A Value Chain Analysis of the Meat Sector in Pakistan

8/14/2019 A Value Chain Analysis of the Meat Sector in Pakistan

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A Value Chain Analysis of the Meat Sector in Pakistan

By

Muhammad Sharif

Zafar Altaf

Hassnain Shah

Nadeem Akmal

Arifa-un-Nisa Naqvi

National Agricultural Research Centre

Social Sciences Institute

Islamabad

November, 2009


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Table of ContentsPages

1. Introduction 1

2. Objectives of the Study 2

3. Methodology 2

The Value Chain Analysis (VCA) Model 24. Organization of the Report 3

5. Overview of Red Meat Sub-Sector 4

Inventory of Milk and Meat Animals 4

Beef and Mutton Animals 4

Characteristics of Meat Sub-Sector 5

6. Meat Supply Chain 7

7. Red Meat Value Chain 9

Input Provision/Supplies --- 1stSegment of Value Chain 10

Feed 10

Pasture resources 12

Veterinary services 12

Seed stock (Genetics/breeds) 13

Conclusions 13

7.2 Meat Animal Production --- 2n

Segment of Value Chain 15

7.2.1 Inventory of meat animals 15

7.2.2 Cost of production of meat animals at farm level 16

7.2.3 Cost of production of meat animals (general farmers) 16

7.2.3.1Cost of production of beef animal 16

7.2.3.2Cost of production of mutton animals 17

7.2.4 Cost of production of beef animals at feed lot framers 18

7.2.4.1Cost of production of beef animals 187.2.4.2Cost of production of mutton animals 18

7.3 Conclusions 19

8. Marketing of Meat Animals ---3r Segment of Meat Value Chain 21

8.1 Market Infrastructure 21

8.2 Live Animals Market Intermediaries 22

8.3 Conclusions 23

9. Processing (Slaughtering) ---- 4t Segment of Meat Value Chain 23

Animals for Slaughtering 23

The Slaughtering System 26

Red Meat Production 26

Trends in Red Meat Production 27Cost of Production of Meat 28

9.5.1 Cost of production of mutton 29

9.5.2 Cost of production of beef at feed lot framers 29

9.5.2.1Cost of production of beef 29

9.5.2.2Cost of production of mutton 30


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Conclusions 31

10. Meat Marketing ---- 5thSegment of Meat Value Chain 33

Marketing of Red Meat 33

Meat Marketing in Domestic Market 33

Meat Marketing Infrastructure 34

Transportation of Meat 34Market Information and Pricing Mechanism 34

Structure of Meat Marketing Cost for Market Intermediaries 35

Sale Price, Marketing Cost and Net Profit Margins of MarketIntermediaries

36

Meat Consumption (per capita consumption) 37

Meat Marketing for Export Markets 37

Revealed Comparative Advantages for Meat Export 39

Conclusion 39

11. The SWOT Approach for Meat Value Chain 41

11.1 Strengths 41

11.2 Weaknesses 4111.3 Opportunities 42

11.4 Threats 42

12. Proposed Action Plan for Meat Value Chain 43

13. Summary and Conclusions 44

14. References 47


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List of TablesPages

Table 1: Inventory of milk and meat animals during 1996, 2006 & 2009 4

Table 2: Classification of number of animals slaughtered in recognized and non-recognized slaughter houses during 2006 and 2009

5

Table 3: Key characteristics of meat sub-sector, 2008-09 6Table 4: Comparative status of livestock inventory and fodder as well as concentrateavailability for livestock census years

11

Table 5: Area of rangelands in Pakistan, 1988 12

Table 6: Status of rangeland in Pakistan during 1988 12

Table 7: Livestock veterinary services 12

Table 8: Animal Genetic Resources of Pakistan 13

Table 9: Livestock inventory and gross value 2008-09 15

Table 10: Cost of production of beef animal 17

Table 11: Cost of production of mutton animals 17

Table 12: Cost of production of beef animals at feed lot farms 18

Table 13: Cost of production of mutton animals 19

Table 14: Total number of animals slaughtered and value 2008-09 23

Table 15. Red meat (beef and mutton) production 2008-09 27

Table 16: Trends in production of meat and annual growth rate 27

Table 17: Cost of production of beef 28

Table 18: Cost of production of mutton 29

Table 19: Cost of production of beef at feed lot farms 30

Table 20: Cost of production of mutton 31

Table 21: Structure of marketing cost for Contractor/Beopari 35

Table 22: Structure of marketing cost for commission agent 35

Table 23: Structure of marketing cost for Butcher/Retailer 36Table 24: Sale price at different market intermediaries 36

Table 25: Marketing costs of producers and other market intermediaries 36

Table 26: Net profit margin of market intermediaries 37

Table 27: Meat per capita consumption Kg/Annum 37

Table 28: Quantity and value of meat export from Pakistan from 2000-2007 38

Table 29: Synthetic RCA measures: Regional perspective 39

Table 30: Proposed action plan for meat value chain 43


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List of FiguresPages

Figure 1: Capital Flow 3

Figure 2: Supply Chain for Red Meat 8

Figure 3: Red Meat Value Chain in Pakistan, 2008-09 10

Figure 4: Red Meat Value Chain: Inputs 1stSegment of Meat Value Chain 11Figure 5: Summary of Inputs 1

stsegment of meat value chain 14

Figure 6: Meat Animals Production 2stSegment of Meat Value Chain 16

Figure 7: Summary of Production 2n

Segment of Meat Value Chain 20

Figure 8: MeatAnimals Marketing 3r


Figure 9: Summary of Live Animals Marketing 3r


Figure 10: Processing (Slaughtering) 4t


Figure 11: Trend of Red Meat Production 28

Figure 12: Summary of Processing (Slaughtering) 4t


Figure 13: Meat Marketing 5 Segment of Meat Value Chain 33

Figure 14: Trend of Meat Export from Pakistan 38

Figure 15: Trend of Meat Export Value 38

Figure 16: Summary of Meat Marketing 5t



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A Value Chain Analysis of the Meat Sector in Pakistan

1. Introduction

Livestock production in Pakistan is still more of a way of life rather than an industry. It is anintegral part of the rural economy contributing significantly to the agriculture (50%) and the

national (12%) GDPs. Livestock raising in Pakistan is primarily a subsistence activity and ischaracterized by small herds/flocks with widespread ownership over 8 million farmers, more

than one million of which are landless. It is also deeply integrated with crop production.

Livestock complement crop and grain production and are still a major source of fertilizer andcooking fuel. The contribution of draft power and farmyard manure to crop production is yet to

be fully quantified. As livestock are more evenly distributed than land and other assets, it forms

the main asset base that meets the dietary needs and provides income to the rural poor. Women

are deeply involved in almost all aspects of livestock farming (Hassnain and Khan, 2007).

The geographical marketing of the buffalo, cattle, goat and sheep populations within Pakistanindicates the regional importance of the red meat industry. Nearly 57 percent of the national

cattle and buffalo herd of 56.89 million head is located in Punjab, and the majority of Pakistans48 percent sheep and 22 percent goat are located in Balochistan. The marketing of livestock is

not even among different provinces as the Punjab province has about half (43%) of the livestock

inventory including cattle (49%), buffaloes (65%), sheep (24%), goats (37%) and others (47%).Balochistan harbours majority of sheep as this province alone has 48 % of the sheep population

of the country. Similar to cattle, sheep are also evenly distributed in rest of three provinces.

The major products of livestock are milk and meat which are an important source of animalprotein in human diet. Traditionally, beef and mutton are relatively more consumed as compared

to poultry meat and fish. The marketing of beef and mutton starts from slaughtering of animalsin the abattoirs and in the backyard of butchers meat shops. The meat shops usually deal onlyone type of meat, i.e. either beef or mutton.

Present exercise is aimed to contribute the process of value chain analysis (VCA) of red meat(beef and mutton) industry in Pakistan because it facilitates the identification of binding

constraints to growth and competitiveness and the effective targeting of institutional and

policy-related issues, at the sub-sector (meat), at the sector (livestock) and economy-wide

levels alike (FIAS, 2007).

VCA are sometimes stand-alone studies that provide direct inputs to government strategies.

For example, in Indonesia, the value chain analyses of selected sectors were key inputs for thegovernments export competitiveness strategy and are a good way to understand relationshipsand linkages among buyers, suppliers, and a range of market actors in between (FIAS, 2007). For

example, a coffee value chain links coffee producers to processors and multinational buyers at

one end of the chain, and to suppliers of inputs (such as fertilizer producers) at the other end.Many VCAs also incorporate the role of transportation, utility, and financial service providers,

among others. However, the focus on inter- and intra-industry and firm relationships - although

extremely useful in its own right - captures mainly market-related insights and often misses the


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policy and regulatory environment (e.g., taxes, licensing, standards, etc.) in which private firms

operate as well as policies and regulations often have a significant effect on firm-level

competitiveness and the performance of the chain. By explicitly synthesizing government policyissues with market relationships, the type of value chain analysis used in this report will help to

clarify which binding constraints to growth and competitiveness are affecting the firms that

comprise the meat industry in Pakistan (FIAS, 2007). This study also aimed to contribute to theprocess of linking rural industries and enterprises into the mainstream markets to harness thebenefit from the meat value chain. In addition to this study will also develop strategic linkages

with its targets livestock producers, market players and consumers in the country.

