fairly limited, only constituting a mere 9% of chilled beef
20. In 2009-2020 ( see Figure 2 ), frozen beef indeed imports in 2020 ( UN Comtrade, 2020 ).
emerged as the largest imported category, outperform-
ing the chilled or fresh market segment, and accounting
for 56 % of total global bovine meat imports in 2020.
Figure 1 : Global imports of fresh or chilled and frozen Figure 2 : Share of fresh or chilled and frozen beef
bovine meat ( HS 0201 and HS 0202 ) in global bovine meat imports, in value
60
USD billions
60%
50 56%
50%
40 43%
CAGR 2016-20: +9.8% 40%
30 30%
20
20%
CAGR 2016-20: +2.2% Fresh or chilled Frozen
10%
10 FRESH OR CHILLED
0%
-
09
10
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
20
20
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source : ITC calculations based on UN Comtrade statistics. Note : The remaining 1 % consists of ‘meat, salted or in brine’ as well
as sub-categories that do not specify whether the meat is frozen or
chilled. This category, being very marginal, is not mentioned here.
Source : ITC calculations based on UN Comtrade statistics.
Figure 3 : World imports of fresh or chilled bovine Figure 4 : World imports of frozen bovine meat,
meat, by product category, in value ( 2020 ) by product category, in value ( 2020 )
Carcases
9%
Cuts with bone in
8%
Cuts with
bone in
18%
Boneless
73%
Boneless
92%
Source : ITC calculations based on UN Comtrade statistics. Source : ITC calculations based on UN Comtrade statistics.
In addition to the main fresh and frozen meat mar- (excluding sausages) amounted $2.5 billion in 2021
ket segments that dominate the world market, niche (UNComtrade). This market segment has been growing
markets exist for bovine offal and further processed, at a dynamic CAGR of almost 5% over the period 2017-
value-added, bovine meat products. Along with the 2022. It is primarily dominated by North American and
consumption of meat, the international demand for European markets, chief among them the United States
edible entrails and internal organs ( offal ) of bovine an- of America (accounting for 27.7% of the world’s imports
imals has followed an upward trend in the past decade in 2021), the United Kingdom (8.6%), Canada (7.6%) and
to reach approximately $4.2 billion in 2020 ( UN Com- Germany (5.6%). Sausages imports traded under HS
trade, 2020 ).1 This demand is largely dominated by 1601 amounted to about $6 billion in 2021, also grow-
bovine offal in its frozen state ( 76 % ) ( Figure 5 ). Hong ing at a dynamic growth rate exceeding 6% per annum,
Kong, China, and Japan are the world’s largest import- on average, between 2017 and 2022. However, the
ers in the frozen and fresh / chilled market segments. analysis does not make it possible to know from which
A niche market also exists for processed bovine animal the meat comes. ( see Figure 6 ). Opportunities
meat. Global imports for these products ( excluding for Pakistani bovine meat exporters in this particular
sausages ) reached $2.2 million in 2020. Worl imports market segment are discussed in Orientation 4 ( me-
of processed beef categorized under HS160250 ‘pre- dium to long term): Promote product diversification into
pared or preserved meat or offal of bovine animals higher-value-added products’ of the present strategy.
Figure 5 : World imports of edible bovine offal

5
USD billions
-
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
Frozen Fresh or chilled
1.– Considering products classified under HS Codes 020629 ‘Frozen edible bovine offal ( excluding tongues and livers )’ ; 020610 ‘Fresh or chilled
edible offal of bovine animals’ ; 020622 ‘Frozen edible bovine livers’ ; and 020621 ‘Frozen edible bovine tongues’.
A global meat industry that keeps growing and evolving 7
Figure 6 : Main importers of prepared or preserved bovine meat or offal ( excluding sausages ) ( HS 160250 )
1.200
$ millions
1.000 2012 2016 2020
800
600
400
200
-
EU28 USA Canada Hong Japan Australia RoW
Kong
KEY DRIVERS OF CHANGE PUSHING

THE GLOBAL DEMAND FOR MEAT
In high-income countries, the demand for meat re-
The global demand for meat products has evolved in mains high and relatively stable, dominated by the
recent years, driven by population growth, urbanization consumption of chilled boneless beef, and in partic-
and rising per capita income in developing countries. ular superior-quality cuts, which fetch higher prices.
This has translated into an increasing demand for fro- In these markets, consumers are becoming increas-
zen meat, in particular in developing Asian markets, ingly demanding in terms of quality and safety, with a
as this source of protein is becoming more affordable growing health consciousness resulting in changing
and accessible. Frozen products have a longer shelf consumption patterns. This translates to an increas-
life than chilled meat, and also fetch lower prices for ing demand for traceability of meat products and the
these highly price-sensitive markets, as they offer the progressive introduction of standardized labelling rules
possibility to be transported by sea at relatively low and standards for the meat industry.
costs. The increasing demand for frozen meat emanat- A more detailed analysis of the key drivers of chang-
ing from developing economies is largely concentrated es in the global meat industry in presented in The way
in the boneless meat category. forward section of the present strategy.
Increasing demand for frozen meat

in developing countries is driving the market
International sales of bovine meat have been boosted short to medium term as the propensity to consume
by the spectacular increase in demand for frozen prod- beef is set to increase as per capita incomes rise.
ucts from the Chinese market. The People’s Republic
of China, the United States and Japan are the largest A strong demand for frozen beef is emerging from
importers of bovine meat globally, with market shares East Asia and South-East Asia. In addition to China
of 21 %, 13 % and 7 % respectively. Chinese imports, alone capturing 36% of the world imports in this market
consisting almost exclusively of frozen beef, grew four- segment ( adding up to 45 %, also considering Greater
fold in 2016–20 to exceed $10 billion in 2020. It is antic- China2 ), a rapidly increasing demand from Association
ipated that this demand will continue to progress in the of Southeast Asian Nations ( ASEAN ) member States
2.– Greater China encompasses mainland China, Hong Kong, China, Macao Special Administrative Region and Taiwan Province of China.
was observed in recent years, chief among them Ma- however, showing signs of exhaustion, with a negative
laysia, the Republic of Indonesia and the Socialist Re- CAGR of -1.7 % reported in 2016–20 due to the pro-
public of Viet Nam. As a group, ASEAN emerged as gressive decline in per capita intake of bovine meat in
the second-largest importer of frozen bovine meat, with a number of European countries as a result of growing
imports exceeding $2 billion in 2020, representing 7.5 % environmental concerns and the progressive shift to-
of global trade. Other Asian economies are among the wards more sustainable consumption patterns.
main importers of frozen beef, including the Republic By contrast, the international demand from the
of Korea, and Japan, with market shares of 7 % and United States, the largest single importer of fresh or
5 % respectively. chilled beef in the world, progressed at an average
dynamic annual growth rate of 8.2 % in the same pe-
Consumers in high-income countries have a prefer- riod. A strong demand also comes from Japan and,
ence for fresh or chilled beef, which is significantly more significantly, from the Republic of Korea, with
more expensive due to higher transportation ( often a dynamic CAGR of 4.3 % and 15.7 % respectively in
by air cargo for long distances ) and wastage costs. 2016–20 respectively. Together, the EU ( including the
EU member States and the United Kingdom together United Kingdom ), the United States and Japan are re-
captured approximately 44 % of the world imports of sponsible for 70 % of the global demand for fresh or
chilled beef in 2020, suggesting consumer preferenc- chilled bovine meat.
es for premium, superior-quality cuts. EU imports are,
Figure 7 : Main importers of bovine meat, Figure 8 : Evolution of bovine meat imports
in value ( 2020 ) by main importing markets, in value
12 16
Frozen Chilled 2012 2016 2020
USD billions
$ billions
10 14
12
8
10
6 8
4 6
4
2
2
0 -
N
n
ina
C
of
ina
W
UK
a
A
of
C
ina
N
n
pa
US
EA
GC
UK
Ro
hin
pa
c
US
GC
EA
Ch
Ch
Ja
bli
c
AS
+
Ch
Ja
bli
,C
+
AS
pu
,
ng
EU
pu
Re
ng
EU
Ko
Re
Ko
,
ea
ng
a,
r
Ho
ng
Ko
re
Ho
Ko
Global trade of bovine meat is dominated

by a handful of players
Three major players largely dominate the global bovine The frozen bovine meat segment is particularly con-
meat market, namely Brazil (capturing 15% of world ex- centrated in Brazil, Australia, the United States, India
ports of bovine meat in 2020 ), Australia ( 14 % ) and the and the Argentine Republic capturing approximately
United States (13%), together capturing a market share 70 % of global exports in 2020 ( UN Comtrade, 2020 ).
of approximately 42 % in 2020 ( UN Comtrade, 2020 ). In fact, exports of four out of the five largest bovine
meat exporting countries are dominated by the frozen
beef category, the United States being an exception
A global meat industry that keeps growing and evolving 9
( chilled products account for 54 % of the United States’ meat segment. The beef industry in India has adopted
total beef exports ) ( see Figure 9 below ). In Brazil, the a similar strategy, as Indian bovine meat exports con-
largest exporter of bovine meat in the world, 90% of the sist almost exclusively of frozen products.
sector’s export revenues are generated from the frozen
Figure 9 : Exports of bovine meat from the Top 5 exporters, by category ( 2020 )
Brazil
Australia
USA
India
Argentina
0 2 4 6 8
$ billions
Frozen Chilled
Together, the 27 EU member States are the largest in- meat, including Brazil, Australia, the United States and
ternational suppliers of bovine meat in the world, with India, are non-Islamic countries, they nevertheless have
more than $11.6 billion worth of bovine meat exported internationally recognized halal accreditations and cater
in 2020 ( UN Comtrade, 2020 ). The particularity of the to the demand of Muslim countries as well. Perhaps the
beef industry in the EU is that it mainly caters for other most telling illustration lies in the fact that the majority
EU member States. Intra-EU trade accounted for 96 % of Indian exports of frozen bovine meat is destined to
of the transactions in 2020, mainly consisting of fresh Asian Muslim countries ( approximately 53 % in 2020 ).
or chilled meat ( 84 % ), especially in the form of bovine Halal meat production in Muslim countries does not,
cuts or boneless meat. consequently, provide them with a competitive edge
to penetrate halal meat markets globally. Rather, halal
Non-Muslim suppliers are leaders in the main halal certifications are a necessity for exporters to conform to
meat markets. While the largest exporters of bovine labelling requirements by Muslim countries.
Global trends in the sheep and goat meat market

The fast-growing global market for sheep and goat ‘Sheep cuts with bone in’ is the category in highest
meat reached $7.2 billion in 2020 ( UN Comtrade, demand in international markets, whether chilled or
2020 ), boosted by its frozen market segment. As for frozen, with a share of 57 % in total goat and sheep
the bovine sector, global imports of goat and sheep meat imports in 2020. Carcasses, which currently con-
meat are dominated by the frozen meat segment, ac- centrate on Pakistani exports, account for 21 % of the
counting for approximately 60 % of the total in 2020. international demand for sheep and goat meat, 74 %
The international demand for this category of prod- of which is in the fresh or chilled state ( see Figure 11 ).
ucts is growing rapidly, with global imports progress-
ing at a dynamic CAGR of 11.5 % in 2016–20 ( see Important market destinations for sheep and goat meat
Figure 10 ). include the EU ( capturing 30 % of global imports in
2020 ), China ( 24 % ), the United States ( 14 % ) and GCC while the demand from developing countries is largely
countries ( 10 % ). The demand from Eastern markets, in concentrated in frozen items. For example, China, by
particular Malaysia, the Republic of Korea, and Japan, far the largest importer, buys almost exclusively cuts
is also rapidly progressing. As in the beef sector, high- of sheep, with bone in, mainly from New Zealand
er-end markets tend to import mainly chilled products, and Australia.
Figure 10 : World import of sheep and goat meat, Figure 11 : World imports of sheep or goat meat,
fresh or chilled and frozen, in value in value ( 2020 )
10
Non specified ,
USD billions
Fresh boneless Fresh, other, 3%

8 cuts of sheep, 3%
7%
CAGR 2016-20: +0.5%
6
F R E S H / C H IL L E D Fresh lamb Frozen cuts of
carcases, 12% sheep, with
4 bone in, 41%
CAGR 2016-20: +11.5%

2 Fresh cuts of
F R O ZE N
sheep, with
bone in, 16%
- Frozen boneless
Frozen, other, cuts of sheep,
6%
09
10
11
12
13
14
15
16
17
18
19
20
12%
20
20
20
20
20
20
20
20
20
20
20
20
• A major shift toward the frozen meat market segment was observed in recent years, driven by the booming
demand emanating from the Chinese market. The importance of this price-sensitive segment is expected to
grow in the future, pushed by the rising demand from developing countries, in particular in Asia.
• High-income countries continue to dominate the fresh or chilled market segment, with consumers willing to pay
a premium for higher-quality chilled prime cuts.
• The global demand for meat is largely dominated by the boneless meat category, in both the fresh/chilled and
frozen market segment.
• A limited number of highly competitive players dominate the world trade of meat, including Brazil, Australia, the
United States and India.
• Halal meat production does not give Pakistan a competitive edge in Muslim countries, as the main (non-Muslim
countries) exporters are leaders in these countries.
These market trends should guide the future development of the export-oriented meat industry in Pakistan, start-
ing with a strong emphasis on increasing the production of livestock reared for meat at lower costs in order to
become price competitive on the international markets and gain greater market shares.
11
PAKISTAN’S MEAT SECTOR:

A DEEPLY ROOTED INDUSTRY
WITH HIGH EXPORT
POTENTIAL
In developing an export strategy for Pakistan’s meat provides an overview of the sector’s current state and
sector, the starting point for analysis is to understand highlights the most significant segments and trends of
the existing products and markets locally. This section domestic and export markets.
The socioeconomic importance

of Pakistan’s livestock sector
Pakistan is primarily considered an agrarian economy
in which approximately 35 million people and more
than 8 million families are engaged in the rural sub-
sistence livestock production system. It is estimated
that these families derive 40 % of their income from the
livestock sector.3 Being a country that has a largely ru-
ral and agriculture-based industry, animal husbandry
plays an important role in Pakistan’s economy, as it
serves as social security for the rural poor, who can
cash it in when needed. Livestock also provides se-
curity against crop failure, particularly in barani4 areas.
Livestock is the most important subsector of agricul-

ture, contributing more than 60 % to the total agricultur-
al economy and 11.5 % to the country’s overall gross
domestic product ( GDP ) for the fiscal year 2020 / 21.5
Livestock also contributes significantly to national ex-
ports and 0.9 % of total exports belong to this sector.
©ITC
3.– Ibid.
4.– Barani areas are areas that mostly lack access to water for crops and livestock.
5.– Pakistan Economic Survey 2020–21. Available from https:// www.finance.gov.pk / survey / chapters_21 / 02-Agriculture.pdf.
Table 1 : Agricultural subsectors’ contribution Table 2 : Livestock population in Pakistan,

to the national economy in million heads
Contribution to Item FY 2019 / 20 FY 2020 / 21 YoY growth
Agricultural agricultural gross Contribution Cattle 49.6 51.5 3.8 %
subsectors domestic product to national GDP
( GDP ) Buffalo 41.2 42.4 2.9 %
Livestock 60.10 % 11.5 % Sheep 31.2 31.6 1.3 %
Crops ( major ) 22.49 % 4.32 % Goat 78.2 80.3 2.7 %
Crops ( minor ) 11.69 % 2.24 % Camel 1.1 1.1
Forestry 2.10 % 0.40 % Horse 0.4 0.4
Fisheries 2.01 % 0.39 % Donkey 5.5 5.6 1.8 %
Rounding off error 1.61 % 0.35 % Mule 0.2 0.2
Total 100 % 19.20 % Source : Pakistan Economic Survey 2020–21.
Source : Pakistan Economic Survey 2020–21.
Pakistan is endowed with one of the largest livestock The majority of the national herd is maintained by frag-
populations in the world. According to the latest Paki- mented smallholders. According to a recent report
stan Economic Survey conducted for FY 2020 / 21, the published by the Pakistan Business Council, 85% of to-
country is endowed with an estimated bovine animals tal bovine animal stock is owned by households with 10
population of 94 million ( cattle and buffalos ) and 112 or fewer animals, fragmented across different parts of
million small ruminants ( goats and sheep ) ( Table 2 ). rural Pakistan, mainly in Punjab and Sindh.7 Livestock
This makes it the seventh-largest cattle inventory in is primarily reared to provide for milk production, and
the world ( and second only considering buffalos ) and male calves are generally considered a liability to the
the fourth-largest population of goats ( based on 2019 farmer and are sold and culled at young age for meat
Food and Agriculture Organization data ). The total production. Old cows and buffaloes too old to work
livestock population grew at a healthy rate of 2.7 % in in the fields or unable to produce milk or reproduce
2020–21 compared to the previous year.6 also enter the food chain. Backgrounding and feedlot
fattening farms are virtually inexistent in Pakistan.
Table 3 : Cattle population ( 2019 ) ( head, millions ) Table 4 : Goat population ( 2019 ) ( head, millions )
Rank Country Head, millions Rank Country Head, millions
1 Brazil 214.7 1 India 148.9
2 India 193.5 2 China 137.2
3 United States 94.8 3 Nigeria 81.9
4 China 63.4 4 Pakistan 76.1
5 Ethiopia 63.3 5 Bangladesh 61.1
6 Argentina 54.5 6 Chad 38.8
7 Pakistan 47.8 7 Kenya 35.2
8 Mexico 35.2 8 Ethiopia 34.0
9 Republic of the Sudan 31.5 9 Republic of the Sudan 32.0
10 Chad 30.6 10 Mongolia 29.3
Source : FAOSTAT. Source : FAOSTAT.
6.– Inter-census growth rate of Livestock Census 1996 and 2006.

