International Egg and Poultry Review - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry, this week looking at Pakistans poultry production.

Pakistan Poultry

According to sources, Pakistan's commercial poultry industry got its' start in 1964 in suburbs around cities such as Karachi, Lahore, Faislabad, Rawalpandi, and Hyderabad. This industry has seen continued growth since then, due to various forms of government support, causing legal problems and the closure and relocation of numerous facilities.

The poultry industry (i.e. poultry farming, poultry processing, and poultry feed) was recognized to be part of the food processing industry and given special considerations accordingly, such as total or partial exemptions from import duties; sales tax; approval to export table eggs, day old chicks, and broilers on subsidized rates; and an income tax holiday for the industry's beginning years.

In view of this assistanace, the commercial poultry industry prospered and expanded year to year. Since the 1960's there have been numerous setbacks to producers such as changes in government policies, low economic returns on products, substandard and costly feeds, an inefficient marketing system, a costly and inefficient distribution system, diseases (Avian Influenza in 1994, 2003, and 2004), and other natural causes. Despite these changes the industry has made great strides and is expected to grow domestically.

Currently, Pakistan employs a three-tiered system composed of poultry farmers, commission agents, and retailers. Commission agents usually get the produce from the farmers at low prices and earn large profits by selling the same products at a higher price to retailers, who turn around and mark up products to miffed consumers in wet markets. The majority of losses occur as a result of birds dying of diseases and poor handling. Transportation is the most important component in Pakistan's marketing system. Commission agents and retailers use various forms of transportation to distribute products to markets (i.e. bicycle, motorcyle, wagon, and donkey carts.) Higher losses occur over longer distances, because of bumpy roads and the deficiencies in modern packing techniques.

Domestic prices of poultry meat, broiler (live,) and eggs, which hit a nine-month high in December 2004. Due to Eid, a Muslim celebration marking the end of Ramadan, chicken meat suffered a 30 percent decline. While prices of most kitchen items in Pakistan remained stable in January 2005, retail prices of chicken meat dropped from 135 Rupees (Rs) per kilogram (kg) in December 2004 to 110 Rs by the end of January (15 percent decline.) Live chicken prices remained between 80 Rs and 85 RS per kg. Prices of broiler chicken hovered between 68 Rs per kg and 75 Rs and largely remained stable. Eggs sold at 40 Rs per dozen in January and continued steady without experiencing any significant changes.

Pakistan entered into a preferential trade agreement, SAPTA, which is expected to grow with the mutual giving of some tariff concessions on specified items. However, poultry farming operations in Pakistan still depend solely on imports of all inputs, the bulk of which come from the U.S. and the U.K. Yet a large trade potential exists for Pakistan with the SAARC nations (India, Iran, China, and Afganistan,) especially with India, if Pakistan's poultry industry made some improvements to its current systems.

In conclusion, Pakistan's poultry industry is looking forward and striving for modernization and improvements in product quality and price in order to be more competitive. To achieve this goal industry is pushing for: a modern packing and distribution system; improved roads; reasonable price levels for feeds and medicines; establishment of poultry coordination boards at both provincial and federal levels; a grading system at the producer level with price adjustments; a long run vaccination and deworming campaign; the construction of veterinary labs for drug residue testing; and improved sanitation conditions at both the production and processing levels.
Source: Pakistan Ministry of Food, Agriculture, & Livestock/Various News Wires/USDA FAS

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Source: USDA's Agricultural Marketing Service - 8th February 2005