MEAT INDUSTRY OF PAKISTAN 2022

EXPORT MARKETING PROJECT

ON
MEAT INDUSTRY OF PAKISTAN

INTRODUCTION:

Pakistan meat industry is in growing face and the demand for Halal meat is increase in the Muslim world. So Pakistan got the potential to increase it's export and earn foreign exchange and promotes Pakistan high quality meat world wide.

Currently Global Halal industry is valued over $ 3 Trillion. Total market of beef and mutton in 2008 was $ 24.5 Billion. Out of total world meat trade 47% of world meat trade comprises of beef products and 16% of mutton (Sheep and Goat). Out of this our share is negligible and we are ranked 19. Our 97% of mutton export are restricted to ME (Middle Eastern) countries (Jalil 2010). The demand of Halal meat and other foodstuffs is growing internationally. This demand in Gulf countries alone exceeded to $ 12 Billion in 2005 (May 2006).

There is a great potential for Pakistani meat export in a no. of other countries (as Malaysia could import at least 60,000 Tons of meat from Pakistan if it chooses to do so (Bokhari 2010). Pakistan is currently exploring this market but not with the intensity which is required. There is continuous increasing trend in Livestock population in Pakistan Being an Islamic country Pakistani meat is considered the Halal meat in general perception.

Pakistan is an Agriculture based country and has a rich Livestock source owing to if s geographical location and climate. Pakistan has the 2nd largest buffalo population after India in the world. (PBIT 2011) "Livestock and meat products are important export commodities for a number of developing countries". (Anonymous November, 2010). Regardless of the nature of Economy, agriculture sector plays a significant role in economic development of developing countries like Pakistan. "It continues to play a central role in if s economy. It is the second largest sector, accounting for over 21 percent of GDP. However, Livestock is the single largest contributor to overall agriculture i.e. 53.2 percent" (Anonymous 2009-10). Pakistani meat has a unique taste that’s why it can be exported to many countries predominantly Arabian countries but still there is a vast supply gap to be fulfilled there, currently new markets are being explored like Malaysia, Iran, Turkey and some others. (This export has a continuous increasing trend as there is around 56 % increase in meat export from Pakistan as compared to the previous years. Pakistan is also exporting the live animals and earning around US$ 13.95 million from live animal export (Anonymous 2009-10).

"World meat trade is forecasted to grow by 2.8 percent in 2010, to 26.1 million tones, sustained by a brisk growth in pig meat, but also by gains in bovine and poultry meat". "Increased purchases from Asian countries are expected to fuel much of the expected increase of meat trade, more than compensating for a 15 percent reduction of imports by the Russian Federation, which had emerged as the second largest meat importer in 2009, after China" (Anonymous November, 2010).

Major players

·        Meat one

·        PK Livestock

·        Zenith Associates.

What is Halal?

Halal means “permissible” in Arabic. It is often extended to “halalan thoyyiban” meaning halal and wholesome, as compared to unwholesome, foul or ‘haram’ meaning prohibited.  All pure and clean foods are permitted for Muslims except.

·       Carrion or dead animals

·       Blood

·       Swine including all its by-products

·       Alcohol

·       Animals slaughtered without pronouncing the name of God on them.

The halal products are moving into mainstream business and their demand is steadily increasing. It is now seen as a potential engine of economic growth. Pakistan can assume a leadership role in global halal food market, being a Muslim country, provided proper strategies are put in place.

Demand for ‘halal’ foods is increasing, not only in the USA, Europe and Canada, but also in the Middle East, Southeast Asia, and North Africa and Australia. Halal consumers market / trade are growing fast in the world.

 4P’S IN EXPORT MARKETING:

PRODUCT:

·       The core products of meat for exporting are Halal chilled meat not the frozen meat. There is a difference between chilled and frozen meat, in chilled meat the product is placed in a cooled room and its temperature is 0 degree centigrade, while the frozen meat has less than 0 degree temperature.

·       The product is slaughtered in those slaughtered houses which are approved by importing courtiers. In Karachi there are only 4 to 5 authorized slaughter houses.

·       The HS Code is 0201

PRICE:

              It has three heads.

PURCHASING:

·       The exporter of chilled meat purchase from the suppliers of live stock and then they give it to the authentic slaughter house.

·       Supplier gives the meat on per kg rate and the rate is negotiable as the demand and the supply of meat.

FREIGHT:

·       Generally air freight is used in chilled meat export.

·       The containers size is 1500 kg which contain approximately 200 pieces.       

OVER HEAD:

Basically there are three important sub heads.