7.– Pakistan Business Council ( 2021 ). ‘Scaling-Up Bovine Meat Exports of Pakistan – A Review of Opportunities in the Bovine Meat Sector’, P. 33.
Pakistan’s meat sector : A deeply rooted industry with high export potential 13
Unlike most large bovine meat exporters, Pakistan dairy sector are Kundhi and Nili-Ravi, with their pop-
has yet to develop an indigenous beef breed. Looking ulations on the rise, while the rest are on the decline.
specifically at the bovine animals segment, it appears Cow breeds include Achai, Sibi Bhagnari, Desi, Dhan-
that indigenous breeds are generally milk breeds ( i.e. ni, Red Sindhi, Sahiwal and Thari. Consequently, beef
genetically developed for higher milk production ) or produced in Pakistan is basically a by-product of the
dual purpose at best, meaning that they are special- milk industry.
ized for neither meat nor milk. In particular, there are Together with other factors, the lack of meat breeds
several breeds of buffalo, namely Azi-Kheli, Kundhi, contributes greatly to the low average carcass weight
Nili, Nili-Ravi and Ravi. The two most popular for the of cattle in Pakistan.
Pakistan is one of the largest producers

of meat in the world
According to the Pakistan Economic Survey 2020–21, exceeding 2.2 million tons in 2019, Pakistan was the
domestic production of meat was approximately 5 seventh-largest producer of cattle meat in the world in
million tons in FY 2020 / 21, with a steady growth of 2019 ( Food and Agriculture Organization, 2019 ). Unlike
5 % annually in 2018–21 ( Table 5 ). Almost half of this other large beef producers, with the exception of India,
production volume consists of beef ( 48 % ), followed by a large share of the cattle meat produced in Pakistan
chicken ( 36 % ) and mutton ( 15 % ). With a production consists of buffalo meat ( approximately 48 % ).
Figure 12 : Production of bovine meat in the main production areas, in million tons
14
Tons, millions
12
10
0
10
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
China India Pakistan Argentina

Source : FAOSTAT.
Australia Brazil USA
Table 5 : Pakistan meat production, in volume ( thousand tons )

2018–19 2019–20 2020–21
Beef 2 227 2 303 2 380
Mutton 732 748 765
Chicken 1 518 1 657 1 809
Total 4 477 4 708 4 954
Source : Pakistan Economic Survey 2020-21.

MEAT PROCESSING IS DONE THROUGH Organization ( FAO ), the average carcass weight of
TWO DISTINCT CHANNELS cattle (or yield) in Pakistan was estimated at 130 kg/an-
imal in 2019, compared 360 kg / animal, 314 kg / animal
Thirty-four export-oriented slaughterhouses are reg- and 270 kg per animal in the United States, Brazil and
istered with and approved by the Animal Quarantine Australia respectively ( see Figure 13 ).
Department ( AQD ).8, 9 A number of these privately
owned entities are state-of-the-art production facilities The vast majority of meat production in Pakistan is
equipped with modern processing technologies and destined for the domestic market. According to FAO
conform to international standards of meat production. statistics for 2019, more than 97% of the 2.2 million tons
These slaughterhouses operate in the country’s major of cattle meat produced in Pakistan was consumed
urban centres, namely Lahore ( 17 ), Karachi ( 13 ), Pe- domestically. The meat exported by the AQD-approved
shawar ( 3 ) and Islamabad ( 1 ).10 In these document- slaughterhouses mainly consist of fresh or chilled car-
ed and notified slaughterhouses, bovine animals are casses. In the domestic market, red meat is mostly
brought from the mandis and are culled within a few sold directly from the slaughterhouses and abattoirs
hours after arrival. Due to the shortage of livestock to the local butchers and consumed on the same day
reared for meat production and the restricted access to of slaughter, generally not refrigerated.
international markets for Pakistani meat, these facilities
are not operating at full capacity, with estimates as low
as 25 % of their potential ( Board of Investment, 2020 ). THE PRODUCTION OF FROZEN
These slaughterhouses, therefore, have a collective AND FURTHER PROCESSED,
capacity to produce two to three times more than their
current production output.11
VALUE-ADDED PRODUCTS IS STILL
NASCENT IN PAKISTAN
Apart from the export-capable slaughterhouses, there
are a number of municipal slaughterhouses throughout Signs of development in the frozen processed red
the country, which cater to the domestic market needs. meat segment have nevertheless been witnessed in
These public slaughterhouses come under the Tehsil the domestic market. While the frozen meat market
Municipal Administration, which is responsible for their segment remains marginal in terms of exports, in the
management. In the domestic market, however, the domestic market, sales of frozen processed red meat
majority of animals are slaughtered at slaughter slabs, in Pakistan have progressed at a healthy average
slaughterhouses and abattoirs that are not notified by annual growth rate of 15 % in 2015–20, to reach PKR
the government, and the meat is then sold in the infor- 626.2 million ( approximately $3.7 million ), according
mal wet markets. Most of these facilities usually lack to Euromonitor International ( see Figure 14 ).12 Sales
basic equipment such as hoisting facilities, a lighting of frozen processed red meat are anticipated to grow
system and a regular water supply. The standard of at a dynamic CAGR of 11.7 % in 2020–25 ( per cent of
hygiene, and both liquid and solid waste disposal, are constant value growth ) to reach PKR 1,091 million in
also poorly managed. 2025 ( approximately $6.4 million ), supported by an
expanding urban middle class with rising disposable
incomes.13
MEAT PRODUCTION IS MAINLY GEARED Even though a few export-oriented companies are
TOWARDS THE LOCAL MARKET investigating the possibility of developing products
such as heat-treated meat to circumvent the ban im-
AND CHARACTERIZED BY LOW YIELD posed by most countries on Pakistani meat imports,14
The average carcass weight of cattle is very low in results have been limited.
Pakistan. According to the Food and Agriculture
8.– Animal Quarantine Department, Ministry of National Food Security & Research, Government of Pakistan. ‘List Of Slaughter Houses’.
Retrieved from : http : // www.aqd.gov.pk / list-of-registered-slaughter-houses / on 8 October 2021.
9.– Pakistan Economic Survey 2020–21, Chapter 2 : Agriculture. Accessed at https:// www.finance.gov.pk / survey / chapter_20 / 02_Agriculture.pdf.
10.– Animal Quarantine Department, Ministry of National Food Security & Research, Government of Pakistan. ‘List Of Slaughter Houses’.
Retrieved from : http : // www.aqd.gov.pk / list-of-registered-slaughter-houses / on 8 October 2021.
11.– The Meat Industry of Pakistan by Dr. Hamid Jalil & Humbal Tariq.
12.– Euromonitor International ( February 2021 ). Passport Packaged Food Factsheet.
13.– Euromonitor International ( February 2021 ). Passport Packaged in Pakistan
14.– The ban imposed on imports of meat products from Pakistan are due to the following reasons- prevalence of animal diseases such as FMD
and partly because new entrants have traditionally competed on pricing, and not so much on product diversification or innovation.
Figure 13 : Carcass weight of cattle in the main Figure 14 : Sales of frozen processed red meat in
production areas, in kg / animal ( 2019 ) Pakistan ( 2015–20 ) ( PKR million )
USA 360 800
Brazil 314 600
PKR million
Australia 270 400
Argentina 225 200
Pakistan 130
-
15
16
17
18
19
20
0 50 100 150 200 250 300 350 400
20
20
20
20
20
20
Source : FAOSTAT. Source : ITC calculations based on Euromonitor data ( 2021 ).
Defining the sector

Since Pakistan does not have the capacity to export in future. While this list is not intended to be fully exhaus-
all categories of meat products in significant volumes, tive, it allows readers to gain a better understanding of
a product map defining the strategy’s scope was es- the product range covered as well as a grasp of the
tablished. This map presents products that are cur- sector’s current external position. The product map is
rently being exported as well as some products that presented in Figure 15.
could present significant export potential in the near
Figure 15 : Product map for meat products in Pakistan
Source : ITC calculations based on UN Comtrade and ITC statistics.

Pakistan is well poised to become a major

supplier of red meat to international markets
and opening up access to new international markets.
COMPETITIVE ADVANTAGES OFFER THE A more efficient supply chain that reduces operating
MEAT SECTOR PROMISING PROSPECTS costs of animal sourcing for meat processors also
holds a tremendous potential for a significant increase
FOR EXPORT GROWTH in export revenues and farm income. According to
An immense untapped export potential is to be de- the ITC Export Potential Map, meat products with the
rived from the large livestock population. Firstly, the largest untapped export potential in Pakistan include
country benefits from abundant livestock, leaving it frozen boneless bovine cuts, frozen bovine carcass-
well positioned to grow its meat industry, including es and fresh bovine cuts with bone in ( see Figure
the processed meat market segment. This great val- 16 ). Overall, the tool valued the untapped potential
ue-addition potential can be achieved through a strong remaining in individual countries and / or products
drive towards improving yields in livestock production at $61.5 million.
Figure 16 : Pakistani products with potential
Source : ITC Export Potential Map.
Its geostrategic location also gives Pakistan an import- to landlocked Central Asian states through the Islamic
ant advantage to cater to the Chinese and South-East Republic of Afghanistan and can reach Gulf countries’
Asian markets, in addition to the Gulf countries. At the markets efficiently and cost-effectively.
crossroads of Asia with China, Pakistan is ideally locat-
ed to cater for these countries’ increasing demand for The rising domestic demand for meat should boost
food products. The country also has strategic access production and encourage more players, domestic and
foreign, to enter the market. The anticipated economic The meat processing industry is not operating at full
recovery and the expanding urban middle class with ris- capacity. As mentioned earlier, export-oriented slaugh-
ing disposable incomes will lead to an increasing num- terhouses are not running at full capacity. The coun-
ber of households buying a wider range of convenient try has enough capacity built to process twice, if not
products, which are becoming more affordable and ac- thrice, the amount of current meat exports, provided
cessible, including meat and processed meat products. that access to international markets is improved.
The experience gained on the domestic market should
allow private operators to venture into export activities.
• Pakistan is endowed with one of the largest livestock populations in the world and is one of the largest meat
producers globally.
• The livestock sector holds an important socioeconomic role, contributing more than 60% to the total agricul-
tural economy in 2020–21 and providing substantial revenue to an estimated 8 million families engaged in rural
subsistence livestock production.
• The majority of the national herd is reared in a traditional way for milk production by fragmented smallholders,
making meat a by-product of dairy farming. This contributes to the low carcass weight observed in Pakistan,
aggravated by the absence of an indigenous beef breed with a high meat conversion ratio.
• Meat processing is done through two distinct channels, with the meat destined for the domestic market (ap-
proximately 97%) mainly coming from unregistered slaughterhouses and abattoirs. At the same time, a number
of approved export-oriented slaughterhouses that conform to international standards of meat production are
operating – at low capacity.
The sector’s structure, the animals’ characteristics and the way in which animals are being reared, aggregated
and processed have a huge bearing on the meat industry’s trade performance and a tremendous impact on its
competitiveness.
Pakistani meat exports are currently concentrated

in the chilled carcasses segment
recent successes of Pakistan’s beef industry can be
AN IMPORTANT AND RAPIDLY GROWING largely attributed to the private sector’s dynamism in
EXPORT SECTOR developing export market channels, particularly in GCC
countries.
The growth in bovine meat exports from Pakistan has With this rapid growth, bovine meat progressively
been very dynamic in recent years, reaching $245 emerged as a major agricultural product in terms of
million in 2020 ( UN Comtrade, 2020 ). Pakistan meat export revenues generated in Pakistan, accounting for
processors also generated $12 million in export rev- 6.4 % of the exported value for this category of prod-
enue from the sales of edible bovine offal that same ucts in 2020, second only to rice ( 54.6 % ).16 The sec-
year. Among the Top 25 exporters in 2020, Pakistan tor’s contribution to Pakistan’s total products exports
was the second-fastest-growing bovine meat exporter reached 1.4 % in 2020, a sharp increase compared to
in the last decade, with a robust CAGR exceeding 14 % its 2011 share of approximately 0.3 % ( UN Comtrade,
in 2011–20, only outperformed by Japan ( 22.5 % ).15 The 2020 ).
15.– Considering products classified under HS Codes 0201 ‘Meat of bovine animals, fresh or chilled’ and HS 0202 ‘Meat of bovine animals, frozen’.
16.– Considering ‘Live Animals ; Animal Products’ classified under HS Codes 01 to 05, and ‘Vegetable Products’ classified under HS Codes 06 to 14.
Despite this recent surge, Pakistan remains a minor considering the fresh or chilled market segment ). Ac-
player in the international beef market. While Pakistan cording to the FAO, out of the 2.2 million tons of cattle
is a large meat producer, ranking 7th in bovine meat meat produced in Pakistan in 2019, only a mere 2.7 %
production in 2019 according to the FAO, the country was exported ( approximately 60,000 tons ). This ratio
only ranks 25th in bovine meat exports, in value, only exceeded 15 % in Brazil that same year.
capturing a market share of 0.49 % in 2020 ( 1 % only,
Figure 17 : Pakistan’s exports of meat of bovine animal and edible offal, in value ( 2011-20 )
250
USD millions
200
150
100
50
-
11
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
Fresh or chilled meat Frozen meat Edible offal
Source : ITC calculations based on UN Comtrade data.
PAKISTAN BEEF EXPORTS ARE LARGELY in the low value added market segment of chilled car-
CONCENTRATED IN THE CHILLED casses, sold primarily to GCC countries, chilled bovine
meat is also exported in the form of cuts with bone
CARCASSES MARKET SEGMENT, SOLD in, variants of carcasses, representing a share in total
TO GCC COUNTRIES Pakistani bovine meat exports of approximately 15 %
in 2020. This segment is dominated by sales to Af-
Pakistan’s primary exports of bovine meat are in the ghanistan ( 64 % ) and the United Arab Emirates ( 21 % ).
form of hilled products that have not gone through Exports of chilled boneless bovine meat – by far the
further processing such as carcasses, half carcass- most demanded product in international markets in
es, and cuts with bone in. In 2020, the fresh or chilled both the fresh / chilled and frozen market segments –
market segment accounted for approximately 92 % of are negligible.
Pakistan’s total beef exports,17 84 % of which consisted Pakistan’s meat exporters are not competitive in
of carcasses or half carcases of bovine animals. This the frozen meat market segment. While most export-
is in direct contrast to leading meat exporting coun- oriented processors do have the capacity to process
tries, including Australia, Brazil and India, which export frozen meat, this product category is currently largely
mainly bovine meat in its frozen form. Export revenues underdeveloped due to limited market opportunities
generated from the international sales of bovine car- on the international scene. In 2020, Pakistan exports of
casses from Pakistan were estimated at $187.6 million frozen bovine meat amounted to $20.5 million, mainly
in 2020, or nearly three times their 2011 level (UN Com- in the form of carcasses ( 61 % ) and boneless meat
trade, 2020 ). While Pakistan bovine meat processors ( 31 % ). As illustrated in Figure , revenues generated
have capitalized on this highly profitable niche market from the export of frozen bovine meat in Pakistan have
in GCC countries, this market segment is nevertheless been erratic in the past decade, with no clear upward
declining globally, and only accounted for less than trend. A more detailed analysis of this market segment
4 % of global imports of bovine meat in 2020 ( Figure ). is presented below.
17.– Considering products classified under HS Codes 0201 ‘Meat of bovine animals, fresh or chilled’ and HS 0202 ‘Meat of bovine animals, frozen’.
Figure 18 : National export growth and international demand for fresh or chilled bovine meat exported by
Pakistan in 2020
Source : ITC calculations based on UN Comtrade and ITC statistics.
Figure 19 : Pakistan exports of bovine meat and edible offal, by products, exported value in 2020
Frozen meat
8% Carcases
73%
Fresh or chilled
meat
87%
Edible offal
5%
Cuts, with bone in,
14%

Table 6 : Main products exported by Pakistan’s red meat industry in Pakistan in 2020,
in value ( HS 0201, 0202 and 0204 )
HS Code Product Exported value in 2020, ( USD million )
‘020110 Fresh or chilled carcases of bovine animals 187.6