2. Objectives of the Study

The objectives of this research are as under: (i) to review the size and nature of meat

farming/industry; (ii) to discuss meat value chain emphasizing the role of key industry playersand the extent of their direct or indirect control on meat animal raising practices; (iii) to identify

key binding constraints to growth and competitiveness of the players in the meat industry for

their specific leverages, either through their linkages to meat industry or through their overallmarket position; (iv) to identify and compare the top players of meat value chain; and (v) to

suggest the institutional and policy measures at the sector and economy wide level.

3. Methodology

Maximum efforts were made to gather the relevant information and literature on meat value

chain from various government departments, academic, research and development institutions,ministries, offices of international organizations, NGOs and journal articles. After the extensive

review of the gathered literature, various stakeholders in the marketing chains, officials in

agricultural research institutions, agricultural universities, L&DD department and private sector

enterprises were consulted on plan for improvement of meat value chain in Pakistan.

Moreover, the farmers/producers and marketing intermediaries were also consulted in order to

get updated first hand information about meat value chain for validating and updating theinformation grasped from the literature reviewed. Overall, 16 secondary livestock markets (both

large and small ruminants) were visited. In meat marketing chain, 10 abattoirs, 40 butchers (both

urban and rural), and 20 consumers were consulted.

The problems and issues related to meat production and marketing inefficiencies were therefore

identified through this exercise and prepared proposed plan of action to improve this chain for

the national level.

3.1 The Value Chain Analysis (VCA) Model

VCA model emphasizes on the diverse interrelationships among market opportunities constraintsand directives at various levels of the supply chain and at different levels of influence, from

which specific value addition takes place. This feature of the VCA lends to its completeness, as a

strategic tool in exploring different alternative strategies for poverty reduction. The value chain


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analysis model used for this study adopted from Asean Foundation and Asia DHRRA (2008)

which is presented in Figure-1.

Source: Adopted from Asean Foundation and Asia DHRRA (2008)

VCA is a method for accounting and presenting the value that is created in a product or serviceas it is transformed from raw inputs to a final product consumed by end users and typically

involves identifying and mapping the relationships of four types of features: (i) the activities

performed during each stage of processing; (ii) the value of inputs, processing time, outputs and

value added; (iii) the spatial relationships, such as distance and logistics, of the activities; and,(iv) the structure of economic agents, such as suppliers, the producer, and the wholesaler (FIAS,

2007). Meat industry value chain approach introduced in this technical report relies on thetraditional market related context of value chain analysis in identifying failures in sourcing,manufacturing, and delivery and this approach is unique in recognizing the key public policy,

institutional and infrastructure factors underlying constraints in the meat business environment in

Pakistan. The policy and reform agenda that typically emerges from the value chain approachrelates to three core areas (i) Product market issues (e.g., trade policy, competition policy, price

distortions, subsidies, licensing, product standards, customs, logistics, property rights,

enforcement of regulations); (ii) Factor market i ssues (e.g., wages, capital charges, utility

market issues, labor market rigidities, land price, zoning); and (iii) Market related issues (e.g.,market diversification, research and development, product diversification, supplier linkages).

4. Organization of the Report

Structure of red meat farming/industry in Pakistan is discussed in section 2. An overview of beefand mutton industries are presented in the section 3. The value chain of beef and mutton

industries is examined in section 4. Economic actors and leverage are analyzed in section 5.

Key findings and conclusion in section 6 completes the report.

Policies Rules andRegulations

Infrastructure & Enterprise

Development Facilities

Research & Technology &

Institutional Services

Socioeconomic & Cultural

Consideration

Enabling environment

Input

Suppliers Producers

Processors Wholesalers Retailers Consumers

Exporters

Capital Flow

Information Flow


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5. Overview of Red Meat Sub-Sector5.1 Inventory of Milk and Meat Animals

In 2008-09, there were 33 million cattle (including both beef and dairy). Out of this, 4.6 million

heads were bullock, 7.2 million heads dry cows (beef cow) and 9.7 million heads in-milk cows.11.5 million heads were cow young stock. Likewise, there were about 30 million buffaloes

(including both beef and dairy). Out of this, 0.7 million heads were male buffaloes (beef animal),5.9 million heads dry buffaloes (beef animal) and 11.1 million heads in-milk buffaloes. Therewas 12.2 million heads of buffaloes young stock. Total sheep was 27.4 million heads. Out of

this, male sheep was 4.5 million heads (mutton animal) and female sheep was 14.2 million

heads. There was 8.7 million heads sheep young stock. Just more than 58 million heads of goatwas recorded for the year 2008-09. Out of this, 7.2 million heads was male goat (mutton animal)

and 38.8 million heads of female goat. There was 17.3 million heads goat young stock during

2008-09 (Table 1). The data given in the table revealed the positive significant growth in

livestock inventory from 1996 to 2006 and 2009 respectively.

Table 1: Inventory of milk and meat animals during 1996, 2006 & 2009

(M ill ion heads)Type of Animal Livestock Census Extrapolated*

1996 2006 2008-09

A. Milk and Meat Animals

(i) Total Cattle 20.4 29.6 33.0

Bullocks (3 years & above) 3.7 4.1 4.6

Cows (3 years & above) 10.0 15.2 16.9

In-milk cows 6.3 8.7 9.7

Youngstock (below 3 years) 6.7 10.3 11.5

Male 3.6 5.4 6.0

Female 3.2 4.9 5.5

(ii) Total Buffaloes 20.3 27.4 29.9

Male buffaloes (3 years & above) 0.4 0.6 0.7

Female buffaloes (3 years & above) 12.2 15.6 17.0In-milk buffaloes 7.8 10.2 11.1

Youngstock (below 3 years) 7.7 11.2 12.2

Male 3.3 4.7 5.1

Female 4.4 6.5 7.1

(iii) Total Sheep 23.5 26.5 27.4

Male (1 year & above) 3.4 4.4 4.5

Female (1 year & above) 13.3 13.7 14.2

Youngstock (below 1 year) 6.8 8.4 8.7

(iv) Total Goats 41.2 53.8 58.3

Male (1 year & above) 5.2 6.6 7.2

Female (1 year & above) 22.4 31.2 33.8

Youngstock (below 1 year) 13.6 16.0 17.3

Source: Pakistan Livestock Census, 2006

* Economic Survey 2008-09 and extrapolated using the proportion of 2006 census data

5.2 Beef and Mutton Animals

The information on meat (both beef and mutton) animals are estimated on the basis of number ofanimals slaughtered during 2006 using Agricultural Census Data and extrapolated for 2009 using

Economic Survey Data for the year 2008-09 and presented in Table 2. There were 24.493 million


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meat animals for the year 2008-09 in Pakistan. Among them, 3.7 million heads were beef animals

(cattle, buffaloes and camels) and 16.82 million heads were mutton animals (sheep and goat) during

the year 2008-09 in the country (Table 2).

Table 2: Classification of number of animals slaughtered in recognized and non-recognized

slaughter houses during 2006 and 2009

(Mill ion)Type ofAnimal

Number of Animals Slaughtered Outside Recognized Slaughter

Houses

Number of

Animals

Slaughtered

in Recognized

Slaughter

Houses

Total Number of

Animals

Slaughtered

Households

Reporting

Number of

Animals

Slaughtered

Rural/Urban

Butchers

Reporting

Number of

Animals

Slaughtered

2006 2009

1 2 3 4 5 6 7 8

Bullocks 1.104 0.301 0.002 0.17 0.422 0.893 1.002

Cow 2.038 0.636 0.003 0.31 0.45 1.396 1.552

YS male 0.332 0.135 0.004 0.403 0.337 0.874 0.971

YS Female 0.202 0.096 0.002 0.121 0.182 0.399 0.448

Male Buffalo 0.136 0.037 0.001 0.063 0.435 0.535 0.624

Female

Buffalo 0.353 0.096 0.002 0.473 0.555 1.124 1.225YS Male 0.183 0.113 0.007 0.901 0.356 1.371 1.488

YS Female 0.055 0.024 0.001 0.132 0.155 0.31 0.339

0.727 0.27 0.011 1.569 1.501 3.34 3.676

Camel 0.007 0.004 0 0.001 0.011 0.016 0.016

YS Camel 0.002 0.003 0 0.002 0.003 0.008 0.008

0.009 0.007 0 0.003 0.014 0.024 0.024

Sheep 0.951 1.348 0.002 0.39 1.898 3.636 3.757

YS Sheep 0.042 0.08 0 0.074 0.943 1.097 1.136

Goat 2.922 3.799 0.006 1.395 3.688 8.882 9.634

YS Goat 0.070 0.132 0.001 0.217 1.772 2.121 2.293

3.985 5.359 0.009 2.076 8.301 15.736 16.82

Total 8.399 6.804 0.03 4.651 11.207 22.662 24.493

Source: Livestock Census, 2006 and extrapolated for 2008-09 using data from Economic Survey 2008-09

5.3 Characteristics of Meat Sub-SectorKey characteristics of meat sub-sector are herd size cattle, buffaloes, sheep and goats type of

farming (cattle, buffaloes, sheep and goats), number of household reported slaughtering animals,

number of animal (cattle, buffaloes, camels, sheep and goats) slaughtered and meat sub-sectorvalue of slaughtered meat animals (Table 3).

Livestock can be classified as large ruminants (cow and buffaloes) and small ruminants (sheep

and goat). More than 3/4th

of the population of large ruminants falls under the category of herd

size below 10 animal heads. More or less 70 percent of large ruminants farming households haveless than 5 animal units which implies that majority of the large ruminants farming population

have subsistence sized herds of large ruminants, although they represent about two-fifth of thetotal population. In case of small ruminants, nearly three-fourth of total sheep farming

households keep about one-fifth of total sheep population by having herd size ranging 1-15animal heads. On the other hand, about 90 percent of the goat farming households kept half of

the total goat population with the herd size ranged 1-15 animal heads. This again implies thatmajority of the small ruminants farming households are subsistence farmers. It can be concludedthat majority of the livestock farming households are keeping small sized herds of small and

large ruminants.