·       Labor cost

·       Chilled cost

·       Clothing cost

PLACE:

The current markets or Pakistan meat export is doing their business in several countries some major countries are Kuwait, Dubai, Saudi, Oman and Libya.

PROMOTION:

·       Government is not interested in export of meat as compare to other industries they didn’t give subsidies to meat export industry like in European countries Pakistan is not exporting their meat due to the government  less importance.

·       Government should help and facilitate the entrepreneurs to explore these emerging markets by organizing Trade shows etc

                       

 

 

SWOT ANALYSIS:

STRENGTH:

Pakistan has yet to capture even a small share of the global Halal market worth more than 2 trillion dollars despite its strength on 100% being a Muslim country. In Middle East, Pakistan is considered as Makah for Halal food and without any doubt food products imported from Pakistan are automatically considered as Halal. Meat, grains and other agriculture produce are regularly exported to Middle Eastern countries but this is not enough.

WEAKNESS:

·       The labor is not skilled and they are not aware about the new technological machines of slaughting, as compare with other countries which are exporting slaughtered meat.

·       The animal farming is not modernized to get efficient meat production per animal.

·       Pakistan is the 6th largest cattle breeder and world’s leading poultry breeder of the world but our exports are still lacking far behind reason being not having good farming and breeding pastures.

OPPORUNITY:

·       The competitors of meat are not too much in Pakistan.

·       In European countries there is lot of demand of halal meat because halal meat is much more hygienic and good for health, latest research also approved it, in Europe people prefer more halal meat.

·       Pakistan should also focus on the other new meat markets other than Arabian markets like Malaysia, Iran and Europe etc.

·       The urgent measures must be adopted for introduction and development of meat breed in Pakistan so that meat production per animal can be enhanced.

THREATS:

·       There is a risk factor of spoiling of meat, due to the late air freight and cancellation of flight.

·       Sometimes the space is unavailable.

 

 POTER’S FIVE FORCES MODEL:

THREAD OF NEW ENTRANTS

New entrants will become fruitful for this industry, because in exporting of meat in the world has opening gates for Pakistani meat export, and this will prove the standard and quality of meat.

BARGANING POWER OF SUPPLIER:

The bargaining power of supplier is depend upon the demand and supply of meat. When the supplier has meat in bulk and ready to supply, but the orders are very few then the supplier has to supply the meat in discount prices.

 

BARGAING POWER OF BUYERS:

The bargaining power of buyer is also depends upon the demand and supply, when supplier has less quantity of meat to supply and the local demand is also there, so for that the supplier charges more from buyer.

COMPETITIORS/RIVALRY:

Today the global Halal food industry is valued around 1 trillion USD and is the fastest growing diversified economic segment, however more than 80% of the world Halal trade is done by non-Muslim countries.

World’s leading suppliers for Halal products are Australia, Brazil, Canada, Indonesia, India, Malaysia, Philippines, Thailand, New Zealand and USA.

America and Australia are the biggest Halal beef exporters, Brazil and France are the biggest Halal chicken exporters in Middle East. South America is the biggest exporter of food to Middle East.

CONCLUSION:

As per above explained details it can be concluded that there is a big gap in world meat trade to be fulfilled and Pakistan can play a vital role in this regards. If we just do a comparison with other competitors so it can be noted that India with a similar climate is the largest exporter of Buffalo meat in the world having exported a total of 425,000 metric tons of boneless buffalo meat in 2005; it is worth mentioning that the total buffalo population of India is estimated at 93 million, while Pakistan is ranked at 2nd in Buffalo population. But our share in meat export is negligible. According to Food and Agriculture organization (FAO), the total population of Cattle and Buffalo is estimated to increase to 54 million by 2015 while production of meat from cattle and buffalo is estimated at 3.2 million tones in 2015, almost doubling from the 2000 production figure of 1.7 million tones.

HALAL CERTIFICATE:                                                    

                                                                                    

The opportunities for the business of halal products are on the rise but in most countries, halal certification is unregulated whereas in many Muslim majority countries there is no certification at all. The development of halal standard is, therefore, very crucial to address this problem.

Pakistani halal industry, as it begins to export its products, will have to develop Sharia – Compliant Standards i.e., based on authenticity of the certification body, technical requirements of productions and processes of halal products, creating awareness among all stakeholders, Government to Government collaboration for facilitation and development of common seal of authentication. This aspect needs to be addressed on top priority for successful marketing of halal products. The halal logo will then be authentic, independent and reliable testimony of halal food claims.

Posted in: MEAT INDUSTRY OF PAKISTAN