‘020120 Fresh or chilled bovine cuts, with bone in 36.0
‘020410 Fresh or chilled lamb carcases 27.2
‘020210 Frozen bovine carcases 12.6
‘020629 Frozen edible bovine offal 10.1
‘020421 Fresh or chilled sheep carcases 9.2
‘020230 Frozen boneless meat of bovine animals 6.3
‘020450 Fresh, chilled or frozen meat of goats 6.0
In addition to bovine meat export, Pakistan exported Disease ( PCP-FMD ). Thus, its access to most inter-
$11.7 million worth of edible bovine offal in 2020, mainly national markets for locally processed bovine meat,
in its frozen form ( 86 % ). Hong Kong, China captures in both the fresh and the frozen segment, is extremely
approximately two-thirds of Pakistan’s exports of this limited. In particular, under this current status, tapping
by-product ( 66 % ), the other main destination market into the higher-value-added markets such as the Unit-
being Viet Nam ( 19 % ). While this market segment is ed States, the EU or Japan is virtually impossible in
relatively small on a global scale ( world imports of the short to medium term, as the stringent quality re-
edible bovine offal amounted to $3.8 billion in 2020 ), quirements and phytosanitary standards imposed by
there is nevertheless room for Pakistan to grow in this these countries would require substantial investments
niche market. in quality and sanitary certifications, including the set-
ting up of FMD-free zones.
The production of further processes and value-added
products is still nascent in Pakistan. Even though a few Currently, Pakistan’s exports of bovine meat are large-
export-oriented companies are investigating the pos- ly concentrated in the six GCC countries, with limited
sibility to develop products such as heat-treated meat and very variable volumes exported to regional coun-
to circumvent the ban imposed by most countries on tries such as Afghanistan, Viet Nam, Malaysia and
Pakistan meat imports, results have been limited, with the Republic of Azerbaijan. In 2020, GCC countries
insignificant export revenues generated. This is partly captured 90 % of Pakistan’s fresh of chilled bovine
explained by the fact that new entrants in Pakistan’s meat exports and the totality of its fresh / chilled car-
bovine meat industry have traditionally competed on casses exports. The United Arab Emirates, the State
pricing, and not so much on product diversification of Kuwait and Saudi Arabia are the largest importers
or innovation. among GCC members States, capturing 48 %, 19 %
and 15 % respectively of Pakistan’s exports of chilled
bovine carcasses in 2020. The remaining 10 % of Paki-
PAKISTAN’S ACCESS TO stan’s export revenues in this market segment consist
INTERNATIONAL MARKETS IS of exports of fresh or chilled bovine cuts, with bone in
to Afghanistan. This heavy reliance on GCC beef im-
RESTRICTED DUE TO THE PREVALENCE ports exposes the sector to exogenous shocks in this
OF FOOT AND MOUTH DISEASE region that could have dramatic impact for Pakistan’s
export-oriented meat industry.
Pakistan is currently being endorsed by the World Or-
ganisation for Animal Health ( OIE ) and is at Stage 2 of
the Progressive Control Pathway for Foot and Mouth
Figure 20 : Pakistan exports of fresh or chilled bovine animals meat, by destination ( 2020 )
Bahrain Oman
7% 3%
Qatar
7%
Afghanistan
10% United Arab
Emirates
44%
Saudi Arabia
13%
Kuwait
16%
As suggested by these trends, Pakistan holds a com- ( for exports ) compared to 3$ / kg in India. This price
petitive advantage in the chilled carcasses segment in competitiveness is more important in the frozen market
GCC markets, through the export of fresh and chilled segment, as it is generally considered as lower qual-
carcasses. In particular, Pakistan’s capacity to supply ity and cheaper. In 2020, Pakistan’s exports of frozen
affordable halal chilled meat, which has a limited shelf bovine meat to GCC countries only amounted to $14.5
life, within short delivery times and at relatively compet- million, consisting almost exclusively of frozen carcass-
itive transportation costs, provides the country with a es shipped to the United Arab Emirates.
competitive edge. In this regard, it is to be noted that,
while Pakistani exports of chilled meat was traditionally
shipped by air, containers are now progressively shift- PAKISTAN’S EXPORTS OF SHEEP
ing to cheaper sea shipments. Pakistan has emerged OR GOAT MEAT
as the largest supplier of fresh / chilled bovine meat to
GCC countries, with a market share of approximately In 2020, Pakistan exported $45 million worth of sheep
30 %. This advantage is, however, limited to meat prod- or goat meat, consisting of lamb meat ( 61 % ), sheep
ucts that have not gone through further processing meat ( 26 % ) and goat meat ( 13 % ). As illustrated in Fig-
such as carcasses, half carcasses, and cuts with bone ure 21 Reference source not found., the export trend
in, as Pakistan has almost no share in the boneless has been erratic in the past decade, with a progressive
chilled beef segment. decline observed in 2012–17, followed by an ongoing a
surge in export earnings observed since 2018.
As the shelf life of frozen meat is high enough for im-
porters to source from anywhere in the world, Paki- As for bovine meat, exports of sheep and goat meat
stan loses the competitive advantage gained from its are currently concentrated in the chilled carcasses
geographical proximity to the GCC market for fresh segment, and primarily destined to GCC markets. Ap-
or chilled meat. This also applies to deboned vacu- proximately 80 % of Pakistan’s exports of sheep and
um-packed beef. In particular, Pakistani meat pro- goat meat consisted of fresh or chilled carcasses in
cessors’ competitiveness is severely affected by the 2020, more than 99 % of which were exported to GCC
high costs of animal sourcing and its deficit in yield, countries, in particular the United Arab Emirates and
resulting in significantly higher market prices compared Saudi Arabia ( UN Comtrade, 2020 ).
to its main competitors, including Brazil and India. Re-
portedly, the production costs in Pakistan fetch 4$ / kg
Figure 21 : Pakistan’s exports of sheep or goat meat ( HS 0204 ), in value ( 2011-20 )
• Pakistan’s trade performance, focusing on the supply of fresh carcases, is in striking contrast with the global
market trends dominated by the demand for frozen boneless meat.
• Despite a sharp increase in Pakistani meat exports observed in recent years, the country remains a minor player
in the international beef market.
• Pakistan competitive advantage are currently concentrated in the declining market segment of chilled car-
casses, which accounted for less than 4% of global imports of bovine meat in 2020. The domestic product mix
needs diversification, in line with international demand.
• The vast majority of Pakistani meat exports is consumed in GCC markets. This dependency on a limited num-
ber of products and destination markets leaves Pakistan exposed to exogenous economic and/or demand
shocks in these countries.
The above analysis points at the urgent need for the Pakistani meat industry to work towards greater product and
market diversification, therefore reducing the reliance on the, though profitable, current niche market in which
Pakistan processors and exporters currently operate.
This transition has been hindered by a number of bottlenecks and issues along the value chain, starting at the
farm level to processing meat, and finally to managing international sales and marketing effectively.
23
VALUE CHAIN AND

COMPETITIVENESS
DIAGNOSTIC
The value chain diagnostic outlines the Pakistani meat industry’s operations following a
‘from farm to fork’ approach. The analysis is used to investigate a sector’s competitive-
ness, identify bottlenecks and challenges and define opportunities for strategic planning.
Value chain mapping

A value chain is simply a visual representation of all the transformation processes and
supporting services required to move a product or service from conception through to
delivery and the final consumer.
The value chain mapping for Pakistan’s meat industry

is broadly classified into the main stages of the value
chain Figure 22.
Figure 22 : Simplified meat industry value chain
Input supply for

Livestock Slaughter/processi Marketing/distribut
livestock Aggregation Consumption
production ng ion
production
Source : ITC.
A value chain map : The value chain for Pakistan’s meat sector in Pakistan
is presented in Figure 23.
• Is a visual representation of the processes required
to bring a product to market ;
• Creates a common understanding of the sector’s
structure and how it operates ;
• Identifies the various stakeholders participating in
sector production and their performance ;
• Provides a tool to analyse where gaps in perfor-
mance occur and where improvements to the sec-
tor could be undertaken.
24
Live stock production Slaughter/proces sing Dis tribution/marke ting
Inputs for livestock Live animals Exporters International markets (+/- 3%)
production
Meat of bovine animals
Large herds Open livestock
(grazed in rangelands) markets Fresh or chilled carcases
Mostly Breeds (genetics) (mandis) GCC ($187.4M)
milk Air freight and sea freight ($264.4M)
breeds Slaughterhouses & (temperature- controlled) Fresh or chilled cuts, with
Middlemen bone in ($13.1M)
Small-scale farmers (beopari) abattoirs UAE (48%)
Veterinary services
(rural subsistence Frozen carcases ($12.4M)
economy) Export-oriented Saudi Arabia (17%)
slaughterhouses Frozen cuts, with bone in
Feed (34 registered) Kuwait (16%) ($1.4M)
Pakistan Export Strategy 2023-2027 • MEAT
85% of total bovine animal stock, Middlemen (arthis)

fragmented across Pakistan Qatar (8%) Meat of sheep or goats
Municipal Domestic retail market Bahrain (7%)
Labour (farming Transport of animals slaughterhouses Fresh or chilled lamb
techniques) Finance the purchase to urban centers (+/- 97%)
(registered) Oman (4%) carcases ($27.1M)
of animals
Fresh or chilled sheep
Smuggling of livestock to Unregistered Informal wet markets carcases ($9.2M)
Livestock population in Iran and Afghanistan slaughter slabs, Meat of goats ($6M)
Pakistan, 2020-21 est. slaughterhouses, and
abattoirs Butchers Fresh or chilled cuts of
Population, sheep, with bone in ($1.4M)
Item
million heads Meat of oth er animals
Cattle 51.5
Production in 2020-21 Camel meat ($2.6M)
Buffalo 42.4 Collection of Inputs for meat (thousand tons)
hides and skins processing
Sheep 31.6
for local tanners Beef: 2,380 Afghanistan Fresh or chilled bovine cuts,
Goat 80.3 ($23.1M) with bone in ($22.9M)
Qualified labour Mutton: 765
Source: Economic Survey of Pakistan
Source : ITC.
2020-21 Hong Kong
Equipment and Source: Economic Survey of ($13.1M) Frozen bovine offal ($7.3M)
machinery Pakistan 2020-21
Average carcass weight of cattle: Viet Nam

130kg (FAO, 2019) ($4.5M) Frozen bovine offal ($7.3M)
Capital
Figure 23 : The value chain
Malaysia Frozen boneless meat of

($3.4M) bovine animals ($3.2M)
Source: UNComtrade (2020 data)
Prim ary s upporting servic es
PARC LDDB MNFSR PSQCA AQD APMEPA MoC TDAP
Legend:
National component International component Mixed component
Value chain and competitiveness diagnostic 25
©shutterstock
INSTITUTIONAL AND POLICY SUPPORT national grading system for indigenous bovine animals
ECOSYSTEM ( PoA Activity 2.3.1 ).
Provincial livestock departments. These departments
The meat sector’s success will not only depend on the are instrumental to ensure that national-level regula-
internal capacities of the companies operating in the tions and policies are actually enforced at grass roots
industry, but also on the role of the various ministries level, in particular in Sindh and Punjab, which have the
and public institutions, as well as other technical agen- largest livestock populations in Pakistan. In this regard,
cies. For the sector to achieve long-term sustainable it will be vital to provide technical and pedagogical
growth, participating enterprises must be able to rely training for provincial staff, in particular on livestock
on a capable network of government and private sector traceability and monitoring as well as on FMD con-
support institutions. The overall trade support network trol measures ( PoA activities covered under Strategic
( TSN ) of Pakistan’s meat industry is considered for this Objectives 2.1 and 2.2 ).
sector strategy as the aggregate institutional framework The Ministry of Commerce ( MoC ). Improving mar-
in the country, bringing together those institutions that ket access conditions being high on Pakistan’s meat
have a particular interest in or bearing on the sector’s processors and exporters’ agenda, capacity-building
export development and competitiveness. Broadly, work is required for MoC’s staff responsible for negoti-
the TSN presented in Box 1 comprises the following ating access for Pakistani meat and meat products in
support areas : policy support network, trade services key target markets ( PoA Activity 3.2.2 ). Strengthening
network, business services network, and educational its human resources should allow for the creation of a
services and civil society network. strategic plan for identifying and opening new markets
that are readily accessible. MoC’s capacity to negotiate
Certain capacity and resource issues must be and enforce sanitary protocols and mutual recognition
addressed if these institutions are to support rules with partner countries should also be enhanced.
the industry effectively. The Trade Development Authority of Pakistan (TDAP).
While the support the TDAP provided in promoting the
The Pakistan Standards & Quality Control Authority sector was perceived positively by the private sector
( PSQCA ). In order to fulfil its function to foster and representatives consulted as part of the strategy’s
promote standards and conformity assessment in design process, additional support is nevertheless
Pakistan, strengthening the PSQCA’s capacities and needed to strengthen the authority’s market intelli-
knowledge in the field of meat processing should be gence function. In particular, specific capacities should
considered a priority. In particular, the authority should be strengthened for the creation of an online market
have the capacity to swiftly and efficiently revisit and access database for meat and meat products and the
update compulsory PSQCA standards specifications development of a brand for Pakistan’s bovine meat ex-
on animal feeds ( PoA Activity 1.1.3 ) and develop a ports ( PoA Activities 3.3.1, 3.3.2 and 3.3.3 ).
Box 1 : Trade and investment support institutions supporting Pakistan’s meat industry
Ministry of Commerce ( MoC )

Ministry of Finance
• Federal Board of Revenue ( FBR )
Ministry of National Food Security & Research ( MNFSR )
• Provincial livestock development departments
• Animal Quarantine Department ( AQD )
Policy support
• Livestock and Dairy Development Board ( LDDB )
Ministry of Science and Technology
• Pakistan Standards & Quality Control Authority ( PSQCA )
• Pakistan Council of Scientific and Industrial Research (PCSIR )
• Pakistan Halal Authority
Animal Husbandry Commissioner
Federation of Pakistan Chambers of Commerce & Industry ( FPCCI )
Ministry of Commerce
Trade services • Trade Development Authority of Pakistan ( TDAP )
All Pakistan Meat Exporters & Processors of Pakistan ( APMEPA )
Livestock Exporters Association of Pakistan
Ministry of Maritime Affairs
• Directorate General Ports & Shipping
National Veterinary Laboratory ( NVL ), MNFSR
Business services
Zarai Taraqiati Bank Limited ( Agricultural Development Bank of Pakistan )
State Bank of Pakistan
Board of Investment ( BOI )
University of Agriculture Faisalabad (UAF )
University of Veterinary & Animal Sciences ( UVAS )
Academia and civil society Provincial agricultural universities and research organizations
Pakistan Agricultural Research Council ( PARC ), under MNFSR
National Vocational & Technical Training Commission ( NAVTTC )
Current initiatives, policy and regulatory framework
THE REGULATORY FRAMEWORK most of which are still in force today. The nexus of these
regulations control animal safety, feed, breeding, health,
Regulations relating to Pakistan’s meat industry go slaughter, sale of meat, human food safety and enforc-
back as early as 1872 with the Punjab Laws Act 1872, ing Islamic Shari’ah compliance with the overall process
which is still partially in force, whereby it controlled cow from farm to fork in order to categorize it as halal.
slaughter and sale of beef ( Section 43 ). This section
was in force for almost 100 years, repealed only by The Sindh Cattle Act 1950 authorizes the provincial
Public Order VIII of 1970. ‘The general effect of the government to restrict the slaughter of any cattle for
rule was to confine slaughter of cattle to municipal conservation. Similarly, the Animal Slaughter Con-
slaughter houses in towns where such a facility exist- trol Act 1963, which is applicable in all four provinc-
ed already.’ The reason behind this regulation was to es, prohibits the sale of useful animals, for example,
settle the unrest generated by cow slaughter agitation female sheep pregnant or in milk or fit for breeding.
between the Hindu Muslim communities in Delhi. Under these laws, slaughtering was permissible only
in slaughterhouses. No slaughtering can take place
Since then, the industry has been regulated by more on Tuesday and Wednesday or other notified days.
than 30 laws and regulations, including amendments, Ante-mortem examination is necessary. Voluntary
Value chain and competitiveness diagnostic 27
©shutterstock
abortion is not allowed. A veterinary officer or Gazette In 2001, the government promulgated Local Govern-
officer has the power to enter, search and seize car- ment Ordinance, 2001 regarding slaughterhouses and
cass or meat slaughtered illegally. Informers of such cattle markets ( mandis ) under Tehsil Municipal Admin-
an activity will be rewarded with 20 % of the legal fines istration under the town municipal administration for
imposed by the court. Similarly, the Animal Control implementing the code of conduct for butchers and
Act 1965 increases the penalty to up to three years’ slaughterhouses. Imprisonment of 1–6 months or a fine
imprisonment. Seized animals will be disposed of by of PKR 5,000 to PKR 15,000 or both is declared for a
public auction. Seized meat, if fit for human consump- first-time offender. Higher punishments are declared
tion, will be disposed of by public auction and, if unfit for second- and third-time offenders. According to this
for human consumption, will be incinerated or buried. ordinance, local government is required to provide
Likewise, the Punjab Meat Control Order 1978 was also and maintain slaughterhouses and issue licences to
promulgated in order to reduce consumption of meat. private slaughterhouses. An authorized local govern-
The Order declares issuance of a licence necessary ment servant can enter and inspect any place if he / she
for selling meat. Further, the meat would be sold at a has reason to believe that illegal slaughtering is taking
price fixed by the licensing authority. Under these laws, place. These laws empower the district government to
revenue officers, police officers, veterinary officers and make by-laws for working days and hours, design of
inspectors can enter the premises for full implementa- slaughterhouses, details of sanitary conditions, stalling
tion of laws. of animals and disposal of diseased animals, etc.
©shutterstock
29
CURRENT GOVERNMENT
INITIATIVES
The government has taken the following initiatives to
enhance the country’s livestock subsector.
Prime Minister’s Initiative for Save the Calf*