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Table 3: Key characteristics of meat sub-sector, 2008-09Characteristics Meat sub-sector

Herd size cattle HH reported (million)

1-4 4.37

5-10 1.46

11-20 0.2821-30 0.05

> 30 0.04

6.20

Cattle inventory (million heads)

11.55

10.74

4.281.26

5.17

33Herd size buffalo HH reported (million)

1-4 4.205-10 1.43

11-20 0.29

21-30 0.04> 30 0.03

5.99

Buffalo inventory (million heads)

10.0110.35

4.45

1.182.92

29.91

Herd size sheep HH reported (million)

1-15 1.20316-50 0.26851-150 0.073

151-350 0.015

> 350 0.006

1.565

Sheep inventory (million heads)

6.037.536.17

3.34

4.33

27.40

Herd size goat HH reported (million)

1-15 6.172

16-50 0.531

51-150 0.083151-350 0.013

> 350 0.004

6.803

Goat inventory (million heads)29.89

14.63

7.123.03

3.62

58.29

Type of farming Cattle

- Rural irrigated- Rural barani

- Progressive

- Per urban

Cattle inventory (million heads)

17.34215.420

0.0250

0.213

Types of farming Buffaloes

- Rural subsistence- Rural market oriented

- Peri urban

- Commercial

Buffalo inventory (million heads)

20.3697.775

1.636

0.143

Type of farming Sheep and goat

- Nomadic- Transhumant

- Sedentary- Household

Sheep & goat inventory (million heads)

5.4226.98

34.8618.47

Number of households reported slaughteringbeef animals

- mutton animals

4.412 million

3.985 million

Number of animal slaughted: Cattle- Bullocks- Cows > 3 years

- Youngstock (male)

- Youngstock (female)

7.673 million1.0021.552

0.971

0.448

Number of animal slaughted Buffaloes- Male (adult)

- Female (adult)

- Youngstock (male)- Youngstock (female)

3.676 million0.624

1.225

1.4880.339

Number of animal slaughted: Small ruminants

- Sheep- Youngstock

- Goat

- Youngstock

16.82 million heads

3.7571.136

9.634

2.293

Number of animal slaughted Camel

- Camel (adult)- Youngstock

0.024 million

0.0160.008

Meat sub-sector value of slaughted - beef animals

- mutton animals

173.595 billion

92.960 billion

Key desirable traits Meat production, reproductive capacity

Provinces where product is number onebeef animals- mutton animals

Punjab and SindhBalochistan, NWFP, Punjab and Sindh


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Four types of cattle farming are prevalent in the country which are known as rural irrigated

(17.34 million heads), rural barani (15.42 million heads), progressive farming (0.025 million

heads) and peri urban (0.213 million heads). There are also four types of buffaloes farming in thecountry which are known as rural subsistence (20.369 million heads), rural market oriented

(7.775 million heads), peri urban (1.636 million heads) and commercial (0.143 million heads).

Number of cattle, buffaloes and camels slaughtered were 7.673 million heads, 3.676 millionheads and 0.224 million heads respectively by 4.412 million households. The meat sub-sectorvalue of slaughtered beef animal was Rs.175.01 billion in the country during 2008-09 (Table 3).

Four types of small ruminant farming are prevalent in the country which are known as nomadic(5.42 million heads), transhumant (26.98 million heads), sedentary (34.86 million heads) and

households (18.47 million heads). Numbers of sheep and goats slaughtered were 16.82 million

heads by 3.985 million households. The industry value of slaughtered mutton animal was

Rs.73.65 billion in the country during 2008-09 (Table 3).

6. Meat Supply Chain

The supply chain deals with the all the activities from inception (inputs, production, processing

and distribution) of a product to its consumption. The meat supply chain (flow of meat animal to

meat for domestic market and export market) is presented in Figure 2. The meat animals for the

meat industry are mainly comes from the livestock farmers which contribute about 97 percent ofthe total meat animals (23.764 million). Feed lot fattening contribute 2.1 percent meat animals

(0.514 million animals). Less than 1 percent meat animals are produced by the meat exporter at

their own farm.

Livestock farmers sell their animals (80%) to beopari, take animals (5%) to live animals markets

and sell to rural butcher (15%). Beopari sell their animals (98%) at live animals markets and 2

percent of them to rural butcher. From live animals markets, 52 percent meat animals arepurchased by contractors, 15 percent by traveler traders, 31 & 2 percent animals are purchased

by urban and rural butchers respectively. The animals contractors sell their 27, 72 and 1 percent

of meat animals to the traveling traders, urban butchers and exporters respectively. The travelertraders sell their animals to urban butchers (84%) and take to slaughter house (16%). From feed

lot fattening, meat animals are sold to beopari (71%), livestock markets (18%), contractors

(10%) and rural butchers (1%).

Meat (beef and mutton) are marketed from recognized and non-recognized slaughter house to

wholesalers (30%) and retailers (70%). Wholesalers sell their meat to retailers (90%), hotel and

restaurants (5%), food services and suppliers (3%) and super markets (2%). Retailers sell their allmeat to the consumers. Urban butchers sell their meat to consumers (93%), food suppliers (3%)

and hotel and restaurants (4%). The rural butchers sell all the meat to the rural consumers. The

offals are traded by offal contractors who sell to the offal retailers (50%) and to offal processors

(50%). Offal retailers sell all the offals to the consumers. The offals processors sell all theiroffals to the offal exporters (Figure 2).


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Figure 2: Supply Chain for Red Meat

Feed lot Fattening

(2.1%)

31%72%

2%

2%

27%

Offals

Retailer

CONSUMERS (98.8%)

Super Stores

EXPORT (1.2%)

Hotels/Food

Chains

Offals

Contractors Wholesaler

s99

100

93

Retailers

Exporters

S. HouseRecognized

Slaughterhouse

(49%)

U. Butchers

(30%)

R. Butchers

(21%)

100

100

70%

30%

7%

100

50% 90% 8%

100

100

2%

Exporter own Farms

(


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7. Red Meat Value Chain

This section is devoted to the five segments of red meat value chain in Pakistan. The value chaindeals with the diverse interrelationships among market opportunities constraints and directives at

various levels of the supply chain and at different levels of influence, from which specific value

addition takes place. These segments are input provision/supplies, meat animal production, meatanimal marketing, processing and meat domestic and export markets. The basic structure of thePakistan meat sub-sector is depicted in the meat value chain in Pakistan for the year 2008-09 in

Figure 3. The first column in the red meat value chain inputs refers to the main products and

services that cattle, buffaloes, sheep and goats farmers need in order to raise beef animals,including feed, veterinary services, and seedstock (breeding).

The production column includes three separate stages of beef and mutton animals,

representing three different types of farmers: those with cattle & buffaloes, sheep & goatoperations (where beef and mutton animals are produced under different production system in

the country) and feedlot operators (who confine beef and mutton animals and feed them a high-

energy diet of grains/wanda to bring them to slaughter weight). One important box dairy beef(cow and buffalo) and dairy mutton (sheep and goat enters the Pakistan beef and mutton

industry value chain laterally, from the dairy industry. A portion of the Pakistan beef industry is

made up of dairy beef and dairy mutton that comes from cows, buffaloes, sheep and goat culled

from dairy herds because, for age or other reasons, they are not productive for dairy purposes.

Meat animal marketing column includes the purchase of these animals by traders in thecountry. These traders collect animals from the villages and sell them to wholesalers calledBeopari or take them himself to the local live animals markets. In big cities (Lahore, Karachi,

Peshawer, Quetta, Multan, Gujranwala) and towns commission agents called Arhties also operate

in most parts of the country. In Lahore, there is another group of wholesalers called Rewaitees.

They buy large number of sheep and goats from the Beoparies, through the Arhties, have themslaughtered and then sell them to the retailers through secret bidding. Several butchers

collectively may also buy several animals from the Arhties, slaughter them and sell the dressed

carcasses/meat to the consumers. There are no commission agents in Baluchistan. The Beopariesarrange large number of animals from large markets like Quetta and then transport them to main

consumer outlets like Karachi and Lahore.

Processing (Slaughtering)column of the value chain includes slaughtering of mutton and beef

animals at recognized and non-recognized slaughter houses both in urban and rural areas.

Distribution is achieved through wholesalers or director sale to retailers (butchers), although the

wholesale role is increasing being perform by the large handlers and processors.

At the end of the meat value chain, in the Distri bution (Meat Marketing) column includes

retailers, super markets, restaurants, and food service suppliers which provide dining and

vending services for corporate clients such as offices, universities, wedding ceremonies andhealthcare institutions.


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Figure 3: Red Meat Value Chain in Pakistan, 2008-09

7.1 Input Provision/Supplies --- 1stSegment of Value Chain

The first column in the chain inputs refers to the main products and services that cattle and

buffaloes farmers need in order to raise beef animals, including feed, veterinary services, and

breeding (Figure 4). The current situation of each input and binding constraints to input supplyare briefly discussed here.

7.1.1 Feed

Feed includes fodder, concentrates and pastures. Livestock producers reported that fodder and

feed are very expensive due to their limited supplies. Area under fodder crop has declined from2.75 million hectares in 1986 to 2.45 million hectares in 2006. The number of livestock headshas increased from 54.48 million heads in 1986 to 55.47 million heads in 2006. The livestock

population and fodder production are inversely related fodder productivity. The fodder area per

adult animal unit has significantly declined from 0.067 ha in 1986 to 0.035 ha in 2006. The

fodder production per adult animal unit also has declined from 1.31 ton in 1986 to 0.80 ton in2006. The concentrate and wheat straw availability per adult animal unit has also declined from

1986 to 2006 (Table 4).

