INP-WealthPk

Pakistan Livestock Sector Needs Incentives for Swift Growth

February 09, 2022

By Faiza Tehseen ISLAMABAD, Feb 09 (INP- WealthPK): Livestock is an emerging sub-sector of agriculture playing a vital role in the economy of Pakistan. In FY 2020-21, this sector contributed 60.1 percent to the agricultural value addition and 11.5 percent in the GDP (gross domestic product) growth. The total share of agriculture sector in GDP growth of Pakistan is about 19.2 percent. At least 38.5 percent of labour force is attached with the agriculture sector of which more than 8 million rural families depend upon livestock to derive 35-40 percent of their livelihood. During FY 2020-2021 gross value addition of livestock increased by 3 percent, worth Rs1,505 billion, more than the corresponding fiscal year 2019-2020 when it was Rs1,461 billion. Pakistan has renewed its focus on the livestock sector for faster economic growth, poverty alleviation and food security. Some of the regulatory measures taken by government are: awareness programmes for farmers for quality measurements, improvement in animal productivity per unit, animal breeding practices, artificial insemination, acquiring of qualitative ration to feed animals, value addition, management of cattle farms, products marketing, better medication and vaccination for animals, establishment of nucleus herds, and identification of breeds for better productivity etc. Pakistan is producing milk, meat and other dairy products far less than its capacity only due to shortage of proper facilities, infrastructure, knowledge, research and awareness.  Pakistan can earn a lot of foreign exchange by exporting meat, milk and other dairy products to countries worldwide especially to those countries who have insufficient domestic produce to meet their needs. According to the United Nations COMTRADE data, during the fiscal year 2020, Pakistan exported meat worth $311.28 million. Source: https://tradingeconomics.com/pakistan/exports/meat-edible-meat-offal   Production and processing of milk, milk products and halal meat etc are necessary for the significant increase in exports. During the fiscal year 2020, Pakistan exported dairy products, eggs, honey, and edible products to Saudi Arabia worth $13.86 million; to China’s Hong Kong worth $1.37 million; to Bangladesh worth $222.51 thousand etc. The national herd population and milk production during the last three fiscal years 2018-20 is given in the following tables: The production of other livestock products for the last three fiscal years 2018-20 is given in the following table: Source: https://www.finance.gov.pk/survey/chapters_21/02-Agriculture.pdf Traders and investors in Pakistan are also taking interest in getting benefit from the economic value of livestock. For this purpose, a seminar was organised at Lahore Chamber of Commerce and Industry (LCCI) titled “How to enhance milk production and allied dairy products” where Federal Minister for National Food Security and Research Fakhar Iamam was invited. Addressing the seminar, Fakhar Imam said, “The regular census of livestock is necessary to develop an effective strategy concerning the development of livestock sector on modern lines. It is important to bring an increase in the processing of milk production which is only 7-8 percent approximate in the country.” He discussed short, medium and long-term strategies of the government concerning animal breeding, increase in milk production and value addition. “It is important that Pakistani youth are made aware about the economic value of livestock farming,” the minister said. Nauman Kabir Mian, President of LCCI, said, “The gross milk production in fiscal year 2020-21 stood at 63.7 million tons compared to the milk production in the fiscal year 2019-20 when it was 61.7 million tons. Milk consumption in the fiscal year 2021 also increased by 51.3 million tons as compared to 49.7 million tons in fiscal year 2019.” He said that a large quantity of milk produced in the remote areas is wasted due to lack of proper storage facilities and infrastructure. Farmers in Pakistan are mostly unaware of the scientific ways to improve the milk yield and mostly they neglect to farm a variety of livestock (e.g., camel, goat, sheep etc) other than tradition of cows, buffaloes and bulls. He also emphasised that the government must offer incentives for the importers of high milk yielding animals e.g., Holstein-Friesien and Jersey etc. “Likewise, the import of high-quality livestock feed stuff must also be made cost affective. Proper and practical policies to meet the needs of domestic and international markets need to be framed. Countries like China, Australia, Sweden etc along with the multinational companies can be invited to share technology, investment or joint ventures in Pakistan concerning livestock,” he said, adding, “Farmers must also be made aware about the proper storage, processing, value addition and marketing of milk, meat and dairy products. Moreover, the government must cut down the import duty and heavy taxes applied on dairy processing and value addition machinery as well.” The federal government has taken several initiatives concerning livestock under the title of Prime Minister’s National Agriculture Emergency Programme e.g., Backyard Poultry Project worth Rs1.6 billion under which five million high-laying and pre-vaccinated birds will be distributed among people across the country at subsidised rates within four years; Save the Calf Project worth Rs3.4 billion under which 380,000 male calves are projected to be saved from an early slaughter in four years, and an incentive of Rs3,000 is also offered for each calf per year besides reduced mortality with better nutrition and husbandry practice; Calf Feed Lot Fattening Project worth Rs2.4 billion which in order to ensure supply of healthy and nutritious beef in the country provides the farmers with an incentive of Rs4,000 for each calf; Development of Yak at High Altitude Areas of Pakistan (Gilgit-Baltistan) worth Rs54 million; and National Peste Des Petits Ruminants (PPR) Eradication Programme worth Rs1.8 billion. China, Pakistan’s friend of all times, being a big producer and exporter of milk products, can be a role model for Pakistan. Pakistan can get technical assistance from China to improve its livestock sector.