This is a four-year project ( 2019–2023 ), which will be
executed throughout Pakistan, with a budget of PKR
3.4 billion. Under this project, a farmer can get his
newly born buffalo calf registered with the Livestock &
Dairy Development Department and get a subsidy of
PKR 6,500 after four months, along with free treatment
and advice.
The idea behind this initiative is that, unlike the fe- ©shutterstock
male, male calves are a liability to the farmer. They are for achieving a live weight of 200 kg in 120 days. For
mostly weaned too early and die due to indigestion lamb or goat kids, the subsidy is PKR 1,500 / animal for
and lack of nutrition and immunity. The farmer then achieving a live weight of 45 kg in 120 days.
tries to sell the calf to the butcher before it dies. This is This is a four-year project (2019–23) with a budget of
why most male calves end up getting slaughtered and PKR 2.385 billion, spanning the whole of Pakistan. In the
a huge potential of meat production is lost at an early first year, more than 55,000 calves were fattened and
age. The project aims to save 380,000 male calves and 52,000-plus calves in the second year. Under this pro-
mobilize 50,000 livestock farmers.18 ject, almost 5,000 fattening farms have been established
so far and more than 2,000 farmers have been trained.
Prime Minister’s Initiative for Calf Feedlot

Fattening* Development of Yak at High Altitude Areas
of Pakistan ( Gilgit-Baltistan )
A feedlot farmer will get a subsidy for successfully fat-
tening buffalo calves, cow calves, lamb or goat kids, This project is being implemented in 10 districts of
along with free treatment and advice from the govern- Gilgit-Baltistan. Under this project, 82 yak farms have
ment. For calves, the subsidy is PKR 4,000 / animal been registered and 2,510 yaks fattened.
Competitiveness constraints
The value chain diagnostic outlines Pakistan’s meat most important issues was made. To assess relative
industry’s operations and provides an overview of the importance, criteria used are the level of disturbance
constraints faced by stakeholders at each stage in the ( perceived by national stakeholders ) and the ease of
chain. To remain realistic and resource efficient, this resolution ( both in terms of cost and time involved ).
strategy will not be able to focus on all the issues af- The most pressing issues are presented in Table 7.
fecting the value chain. An informed selection of the
18.– Livestock and Dairy Development Board, Ministry of National Food Security & Research. Available from https:// lddb.org.pk / projects / future / .
* The geographical coverage of the Minister’s initiatives “Save the Buffalo Calf” and “Calf Feedlot Fattening” does not include the Province of Sindh,
for political reasons.
Table 7 : Longlist of competitiveness constraints

Ease of Urgent action
resolution needed
Constraints Root causes
(Grade 1-5; (Grade 1-5;
5- very difficult) 1- very urgent)
Supply level
The sale of livestock for meat production only occurs when an animal stop
4 2
producing sufficient milk and / or becomes unable to work in the fields.
Early age slaughtering of young female sheep, goats and other animals reduces
3 1
supply and thus increases the demand–supply gap.
Shortage of animals reared
for meat production lead- Absence of large-scale feedlots or fattening farms dedicated to meat produc-
ing to high livestock costs tion. The bovine animal population is fragmented across different parts of rural 3 1
Pakistan, making aggregation difficult.
Smuggling of livestock to the Islamic Republic of Iran, and Afghanistan consid-
erably reduces the supply of animals in the domestic market, hence contribut- 4 2
ing to increasing livestock prices.
Indigenous cattle breeds, mainly consisting of milk breeds ( which have poor
feed conversion ratio, hence keeping the average carcass weight low) are not 3 1
optimized for high yields.
Low average carcass The poorly regulated domestic market dominated by unregistered operators do
weight puts the meat 4 1
not give the impetus for improved productivity and quality.
industry at a disadvantage
Limited or no practice of backgrounding of beef calves. 2 1
Limited focus by livestock farmers to rear animals for meat production, there-
4 2
fore with a limited focus on fattening.
Indigenous cattle breeds Prevalence of low-yield milk breeds that do not gain sufficient weight for
3 1
are not well suited to optimal meat production.
cater for international meat The main focus of cross-breeding programmes has so far been on milk breeds
demand 3 1
for the dairy industry. There has been no such initiative for the meat industry.
Meat production is primarily perceived as a by-product of the dairy industry

4 2
and, hence, not given due attention.
Limited adoption of good Lack of modern, large-scale feedlots dedicated to the meat industry with
husbandry practices for 2 1
adapted backgrounding and fattening practices.
animal production
Limited reach of extension services, especially in remote rural areas. 2 2
Lack of easily available quality animal feed due to insufficient production of
3 1
fodder, which limits livestock production.
Shortage of fodder production limits livestock production. 3 1
Lack of industrially produced local animal feed. 3 1
High costs of feed Expensive imports of animal feed and value-addition ingredients, as high
duties are imposed on animal feed imports, which severely affects production 1 2
costs.
Eighty-five per cent of total bovine animal stock is owned by households
The lack of aggregation with 10 or fewer animals, fragmented across the country (Pakistan Business 2 1
results in a high cost of Council ).
animal sourcing Outdated methods and technologies are used in aggregating animals. Bovine
4 2
animals are aggregated through undocumented intermediaries, or arthis.
The entire meat value chain relies on an outdated arthi-based system. It is
largely informal and undocumented, so the traceability of animals cannot be
4 1
ensured ( no animal sales records and no history of animals, including birth,
vaccination and genetics ).
Lack of animal traceability
The sector’s fragmented nature makes traceability very difficult in Pakistan,
3 1
with limited supply of bovine animals reared for beef in traceable farms.
Lack on information available regarding livestock populations and their move-
2 3
ment at the national level.
Current government initiatives 31
Ease of Urgent action

resolution needed
Constraints Root causes
(Grade 1-5; (Grade 1-5;
5- very difficult) 1- very urgent)
Absence of a clear and comprehensive national FMD control programme and
3 2
lack of disease-free zones.
Prevalence of foot and Lack of traceability of livestock makes it difficult to control the spread of the
mouth disease ( FMD ) in disease.
3 1
Pakistan The meat supply chain is mainly informal and undocumented, and does not
allow for animal traceability.
Animal vaccination is limited. 3 1
Production and processing level
The meat industry’s export
Pakistan meat exports are currently restricted to a very limited number of
basket remains extremely 4 1
international markets due the prevalence of FMD.
concentrated
Bovine meat processing The limited access to international markets and the lack of competitiveness of
plants operate at a low Pakistani meat in most market segments, in particular the frozen one, restrict 4 1
capacity ( estimates vary the industry’s potential.
between 25 % and 40 % of Export-oriented meat processors are not allowed to sell their products in the
their maximum capacity ) 4 1
domestic market.
Pakistan’s domestic meat industry regulations and standards are outdated and
5 2
do not cover the whole production chain.
Absence of national standards for beef. 2 2
Overall poor export quality Except for a limited number of modern facilities, most of the private sector and
management system government-run abattoirs are ill-equipped, poorly managed and characterized
by unhygienic slaughtering conditions. Hygienic conditions at the slaughter- 4 3
houses is a prerequisite to access international markets, in particular higher-
end ones.
Market access level
Pakistan is unable to sell meat in most markets due to being in FMD Stage 2
according to the OIE.
Limited market access 4 1
Pakistan is to advance through the PCP-FMD to progress to Stage 3 if the
for Pakistani meat pro-
country is to significantly increase its market access for bovine animal meat.
cessors and exporters
Absence of a clearly defined strategy to enable access to new markets, includ-
3 1
ing for further processed products.
Export-oriented processors are not allowed to sell meat in the domestic
2 2
market.
The prevalence of informal practices from unregistered facilities results in
Unattractive domestic registered, export-oriented processors being unable to compete on a level
market for bovine meat playing field.
The costs required by export-oriented meat processors to comply with quality 3 2
requirements imposed by their international clients do not allow them to com-
pete fairly and equally with unregistered domestic operators who do not apply
food safety standards.
Information on export quality management is inadequate. There is no easily
Inadequate access to accessible and updated information on market access requirements in existing
2 3
market information and potential partner countries for the meat and meat products processed in
Pakistan.
Deeper discussion of selected priority issues
SUPPLY LEVEL milk breeds ( i.e. genetically developed for higher

milk production ) or dual purpose at best, meaning
The high costs of raising live animals weight that they are specialized for neither meat nor milk.
in the domestic livestock sector put the meat Consequently, the vast majority of bovine animals in
Pakistan have a relatively poor feed conversion ratio;
industry at a disadvantage on the international that is, they do not convert feed to meat in a substan-
scene tial way, resulting in low carcass weight. Unlike other
The yield gap for cattle meat produced in Pakistan developed countries, Pakistan has yet to develop an
when compared to the largest meat-producing coun- indigenous beef breed, a prerequisite to substantially
tries is abysmal. According to the FAO, the average increase yields in the medium to long term. The lack
carcass weight of cattle ( or yield ) in Pakistan was es- of specialized beef breeds impedes firms’ ability to
timated at 130 kg / animal in 2019, compared to 360 meet the global boneless beef demand.
kg / animal, 314 kg / animal and 270 kg / animal in the
United States, Brazil and Australia respectively. This High costs in animal sourcing deeply affects
While the low average carcass weight observed in domestic meat processors and exporters’
Pakistan is not an issue as such, the high animal pro-
competitiveness
duction cost for each kilogram kg of meat produced
deeply affects the competitiveness of the export-ori- In addition to the low yield observed in livestock pro-
ented bovine meat industry, preventing the sector duction, the competitiveness of local export-oriented
from competing on the same market segments as meat processors in international markets is severely
the above-listed competitors. In Pakistan, industry impacted by high – and continuously rising – livestock
estimates indicate that about 89% of the overall pro- prices in Pakistan. As a result, the meat processed
duction cost for meat processors consists of animal in Pakistan is currently not price competitive in most
production, and only about 5% falls under the ambit international markets dominated by the largest meat
of the producers, the remaining consisting of freight exporters, including Brazil and Australia. This is partic-
costs. Low carcass weight and high production costs ularly true in the frozen meat market segment, as shelf
are is mainly attributed to the limited presence of meat life is high enough for importers, including Pakistani
breeds in Pakistan – and the fact that cattle is mainly traditional destination markets in the Gulf, to source
reared for milk production – as well as poor farming from anywhere in the world. Pakistan hence loses
practices and high costs of feed. the competitive advantage gained from its proximity
to the GCC market for fresh or chilled meat. Ensuring
• Traditional practices of rearing livestock affect improved price competitiveness is all the more import-
yields. The production of livestock in Pakistan is ant, as Pakistan cannot compete in terms of quality, as
largely dominated by small rural households rear- the meat produced locally is less tender compared that
ing animals for subsistence, mostly for dairy pro- supplied by the world’s largest exporters.
duction. For the majority of these farmers, the sale Several root causes contribute to inflated livestock
of livestock for meat production only occurs when costs in Pakistan, chief among them the shortage of
an animal stops producing sufficient milk and / or animals reared for meat production, the high costs
becomes unable to work in the fields. In these ru- of feed and inefficiencies in the supply chain.
ral areas, animals are not given adequate nutrition
and the adoption of good husbandry practices for • The shortage of livestock and the limited supply of
animal production by mostly uneducated farmers is animals limited supply of animals reared for meat
extremely limited. The combination of these factors contribute to inflate livestock costs to processors
coupled with the lack of large-scale fattening farms and result in processing plants operating at low ca-
contributes to keeping the average carcass weight pacity.
low. There is currently limited or no practice of back- Pressure from the market for an increased sup-
grounding of beef calves in Pakistan. ply of livestock to meet the increasing domes-
tic demand also causes underage animals to be
• Indigenous breeds are not well suited for meat pro- slaughtered, including young female bovine ani-
duction. All indigenous breeds are generally either mals, sheep and goats, subsequently leading to
Current government initiatives 33
reduced supply and a worsening of the demand– The lack of aggregation also results in high costs of
supply gap. For this reason, male calves are of- animal sourcing, because the livestock is fragmented
ten considered a liability for farmers and generally across the country.
slaughtered at a young age.
Pakistan faces a significant smuggling issue, as » Relevant activities in the PoA for supply level :
live animals are smuggled across the border into 1.1.1 ; 1.1.2 ; 1.2.1 ; 1.2.2 ; 1.2.3 ; 1.3.1 ; 1.3.2
meat-starved Iran and Afghanistan. These out-
flows limit animals’ supply of local meat export-
ers and create pressure on prices in the Pakistani MARKET ACCESS LEVEL
domestic market. These illegal practices are said
to have been minimized greatly with the construc- Limited access to international markets
tion of fences on borders with both the countries. impedes Pakistan’s export growth
Preventing the smuggling of animals to neighbour-
ing countries would spur the domestic demand for • Due to the prevalence of FMD, the industry is cur-
meat as well as for other linked industries such as rently dependent on a limited number of geo-
leather. graphical destinations that have allowed imports of
Pakistani meat to their local markets ; chief among
• The current feeding regime is not cost-effective. them are the six GCC countries. Together, the Unit-
Shortage of fodder production (the main and cheap- ed Arab Emirates, Saudi Arabia, the State of Qatar,
est source of feed for livestock ) is the major limiting the Kingdom of Bahrain, Kuwait and the Sultanate
factor for livestock production in Pakistan. Approxi- of Oman capture 90 % of Pakistani fresh or chilled
mately 2 % reduction in fodder area in each decade, bovine meat exports and the totality of sheep or
along with two important fodder scarcity periods, goat meat exports in 2020 ( UN Comtrade, 2020 ).
one in winter (November to January) and the other in This high concentration of Pakistan’s export bas-
summer ( May to June ), further worsened the situa- ket in terms of both products and markets leaves
tion. According to various estimates, fodder produc- the meat industry highly exposed to product- and
tion is insufficient to meet even half of the livestock partner-specific shocks, including diplomatic ten-
population’s maintenance requirements. In terms sions or strengthened quality control and quarantine
of nutrients, the deficit estimate is 15 %–30 % of the systems.
requirement and is even higher when expressed in
terms of digestible protein. Due to the lack of indus- • Foot and mouth disease ( FMD ) is a priority livestock
trially produced local animal feed, most small-scale disease in Pakistan, which was classified in Stage
farmers depend on what is locally available as the 2 of the PCP-FMD in 2015, aiming to reduce dis-
source of feed for their farms, while larger produc- ease impact. This status restricts access of Pakistani
ers with higher financial strength rely on expensive meat to most international markets and efforts are
imports of animal feed and value-addition ingredi- now required to reduce viral circulation and further
ents to bridge the gap. Ensuring a regular supply progress to PCP-FMD Stage 3. In particular, a clear
of adequate and nutritious fodder at a competitive FMD control programme is required, in particular
price is essential for the livestock sector’s promotion promoting the extensive use of vaccines and the
and development. establishment of disease-free zones for FMD.
• The predominance of intermediaries in sales chan- • The lack of government initiatives to enable access
nels reduces farmers’ margin and inflate livestock to new markets hinders progress towards mar-
prices. Pakistan’s meat sector relies on inefficient ket and product diversification. Irrespective of the
auction markets to buy livestock, whereby the selling prevalence of FMD in the country, Pakistan lacks
of animals is based on its appearance, with animal vision for its domestic meat industry, as no clearly
weight being assessed by eye. These transactions defined strategic plan for identifying and opening
are mainly made through the hiring of intermediaries new markets that are readily accessible has been
who buy animals on behalf of the meat processors. elaborated to date. Negotiating market access for
It is widely believed in the industry that the majority Pakistani meat and meat products in key target
of the profit margin is taken away by the intermedi- markets should, therefore, be considered a prior-
ary and the farmer and processors are left with a ity, including for processed products, which are not
bare minimum. subject to the restrictions related to FMD.
• Market access is further constrained by the limited cooked products segment. This would stimulate in-
access to market information for meat processors. novation in niche products with high added value,
Easily accessible and updated information on mar- hence overcoming the FMD issue.
ket access requirements in key target markets for
meat and processed meat products would allow lo- » Relevant activities in the PoA for market access
cal meat processors and exporters to identify mar- level : 2.2.1 ; 2.2.2 ; 2.2.3 ; 3.2.1 ; 3.2.2 ; 3.3.1 ; 3.3.2
ket and product opportunities, particularly in the
A number of impediments contribute to Pakistan’s inability to become more competitive on international markets,
including relatively high livestock production costs and low carcass yields, significantly affected by high feed
costs, inadequate rearing practices, absence of indigenous meat breeds and the limited supply of livestock for
meat production.
Limited market access due to the prevalence of FMD in the country perhaps represents the greatest hurdle for
meat exports from Pakistan, which are currently restricted to a limited number of markets.
Building on this diagnostic and considering the current global trends in meat consumption, the next section pro-
vides tailored responses to the most pressing needs voiced by the main stakeholders involved in the development
of the Pakistani meat sector and examines opportunities that might arise in the short to medium term.
35
THE WAY FORWARD