Feed

Veterinary

Services

Genetics

(Breeds)

Cattle Farming Buffalo Farming

Culled Beef

Animals

Feedlots Fattening

Culled Mutton

Animals

Recognized and Non-

Recognized Urban and

Rural Slaughter Houses as

well as Eid-ul-Azha

Meat Transport

Meat Export

Food Service

Suppliers

Transport

Live Export

Wholesalers

UBs & RBs

Retailers

Hotel and

Restaurants

Handling, Packing

and Loading

(Butchers)

Inputs Meat Animals Production Meat Animals

Marketing

Processing

(Slaughtering)

Distribution

(Meat Marketing)

Sheep and Goats

Consumers

Super Markets


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Table 4: Comparative status of livestock inventory and fodder as well as concentrate

availability for livestock census yearsItems 1986 1996 2006

Fodder area (m.ha) 2.75 2.72 2.45

Fodder production (m.ton) 54.48 60.34 55.47

Fodder productivity (t/ha) 19.60 22.20 22.66

Concentrate availability (m.ton) 1.4 2.1 2.5Wheat straw (m.ton) 13.9 16.9 21.27

Adult animal units (m) 41.52 52.40 69.26

Fodder area per adult animal unit (ha) 0.067 0.052 0.035

Fodder availability per adult animal unit (ton) 1.31 1.15 0.80

Adult animals units feeded from a hectare of fodder 14.96 19.30 28.29

Adult animal units feeded from a tonne of fodder 0.76 0.87 1.25

Concentrate availability per adult animal unit (ton) 0.034 0.040 0.036

Wheat straw availability per adult animal unit (ton) 0.335 0.323 0.307

Figure 4: Red Meat Value Chain: Inputs 1stSegment of Meat Value Chain

Feed(Green & dry

fodders,

concentrates and

pastures)

Veterinary

Services(Medicine,

vaccination and A.

insemination)

Genetics/Breeds

Cattle (10),Buffaloes (3)

Sheep (28)

Goat (25)

Cattle Farming Buffalo Farming

Culled Beef

Animals

Feedlots Fattening

Culled Mutton

Animals

Recognized and Non-

Recognized Urban andRural Slaughter Houses as

well as Eid-ul-Azha

Meat Transport

Meat Export

Food ServiceSuppliers

Transport

Live Export

Wholesalers

UBs & RBs

Retailers

Hotel andRestaurants

Further Meat Processing

(Handling, Packing and

Loading)

Inputs(Seedstock,

feed and

veterinary

services)

Meat Animals Production Meat Animals

Marketing

Processing

(Slaughtering)

Distribution

(Meat Marketing)

Sheep and Goats

Consumers

Super Markets


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7.1.2 Pasture resourcesThe total pasture area in different parts of Pakistan is 50.88 m.ha in 1987 (Table 5). The numbers

of adult animal units of small ruminants are 10.7 million. The rangeland per adult animal ofsmall ruminant is 4.76 ha/animal. FAO (1987) has reported a critical stocking rate of 16

ha/animal unit for low potential ranges. Due to misuse and centuries of overgrazing, the

productivity of rangelands has been adversely affected. At present, rangelands are producingonly 10 to 15% of their potential. This low productivity can be increased by adopting variousmanagement practices such as periodic closures, re-seeding, and improved grazing management

etc. (Muhammad, 2002).

Table 5: Area of rangelands in Pakistan, 1988Province Total area

(M ha)

Rangeland area

(M ha)

Percentage of provincial

area

Balochistan 34.7 27.4 79

Sind 14.1 7.8 55

Punjab 20.6 8.2 40

NWFP 10.2 6.1 60

Northern Areas 7.0 2.1 30

Azad Kashmir 1.3 0.6 45Total 88.0 45.2 51

Source: NCA, 1988

Using the data of pastures available in 1988 and number of small ruminants in 2006, 4.76hectares of rangeland is available per adult small ruminant in Pakistan (Table 6).

Table 6: Status of rangeland in Pakistan during 1988Area of rangeland 1988

Area (m.ha) 50.88

Adult animal unit (small ruminant) - million 10.7

Rangeland/adult animal unit (small ruminant) - ha/AAU 4.76

Source: Muhammad, 1987

7.1.3 Veterinary services

The number of livestock hospital, dispensaries, artificial insemination centres, livestockprofessional and sub-professional is limited in order to cover the livestock population in thecountry and therefore veterinary services to livestock are poor (Table 7). Although, there are

several research institutes, research in livestock is rather weak mainly because of shortage of

trained manpower, research facilities and operational funds (Hassnain and Khan, 2007). Theavailability of veterinary services per adult animal is very limited in Pakistan.

Table 7: Livestock veterinary servicesLivestock extension services 2006

Adult animal units 69.26

Veterinary hospital 800

Veterinary dispensaries/centres 5000

Artificiel insemination (AI) centres/sub-centres 1000

Livestock research institutes 12

Livestock/poultry farms 100

Professional 2000

Sub-professional 5000

Adult animal units/hospital 86575

Adult animal units/dispensary 13852

Adult animal units/AI 69260

Adult animal units/professional 34630

Adult animal units/sub-professional 13852


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7.1.4 Seed stock (Genetics/breeds)

Reliable data on almost all aspects of livestock biodiversity in Pakistan is very limited. Even thebreed inventory of species particularly of sheep and goats is not complete. Recently, Hassnain

and Usmani (2006) have reviewed the state of animal genetic resources in Pakistan which is

reproduced in Table 8. Pakistan has 9 species of livestock. Several breeds of these cattle,buffaloes, sheep, goats, camels, etc. are transboundry breeds because these also exist in someother countries of the region (Hassnain and Khan, 2007). Some examples of transboundry breeds

are Sahiwal and Thari cattle, Nili-Ravi buffaloes, Beetal goats and Aseel chickens (Hassnain and

Usmani, 2006). Moreover, it is claimed by many professionals that some breeds of these speciesparticularly of sheep and goats are yet to be identified, characterized and reported (Hassnain and

Khan, 2007).

Table 8: Animal Genetic Resources of PakistanSpecies No. of breeds

Cattle 10

Buffaloes 3

Sheep 28Goats 25

Camels 20

Horses 2

Donkeys 1

Yaks 1

Chicken 3

7.1.5 Conclusions

The summary of Inputs 1stsegment of meat value chain is presented in Figure 5. There are

transboundry breeds namely Sahiwal and Thari cattles, Nili Ravi buffaloes and Beetal goats.

There are no beef breeds of cattle in Pakistan and therefore beef is at best a by-product.Haphazard breeding is prevailing along with traditional unscientific overall management that iscompounded by the low genetic ceiling of the livestock. The availability of green and dry

fodders, concentrates and pastures (grazing) have declined overtime which resulted the shortage

of feed. The shortage of feed translated into poor and inadequate nutrition with resulted in lowanimal productivity. The availability of veterinary services (medicines, vaccination and artificial

insemination) along with livestock professional and sub-professional for adult animal units have

also declined overtime. The feed and veterinary services are also very expensive due to whichlivestock herders are using both feed and veterinary services at low level resulting poor livestock

productivity. Earlier, the children of small farmers were involved in grazing animal and cutting

of grasses for animal. During the current era these children prefer to go for daily wage work

rather than grazing and grass cutting due to social status.


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Figure 5: Summary of Inputs 1stsegment of meat value chain

INPUTSSeed Stock (Genetics/Breeds)

FeedVeterinary Services

SEED STOCK

(GENETICS/ BREEDS)

Cattle (10)

Buffaloes (3)

Sheep (28)

Goat (25)

TransboundrybreedsShaiwal

and Thari cattle, Nili-Ravibuffaloes and Beetal goats

Haphazard breedingTraditional unscientific

management

There are no beef breeds of cattleand beef is at best a by-product inPakistan

Need improved breeding for meatanimal programme with modernand scientific management

FEED

Green fodder

Dry fodder

Concentrates

Pastures/grazing

Fodder availability/ adult animal

unit declined 1.5 ton from 1996 to0.80 ton in 2006

Wheat straw availability per adultanimal unit has declined from 0.323ton in 1996 to 0.307 ton in 2006

Constraints availability per adultanimal unit declined from 0.04 ton

in 1996 to 0.036 ton in 2006

Rangeland per adult animal unitsmall ruminants is only 4.76

ha/annumlow productivity of

rangeland due to over grazing andexploitation

During the current era these childrenprefer to go for daily wage work

rather than grazing and grass cuttingdue to social status of herders

High cost of feeds

Number of nomadic fromAfghanistan has disappeared due towar and terror

Such decline of availability forgreen and dry fodders and

concentrates overtime led to poorand inadequate nutrition which

resulted in low animal productivity

Large and small ruminants areperforming much below theirgenetic potential due to poor and

inadequate nutrition which lead to

compounded by the low genetic

ceiling of livestock

VETERINARY

SERVICES

Medicines

Vaccination

A. insemination

High disease incidence andhigh mortality

Limited access to livestockservices

Low level of farmerssatisfaction

High cost of veterinaryservices

A veterinary hospital, aveterinary dispensary and aartificial insemination centreis available for 86575, 13852

and 69260 adult animals unitrespectively during 2006

livestock censusA veterinary professional and

a sub-professional is availablefor 34630 and 13852 adult

animal unit during 2006livestock census

Medicines are very expensive

Due to limited availability ofveterinary services andexpensive medicines,livestock herders are using atlow level resulting poor

livestock productivity

Issues of Inputs1. Haphazard breeding and traditional unscientific management

2. Availability of feed (green & dry fodders, concentrate and pastures) per adult animal declined overtime led to inadequatenutrition and feed is expansive

3. Limited coverage of veterinary services (medicines, vaccination & AI) and medicines are expansive

4. Low input system (expansive inputs and therefore farmers are using at low level)


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7.2 Meat Animal Production --- 2ndSegment of Value Chain

The input (live animals) for the red meat sub-sector is mainly the livestock farmers whichcontribute about 97 percent of the total meat requirement. Among the livestock farmers small

farmers with mix crop livestock farming system are dominant in the meat sector. Beef is the by-

product of the livestock sector and the male calves and heifers of cattle and buffaloes are offeredfor sale for slaughtering along with a small share of female calves and heifers. The adult cowsand buffaloes are also offered for slaughtering after certain age and productivity levels. An

estimated 16.5 and 20 percent of total beef and mutton production originates from dairy cows,

dairy buffaloes, female sheep and female goats. Recently the private fattening farms are alsodeveloped with the government initiatives through feed lot fattening project through private

sector-led, Livestock and Dairy DevelopmentBoard. The structure of meat animal production

is presented in Figure 6.

