Pakistan Agriculture Industry:

Agriculture Sector in Pakistan An Overview

Vital sector of Pakistan's economy Accounts for 21.4 percent of GDP Directly supports three-quarters of the country's population, employs 45% of the labor force, and contributes a large share of foreign exchange earnings Main agricultural products are cotton, wheat, rice, sugarcane, fruit and vegetables, in addition to milk, beef, mutton, and poultry. Provider of raw material to industry, stimulates domestic demand and major source of income for rural population (80% of rural population directly or indirectly
depends upon agriculture for income and livelihood)

Agriculture in Pakistan
Pakistan's principal natural resources are arable land

and water. About 25% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Pakistan irrigates three times more acres than Russia Has shown growth of 3.3% in FY 2012-2013 Export of Mangoes increased by five times in 2013 Two seasons i-e Kharif and Rabi

Pakistans Major Crops

Production value in 2007

Rice Cotton Wheat

Maize

Major Crops

Citrus

Mango
Sugarcane

Live Stock

Agriculture Sector in Pakistan - Endowments

Pakistans Agriculture is
The Largest
Producer of Kinnow

3rd
Largest
Herd of Livestock

3rd
Largest
Producer of Dates

5th
Largest
Producer of Mango

5th
Largest
Producer of Cotton

5th
Largest
Producer of Milk

Forms of Agriculture in Pakistan

Livestock Fishing

Crops

Agricultural Sector Key Statistics

Contribution to GDP (more than US$37 billion to the national economy) Labor Force Employment Average Growth past 6 years Contribution of different Sub-Sectors in Agriculture 1. Crops (Wheat, Rice, Cotton, Sugarcane) 2. Livestock 3. Fisheries 4. Forestry Share in Export Earnings (Raw/Processed) 1. Cotton + Cotton Based Products 2. Fruits, Rice, Fish, Leather 3. Others 21.4% 45.0% 3.7%

32.8% 55.4% 4.0% 2.0%

64.7% 18.2% 17.1%

Crops
The most important crops are

wheat, sugarcane, cotton, and rice. Pakistan's largest food crop is wheat. Pakistan exports rice, cotton, fish, fruits (especially Oranges and Mangoes), and vegetables, wheat, cotton, pulses and consumer foods. US, EU, China are first 3 major export destinations

Wheat
Wheat being the staple diet of

most of the people of Pakistan it dominates all crops in acreage and production. It accounts for over 70 % of the gross cereals and over 36 % of the country's acreage is devoted to wheat cultivation. Wheat is the most popular cash crop of Pakistan. Support price was increased to 1200 from 1050, Growth of 3.2% than last year

Rice
Rice holds an important position

among the cash crops of Pakistan. 2nd largest staple food 2.7% of Agriculture contribution It fulfills the food requirements of our country but we also earn a lot of foreign exchange from its export. Besides it is an important raw material for manufacturing grain as well as its husk is also used as fodder for cattle. Cultivation area decline by 10.1% compare to last year Reasons being monsoon rain, late receding of water and prolonged sowing

Cotton
Cotton is considered to be the most

important cash crop of Pakistan. Pakistan ranks fifth in world cotton production. Cotton is also known as the "Silver

Fiber". 7% of GDP Production declined by 4.2% compared to last year

Sugarcane
3.2% of Agriculture Area under cultivation increased by

6.2% Due to increased economic return Increased of 5.9(%

Other Crops
Oilseeds:

Other crops:

Fishing
Fishery and fishing industry plays an

important role in the national economy of Pakistan. With a coastline of about 814 km, is also a major source of export earning. 15.3% export increased compared to last year earning US $ 222.6 million EU has lifted ban

Livestock
The livestock sector

contributes about half of the value added in the agriculture sector, amounting to nearly 11 per cent of Pakistan's GDP. The world's fifth largest milk producing country and Asias largest camel market.

Livestock Sector - Endowments

Pakistans Livestock
1st
Largest
Segment of rural economy

2nd
Largest
Sector of economy

3rd
Largest
Herd of Livestock

4th
Largest
Exports Products

5th
Largest
Producer of

Milk

Livetsock 11%

45% 55%

Livestock Agriculture

Livestock contributes 55.1% of Agriculture sector.