Pakistani meat exporters must adapt to a number of marketing strategies to leverage on the increasing
global market trends that take on an increasing im- global demand. The strategy proposed a number of
portance when attempting to capture market share. strategic orientations for a more competitive and di-
The present strategy’s focus is to assist the local meat versified industry that creates more value along its
sector to incorporate the key drivers of change in their value chain.
Key drivers of change pushing

the global demand for meat
The demand for meat is expected to increase substan- in developing countries. The top trends that have influ-
tially in the near future, driven by population growth, enced and will continue to influence the food industry
urbanization and rising per capita income, especially globally are presented in Table 8.
Table 8 : Key global trends in the meat sector
Trend Implications
The major global driver in the food sector is population growth. From an estimated 7 billion people today, the
United Nations predicts that the world population will reach 9 billion by 2050. Food security thus takes on
unprecedented importance. Demand for meat, as for other food products, tends to increase mechanically as
Population growth the world population grows, and is becoming increasing popular with the growing global urban population in
developing countries.
• Takeaway : Targeting developing countries, in particular in Asia, holds important potential and an assured
growing market if retailer and consumer preferences are taken into account.
Consumption of meat in developing economies will increase in the future as rising per capita incomes result in an
increasing propensity to consume more meat as a primary source of protein. This trend can already be observed
with the booming demand from emerging and developing markets, particularly in Asia, as more comfortable
disposable incomes are encouraging an increasing number of households to buy a wider range of convenient
Rising per capita income in
products, including meat, which is becoming more affordable and accessible. This trend is less clear in high-
developing countries
income countries, though, as the per capita meat consumption is already relatively high in these countries and
there is growing demand for a plant-based diet and more sustainable healthy food.
• Takeaway : Fostering a market for Pakistani meat products in rapidly developing Asian economies, including
China, should be a key consideration in exporters’ marketing strategies.
Another important factor pushing the international demand for meat and processed meat is the progressive
changes in food consumption patterns, particularly lifestyle changes brought about by urbanization and increas-
ing participation of women in the workforce. These trends contribute to a transition towards quicker and more
Urbanization modern cooking habits. Urban women in particular will increasingly opt for processed meat. This indicates a
positive future for the sector as cities grow and incomes rise in many highly populated developing countries.
• Takeaway : The fast-evolving consumer preferences in urban areas, particularly in the processed meat market
segment, need to be carefully studied and considered to ensure product relevance.
In addition to the above-mentioned factors, consumer

preferences are increasingly becoming a major de-
mand determinant. Key emerging demand determi-
nants include the following trends.
High and sustainable demand for chilled jointly implement the strategy in a decisive and effec-
boneless meat in high-income countries, tive manner.
but with growing environmental concerns The Ride Two Curves exercise was used to analyse
Consumers in high-income countries tend to consume broad phenomena and evaluate the changes in the
primarily fresh or chilled beef premium, and in partic- industry – focusing on the shifts caused by increasing
ular superior-quality cuts, which fetch higher prices. In demand of traceable meat, organic production and
these more sophisticated markets, consumers are be- technological upgradation. Figure 24 below shows a
coming increasingly demanding in terms of quality and visual representation of the Ride Two Curves exercise
safety, with a growing health consciousness that has conducted with the participants. Key messages that
resulted in changing consumption patterns. Looking emerge from this exercise are the following.
at the European market in particular, while per capi-
ta meat consumption has remained relatively stable Some compelling strategic future shifts along the value
in the past decades, shifting preferences for different chain for Pakistan’s industry – latching on to current
types of meat have been observed, with an increase trends and innovations – include :
in poultry consumption and a decline in bovine meat
intake, suggesting that health and environmental • Setting up disease-free zones to curb the problem
messages around red meat are affecting consumer of FMD, and implement a tagging system to meet
choices. Along the same lines, an increasing number the traceability demand from importing countries ;
of consumers in high-income countries are also trying • Strengthening branding and packaging efforts to
to eat meat in a more responsible manner, opting for enhance product image in GCC countries to move
products with higher animal welfare standards, such out of commodity carcass sales to case-ready high-
as grass-fed beef and organic products. This trend value products ;
has also translated to an increasing demand for trace- • Focus on developing skills for value-added beef
ability of products, pushing governments to introduce products for Eastern markets like China ;
standardized labelling rules and standards for meat • Have access to the local market and a level playing
products. field to compete with the local informal meat sector ;
• Explore the market of Central Asia due to logistics
Increasing demand for frozen bovine meat advantages to reach the landlocked countries.
in developing Asian markets
Boosted by rising disposable incomes, the rapidly in- THE FUTURE VALUE CHAIN
creasing demand for meat emanating from developing
economies is largely concentrated in the frozen market Unlocking the Pakistani meat sector’s potential will
segment, especially in the boneless meat category. require transformations throughout the value chain.
This preference for frozen meat mainly lies in the fact These adjustments, as reflected in the future value
that these products generally fetch lower prices on chain schematic (see Figure 25 below), are the result
international markets given their longer shelf life and of the targeted efforts detailed in the strategy’s PoA
the possibility to be shipped by sea from far and ex- that address the constraints identified in the competi-
ported competitively at lower costs. Overall, developing tiveness constraints section.
markets in Asia remain highly price sensitive, preferring
what is generally considered lower-quality frozen meat. The future value chain will be characterized by :
• A market-related component involving identification

STRATEGIC FORESIGHT of key markets in the short and medium to long term
for Pakistani exporters ;
The strategy design process considered Pakistan’s • Structural changes to the value chain that result in
meat industry’s current capabilities, constraints, and strengthening of linkages or introduction of new link-
future shifts and opportunities. Industry stakeholders ages.
were also given the opportunity to discuss and assess
future orientations and upgrading trajectories, a critical A transformed value chain will be characterized by
step to achieving a comprehensive understanding of meat processors having better access to an adequate
the sector’s strengths and weaknesses and building and disease-free supply of raw material ( livestock ) with
consensus on the strategic steps to be taken, and to higher meat yields and at competitive prices. The future
value chain should also entail greater market access
The way forward 37
©ITC
for Pakistani meat products. Both components are in- farmers’ skills on good farming practices and orient-
tegral parts of the future value chain, which is the basis ing them towards backgrounding of beef calves. The
of the strategic plan of action developed for the sector. strategy also aims to improve the traceability of animals
through the introduction of a basic tagging system ac-
Structural adjustments to the value chain cessible to all farmers and suggests the need to con-
duct a national livestock census, an exercise that has
Tapping into the potential of Pakistan’s meat sector not been conducted since 2006.
will require modifications throughout the value chain,
from the development of high-meat-yielding beef Enforce meat industry regulations
breeds to developing a quality based national grad-
ing system and improving the hygienic controls at the Only by enforcing regulatory changes to domestic
slaughterhouses through the introduction of food safety slaughterhouses can local exporters truly compete in
regulations. Moreover, developing research and devel- the domestic market. At present, the costs incurred by
opment for innovative products adapted to consumer exporting firms to comply with stringent hygiene and
preference, are adjustments required to tap into new quality requirements do not allow them to be price
markets. These include China, South-East Asia ( Ma- competitive when competing against unregulated
laysia, Indonesia and the Republic of the Philippines ), slaughterhouses that do not bear any compliance
Central Asia ( the Republic of Kazakhstan, the Republic costs. In this regard, the strategy recommends the
of Uzbekistan, and Turkmenistan ), Europe and North enforcement of regulations allowing export-oriented
America. This will allow the sector to offer competitive meat processors to sell leftovers from exports in the
levels of both quantity and quality of produce. The fol- domestic market. This should be implemented hand
lowing segments of the value chain are foreseen as in hand with comprehensive meat industry regulation.
key areas of focus for achieving the future value chain.
Investment to reach large-scale markets
Livestock production
Meat is one of the most promising sectors in the coun-
The Pakistani meat sector’s future performance will try, but also one running on a substantially low capac-
largely be determined by the sector’s ability to improve ity due to market access restrictions. Investments are
the quality and availability of its raw material at com- required in large-scale fattening farms and feedlots
petitive prices. This can be achieved by implementing where herds can be reared exclusively for background-
a cross-breeding programme to develop high-meat- ing and fattening. This would allow for better quality
yielding beef breeds, reducing animal feed costs and more competitive, disease-free meat.
and increasing their availability, building small-scale
38
Todays way of doing things Tomorrow’s way of doing things

· Presence of FMD limiting market access/Lack of funds and expertise for · Disease -free zones/compartments set up
establishing disease -free zones · Rigorously focus on cooked meat products for Chinese and Indonesian
· Lack of traceability markets
· Exports mainly by air/Insufficiently developed cold chain infrastructure · Invest in case -ready/tray packaging to take advantage of low labour cost
· Low carcass weights/lack of large -scale fattening farms and export -ready meat to end consumer
· Lack of veterinary service · Mutual Recognition Agreements of SPS/veterinary measures currently for
· Barriers in importing meat breeds - Lack of beef breed to meet global boneless beef offals in Vietnam
demand · Branding and traceability can enhance product image in GCC to move out
· Lack of proper packaging of commodity carcass sales to case ready high -value products
· Dependence on auction markets/mandis to buy livestock · Explore Central Asia, as we might have some logistics advantages to reach
these landlocked countries
· Lack of standards and regulations for slaughterhouses
· Cultivation of soyabean and other high -value nutrients for cost -effective
· Halal certification recognized by the national regulatory authority feeding regime
· No direct linkages between farmers and slaughterhouses to eliminate middlemen · International expo for halal branding for potential Muslim markets
· Unregistered slaughterhouses make it difficult to compete in the domestic market · Implement a tagging system
to sell leftovers
· Skill development in value -added beef products for Eastern Markets like
· Exports concentrated in the chilled market segment (mostly carcases) China
· Non -availability of cost -effective feeding regime (input cost) · Value -added products like ready to cook and ready to eat/branded and/or
· No grading of beef, difficult to differentiate good quality from lower quality vacuum packaged product
· Lack of proficiency in processing bovine meat for de -boning and freezing · Halal offal market needs to be developed for African and Chinese market
· Increasing demand for bovine meat in eastern markets, particularly from China
· High and sustainable demand for chilled boneless meat in OECD countries
· Increasing demand for traceability of products/ Set -up of feedlot farms for
traceability
· China has granted Pakistan duty -free access for bovine meat under CPFTA -II
(except for fresh carcasses)
Figure 24: Ride Two Curves exercise
· Growing demand for organic products
Source : ITC, adapted from the Institute for the Future.

· Requirement of heavy carcasses for boneless frozen supplies in Iran like 220 -250 kg
per carcass · Competitive edge for chilled carcases in GCC countries
· Requirement of cooked meat from Chinese market instead of raw frozen boneless · Carcasses exported to GCC mainly by sea (improved cold chain
beef logistics)
· Increase collaboration of vet service of importing country
· Development of the offal processing sector for exports
· Using processing and packaging technologies; i.e. MAP/tray pack
· Differentiate Pakistani meat from other international producers based on better
branding, halal and quality
· Undertake trade negotiation by consulting technical people
· Requirement of culled buffalo frozen boneless meat in China and other eastern
countries
Today’s innovation Residual assets

Live stock production Slaughter/proces sing Dis tribution/marke ting
Auction ma rke t fo r livestock sa les & slaugh terh ouses International markets (+/- 10%)
Inputs for livestock Live animals Air freight and sea freight
Exporters
production (temperature- controlled)
Meat of bovine animals
Large herds
(grazed in rangelands) Fresh or chilled carcases
Bre eds (gen etics) Open livestock
markets (mandis) Fresh or chilled cuts, with
Developed cross- Slaughterhouses & GCC bone in
Mostly breeding programme for Small-scale farmers
(rural subsistence abattoirs Air freight and sea freight Frozen carcases
milk high meat -yielding beef
breeds economy) Middlemen (beopari) (temperature- controlled) UAE
bree ds Frozen cuts, with bone in
Saudi Arabia
85% of total bovine anim al
Veterin ary services stock, fra gmented across Export-oriented Cold stora ge Meat of sheep or goats
Kuwait
Pakistan slaughterhouses faci litie s
Advanced vaccination (34 registered) Fresh or chilled lamb
Qatar carcases
and FMD programme
Bahrain Fresh or chilled sheep
Municipal
Developed qu ality-based, Middlemen slaughterhouses carcases
(arthis) Oman
nationa l gr ading system for Transport of animals to urban centres (registered) Meat of goats
Feed
indi genous bovine animals
Finance the pu rchase Domestic retail Fresh or chilled cuts of
Removed import duties of animals sheep, with bone in
on animal feed products Unregistered slaughter market (+/- 90%)
e.g. soya beans slabs, slaughterhouses, Meat of other animals
and abattoirs
Developed policy for Camel meat
fodder and animal feed to
promote domestic Improved hygienic Informal wet markets
controls at the Boneless bovine meat, chilled
production Collection of hides slaughterhouses or frozen
and skins for local complying with food
Updated PSQCA safety regulations Butchers
standards on animal feed tanners Fresh or chilled bovine cuts,
Afghanistan
in line with best practices Smugg ling of livesto ck to Ir an with bone in
and Afgha nistan
Labour (farming Hong Kong Frozen bovine offal
techniques)
National livestock market in formation system
Improved small-scale
farmers’ skills on good Viet Nam Frozen bovine offal
farming practice Inputs for meat processing
Source : ITC.
Leased land for large Malaysia Frozen boneless meat of
fattening and feed-lot bovine animals
Qualified labour
farms
Meat processing technicians –
skills: deboning and freezing
Increased traceability
through tagging
Figure 25 : Future value chain
Equipment and machinery
Modern meat processing HigH-income

Asian countries Market penetration through Processed
equipment - patty making (Japan higher-value-added products
machines, mincers, mixers, bovine meat
Singapore)
sausage making equipment,
vacuum packing machines, meat
cooking equipment Asian countries
(Indonesia, Leveraged market penetration through Frozen
Philippines, consumer preference, and urbanization bovine meat
China)
Capital
Legend: Leveraged market penetration

Eu rope and through quality and safety compliance Poultry
North America
National component International component Mixed component New/enhanced component Developed R&D for innovative Heat-treated processed meat
prod ucts, ada pte d to the consumers’
prefere nce s
Ready-to-eat products
Central Asia
(Kazakhstan, Leveraged market penetration Frozen
Uzbekistan and through geographic proximity bovine meat
Turkmenistan)
Prim ary s upporting servic es
Regula r an d u pdated market

information Trade neg otia tion
PARC LDDB MNFSR PSQCA AQD APMEPA MoC TDAP
The way forward
39
The main strategic orientations for the development of packaging and labelling across all domestic market.
meat exports from Pakistan are presented below. A voluntary, quality-based national grading system for
indigenous beef animal should also be developed in
order for processors of superior-quality meat to differ-
ORIENTATION 1 ( SHORT TERM ) : CREATE entiate themselves from the competition, as suggested
THE CONDITIONS NECESSARY FOR in PoA Activity 2.3.1.
Only by enhancing the regulatory framework and
LOCAL EXPORT-ORIENTED MEAT reinforcing its enforcement can local export-oriented
PROCESSORS TO OPERATE IN THE meat processors truly compete in the domestic market
DOMESTIC MARKET ON A LEVEL on a level playing field. The reason is that the costs
currently supported by these entities to comply with
PLAYING FIELD
stringent hygiene and quality requirements – including
The constrained access to the domestic market has traceability – do not allow them to be price competitive
a substantial impact on Pakistani meat exporters’ when competing with unregulated slaughterhouses
competitiveness on the international markets. The that do not bear compliance costs.
prevalence of unregulated practices coupled with a In addition to providing the local population with a
weak and outdated regulatory framework make it vir- wider range of higher-quality bovine meat, this would
tually impossible for export-oriented slaughterhouses stimulate competition and translate into higher levels of
to compete on a level playing field with domestic wet investment and increased meat yield.
markets which do not bear heavy hygiene compliance
costs.
Access to the domestic market – under satisfactory Required regulatory adjustments
conditions – would allow local export-oriented meat
processors to venture into new market segments in- • Review and streamline existing legal provisions at
ternationally. In particular, exporting prime cuts of bo- the federal, state and municipal levels granting per-
vine meat, including boneless, in a competitive way mission to sell meat products, particularly for ani-
requires selling the rest of the carcasses domestically. mals slaughtered in other Provinces of Pakistan and
Failing to do so results in prohibitive and uncompetitive commercialized by export-oriented companies.( PoA
production costs, also generating significant waste. A Activity 3.1.1. ).
a level playing field with the domestic market would • Provided that the above-mentioned regulation is en-
consequently enable export-oriented businesses to acted, develop and enforce comprehensive meat
progress towards greater product diversification in a industry regulations for the production of safe meat
competitive way. and meat products to which the industry must abide
( PoA Activity 3.1.2 ).
• Develop a national grading system for indigenous
Market focus bovine animals ( PoA Activity 2.3.1. ).
It is crucial to stress the importance of adopting a