7.2.1 Inventory of meat animals

The livestock inventory for milk and meat animals for the year 2008-09 in the country ispresented in Table 9. Total livestock inventory for the year 2008-09 is 154.2 million heads. Out

of which, cattle, buffaloes, sheep and goats are 33, 29.9, 27.4 and 58.3 million respectively. Out

of 33 million of cattle, 9.7 and 11.1 million heads of in-milk cows and in-milk buffaloes

respectively. The remaining animals can be considered as meat animals (Table 9).

Table 9: Livestock inventory and gross value 2008-09Type of Animal 2008-09 Price (Rs./ Animal) Gross Value Rs. billions

A. Milk and Meat Animals

(i) Total Cattle 33 793.100

Bullocks (3 years & above) 4.6 42000 193.200

Dry Cows (3 years & above) 7.2 17000 122.400

I n-mil k cows (3 years & above) 9.7 35000 339.500Youngstock (below 3 years) 11.5 12000 138.000

(ii) Total Buffaloes 29.9 939.400

Male buffaloes (3 years & above) 0.7 50000 35.000

Dry Female buffaloes (3 years & above) 5.9 25000 147.500

I n-mi lk buf faloes Female buf faloes (3 years &

above)

11.1 55000 610.500

Youngstock (below 3 years) 12.2 12000 146.400

(iii) Total Sheep 27.4 156.150

Male (1 year & above) 4.5 9000 40.500

Female (1 year & above) 14.2 6000 85.200

Youngstock (below 1 year) 8.7 3500 30.450

(iv) Total Goats 58.3 205.670Male (1 year & above) 7.2 5200 37.440

Female (1 year & above) 33.8 3800 128.440

Youngstock (below 1 year) 17.3 2300 39.790

(v) OthersCamel 0.921 40000 36.835

Horses 0.344 40000 13.770

Mules 0.156 50000 7.785

Donkeys 4.268 10000 42.685

Total 5.689 2195.391


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Figure 6: Meat Animals Production 2stSegment of Meat Value Chain

7.2.2 Cost of production of meat animals at farm level

Cost of production of meat animals at farm level is comprised of fodder cost, labor, initial vale ofanimal, interest on investment and depreciation of shed etc. Cost of production of meat is

estimated at two levels namely cost at general farm level and cost of production of feed lot

fattening of commercial venture.

7.2.3 Cost of production of meat animals (general farmers)The cost of production for both beef and mutton animals at general farm level is presentedseparately in this section.

7.2.3.1Cost of production of beef animal

The cost of production for beef animal is calculated for young stalk including the initial value. At

general farm level where the beef animal is considered as a by product of dairy animal, the cost

of production of young stalk beef animals is estimated at Rs. 16113 where as the variable cost isRs.12113 and the value of out put is Rs.12277 resulting a gross margin of Rs. 165 per animal and

a net return in the form of loss amounting to Rs. 3835 per head for a 12 month old beef animal

(Table 10).

Feed(Green & dry

fodders,

concentrates and

pastures)

Veterinary

Services(Medicine,

vaccination and A.

insemination)

Genetics/Breeds Cattle (10),

Buffaloes (3)

Sheep (28)

Goat (25)

Cattle Farming(3.973 million heads)

Buffalo Farming(3.676 million heads)

Culled Beef

AnimalsBeef = 1.263 m.h

Cattle = 0.655 m.h

Buffaloes = 0.606 m.h

Feedlots FatteningBeef Animals = 0.0956 million heads

Cattle = 0.0496 million heads

Buffaloes = 0.0459 million heads

Culled Mutton

AnimalsM. Animals = 3.365 m.h

Sheep = 0.979 m.h

Goat = 2.385 m.h

Recognized and Non-

Recognized Urban andRural Slaughter Houses as

well as Eid-ul-Azha

Meat Transport

Meat Export


Transport

Live Export

Wholesalers

UBs & RBs

Retailers

Hotel and

Restaurants



Loading)

Inputs(Seedstock,

feed and

veterinary

services)

Meat Animals ProductionMeat Animals = 24.493 million heads

Beef Animals = 7.673 million heads

Mutton Animals = 16.82 million heads

Meat Animals

Marketing

Processing

(Slaughtering)

Distribution

(Meat Marketing)

Sheep and GoatsSheep = 4.899 million heads

Goat = 11.927 million heads

Consumers

Super Markets


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Table 10: Cost of production of beef animal

Items Unit Quantity Rate(Rs) Amount

Produce

Sale (12 month old animal ) 1 12077 12077

Manure 40 kg 25 8 200

Out Put 12277

Ave. Live Weight at Sale Kg 171.6

Sale Price Beef animal Rs./Kg Live Weight 70.38

Costs

Green fodder @ 10 Kg per Day 40 kg 91.25 40 3650

Dry fodder @ 1 Kg per Day 40 kg 18.25 120 2190

Vet medicine 2 30 60

Calf 1 4000 4000

Interest @12.5% on average value 1238

Labor @ 1 man day for 20 calf Days 22.8125 200 4563

Equipment costs 100 100

Interest on shed and space+depreciation on shed 312.5 313

Variable cost 12113Total cost 16113

Gross Margin/Head Rs./Animals 165

Net Income/Head Rs./Animals -3835

7.2.3.2Cost of production of mutton animalsThe cost of production for mutton animal is calculated for young stalk including the initial value.At general farm level, the cost of production of 6 month old mutton animals is estimated at

Rs. 2904 where as the variable cost is Rs. 1904 and the value of out put is 2710 resulting a gross

margin of Rs. 806 per animal and a net return with loss to amounting to Rs. 194 per animal

(Table 11).

Table 11: Cost of production of mutton animalsItems Unit Quantity Rate(Rs) Amount

Produce

YS 6 month old 1 2700 2700

Manure 40 kg 1.25 8 10

Out Put 2710


Costs


Dry fodder @ 0.15 Kg per Day 40 kg 0.45625 120 55


Calf 1 1000 1000


Labour @ 1 mand day for 20 calfs Days 3.65 200 730



Variable cost 1904

Total cost 2904

Gross Margin/Head Rs./Animals 806

Net Income/Head Rs./Animals -194


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7.2.4 Cost of production of beef animals at feed lot framersDuring the recent years feed lot fattening is also gaining popularity among the progressive

farmers and there is also shift towards rearing meat animals against the previous practice ofproducing beef as a by product of dairy animals and draft animals. There was no practice of

rearing mutton animals as feed lot specifically. The cost of production for feed lot farm for both

beef and mutton is calculated and presented in this section as follows.7.2.4.1Cost of production of beef animalsThe cost of production of beef animals at feed lot farms is calculated and presented in Table 12.

To get a representative estimates a herd size of 40 animals is assumed. The farm gate price of the

beef animal with an average weight of 109 kg including the transportation charges isRs. 9800/head. The cost of production for about three month is calculated at Rs.5034 with a

weight increase of 54 kg. The value of output is Rs. 15270 per animal resulting a profit of Rs.436

without subsidy and Rs.1836 with subsidy per animal.

Table 12: Cost of production of beef animals at feed lot farmsItems Unit Cost per animal

Purchase Price Rs./Animal 9650

Transportation Rs./Animal 150

Purchase Price Rs./Animal 9800Initial Weight Kg/Animal 109

Initial Price Rs./Kg Live weight 90

VC:Labor (2 Persons @ 4000/month/person Rs./Animal 600

Electricity Rs./Animal 45

Rougages (hey,straw,fodder) Rs./Animal 1800

Wanda Rs./Animal 1620

Medicines Rs./Animal 100

Sub-Total 4165

Interest on variable cost Rs./Animal 125.00

Interest on value of animal @ 12 %pa Rs./Animal 294.00

Shed cost at 12% Rs./Animal 450.00

Fixed Cost Rs./Animal 869.00

Cost of Production Rs./Animal 5034.00

Income

Sale of Animal Rs./Animal 15000.00

FYM Rs./Animal 270.00

Total Value of Animal at sale Rs./Animal 15270

Subsidy Rs./Animal 1400.00

Gross Income Without Subsidy Rs./Animal 15270.00

Net Income Without Subsidy Rs./Animal 436.05

Gross Income With Subsidy Rs./Animal 16670.00

Net Income With Subsidy Rs./Animal 1836.05

Initial Weight Kg/Animal 109.00

Final Weight Kg/Animal 163.00

Difference Kg/Animal 54.007.2.4.2Cost of production of mutton animalsThe cost of production mutton animals for a lot of 150 animals is calculated and presented in

Table 13. The purchase price for a 25Kg animal was Rs.3150 per animal including the

transportation cost. The cost of production to the feed lot farmers for mutton animal is estimated

at Rs.1277 per animal and the value of out put is Rs.4529 per animal. Net income with a weightgain of about 10.8 kg per animal is estimated at Rs.102 per animal and a subsidy of Rs.400 per

mutton (male) animal is provided to the farmers.