Livestock accounts for 11.5% of GDP.

Other 89%

Livestock Sector Key Statistics

Contributed approximately 55.4% of agriculture value added and 11.9% to national GDP in 201213. Pakistan earned USD717 million from leather exports in FY09 and a meager USD96 million from meat exports. The food industry attracted Foreign Direct Investment of US$ 108.3 million in 2009-10.

Livestock Sector Key Statistics

This sector generates employment (direct/indirect) and income for about 1.5 million people. Population growth, increase in per capita income and export revenue is fuelling the demand for livestock and livestock products.

Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan.
Poultry meat contributes 26.8 percent of the total meat production in the country. Annual growth of 7-8%

Livestocks Contribution
ShareinRuralEconomy

Contribu on of Sub Sectors

7.00%

1.30% 1.60% 42.00% 55.10% Crops Live Stock Fisheries Forestry

51.00%

42.00%

Livestock Agric Others

Dairy Sub-sector
Total milk production (09-10) Milk market:
Producers (self or direct selling) Informal market (Gawala operated) Formal dairy industry

36.299 m tons

68.0 % 28.5 % 3.5 %

Dairy industry:
Main products are UHT and Pasteurized milk, Milk powder, Yougurt,

Cream, Cheese, etc. 3.0 million litres per day being procurement Rs 63 million daily going to rural economy 25 out of 49 dairy plants are operational Main players are Nestle, Engro, Haleeb, Engro, Millac

Milk Production (Buffalo + Cow)

2010-11

Meat Sub-sector
Total meat production (09-10) Beef Production Mutton Production Poultry Meat
1.655 ml. tons 0.603 ml. tons 0.707 ml. tons

2.965 ml. tons

Meat market Butchers operated shops, many slaughter at shops Main players at slaughter house are artees Fresh meat sold, only a few chilled meat selling establishments

Meat industry 80 % slaughtering done outside out side slaughterhouses 11 private sector slaughter houses registered by Animal Quarantine Deptt. Total export is <0.6 percent of the production

Pakistan Export of Meat & Meat

2009-10
Quantity (MT) In million US Dollar

2010-11
Quantity (MT) In million US Dollar

20,081

53.9

29,281

82.3

EXPORT OF LIVE ANIMALS

350000 314974 300000

250000
200000 150000 100000 50000 0 69180 63024

182347

423

2009-10 Cattle Buff S&G Camel Total 2008-9

2008-9

2009-10

Livestock Products
Milk Production =

49 million tonnes annually.

Beef Production = Mutton Production = Poultry Meat =

16 million tonnes / anum 6 million tonnes / anum 7 million tonnes/ anum

Exportable Commodities: Meat = 60.2 million US $( year 2009-10 ) Animal Export = 13.9 million US $ ( 2009-10 ) ( Total export is about 40 billion rupees 11% of the total foreign exchange)

Problems of Agriculture
Water logging and salinity Water shortage / Drought

Irrigation
Lack of funds Monopoly Of Foreign Companies Soil erosion Hoarding and Smuggling
Outcome is Food Insecurity, Incompetitiveness, low

productivity

Waterlogging and salinity

It is caused when the water

table rises to 1.5 meter. Water evaporation leave salt on surface making land unproductive. Stagnant water then adversely effect the growth of plants.

Solution: Install tubewells

pump out extra and access water from agricultural land. Deploy drainage systems for control of water in farms.

Water shortage / Drought

It is caused by poor irrigation

system and unpredictable rainfall.

Solution: Government should

improve irrigation system. Take legal notice on stealing of water. Improve canals, dams and barrages.

Poor fertilizers and pesticides

The quality of pesticides and Although the available

fertilizers in Pakistan is poor.

fertilizers and pesticides in Pakistan are out of reach of small farmers.

Solution: Pakistani

government should build chemical fertilizer and pesticide industries. Control price of fertilizers.