sequenced strategy when considering the opening ORIENTATION 2 ( SHORT TO MEDIUM
up of the domestic market to export-oriented meat TERM ) : OPEN UP NEW STRATEGIC
processors.
Firstly, legal provisions in place at the federal, state
MARKETS FOR FRESH / CHILLED
and municipal level for the sale of meat products from AND FROZEN MEAT EXPORTS
animals slaughtered in other Provinces of Pakistan
should be reviewed and clarified, in particular when Due to the prevalence of FMD in Pakistan and the as-
marketed through export-oriented processors (PoA sociated sanitary and phytosanitary ( SPS ) restrictions
Activity 3.1.1). imposed by most importing countries, the number of
Basic regulations should then be introduced across international markets that are readily accessible to
the domestic market, providing standards, proce- local meat processors and exporters is very limited.
dures and requirements for the production of safe Evidence suggests that export-oriented slaughterhous-
meat and meat products to which the industry must es in Pakistan collectively have licences, permission,
abide ( e.g. meat industry regulations or Act ) ( see PoA contacts and know-how to export to more than 20
Activity 3.1.2 ). The main focus areas should include countries, including the six GCC countries, Azerbaijan,
hygiene requirements for abattoirs and meat process- Viet Nam, Malaysia, Iran, the Arab Republic of Egypt,
ing facilities, along with basic requirement for chilling, Afghanistan, the Republic of Maldives and Hong Kong,
The way forward 41
China, to name a few. In practical terms, Pakistan’s ,and processed meat products classified under HS
exports of bovine meat are almost exclusively con- 1601 and HS 1602, including heat treated meat under
centrated in the six GCC countries, with limited and the China–Pakistan Free Trade Agreement II ( CPFTA-
very variable volumes exported to other Asian coun- II ). In practical terms, however, the prevalence of FMD
tries, including Afghanistan, Viet Nam, Malaysia and and the incapacity of meat processors to comply with
Azerbaijan. the quality requirements and phytosanitary standards
imposed by the Chinese authorities does not currently
In order for the Pakistani meat sector to thrive on the allow for beef imports from Pakistan. Tapping into the
international scene and take advantage of its unused opportunities offered by the Chinese market, and the
processing capacity, priority focus should be placed Chinese Muslim community in particular, will require
on opening up new strategic markets. Indeed, while investments in quality and sanitary certifications to set
resources should be mobilized to advance through up FMD-free zones.
the PCP-FMD to progress to Stage 3, considerable
effort should be made to negotiate market access to Untapped opportunities exist in South-East Asia
new destinations at the same time, through bilateral
agreements. By diversifying its export destinations, A rapidly increasing demand from Association of
local meat processors and exporters will have the op- Southeast Asian Nations ( ASEAN ) member States
portunity to access markets with greater purchasing was observed in recent years, chief among them Ma-
power and market demand, thereby increasing export laysia, Indonesia and Viet Nam. As a group, ASEAN
revenues for Pakistan. Penetrating new markets will emerged as the second-largest importer of frozen bo-
also allow the local meat industry to reduce its depen- vine meat, with imports exceeding $2 billion in 2020,
dency on GCC countries and, by way of consequence, representing 7.5 % of the global trade. Opportunities
its exposure to demand shocks in these countries. exist for Pakistani exporters to take advantage of these
untapped potential markets, in particular through the
Market focus strengthening of, even though limited, existing trade
relationships with bovine meat importers in these coun-
Market access should be negotiated with key import tries, including Malaysia and Viet Nam. In this regard, it
markets that are readily accessible to Pakistani meat needs to be stressed that the Malaysian Government
processors. Agreements should particularly seek the is progressively allowing meat imports from a few ap-
recognition of sanitary and veterinary measures. The proved suppliers in Pakistan. It is also to be noted that
top priority markets are presented below. Pakistan has started FTA negotiations with Indonesia
and the Kingdom of Thailand, which are large meat
Tapping into the vast and rapidly expanding Chinese importing countries.
market should be considered a top priority
Central Asian countries could offer promising
China is experiencing a surge in meat consumption prospects
in recent years, driven by rising income levels, higher
disposable income and rapid middle-class expansion. Given its geographic location, Pakistan is well poised
Since the country does yet possess the capacity to to cater to the needs of Central Asian countries, par-
cater to the needs of its booming domestic demand, ticularly Kazakhstan, Uzbekistan and Turkmenistan. A
it imports ever greater quantities of meat, including particular focus should, therefore, be placed on pro-
bovine meat. As a result, imports of bovine meat from moting Pakistani bovine meat in these Central Asian
China have been multiplied more than tenfold in the countries, maximizing the country’s logistics advantag-
past decade to reach $10.2 billion in 2020, making it es to reach these landlocked countries and ensure a
the largest importer of bovine meat in the world, alone consistent supply of bovine meat products, especially
capturing 21 % of world beef imports ( UN Comtrade, in frozen form.
2020 ).
As the supply-demand gap is not likely to be bridged Required investments
through domestic production in the near future, the
Chinese Government is inclined to grant market access • Expansion of Pakistani meat exports into more mar-
to an increasing number of trading partners to fill in kets requires investments to comply with interna-
the gap in the beef supply. Duty-free access has been tional regulatory requirements, including in quality
granted to Pakistan for most bovine meat products and sanitary certifications, with a focus on setting
classified under HS 0201 ‘fresh or chilled meat of bo- up disease-free zones ( PoA Activity 2.2.1 ).
vine animals’ HS 0202 ‘frozen meat of bovine animals’
• Investment is required to improve hygienic controls the capacity to market frozen at much lower prices,
at slaughterhouses in order to address importers’ including Brazil and India. This is particularly true in
concerns about food safety ( PoA Activity 2.3.2 ). price-sensitive developing countries that mainly import
meat in its frozen form.
Consequently, and in addition to strengthening the
Required skills sector’s capabilities to process frozen meat, substan-
tial efforts and resources should also be mobilized to
Securing better market access conditions for meat ex- increase meat yields and reduce exporters’ operating
ports in strategic markets will require the strengthening costs throughout the value chain with a view to become
of Pakistan trade officers’ trade negotiating capacity price competitive in this particular market segment.
( PoA Activity 3.2.2 ).
Market focus
ORIENTATION 3 ( MEDIUM TO LONG
TERM ) : EXPAND PAKISTAN’S MEAT Pakistan should take advantage of its established
trade relationships in the chilled meat segment in the
INDUSTRY PRODUCT RANGE, FOCUSING Gulf markets to explore higher-value-added market
ON THE FROZEN MEAT AND BONELESS segments, including boneless bovine meat, chilled or
CUTS, BOTH CHILLED AND FROZEN, frozen. Pakistani meat has lot of acceptance in Gulf
countries due to the high numbers of expatriate popu-
MARKET SEGMENTS
lation, in particular in Saudi Arabia and the United Arab
Opportunities exist for the Pakistani meat industry to Emirates. Nevertheless, although Pakistan is by far the
increase and diversify exports, particularly through the largest supplier of chilled carcasses of bovine animals
processing of boneless cuts and the development of to GCC countries with a market share of approximately
the frozen meat segment in new markets as well as 75 %, it only captures less than 10 % in the boneless
within its existing export destinations. The Pakistani chilled bovine meat segment, far behind more distant
meat sector is currently concentrated in chilled car- suppliers such as Australia ( 25 % ) and Brazil ( 23 % ).
casses market segment, mainly to GCC markets. In Pakistani bovine meat’s lack of competitiveness is even
order to become more competitive on the international more pronounced in the frozen bovine meat market
scene, and while pursuing improved market access segment, with the country only capturing a market
( see Orientation 2 ), Pakistan needs to strengthen its share of less than 2 % in the frozen bovine meat seg-
capacities to move up the global value chain and offer ment in 2020, lagging behind India ( 35 % ) and Brazil
a wider range of quality products. In particular, sup- ( 31 % ). In order for Pakistan to capture greater market
port should be provided to local meat processors and share in GCC countries, Pakistani meat processors will
exporters to develop their capacity to supply boneless need to increase their capability to process boneless
chilled bovine meat and frozen bovine meat, for which cuts and frozen bovine meat in a competitive manner.
there is a significantly higher global demand, in a com- Bone-in beef is also popular in the Gulf region.
petitive manner.
Generally considered as lower quality and cheaper, The Chinese market, by far the largest importer
frozen beef has a longer shelf life and can be trans- of frozen beef, remains untapped
ported by sea to the far markets.19 While this improves
the product’s marketability and provides better returns Provided that access to the Chinese market is im-
due to cheaper transportation costs by sea, as op- proved ( see Orientation 2 ), tremendous opportunities
posed to by air cargo in the case of chilled meat,20 it exist for Pakistani export-oriented meat processors in
does not favour Pakistan’s position, as it allows more this booming market, particularly in the frozen, bone-
distant competitors to offer their products in almost all less meat segment. The Chinese demand for beef on
importing markets. In particular, the competitive ad- the international markets consists almost exclusively of
vantage that Pakistan exporters enjoys from its rela- boneless cuts in the frozen form ( 90 % ). In 2020, China
tively short distance – and low shipping costs – from captured approximately 36 % of the world imports of
a number of market destinations in Asia in the chilled frozen beef ( adding up to 45 % considering Greater
carcasses segment is lost out to competitors that have China 21 ). More than three-quarters of this demand is
20.– Ibid.
21.– Greater China encompasses mainland China, Hong Kong, Macao Special Administrative Region and Taiwan Province of China.
The way forward 43
currently being catered for by Brazil ( 43 % ), Argentina The presence of diseases in Pakistan makes the open-
( 21 % ) and Australia ( 12 % ). If Pakistan is to expand into ing up to new markets for the traditional fresh / chilled
the Chinese market and benefit from immense export market segment – as well as the frozen meat market
opportunities, meat processors will nevertheless have segment, which is subject to the same requirements – a
to diversify into other meat segments, especially frozen, slow and complex process requiring the mobilization
boneless beef. of a number of actors, including at the institutional lev-
The need to diversify away from fresh carcasses to el. In parallel, efforts should be deployed to venture
penetrate the Chinese market is all the more pressing, into the manufacturing of further processed products
as no concessions were granted under the China– that have been heat treated in order to circumvent the
Pakistan Free Trade Agreement II ( CPFTA-II ) for fresh restrictions associated with FMD, as these products
or chilled bovine carcases, on which a prohibitive tariff are not subject to the same hygiene regulations ( heat
of 20 % is still applicable. On the other hand, Pakistani treatment process, or pasteurization, of meat prod-
bovine meat processors enjoy duty-free access for the ucts kills all harmful pathogens, making them safe for
other market segment ( all frozen bovine meat prod- consumption ). While recent initiatives to develop such
ucts as well as fresh boneless meat and fresh bovine products have recently been undertaken by a few local
cuts with bone in), providing Pakistan with a substantial export-oriented bovine meat processors, the domestic
advantage over other major beef exporters. As men- market for processed bovine meat products remains
tioned earlier, in order for Pakistani meat processors to at a nascent stage and it will take some time for this
penetrate this promising market, substantial efforts and market segment to fully develop.
resources should be mobilized, in particular complying Heat-treated processed meat products include
with the stringent phytosanitary standards imposed by cooked ( including cured and cooked, and dried and
the Chinese authorities. cooked ), heat-treated (including sterilized ) and canned
The need to switch towards the frozen beef market products. Product development into those value-added
segment is also valid to expand to other major markets products could include ready-to-cook and ready-to-eat
in Asia, including Malaysia, Indonesia and Viet Nam, meat products such as cooked jerkies, canned corned
where similar consumption patterns can be observed. beef, pre-grilled beef patties, boiled meat pieces in
sauce, meat pastes and meat sausages. Developing
such value-added products would allow Pakistani meat
Required investments processors to access international markets that were
generally beyond their reach due to the prevalence of
• Increase the uptake of value-added processing FMD, including high-income countries such as the EU
equipment and tools for cuts and de-boning. and North American markets.
• Increasing export of chilled meat by sea will also
require meat processors to invest in vacuum pack-
aging, including controlled atmosphere packaging Market focus
( CAP ), which will increase the shelf life of chilled bo-
vine meat, making it viable to export larger quanti- North American and European markets
ties.22
As illustrated in Figure 6, EU member States, the United
States and Canada are the largest players in the global
ORIENTATION 4 ( MEDIUM TO LONG processed meat market, together capturing approxi-
TERM ) : PROMOTE PRODUCT mately 73 % of world imports in 2020. Special attention
should, therefore, be paid to these markets, with a par-
DIVERSIFICATION INTO HIGHER-VALUE- ticular focus on countries that have a large Pakistani
ADDED PRODUCTS diaspora, chief among them the United Kingdom, the
second-largest importing country of prepared or pre-
Currently constrained by import bans imposed by most served beef after the United States. The large North
countries on Pakistani meat due to the prevalence of American market also offers promising business op-
FMD, local meat processors and exporters have the portunities, especially driven by the dynamic demand
possibility to diversify their production away from the for imported processed beef from the United States in
fresh/chilled segment and develop more sophisticated, the past decade, which progressed at a robust CAGR
higher-value-added processed meat products. exceeding 6 % in 2012–20.
©shutterstock
Non-tariff barriers could represent a significant bar- price-sensitive markets, offering price-competitive
rier to penetrate these markets, particularly technical products will be the main success factor.
barriers associated with compliance with the stringent
quality and food safety standards imposed by these
countries, including animal traceability requirements. Required investments
Marketing and better-labelled products will also be a
key factor to successfully enter these markets. • Invest in traceability systems to meet the require-
ments of high-income countries before exporting pro-
High-income Asian countries cessed beef products ( PoA Activities 2.1.1 to 2.1.4 ).
• Invest in modern meat processing equipment and
On the Asian continent, high-income countries, includ- technologies, including patty making machines,
ing Hong Kong, Japan and the Republic of Singapore, mincers, mixers, sausage-making equipment, vac-
offer the most promising prospects for Pakistani bovine uum packing machines and meat-cooking equip-
meat processors and exporters. Even though these ment, etc.
markets remain relatively small in terms of imported • Invest massively in research and development to de-
value ( $91 million, $45 million and $21 million in 2020 velop innovative products, adapted to consumers’
respectively ), they possess a culture of consuming preferences in key target markets (PoA Activity 3.2.1).
processed bovine meat that Pakistani exporters could
take advantage of.
Recent signs of development have also been ob- Required skills
served in other developing Asian markets, including
Indonesia, the Philippines and China. While the mar- • Pakistan’s export-oriented meat sector should
ket demand for these products is still nascent in these strengthen its technical capacity to manufacture and
countries ( between $13 million in China and $20 mil- supply higher-value-added processed meat and de-
lion in Indonesia ), two-digit annual import growth rates velop a wider product range. In particular, meat pro-
were observed in 2016–2020, driven by rising dispos- cessors’ technicians should be up to date on the
able income and an increasing middle-class urban latest meat processing technologies and techniques.
population. It is anticipated that this demand will con- • The market intelligence function should be strength-
tinue to progress in coming years, as the propensity ened to provide the sector with up-to-date informa-
to consume convenience food is set to increase as tion on market access requirements and consumer
per capital incomes continue to rise. In these more preferences ( PoA Activity 3.3.1 ).
The way forward 45
Figure 26 : Key drivers of change
Source : ITC generated.

The strategic framework
THE VISION
In the context of the STPF’s broader vision for ‘Pakistan
to become a dynamic and efficient domestic market as
well as a globally competitive export-driven economy’, to guide progress and change in the sector, the follow-
its meat industry offers an important opportunity for ing delineates this strategy’s proposed vision and stra-
increased value addition and diversification of exports. tegic approach to develop the meat sector. The vision
Based on a number of key ideas and driving con- statement was agreed on by all stakeholders attending
cepts that the sector’s stakeholders identified as crucial the online consultations held in September 2021.
“
To develop the Pakistani meat industry with the highest food
safety and halal standards to serve international markets
”
with value-added products.
To achieve this vision and guide the strategy’s imple- THE STRATEGIC OBJECTIVES
mentation, a number of strategic objectives have been
defined to pursue the key value chain transformations The plan of action ( PoA ) responds to the vision by
required to unlock the industry’s potential. addressing the sector’s constraints and leveraging
opportunities in a comprehensive manner through a
robust, actionable and realistic set of activities. The
PoA is structured around the above-mentioned strate-
gic objectives, agreed with all sector stakeholders, and
constitutes the heart of this strategy.
Strategic Objective 1: Ensure

access to competitive raw •Increasing the supply of livestock reared for meat
production, either higher meat yeilds and at competitive
material to increase the prices, is a prerequisite to improve the Pakistani meat
attractiveness of Pakistani meat industry's competitiveness.
products on global markets
Stratigic Objective 2: Ensure a •Improving Pakistan market access to new destinations in a

sustainable way through improved traceability of meat
supply of disease-free, quality throughout the value chain, progressive eradication of FMD,
and traceable livestock and the provision of better grade processed meat.
Strategic Objective 3: Improve •Securing greater access to international markets for