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Table 13: Cost of production of mutton animalsItems Unit Cost per animal


Transportation Rs./Animal 50


Initial Weight Kg/Animal 25

Initial Price Rs./Kg Live weight 126Variable Costs

Labor (2 Persons @ 4000/month/person Rs./Animal 160

Electricity Rs./Animal 12

Roughages (hay, straw, fodder) Rs./Animal 80

Wanda Rs./Animal 729

Medicines Rs./Animal 58

Sub-Total 1038

Interest on variable cost Rs./Animal 31.0

Interest on value of animal @ 12 %pa Rs./Animal 95.5

Shed cost at 12% Rs./Animal 112.0

Fixed Cost Rs./Animal 238.00

Cost of Production Rs./Animal 1277.00

IncomeSale of Animal Rs./Animal 4511.00

FYM Rs./Animal 18.00

Total Value of Animal at sale Rs./Animal 4529.00

Subsidy Rs./Animal 400.00

Gross Income Without Subsidy Rs./Animal 4529.00

Gross Income With Subsidy Rs./Animal 4929.00

Net Income Without Subsidy Rs./Animal 102.00

Net Income With Subsidy Rs./Animal 502.00

Initial Weight Kg/Animal 25.00

Final Weight Kg/Animal 35.80

Difference Kg/Animal 10.8

7.3 Conclusions

The summary of Production 2nd

segment of meat value chain is presented in Figure 7.

Analysis of cost of production of small and large ruminants production revealed that farmers aregetting negative net return where feed lot farming from commercial point of view provide

significant results. This implies that farmers do not raise animals with the commercial

perspective which require a sound livestock extension services to make them aware about theeconomic return of the raising commercial meat animal. The overall productivity of all the

species in terms of meat is low. The overall increase in meat over the years is due to the

increased inventory and not because of any increase in their productivity (Hassnain and Khan,

2007). They further argued that this is a serious issue and matter of great concern. Literature hasshown that both the large and the small ruminants are performing much below their genetic

potential (Hassnain and Khan, 2007). Moreover, their genetic ceiling can be increased with

improved breeding program. The major factors contributing towards low productivity are poor

and inadequate nutrition, inadequate health care, haphazard breeding and traditional unscientificoverall management. All these factors translate into a existing very weak livestock extension

services in the country.


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Figure 7: Summary of Production 2ndSegment of Meat Value Chain

TRADITIONAL MEAT

RAISING ANIMALS

Raising of Beef Animals (million heads)

Beef Animals = 6.292

Cattle = 3.268Buffaloes = 3.024

Mutton Animals = 13.436Sheep = 3.912

Goats = 9.524

Cost of production of 1 year old beef

animal at general farm level

(Rs./animal)Output = 12277Variable cost = 12113Fixed cost = 4000Cost of production = 16113

Gross margin = 165Net income = -3835

Cost of production of 6 month oldmutton animal at general farm level

(Rs./animal)

Output = 2710Variable cost = 1904

Fixed cost = 1000Cost of production = 2904Gross margin = 806

Net income = -194

Low inputs (no beef breeds of cattle,inadequate nutrition and limitedavailability of veterinary services) leads

to low livestock productivity

FEED LOT FATTENING

Fattening of beef animals

Beef Animals = 0.0956 m.hCattle = 0.0496 m.h


Cost of production of 40 beef

animals on commercial basis

(Rs./animal)

Output (value of animal at sale) = 15270Variable cost = 5034Fixed cost = 9800Cost of production = 14834

Gross margin = 10236Net income = 436

Fattening of mutton animals

Mutton Animals = 0.025252m.hSheep = 0.00734 m.hGoats = 0.0178 m.h

Cost of production of 150 mutton

animals on commercial basisOutput (value of animal at sale) = 4529Variable cost = 1276Fixed cost = 3150Cost of production = 4426

Gross margin = 3253Net income = 103Confined to beef and mutton animals withhigh energy diet to bring them to slaughter

weight which implies higher inputs andbetter management, feed lot fattening isprofitable enterprise

CULLING FROM

DAIRY ANIMALS

Culled beef animals from

dairy animals

Beef Animal = 1.262 m.hCattle = 0.655 m.hBuffalo = 0.606 m.h

Culled mutton animals from

female sheep and goats

Mutton Animal = 3.365 m.h

Sheep = 0.979 m.hGoat = 2.385 m.h

A portion of meat sub-sector is

made up of dairy meat andmutton that comes from in-milking cows and buffaloes,female sheep and female goats

culled from dairy herds becausefor age for other reasons, they

are not productive for dairypurposes and reproductive

potential

MEAT ANIMALS PRODUCTIONMeat (Beef and Mutton) Animals = 24.493 million heads with a value of Rs.266.557 billion

Beef Animals = 7.673 million heads with a value of Rs.173.5965 billion

Cattle = 3.973 million heads with a value of Rs.93.172 billionBuffaloes = 3.676 million heads with a value of Rs.79.6245 billion

Mutton Animals = 16.82 million heads with a value of Rs.92.960 billionSheep = 4.8993 million heads with a value of Rs.36.0768 billion

Goat = 11.927 million heads with a value of Rs.56.8834 billion

ISSUES OF MEAT ANIMALS PRODUCTION

1. Weak and unhealthy stock and breeding lines because no beef breeds of cattle and beef is at best a by-product2. No concept of herd health management3. Low output system due to low input system4. Social system has broken due to inflation and ag-inflation is even higher

5. Raising meat animal with traditional system is not profitable enterprise


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8. Marketing of Meat Animals ---3rdSegment of Meat Value Chain

Livestock are generally marketed either at village level by personal contact between buyer andseller or at special places called livestock markets organized for animal trade. These livestock

markets are organized at sub-tehsil, tehsil, district and division levels on daily, weekly,

fortnightly and monthly bases (Sharif et al., 2003). Both buyers and sellers are well informedabout these market days as the days/dates are remained unchanged since ages. Smaller orprimary markets are present in the rural anterior whereas larger or secondary markets are usually

organized near the urban centers, on the main roads. In addition, some special livestock markets

are also organized on provincial/regional festivals. Daily-based special markets are alsoorganized at least 2-3 weeks before the eve of Eid-ul-Azha. In addition, some livestock markets

are also introduced in the private sector. In general, both small and large ruminants are traded in

the same markets, however at some places, buffalo, cattle, sheep and goats are also traded in

separate markets. For instance, in bakker mandies, only small ruminants are marketed. Varioustypes of beoparies, animal traders and farmers bring their livestock in these for selling (Sharif et

al 2003).

In villages, depending upon the nature of need arisen, the farmers choose time, place and agency

for disposing their animals. There are several reasons for sale like urgent domestic need, as

regular means of income, disposal of culled animals and scarcity of feeds/fodders as during

droughts. Cattle and buffaloes are sold generally at the peak of their performance around 5-7years of age or when they are about to calve. Heifers are disposed off at about 25-30 months of

age. Working bullocks are sold after training as work animals. All culled animals are sold for

meat when no longer fit for work or milk production. Sheep and goats are sold generally beforeone year of age (Hassnain and Khan 2007). The structure of live animals marketing as a 3

rd

segment of meat value chain is presented in Figure 8.

8.1 Market Infrastructure

Majority of the livestock markets are under the direct control of the relevant local administration

and the market holding days/dates are notified. The local administration/cantonment boards for

animal trading provide special places for animal trading. The management responsibilities arecontracted out on annual basis by open auction (Sharif et al., 2003). Depending upon the type,

size of the market and the number of animals traded, and the practice of commission on sale

price of animal or as entry fee only the contractual amount found varied between 0.5 millionrupees to 120 million rupees. Some of the markets like Karachi, Peshawar and Quetta the

individual arthies provide place and basic facilities for animals to the beoparies and charge on

per animal or truck load basis and there is only entry fee of Rs. 10 per small ruminant and Rs. 25

per large animal.

The contracted money is received-back by the contractor from the buyers and sellers in the form

of commission or market fee. The local administration decides about the amount/percentage of

market/entry fee to be charged. In Punjab 3-5% of the value of the animal sold is charged asmarket fee whereas in AJK, some fixed amount varied by the animal type is charged. In general,

basic facilities like boundaries, electricity, loading-unloading facilities, animal watering, animal

shelter, weighing, telephone and communication, easy availability of transport, the services ofveterinary doctor etc. are lacking in majority of the markets. Private vendors usually provide the


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Figure 8: Meat Animals Marketing 3rdSegment of Meat Value Chain

food and fodder services. In primary markets, the quality of roads leading to these markets is alsopoor. In NWFP, Balochistan and AJK, at some areas only a piece of land is available as livestock

markets whereas in other areas, farmers have to travel for very long distance to sell their animalsin these markets. It seems that these livestock markets are a source of revenue for the local

governments/cantonment boards. There is no investment of the contracted money for provision

of various facilities in these livestock markets.