Lack of funds
The farmers in Pakistan are

not financially strong to manage their cultivation. Improper loan system by government. Solution: Government should improve system of providing loan. Also help farmers to purchase machinery and acquire latest technology.

Modernization and Green Revolution

Corporate Farming:

Farm mechanization is one of the packages of

Green Revolution. Farm mechanization means the use of mechanical technology in the varied farming operations. This technology includes Chemical, Hydrological and Mechanical Technology. The policy has been framed to accelerate the pace of agricultural mechanization in the country.

 Latest mechinery should be provided to the farmers to

increase the per acre yield on easy installments If possible subsidy should be given by the government of modern machinery This includes drip irrigation and sprinkle irrigation methods. By using this technique the farmers can save a huge some of money which he pays for irrigation through tubewells and tracktors.

Potential
Livestock has significant potential for poverty reduction, growth and export Increase in Livestock Product use in domestic and international market

Livestock Strategy Document Strategic Review

Population growth increases food safety and security threshold

Livestock for Livelihood

OPPORTUNITIES in Agriculture
Productivity Enhancement
Value Addition
Milk Processing Plants Modern Abattoirs & Processing Units

Building Supply Chains ~ market linkages Genetics, breed improvement Vaccine, Drugs, Semen & Embryo Production & Marketing Units

OPPORTUNITIES
Global Halal market

Global Market for Halal

World Muslim population of 1.83 billion in 2009 out of 6.5 billion

World population
With average annual growth rate of about 1.80% per annum.

approximately 117,000,000 per yr. increase which does not include conversion which on the rise currently.
Global Halal products market is estimated at US$2.3 trillion

excluding Islamic banking. If we include service sectors for the Halal market, the potential size of total market is ASTRONOMICAL

The trade in Halal food is enormous with est. annual

halal food value at US $347 billion globally

Global Halal Market

Key Halal Market
Algeria Iraq Morocco

Tunisia

Bahrain Jordan Oman Turkey

Egypt Kuwait Qatar UAE

Indonesia Lebanon Saudi Arabia Yemen

Iran Malaysia Syria Pakistan

Key Halal Markets in Non-Muslim countries

India China USA Phillippines

140million 40 million 8 million 6 million

France Germany UK Canada

6 million 3 million 1.5 million 800,000

Some Notable Players

Nestle worlds largest food manufacturing corporation
McDonalds the worlds largest leading restaurant chain KFC fully integrated poultry chain Tesco & Carrefour worlds number one & two retail chain Port Rotterdam Europes largest & the worlds 3rd largest port Westports one of SEA top 10 ports MISC the world second biggest shipping company

CIMB SEA biggest investment bank

Allanasons Indias biggest meat exporter Al-Islami UAE halal food produces

MILK PROCESSING PLANTS

SCOPE OF INVESTMENT
49,512 million tonnes of milk provide a promising enterprise, where only 3% is being processing. Small scale farming is not covering the full economic cost. Significant element of economies of scales exist resulting in cost reduction by 30-50% between the small and large scale farms. Huge consumer market exists.

INVESTMENT PLANS

Creation of milk collection network and transportation facilities in the milk catchments ~ Nestle Establishment of milk processing plants leading to production of value added exportable products like reconstitute able milk powder, cheese, butter and yogurt. Establishment of mini pasteurization plants in Peri-Urban Areas.

ESTABLISHMENT OF MODERN ABATTOIRS

INVESTMNET PLANS
Establishment of Modern Abattoirs in big cities of Pakistan for value addition of the meat. Creation of disease free zones for supply of quality meat. Organization of the environmentally controlled meat markets & provision of cold chain facilities. Establishment of leather tanning units in Punjab.

POULTRY MEAT PROCESSING PLANTS

INVESTMENT PLANTS
Establishment of Exotic Poultry Grand Parent, Breeding Services in Pakistan. Introduction and Marketing of Modern Hatcheries for Grand Parent and Breeder Poultry. Establishment of Poultry Meat Processing Plants in Pakistan.

Establishment of Poultry Disease Diagnostic Laboratories in Pakistan.

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