Pakistani meat products and allowing export-oriented meat
market access conditions for processors to compete on the domestic market on a level
Pakistani meat products playing field.
47
IMPLEMENTATION
FRAMEWORK
The objective of the meat strategy for Pakistan is to MANAGING FOR RESULTS
create an enabling environment for the industry to re-
alize its potential and benefit the country’s image by The translation of priorities into implementable projects
‘developing the Pakistan meat industry with the highest will contribute to achieving the substantial increase in
food safety and halal standards to serve international export competitiveness and export earnings envisaged
markets with value-added products’. Achieving this under the strategy. These will be driven by reforming
ambitious objective will depend on the industry’s abil- the regulatory framework, optimizing institutional sup-
ity to implement the activities defined in this strategy. port to exporters and strengthening private sector
To structure sector development, it is recommended capacities to respond to market opportunities and
that the following interventions be implemented with challenges. Allocation of human, financial and tech-
priority : nical resources is required to efficiently coordinate,
implement and monitor overall implementation.
• Implement a cross-breeding programme to develop Successful execution of activities will depend on
high-meat-yielding beef breeds, including through stakeholders’ abilities to plan and coordinate actions
importing high-yielding breeds and semen for artifi- in a tactical manner. Diverse activities must be syn-
cial insemination ( PoA Activity 1.2.1 ). chronized across public and private sector institutions
to create sustainable results. Therefore, it is neces-
• Build farmers’ skills on good farming practices for sary to foster an adequate environment and create an
animal production food safety and orient them to- appropriate framework for the strategy’s successful
wards rearing cost-efficient animals exclusively for implementation.
meat production through backgrounding of beef Key to achieving the targets will be coordination of
calves ( PoA Activity 1.2.3 ). activities, monitoring progress and mobilizing resourc-
es for implementation. To that effect, industry repre-
• Work towards improving the traceability of animals sentatives recommended that a public–private sector
through the introduction of a basic tagging system specific council for the processed food and beverages
for animal identification that is accessible to all farm- industry be rapidly established, operationalized and
ers ( PoA Activity 2.1.1 ) ; conduct a national census empowered. The sector specific council is to be re-
( PoA Activity 2.1.2 ) ; and develop a national livestock sponsible for overall coordination, provision of policy
database ( PoA Activity 2.1.3 ). guidance and the monitoring of industry development
along the strategic orientation.
• Establish basic requirements for hygiene as well as
for chilling, packaging and labelling operations in the
domestic market. MEAT SECTOR SPECIFIC COUNCIL
• Negotiate market access for Pakistani meat and It is recommended that a meat sector specific council
meat products in previously identified key target be rapidly established by the Minister of MoC and ef-
markets that are readily accessible to Pakistani meat fectively organized by the TDAP and MoC to support
processors ( PoA Activity 3.2.2 ). the industry with the capacity to steer its development
strategically. The sector specific council is to be facil-
itated by a secretariat coordinated by the TDAP, sup-
ported and advised by APMEPA.
Industry representatives recommend that the meat KEY SUCCESS FACTORS FOR EFFECTIVE
sector specific council be composed of the following IMPLEMENTATION
members :
The presence of the sector specific council to oversee
• TDAP ; the strategy’s implementation is a key success factor,
• MoC ; but it is not sufficient to effectively fulfil its assigned
• Animal Quarantine Department ( AQD ) ; functions.
• Livestock and Dairy Development Board ( LDDB ) ;
• National Veterinary Laboratory ( NVL ) ; Private sector support and participation in
• Pakistan Agricultural Research Council ( PARC ) ; implementation
• Provincial livestock development departments ;
• Animal Husbandry Commissioner ; The private sector clearly expressed its willingness to
• Pakistan Standards & Quality Control Authority contribute, directly or in partnership with public insti-
( PSQCA ) ; tutions, to the strategy’s implementation. Their imple-
• Pakistan Council of Scientific and Industrial Re- mentation efforts can range from providing business
search ( PCSIR ) ; intelligence to institutions to contributing to project
• Pakistan Halal Authority ; design, promotion and branding, and policy advoca-
• Federation of Pakistan Chambers of Commerce & cy, etc. In brief, the private sector’s practical knowl-
Industry ( FPCCI ) ; edge of business operations is essential to ensuring
• APMEPA ; that the strategy remains aligned to market trends and
• The Organic Meat Company ( Pvt ) Ltd ; opportunities.
• Livestock Exporters Association of Pakistan ;
• Livestock farmers’ associations ; Proactive networking and communication
• State Bank of Pakistan ;
• University of Veterinary & Animal Sciences ( UVAS ) ; The key implementing institutions detailed in the PoA
• University of Agriculture Faisalabad ( UAF ). need to be informed of the strategy’s content and the
implications for their 2022–26 programming. This net-
It is recommended that the sector specific council be working and communication is essential to build further
empowered to meet quarterly and to implement the ownership and provide institutions with the opportunity
following functions : to confirm the activities they can implement in the short
to long term. It will be important for the TDAP, MoC and
• Create a shared understanding of key market chal- members of the sector specific council to reach out to
lenges and opportunities facing the sector ; relevant institutions nationally to create awareness and
• Set goals and targets that, if achieved, will strength- support for the meat industry’s development.
en the sector’s competitive position and enhance
Pakistan’s overall capacity to meet markets’ chang- Resources for implementation
ing demands ;
• Propose key policy changes to be undertaken and The sector specific council, in collaboration with the
promote these policy changes among national de- TDAP and the Secretariat at MoC, will need to lever-
cision-makers ; age additional support for efficient implementation.
• Support the coordination, implementation and moni- Effective planning and resource mobilization is indis-
toring of activities in the sector by the government, pri- pensable in supporting strategy implementation. Re-
vate sector, institutions or international organizations source mobilization should be carefully planned and
to ensure alignment to goals and targets, as required organized.
to contribute to resource identification and alignment. As the meat industry is a priority sector strategy
of the STPF, the Government of Pakistan should de-
As part of the Strategic Trade Policy Framework (STPF) fine annual budget allocations and support to drive
and the sector strategy design process, it has been the industry’s growth. This commitment will demon-
recommended that an inter-ministerial and multi-indus- strate clear engagement towards strengthening the
try private sector council be organized and structured sector and will encourage private partners to sup-
to address overall challenges and opportunities to port development. In addition to national budget sup-
Pakistan’s trade performance. It is recommended that port, resource identification will require the Board of
chairs of the sector specific council be members of the Investment ( BOI ) to effectively target foreign investors
council to consult on key trade thematic areas ranging in line with the strategy’s priorities, such as the attrac-
from policy to regulations and trade negotiations. tion of more commercial farmers. Investment flows
Implementation framework 49
to Pakistan should also be considered as a valuable However, high-level support from the government, in
driver of strategy implementation and overall industry collaboration with strong championship by the private
development. sector, will be the real driver of successful strategy
The various implementation modalities will deter- implementation.
mine the success of the strategy’s implementation.
The PoA is structured around three strategic objectives and associated operational objectives. For each objective,
the PoA outlines detailed activities and their implementation modalities, which include:
• Priority level: Priority 1 being the highest and 3 the lowest.

• Period: The desired time-frame of the activity.
• Targets: Quantifiable targets that allow completion monitoring of the activity during the implementation stage.
• Leading implementing partners: One single accountable lead institution per activity. (The institution can also
have a technical role or can solely have an oversight and coordination role.)
• Supporting implementing partners: Any institution that should be involved at any stage of the activity’s im-
plementation.
©ITC
Islamic Republic of Pakistan
Export Strategy 2023-2027
MEAT
PLAN OF ACTION
(2023-2027)
52
Priority Period Reform Leading

Strategic Operational Supporting
Activity ( 1= or Targets implementing
objective objective implementing partners
Highest ) project partners
2023
2024
2025
2026
2027
• Ministry of National
1.1.1. Remove import duties on animal feed products Food Security &
• Import duty regulation Ministry of
to ensure access to quality feed for farmers (e.g. 1 Reform Research ( MNFSR )
on animal feed adjusted Commerce
soybeans ). • Federal Board of
Revenue
• Agriculture Policy
Institute
• National Veterinary
1.1.2. Develop a national programme to develop fodder • Seasonal fodder
1.1. Ensure Laboratory
production domestically – mainly focusing on soya production plan and feed
availability of • Pakistan Agricultural

beans – and identify suitable areas for cultivation. 2 Project composition established MNFSR
competitive Research Council
The programme shall include the development of a and available on the
quality feed ( PARC )
local GMO-free mother seed. database for producers.
and improve • Livestock wing
feed man- • Provincial livestock
1. Ensure agement departments
access to
competitive 1.1.3. In consensus with all stakeholders involved in • At least 5 critical
raw material to the value chain, revisit and update compulsory PSQCA standards updated to
Pakistan • APMEPA
increase the at- standards specification on animal feeds, in line with ISO level
Standards & • PARC
tractiveness of international best practice, especially the 17 national • Provincial livestock
2 Reform Quality Control • Provincial livestock
Pakistani meat standards not in line with ISO. departments received
Authority departments
products on Provide technical and financial support to provincial a training programme
( PSQCA ) • MNFSR
global markets livestock departments for upgrading conformity as- and upgradation of basic
sessment capabilities. equipment.
• Cross-breeding pro-
• University of Veterinary
gramme implemented
& Animal Sciences
• At least 10 % increase
1.2. Stimu- ( UVAS )
in feed conversion ratio
late and • University of Agriculture
1.2.1. Implement a cross-breeding programme ( FCR )
increase Faisalabad
to develop high-meat-yielding beef breeds, through • At least 10 % increase
the supply • MNFSR (LDDB)
the establishment of semen production facilities. 1 Project in average weight gain PARC
of animals Research Center
This could be done through a PPP model using exist- ( AWG )
reared for for Conservation of
ing vacant livestock farms. • At least 3 semen
meat produc- Indigenous Breeds
production facilities
tion Jhang
established by 2025
• Corporate Dairy
• At least 10 % increase in
Farmers Association
dressing carcass ratio
2023
2024
2025
2026
2027
• Provincial assemblies
1.2.1. Introduce a national regulation setting a mini- • Legislation on minimum
• Provincial livestock
mum slaughter weight for bovine animals to enhance 1 Reform slaughter weight enacted MNFSR
1.2. Stimu- secretariats
meat production and increase yields. and enforced
late and • APMEPA
increase 1.2.2. Build farmers’ skills through agriculture exten-
the supply sion on good farming practices for animal produc-
of animals tion food safety23 and orient them towards rearing • Yearly extension
reared for cost-efficient animals exclusively for meat production programme in place. • Provincial livestock
meat produc- 1 Project LDDB
1. Ensure through backgrounding of beef calves. Focus should • At least 1000 farmers departments
access to tion be place on large scale operations, including through trained per year.
competitive Cooperative models in which small farmers can be
raw material to partners in business.
increase the at- 1.3.1. Lease land to private processors or exporters in • Provincial planning and
tractiveness of • 500–1,000 acres leased
disease-free zones to establish large-scale fattening development boards
Pakistani meat • Pilot project
farms and feedlots where herds can be reared exclu- Planning • Cholistan Development
products on implemented
1.3. Support sively for backgrounding and fattening. 2 Project Commission Authority
global markets • At least 10 feedlots
the devel- As a first step, a pilot project could be implemented, Pakistan • APMEPA
established per disease-
opment of where land is available and considered to be a • Board of Investment
free zone
fattening disease-free zone. ( BoI )
farming and Zarai Taraqiati
background- Bank Limited
ing 1.3.2. Provide subsidized credit to encourage the ex- • State Bank of Pakistan
• New subsidized credit ( Agricultural
pansion of feedlot farming practices and background- 2 Project • Commercial banks
scheme in place Develop-
ing with land used as collateral. • APMEPA
ment Bank of
Pakistan )
23.– Intervention areas to include : farm management ; animal health management ; veterinary medicines and biologicals ; animal feeding and watering ; environment and infrastructure ; and animal and product
Plan of action ( 2023-2027 )
handling, as defined by the FAO and OIE in their Guide to Good Farming Practices for Animal Production Food Safety. Available from http : // www.fao.org / 3 / i0482t / i0482t00.pdf.
53
54

2023
2024
2025
2026
2027
• Punjab Livestock &
2.1.1. Introduce a basic tagging system for animal
Dairy Development
identification that is accessible to all farmers, ,
Board
through a compartmentalisation approach for area
• Livestock & Fisheries
wise tagging. Animal
• 20 % of animals tagged Department Sindh
• Introduce an incentive scheme to farmers to tag 1 Project Husbandry
per year • University of Veterinary
their animals (e.g. provide free vaccination). Commissioner
& Animal Sciences
• Support ongoing efforts for the development of a
( UVAS )
software for animal identification and tagging in
• DRAP
specific areas, to be expanded at the national level.
• MNFSR
Pakistan
2.1.2. Conduct a national livestock census, carried out • Livestock census • Provincial livestock
1 Project Bureau of
alongside the tagging campaign. conducted yearly departments
2.1. Ensure Statistics
traceability 2.1.3. Initiate the development of a national livestock
throughout database, starting with the fattening farmers being
the value National • Provincial livestock
registered with the government under the Prime
chain • Online database estab- Information departments
Minister’s Initiative for Save the Calf and other such 1 Project
2. Ensure lished and operational Technology • Punjab Information
projects. This online database should be linked to the
a supply of Board ( NITB ) Technology Board
Market Informtion System (MIS) developed by LDDB
disease-free,
and made available to meat processors.
quality and
traceable 2.1.4. Develop and introduce regulations requiring that
livestock only the animals that are tagged and registered in the
national livestock database may be allowed at points
of sales both both the domestic and the export market
• Legislation enacted and • Provincial assemblies
( i.e. auction market for livestock sales [“mandies”], 2 Reform MNFSR
enforced • APMEPA
and slaughterhouses ).
This process should be undertaken in consultation
with meat processors, domestic slaughterhouses and
abattoirs’ representatives.
2.2.1. Design a comprehensive national FMD control
programme with a clear vision and set milestones,
and involving all concerned stakeholders at national,
2.2. Advance
provincial and local levels. • OIE dossier documenting
through the Animal • MNFSR
The programme should encompass regulatory frame- the national FMD control
PCP-FMD to 1 Reform Husbandry • Provincial livestock
work for FMD control, including : programme designed
progress to Commissioner departments
• A mechanism for the monitoring and reporting of and approved
Stage 3
animal disease ;
• A national FMD information centre ;
• Culling of livestock should be in place.
2023
2024
2025
2026
2027
• Mass vaccination
2.2.2. Building on the tagging system for animal iden-
programme carried Animal • MNFSR (AQD)
tification ( see 2.1.1. ), undertake a mass vaccination
2 Project out over a two year Husbandry • Provincial livestock
programme by recording tag numbers of each animal
2.2. Advance vaccinated. period covering all Commissioner departments
through the tagged animals
PCP-FMD to 2.2.3. Once the tagging system is introduced ( Activity
progress to 2.1.1. ) and after the rules imposing that only tagged • Legislation enacted • Cattle Market
Stage 3 Animal
animals are allowed to the market are enforced ( Activ- • At least 50 % of mandis Management Company
3 Reform Husbandry
ity 2.1.4. ), Introduce a regulation authorizing access to implementing the ( CMMC )
Commissioner
livestock markets and slaughterhouses only to animals regulation • APMEPA
that are vaccinated.
2.3.1. Develop a voluntary, quality-based national
2. Ensure grading system for indigenous bovine animals to • Meat standards Pakistan
a supply of 1 Project PSQCA • APMEPA
encourage farmers to raise livestock to a certain ( MSP ) established
disease-free, standard and improve quality.
quality and
2.3.2. Develop standard operating procedures ( SOP )
traceable
to obtain AQD licence/certification from veterinarians
livestock
mandated across the board, i.e. for both domestic
2.3. Improve slaughtering and export-oriented facilities, with a rota-
quality and tion between the slaughter facilities.
food safety • SOP developed
1. New strategic market for fresh/chilled and frozen
along the • All veterinarians hired
meat –China, Southeast Asia, and Central Asia
value chain by slaughterhouses
2. Processing of boneless cuts –GCC (in particular, 2 Reform MNFSR (AQD) Provincial Governments
have obtained their AQD
Saudi Arabia and the United Arab Emirates) and
licence/certificate by
China
2024
3. Higher value-added products (ready-to-cook and
ready-to-eat meat products such as cooked jerkies,
beef patties, meat pastes and meat sausages, etc.)
–North American and European markets and
High-income Asian countries.
55
56