8.2 Live Animals Market Intermediaries

Beoparies and commission agents are main intermediaries of livestock markets. The market

intermediaries are comparatively well informed about market situations than the farmers.Although the services of broker or dallal are available, but most of the times they extend more

favor to buyers than farmers. Some farmers complained about forming cartels by marketintermediaries by not offering prices beyond some limits. In this way, both beoparies and

commission agents exploit them. The transport means used are not suitable, therefore, causingphysical distress, bruising and other internal/external injuries to the animals (Sharif et al., 2003).

The estimated cost of transport for beef (cattle and buffaloes) animals and mutton (sheep and

goat) animals from farmers to slaughter places via livestock markets is Rs.6.125 billion andRs.2.324 billion respectively during 2008-09. The marketing channel of live animals from

villages to slaughter houses and export of live animals is given in Figure 9.

Feed(Green & dry

fodders,

concentrates and

pastures)

Veterinary

Services(Medicine,

vaccination and A.

insemination)


Buffaloes (3)

Sheep (28)

Goat (25)

Cattle Farming(3.973 million heads)

Buffalo Farming(3.676 million

heads)

Culled Beef

AnimalsBeef = 1.263 m.hCattle = 0.655 m.h





Culled Mutton

AnimalsM. Animals = 3.365 m.h

Sheep = 0.979 m.hGoat = 2.385 m.h

Recognized and Non-Recognized Urban and

Rural Slaughter Houses as

well as Eid-ul-Azha

Meat Transport

Meat Export


Channel-1

Farmer to Beopari = 80%

Farmer to LAM = 5%

Farmer to RBs = 15%

Channel-2

Beopari to LAM = 98%

Beopair to RBs = 2%

Channel-3

LAM to Contractors = 52%

LAM to T.Traders = 15%

LAM to UBs = 31%

LAM to RBs = 2%

Channel-4

Contractor to T.Traders = 27%

Contractor to Exporters = 1%

Contractor to UBs = 72%

Channel-5

Traveler Trader to S.House = 16%

Traveler Trader to UBs = 84%

Live ExportAverage 2001-05 = 34477 heads

with export value of Rs.309.01 m

Wholesalers

UBs & RBs

Retailers

Hotel and

Restaurants



Loading)

Inputs(Seedstock,

feed and

veterinary

services)




Meat Animals MarketingAnimal Marketed in Domestic

Market = 24.495 m.h

Animal Exported = 33477 heads

Processing

(Slaughtering)

Distribution

(Meat Marketing)



Consumers

Super MarketsTransport in Domestic

MarketTransportation cost

Beef animals = Rs.6.075 b

Mutton animals = Rs.3.253 b


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8.3 ConclusionsThe summary of the third segment of meat value chain namely live animals marketing is

presented in Figure 9. On the marketing side, the livestock markets are suffered from shortage ofbasic facilities like watering, shelter, feed and fodder. A number of other arrangements like

loading/unloading, communication, services of veterinary doctor, weighing, market boundaries

etc. are absent despite 3-5 percent commission is charged as market fee in Punjab whereas inother provinces various practices are followed. The contract money of these markets is notinvested back for provision of such facilities. But the most crucial aspect of the marketing system

constraining meat development is the sale of animal on per head basis and not on their live

weight basis. This militates against the success of any meat development program. The meatproduction is entirely in the private sector. However, the government intervention in fixing the

price at the retail end is neither rational nor fair. It makes the situation worse because this retail

price fixation is not applied to the corporate sector. Moreover, there is no livestock market

authority for regulating livestock marketing in the country.

9. Processing (Slaughtering) ---- 4thSegment of Meat Value Chain9.1 Animals for Slaughtering

Red meat has two components namely beef and mutton. The beef is mainly produced by cattleand buffaloes in Pakistan. A negligible quantity of beef is also obtained from camel and yaks.The second part, mutton mainly comes from sheep and goats. Generally speaking, camel meat is

eaten mainly be camel herders but now it is reported that camels are also regularly slaughtered in

Karachi and the coastal areas of Balochistan like Lasbela and Uthal (Hassnain and Khan, 2007).It is also used for sacrifice during Eid Al Adha. Yak meat is only eaten in the Northern Area of

Pakistan because that is where these animals are maintained (Hassnain and Khan, 2007). There

were 24.493 million heads of beef (7.673 m. heads) and mutton (16.82 million heads) animals

which were slaughtered during 2008-09. The gross value of meat industry was Rs. 266.557billion where the gross value of beef and mutton animals was Rs. 173.59 billion and Rs. 92.960

billions respectively (Table 14).

Table 14: Total number of animals slaughtered and value 2008-09Type of Animal Animals (million heads) Price Rs./Animal Value Rs. Billion

Bullocks 1.002 40500 40.581

Cow 1.552 22000 34.144

YS male 0.971 13000 12.623

YS Female 0.448 13000 5.824

3.973 93.172

Male Buffalo 0.624 38000 23.712

Female Buffalo 1.225 27000 33.075

YS Male 1.488 12500 18.6

YS Female 0.339 12500 4.2375

3.676 79.6245

Camel 0.016 40000 0.64

YS Camel 0.008 20000 0.160.024 0.8

Total Beef Animals 7.673 173.5965

Sheep 3.757 8000 30.056

YS Sheep 1.136 5300 6.0208

Goat 9.634 5000 48.17

YS Goat 2.293 3800 8.7134

11.927 56.8834

Total Mutton Animals 16.82 92.960

Total Meat Animals 24.493 266.557


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Figure 9: Summary of Live Animals Marketing 3rdSegment of Meat Value Chain

LIVESTOCK FARMERS(97%)

23.764 million animals were marketed

from traditional farmers

C-1Farmer to Beopari = 80%

Farmer to Live Animal Market = 5%

Farmer to Rural Butcher = 15%

C-2

Beopari to Live Animal Market = 98%

Beopair to Rural Butcher = 2%

C-3

Animal Market to Contractors = 52%

Animal Market to T.Traders = 15%

Animal Market to U.Butcher = 31%

Animal Market to R.Butcher = 2%

C-4



Contractor to U.Butcher = 72%

C-5Traveler Trader to S.House = 16%

Traveler Trader to U. Butcher = 84%

FEED LOT

FATTENING(2.1%)

0.514 million animals weremarketed from feed lotting

Feed lot to R.Butcher = 1%

Feed lot to Beopari = 71%

Feed lot to L. Market = 18%

Feed lot to Contractor = 10%

EXPORTER OWN

FARM(< 1%)

0.220 million animals weremarketed from feed lotting

Exporter Own Farm to Exporting

Destination = 100%

LIVE ANIMALS MARKETINGMeat Animals Marketed = 24.493 million heads

Meat Animals Marketed in Domestic Market for Slaughtering= 24.495 million heads

Meat Animals Exported (Average 2001-05) = 33477 with a export value of Rs.309.01 million

Beef Animals Exported= Average 2001-05 = 23107 with a export value of Rs.284.58 million

Mutton Animals Exported= Average 2001-05 = 10370 with a export value of Rs.24.43 million

LIVE ANIMALS TRANSPORTING COSTSBeef Animals Transport Cost for Domestic Market = Rs.6.075 billion

Mutton Animals Transport Cost for Domestic Market = 3.253 billion

ISSUES OF MARKETING LIVE ANIMALS1. Inadequate basic facilities at live animals market (watering, shelter, feed and fodder, absence of weighing machine and

market committee)

2. Non-availability of specific transport and overloading without refrigeration

3. Delay in live animal delivery

4. Inadequate livestock marketing information system and marketing regulatory agency as well as policy

5. Faulty pricing mechanism of meat animals (per head basis rather than weight basis)


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There are no beef breeds of cattle and it is at best a byproduct. Working cattle, cows and

buffaloes that are no longer able to work or produce milk are slaughtered and consumed as beef

and therefore beef form such animals is of poor quality (Hassnain and Khan, 2007). They furtherstated that young male calves particularly of buffaloes are generally not reared and thus

slaughtered at an early age and low live weight. They also further argued that the other reason for

the early slaughter of sucklers is the high cost of milk replacers and non-availability ofeconomical early weaning diets and therefore beef is the cheapest meat whether it is from cattleor buffaloes. However during recent years efforts have been made to develop feed lot fattening

farms through providing subsidy to the farmers. The share of the animals slaughtered at Eid-ul-

Azha ranged from 25-40% for beef and mutton animals and these animals are particularly rearedto fetch good prices and also the meat produced from these animals is one of the best quality.

The structure of meat processing (slaughtering) is presented in Figure 10.