2023
2024
2025
2026
2027
3.1. Make 3.1.1. Review and streamline existing legal provisions • Provincial livestock
the domes- at the federal, state and municipal levels granting departments
tic market permission to sell meat products, particularly for 1 Reform • Legislation enacted MNFSR • Provincial food
accessible animals slaughtered in other Provinces of Pakistan and authorities
and available commercialized by export-oriented companies. • APMEPA
to export-
oriented 3.1.2. Establish basic requirements for hygiene and • Meat industry
slaughter- chilling, packaging and labelling operations in the 1 Reform regulations enacted and MNFSR • APMEPA
houses domestic market. enforced
• Federation of
3. Improve Pakistan Chambers of
market access Commerce & Industry
• Study developed and
conditions for 3.2.1. Undertake a comprehensive study to identify ( FPCCI )
disseminated among
Pakistani meat value-added meat products that can be easily pro- • Lahore Chamber of
potential investors ( na-
products 3.2. Secure cessed in Pakistan ( e.g. heat-treated processed meat 2 Project TDAP Commerce & Industry
better market and ready-to-eat products, etc. ) and for which market tional and international )
( LCCI )
access • At least 10 new products
access to major importers could be granted. • Karachi Chamber of
conditions identified
Commerce & Industry
for Pakistani ( KCCI )
meat prod- • BOI
ucts
3.2.2. Negotiate market access for Pakistani meat
and meat products in previously identified key target • At least 5 target markets • APMEPA
Ministry of
markets that are readily accessible to Pakistani meat 1 Reform allowing access to • MNFSR
Commerce
processors, including heat-treated meat products to Pakistani meat products • TDAP
China.
2023
2024
2025
2026
2027
• National Information
3.3.1. Create an online market access database for
Technology Board
meat and meat products, providing information about • Online database
( NITB )
import requirements in countries where market access designed
2 Project TDAP • Punjab Information
is not restricted ( i.e. duties and taxes, food safety • At least 15 major
Technology Board
3.3. Improve requirements, labelling requirements and customs markets documented,
( PITB )
access clearance procedures, etc. ).
3. Improve • APMEPA
to market
market access 3.3.2. Through Pakistan’s trade missions abroad,
information
conditions for undertake strategic marketing planning to promote • Marketing plan defined
and sup-
Pakistani meat and facilitate expansion of Pakistan’s meat exports for at least 5 target
port export • Trade missions abroad
products in countries where market access has been secured 3 Project markets TDAP
promotion • APMEPA
( including facilitating business-to-business meetings, • At least 2 events organ-
efforts
organizing meetings with potential buyers and provid- ized per market
ing market intelligence to exporters, etc. )
3.3.3. Develop a brand for Pakistan’s bovine meat
exports, emphasizing key attributes such as sustain- 3 Project • Brand strategy designed TDAP • APMEPA
ability, grass-fed, halal certified and superior quality.
57
Islamic Republic of Pakistan
Export Strategy 2023-2027
MEAT
ANNEXES
Annex I:
List of participants in the public-private
consultations
Name Designation Organization
Azmat Saifi Executive director Anis Associates ( Pvt ) Ltd
Amir Sohail Chohan Quality control officer Anis Associates ( Pvt ) Ltd
Ministry of National Food Security &
Khalid Ashfaque Assistant Animal Husbandry Commissioner
Research
Tariq Mahmood Trade policy expert Ministry of Commerce
Ali Sufian Deputy director Ministry of Commerce
Yousaf Rasool Deputy director ( Agro-II ) Ministry of Commerce
Sumair Ahmad Research associate Ministry of Commerce
Khushbakht Asif Assistant director TDAP
Ravia Khalid Associate manager TDAP
Aurangzeb Jahangir Assistant manager TDAP
Zia-Ul Hasan Member In Charge Animal Sciences Division Pakistan Agricultural Research Council
Assistant director ( Agri. & Food Division, Standards
Ayaz Ahmed Soomro PSQCA
Development Centre )
Ummad Khan Human resources manager The Organic Meat Company Limited
Small and Medium Enterprises Development
Noureen Anjum Manager
Authority ( SMEDA )
Maqbool Ahmad Quarantine officer Animal Quarantine Department
Zia Banday Consultant Hilal Meat Processing
Syed Hasan Raza CEO Syed Traders
University of Veterinary & Animal Sciences,
Muhammad Jaspal Associate professor
Lahore
Hafiz Muhammad Yasin Iqbal Manager, accounts Punjab Agriculture & Meat Company
Muhammad Khan Manager, administration Punjab Agriculture & Meat Company
Muhammad Aleem Consultant, operation Big Bird Group
Khalil Sattar CEO K&Ns
Tabinda Khawaja Programme manager Livestock and Dairy Development Board
Muhammad Mohsin Kiani Project manager Livestock and Dairy Development Board
Musab Mian CEO Tazij Meats & Food
Bilal Tata CEO Tata Best Foods Ltd
AnnexES 61
Annex II:
Detailed value chain assessment
population. The annual fodder production in Pakistan
INPUTS ALONG THE VALUE CHAIN is estimated at 52 million tons, which is insufficient to
feed the 213 million heads of livestock in the country,
Upstream activities of the meat value chain concern including buffalo, cattle, goats, sheep, camels, horses,
animal husbandry and the inputs needed to keep asses and mules.24 As this population grows ( at a rate
livestock. The key livestock production inputs include of 2.7 % per year ), its feed requirements increase ac-
breeding techniques for calves, veterinary services, cordingly.25 Further worsening the situation is the fact
immunization and animal foodstuffs. that the harvested fodder area decreases by approxi-
mately 2 % each decade. The livestock sector also has
Feed and fodder to cope with two important fodder scarcity periods,
one in winter ( November to January ) and the other in
Due to the lack of industrially produced local animal summer ( May to June ). Shortage of fodder production
feed, most farms depend on what is locally available as is considered the major limiting factor for livestock pro-
the source of feed for their farms. In rural households, duction in Pakistan.
livestock is fed using grown fodder, which comprises
all crops that are used as cut and carry livestock feed. Breeds ( genetics )
Large herds, on the other hand, are grazed in range-
lands, where livestock feed includes all vegetation ac- All indigenous breeds are generally milk breeds ( ge-
cessible to livestock. These rangelands include rain-fed netically developed for higher milk production ) or dual
flat lands, hill lands and rangelands. More than half of purpose at best, meaning that they are specialized for
animal feed comes from fodders and crop residues, neither meat nor milk. Hence, the beef produced in
one-third from grazing of rangelands, wastelands, ca- Pakistan is basically a by-product of the milk industry.
nal banks and roadsides, and the rest is from crops Unlike other developed countries, Pakistan has yet to
and their by-products. develop an indigenous beef breed. Together with oth-
er factors, this contributes greatly to the low average
carcass weight of cattle in Pakistan, estimated at 130
Table 1 : Availability of fodder in Pakistan kg / animal in 2019, whereas a developed beef breed
( FY 2020–21 ) would exceed 350 kg, on average.
Fodder Availability The Pakistan Agricultural Research Council ( PARC )

Green fodder and crop residues 51 % plays a critical role in promoting breeding technologies,
Forage grazing 38 % with the scope to breed superior quality cattle.
Post-harvest grazing 3%
Concentrates / crop residues 2%
Veterinary services
By-products ( molasses, sugarcane tops The health monitoring of the animals at farms or at
6%
and vegetables ) home-sheds is done by professional veterinarians at
Total 100 % requirement, but not in an organized way.
Source : Pakistan Economic Survey 2020-21.
LIVESTOCK PRODUCTION
Despite being the main and cheapest source of feed
for livestock, fodder crops barely meet half of the main- As indicated earlier, Pakistan is endowed with one of
tenance requirements of the country’s present livestock the largest livestock populations in the world, with an
24.– Pakistan Agricultural Research Council. Fodder Research Program. See http : // www.parc.gov.pk / index.php / en / csi / 137-narc / crop-sciences-
institue / 714-fodder-program.
25.– Inter-census growth rate of Livestock Census 1996 & 2006.
estimated 94 million bovine animals (cattle and buffalo) negotiates price with the owner. As this operation re-
and 112 million small ruminants ( goat and sheep ). quires specialized skill, most meat processors hire a
The majority of the national herd is maintained by beopari who buys live animals at the mandis on behalf
fragmented smallholder farmers with limited knowl- of slaughterhouses and / or meat processors, against
edge of good husbandry practices. Cattle are raised compensation. It is widely believed in the industry that
by informal and undocumented methods across rural the majority of the profit margin is taken by the inter-
Punjab and Sindh. Two types of livestock production mediary, and the farmer and exporter are left with the
practices prevail in Pakistan, namely : bare minimum.
1. Rural household : Animals are closely integrated

with the rural subsistence economy and house- SLAUGHTER SLABS,
holds have 1–3 dairy animals kept for sustenance. SLAUGHTERHOUSES AND ABATTOIRS
2. Large herds : Animals are kept in rangelands where
livestock is fed by grazing on all types of vegetation. The young male calves or old cows and buffaloes sold
in the mandis are then transported to urban centres to
Cattle in Pakistan are reared primarily to produce milk, be slaughtered.
as this activity provides better returns to small-scale In the domestic market, the majority of animals are
farmers, providing them with a daily income source. slaughtered at slaughter slabs, slaughterhouses and
Consequently, livestock farmers have a preference for abattoirs that are not notified by the government. Most
rearing heifers to male calves, the latter being mostly of these facilities usually lack basic equipment such as
culled for meat at a young age. hoisting facilities, a lighting system and a regular water
Commercial ranching is almost negligible. The rais- supply. The standard of hygiene, and both liquid and
ing of animals in Pakistan is mostly to provide milk and solid waste disposal, are also poorly managed.
cheese and to work in the fields. Meat production is, At the same time, 34 export-oriented slaughterhous-
therefore, primarily perceived as a by-product of the es approved by the AQD operate in the country’s major
dairy industry. urban centres and cater exclusively to the needs of
the international markets.27, 28 Due to the shortage of
livestock reared for meat production and the restricted
LIVESTOCK MARKETS – MANDIS access to international markets for Pakistani meat,
these facilities are estimated to be operating at ap-
The aggregation process is facilitated by arthis acting proximately one-quarter of their peak capacity ( Board
as intermediaries and playing a key role in financing of Investment, 2020 ). These processing plants require
the purchase of animals from rural areas and transport- inputs in the form of equipment and machinery, which
ing them to designated open livestock markets called is mainly imported, and qualified labour and finance.
mandis. They provide immediate financing and liquid- The animals slaughtered at the privately operated
ity to rural households at the time of purchase from facilities and government-run abattoirs are examined
the farmer.26 ante-mortem and post-mortem by a designated vet-
Mandis are mostly located in Punjab and Sindh and erinary officer.
are usually held for a day every week or every month. The meat processed in AQD-approved slaughter-
Some of these markets are popular for meat animals, houses is then exported, mainly in the form of fresh,
while others are famous for dairy animals. A few man- chilled carcasses. The meat destined to the domestic
dis are also famous for certain breeds of animals. market is sold directly from the slaughterhouses and
Since these mandis are makeshift markets, their infra- abattoirs to local butchers. The meat is then sold to the
structure, management systems or resources are very final consumers, mainly in informal wet markets, and
limited. Weight, breed, vaccination record, medical his- consumed ‘hot’ or fresh on the same day of slaughter
tory, milk production record and reproduction record, and, apart from exceptions in selected butcheries in
etc. are not available to the buyer. the major cities, is not refrigerated.
Buying and selling of livestock take place on an
‘as is’ basis, based on visual inspection whereby the
buyer inspects the animal, guestimates its weight and
27.– Animal Quarantine Department, Ministry of National Food Security & Research, Government of Pakistan. ‘List Of Slaughter Houses’. Retrieved
from : http : // www.aqd.gov.pk / list-of-registered-slaughter-houses / on 8 October 2021.
28.– Pakistan Economic Survey 2020–21, Chapter 2 : Agriculture. Accessed at https:// www.finance.gov.pk / survey / chapter_20 / 02_Agriculture.pdf.
AnnexES 63
©ITC
MARKETING AND EXPORTS

Traditionally shipped by air, Pakistani exports of chilled
The final stage in the value chain involves a series carcasses to GCC countries have progressively shift-
of activities such as distribution, product placement, ed to cheaper shipments via sea. According to the
branding and packaging, and policy initiatives to open Pakistan Business Council, airfreight for chilled meat
new markets and enhance market share. As indicated to the Gulf costs approximately $1 per kilogram ( and
earlier, only a very small share of Pakistan’s red meat up to $2 due to restrictions caused by the COVID-19
production is destined to the international markets, pandemic ), while shipment by sea lowers it to $0.2
most of the meat processed being sold to the local per kilogram.29
markets through butchers or informal wet markets.
REFERENCES
Animal Quarantine Department, Ministry of National Food Security & Research,
Government of Pakistan. ‘List Of Slaughter Houses’. Available from http : // www.aqd.gov.
pk/list-of-registered-slaughter-houses/.
Euromonitor International (February 2021). Passport Packaged Food Factsheet. Available

from https:// go.euromonitor.com/factsheet-packaged-food.html.
Food and Agriculture Organization ( 2019 ). ‘Food Outlook - Biannual Report on Global
Food Markets’. Rome. Licence : CC BY-NC-SA 3.0 IGO. Available from https:// www.fao.
org/documents/card/en/c/ca4526en.
FAO ( 2021 ). FAOSTAT. Available from www.fao.org/faostat/en/.
FAO/OIE ( 2010 ). Guide to Good Farming Practices for Animal Production Food Safety.
Available from http : // www.fao.org/3/i0482t/i0482t00.pdf.
International Trade Centre ( 2021 ). Export Potential Map. Available from https:// exportpo-
tential.intracen.org.
International Trade Centre ( 2021 ). Trade Map. ITC calculations based on UN Comtrade
and ITC statistics. Available from http : // www.trademap.org.
International Trade Centre (2020). Invisible barriers to trade – Pakistan: Business perspec-
tives. ITC, Geneva.
International Trade Centre, International Institute for Sustainable Development and Research
Institute of Organic Agriculture ( 2019 ). The State of Sustainable Markets 2019 : Statistics
and Emerging Trends. Sales No. E.19.III.T.5. Available from https:// www.intracen.org/
uploadedFiles/intracenorg/Content/Publications/Sustainabile %20markets %202019 %20
web.pdf.
Ministry of Finance, Government of Pakistan ( 2021 ). Pakistan Economic Survey 2020–21.
Pakistan Agricultural Research Council. Fodder Research Program. See http : // www.parc.
gov.pk/index.php/en/137-narc/crop-sciences-institue/714-fodder-program.
Pakistan Business Council ( 2021 ). ‘Scaling-Up Bovine Meat Exports of Pakistan – A

Review of Opportunities in the Bovine Meat Sector’.
The designations employed and the presentation of material in this document do not imply the
expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal
status of any country, territory, city or area or of its authorities, or concerning the delimitation of its
frontiers or boundaries.
This document has not formally been edited by the International Trade Centre.
This document has been produced
with the financial support
of the Foreign, Commonwealth
& Development Office
With technical support from ITC

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GOVERNMENT OF PAKISTAN

The International Trade Centre

Street address: ITC, 54–56, Rue de Montbrillant, 1202 Geneva, Switzerland

Message from the Ministry of Commerce

Message from All Pakistan Meat Exporters

Syed Hassan Raza

Note for the reader

A GLOBAL MEAT INDUSTRY THAT KEEPS GROWING AND EVOLVING  5

A BOOMING GLOBAL MARKET DOMINATED BY THE FROZEN MEAT SEGMENT. . . . . . . 5

PAKISTAN’S MEAT SECTOR : A DEEPLY ROOTED INDUSTRY WITH HIGH EXPORT

THE SOCIOECONOMIC IMPORTANCE OF PAKISTAN’S LIVESTOCK SECTOR . . . . . . . . . 11

VALUE CHAIN AND COMPETITIVENESS DIAGNOSTIC  23

VALUE CHAIN MAPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

CURRENT GOVERNMENT INITIATIVES  29

COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

THE WAY FORWARD  35

PLAN OF ACTION ( 2023-2027 )  51

ANNEX I: LIST OF PARTICIPANTS IN THE PUBLIC-PRIVATE CONSULTATIONS  60

Table 1 : Agricultural subsectors’ contribution to the national economy 12

Acronyms and abbreviations

THE STRATEGIC OBJECTIVES

Strategic Objective 1: Ensure

Stratigic Objective 2: Ensure a •Improving Pakistan market access to new destinations in a

Strategic Objective 3: Improve •Securing greater access to international markets for

IMPLEMENTATION MANAGEMENT • Implement a cross-breeding programme to develop

A GLOBAL MEAT INDUSTRY

A booming global market dominated

Figure 5 : World imports of edible bovine offal

Frozen Fresh or chilled

Source : ITC calculations based on UN Comtrade statistics.

Source : ITC calculations based on UN Comtrade statistics.

KEY DRIVERS OF CHANGE PUSHING

Increasing demand for frozen meat

Global trade of bovine meat is dominated

Source : ITC calculations based on UN Comtrade statistics.

Global trends in the sheep and goat meat market

Fresh boneless Fresh, other, 3%

CAGR 2016-20: +11.5%

PAKISTAN’S MEAT SECTOR:

The socioeconomic importance

Livestock is the most important subsector of agricul-

Table 1 : Agricultural subsectors’ contribution Table 2 : Livestock population in Pakistan,

Source : FAOSTAT. Source : FAOSTAT.

6.– Inter-census growth rate of Livestock Census 1996 and 2006.

Pakistan is one of the largest producers

China India Pakistan Argentina

Table 5 : Pakistan meat production, in volume ( thousand tons )

Source : Pakistan Economic Survey 2020-21.

USA 360 800

Brazil 314 600

Argentina 225 200

Defining the sector

Figure 15 : Product map for meat products in Pakistan

Source : ITC calculations based on UN Comtrade and ITC statistics.

Pakistan is well poised to become a major

Figure 16 : Pakistani products with potential

Source : ITC Export Potential Map.

Pakistani meat exports are currently concentrated

Source : ITC calculations based on UN Comtrade data.

Source : ITC calculations based on UN Comtrade and ITC statistics.

A GLOBAL MEAT INDUSTRY THAT KEEPS GROWING AND EVOLVING 5

A BOOMING GLOBAL MARKET DOMINATED BY THE FROZEN MEAT SEGMENT. . . . . . . 5

THE SOCIOECONOMIC IMPORTANCE OF PAKISTAN’S LIVESTOCK SECTOR . . . . . . . . . 11

VALUE CHAIN AND COMPETITIVENESS DIAGNOSTIC 23

VALUE CHAIN MAPPING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

CURRENT GOVERNMENT INITIATIVES 29

COMPETITIVENESS CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

THE WAY FORWARD 35

PLAN OF ACTION ( 2023-2027 ) 51

ANNEX I: LIST OF PARTICIPANTS IN THE PUBLIC-PRIVATE CONSULTATIONS 60

Table 1 : Agricultural subsectors’ contribution to the national economy 12