Figure 10: Processing (Slaughtering) 4thSegment of Meat Value Chain

Feed(Green & dry

fodders,

concentrates and

pastures)

VeterinaryServices(Medicine,

vaccination and A.

insemination)


Buffaloes (3)

Sheep (28)

Goat (25)

Cattle Farming(3.973 million

heads)

Buffalo Farming(3.676 million

heads)

Culled Beef

AnimalsBeef = 1.263 m.h

Cattle = 0.655 m.hBuffaloes = 0.606 m.h




Culled MuttonAnimals

M. Animals = 3.365 m.h

Sheep = 0.979 m.hGoat = 2.385 m.h

Recognized & non-recognized S.Houses

at Urban and Rural Areas

Total Meat Production =2.192 m.tFrom Traditional Farms = 1.528 m.tFrom Feed Lot Fattening = 0.028 m. tEid-ul-Azha = 0.636 m.t

Meat Transporting Cost in

Domestic Markets

Meat = Rs.7.076 billion

Beef = Rs.4.752 billion

Mutton = Rs.324 billion

Food Service

Suppliers

Channel-1

Farmer to Beopari = 80%

Farmer to LAM = 5%

Farmer to RBs = 15%

Channel-2

Beopari to LAM = 98%

Beopair to RBs = 2%

Channel-3

LAM to Contractors = 52%

LAM to T.Traders = 15%LAM to UBs = 31%

LAM to RBs = 2%

Channel-4



Contractor to UBs = 72%

Channel-5

Traveler Trader to S.House = 16%

Traveler Trader to UBs = 84%

Live ExportAverage 2001-05 = 34477 heads

with export value of Rs.309.01 m

Wholesalers

UBs & RBs

Retailers

Hotel and

Restaurants

Further Processing (Handling,Slaughtering, Cutting into Piece,

Packing and Loading)

Further processing cost=Rs.9.88 mBeef = Rs.652 million

Mutton = Rs336 millin

Inputs(Seedstock,

feed and

veterinary

services)




Meat Animals MarketingAnimal Marketed in Domestic

Market = 24.495 m.h

Animal Exported = 33477 heads

Processing (Slaughtering)

Animal Slaughtered =24.459 m.h

Total Meat Production =2.192 m.t

Distribution

(Meat Marketing)



Consumers

Super MarketsTransport in Domestic

MarketTransportation cost

Beef animals = Rs.6.075 b

Mutton animals = Rs.3.253 b


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9.2 The Slaughtering System

According to the West Pakistan Slaughter Control Act 1963, slaughtering of small and largeruminants should strictly be undertaken in recognized slaughterhouses with ante- and post-

mortem veterinary inspection (Sharif et al., 2003). Similarly, according to the Pakistan

slaughterhouse act of 1983, the killing of animals outside the boundary of slaughterhouses isprohibited. Recognized slaughterhouses usually provide separate buildings for slaughtering largeand small animals. There are 295 recognized slaughterhouses, 27 in NWFP, 174 in Punjab, 60 in

Sindh and 34 in Balochistan (Sharif et al., 2003). Presently, slaughtering of small and large

ruminants is done in municipal, cantonment and private slaughterhouses, and in the backyards ofmeat retailers in villages. Local municipal corporations operate majority of the urban

slaughterhouses. 16 slaughterhouses are also established in the private sector. Majority of

slaughterhouses are now located in the thick-populated areas.

In general, the existing slaughterhouse facilities are highly insufficient than the requirements.

The slaughtering, carcass dressing and by-product handling are done in the same space. They

area also in shortage of various equipments such as pulley hoists, hooks etc. for hangingcarcasses. Ante and post-mortem arrangements, water supply, drainage systems, waste disposal,

handling of by-products are inadequate and sometimes non-existent. A large portion of the by-

products such as blood, glands, intestines, and bones are either wasted or poorly processed. One

of the underlying reasons is that these facilities were not periodically updated because of variousadministratively complex procedures involved. It can, therefore, be generally concluded that the

slaughter facilities are mostly obsolete, unclean, and poorly managed (SMEDA, 2002). This

problem is most severe in big cities like Karachi, Lahore and Faisalabad. Due to the shortage ofslaughtering facilities, much slaughtering takes place outside the recognized facilities, so there is

no inspection and even in recognized slaughterhouses there are no meaningful inspection

facilities. Therefore, official statistics greatly understate the number of animals slaughtered

(FAO, 1987; Alvi, 1988). There are eleven slaughterhouses in Karachi, Lahore and Islamabadthat have modern facilities. These are good indications of developments in the slaughtering

systems of Pakistan, but the process needs to be enhanced keeping in view the national and

international challenges.

9.3 Red Meat Production

The red meat production is estimated on the basis of animals slaughtered at slaughter places

(recognized and non-recognized Slaughter houses), meat from feed lot and animals sacrificed at

the eve of Eid-ul-Azha (Table 15). Total number of animals slaughtered at slaughter places

during 2008-09 was 24.493 million heads. Total beef production originates from beef animalsproduced by general farmers slaughtered (1.187 million tons), feed lots (0.016 million tons) and

Eid-ul-Azha (0.40 million tones). Similarly, total mutton production comes from mutton animals

produced by general farmers slaughtered (0.341 million tons), feed lots (0.012 million tons) and

Eid-ul-Azha (0.236 million tones). The estimated meat production for the year 2008-09 inPakistan is 2.192 million tones. Out of this 1.603 and 0.588 m. tones are beef and mutton

respectively (Table 15). The production of cattle, buffalo and camel beef is 0.638, 0.543 and

0.006 m. tones respectively. Production of mutton from sheep and goat is 0.588 m. tons.


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Table 15. Red meat (beef and mutton) production 2008-09Type of Animal Number of

animal

slaughtered

(million heads)

Meat

(Kg/Animal)

Meat production

(Million tons)

Bullocks 1.002 275.40 0.276

Cow 1.552 160.00 0.248YS male 0.971 80.00 0.078

YS Female 0.448 80.00 0.036

0.638

Male Buffalo 0.624 243.20 0.152

Female Buffalo 1.225 200.00 0.245

YS Male 1.488 80.00 0.119

YS Female 0.339 80.00 0.027

0.543

Camel 0.016 320.00 0.005

YS Camel 0.008 160.00 0.001

Beef fr om Slaughtered Animals (1) 1.187

Beef fr om Feed Lot (2% of total) (2) 0.016

Beef fr om Eid-ul-A zha (for beef 25%) (3) 0.400Total Beef (1+2+3) 1.603

Sheep 3.757 25.00 0.094

YS Sheep 1.136 16.56 0.019

Goat 9.634 20.83 0.201

YS Goat 2.293 11.88 0.027

Mutton fr om Slaughtered An imals (1) 0.341

Mutton fr om Feed Lot (2% of total) (2) 0.012

Mutton fr om Eid-ul-A zha (40%) (3) 0.236

Total Mutton (1+2+3) 0.588

Total Meat 2.192

9.4 Trends in Red Meat Production

The information on the trends of meat production is presented in Table 16. The meat production

has increased from 1.10 m. tones in 1986 to 1.49 m. tones in 1996 with an annual growth rate of3.07% and further increased to 1.956 m. tones in 2006 with a growth rate of 2.76%. The current

meat production in 2008-09 is 2.19 m. tones. The beef production is growing faster than mutton

production in the country (Table 16 and Figure 11).

Table 16: Trends in production of meat and annual growth rate

Products

Year Annual Growth Rate (%)

1986 1996 2006 2008-09 1986-96 1996-06

Red Meat Total 1101 1490 1956 2191 3.072 2.759

Beef 567 889 1174 1601 4.600 2.820

Mutton 534 601 782 590 1.189 2.668


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9.5 Cost of Production of Meat

The information of cost of production of beef is presented in Table 17. To get a representative

estimates a 12 month old beef animal is taken. The farm gate price of the beef animal with an

average live weight of 171.6 kg including the transportation charges is Rs.12277/head. Cost of

production of beef was Rs.171.77 per kg. Income including manure was Rs.130.12 per kg. Lossof production of 1 kg meat at general farm level was Rs.40.65 (Table 17).

Table 17: Cost of production of beefItems Unit Quantity Rate(Rs) Amount

Produce

12 month old animal 1 12077 12077

Manure 40 kg 25 8 200

Out Put 12277Ave. Live Weight at Sale Kg 171.6

Ave. beef @ 55% of Live weight Kg 94.4

Sale Price Beef Rs./Kg 128

Costs:Green fodder @ 10 Kg per Day 40 kg 91.25 40 3650

Dry fodder @ 1 Kg per Day 40 kg 18.25 120 2190


Calf 1 4000 4000


Labor @ 1 man day for 20 calf Days 22.8125 200 4563



Variable cost 12113

Total cost 16113

Gross Margin/Head Rs./Anaimls 165

Net Income/Head -3835

Cost of Production of Beef Rs./Kg 170.77

I ncome (I ncluding manure Value) Rs./Kg 130.12

Retur n Rs./Kg -40.65

9.5.1 Cost of production of mutton

567 889 11741601

534 601 782590

0%

20%

40%

60%

80%

100%

1986 1996 2006 2009

000

Tonnes

Year

Figure 11: Trend of Red Meat Production

Mutton

Beef


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The cost of production mutton at generally farm level is estimated at Rs.269 per Kg. the

estimated gross margin is Rs.806 per head with net income of Rs. (-) 194 per head for a 6 monthold mutton animal. The sale price of mutton at farm level is Rs. 250 which generally keeps

farmers at a loss of Rs. 18 for producing a Kg of mutton (Table 18)

Table 18: Cost of production of muttonMutton Unit Quantity Rate(Rs) Amount

Produce

YS 6 month old 1 2700 2700

Manur 40 kg 1.25 8 10

Out Put 2710


Ave. beef @ 45% of Live weight Kg 10.8

Sale Price murrton Rs./Kg 250.0

Costs


Dry fodder @ 0.15 Kg per Day 40 kg 0.45625 120 55

Vet medicine 1 30 30Calf 1 1000 1000


Labour @ 1 mand day for 20 calfs Days 3.65 200 730



Variable cost 1904

Total cost 2904

Gross Margin/Head 806

Net Income/Head -194

Cost of Production of mutton Rs./Kg 269

I ncome (I ncluding manure Value) Rs./Kg 251

Return Rs./Kg -18

9.5.2 Cost of production of beef at feed lot framers

During the recent years feed lot fattening is also gaining popularity among the progressivefarmers and there is also shift towards rearing meat animals against the previous practice of

producing beef as a by product of dairy animals and draft animals. There was

A Value Chain Analysis of the Meat Sector in Pakistan

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