Project (Livestock Supply Chain Management) By: Fatima Sajid Course: Food Supply Chain Management (Instructor: Mr. Salman Bilal) M.Phil Food Safety and Quality Management Forman Christian College (A Chartered University) Roll Numbers: , and

Red Meat Supply Chain

Red meat supply chain  The United States is the largest beef producing country in the world with annual beef production of 12 million metric tons  US at third place with total beef exports of 1.0 million metric tons  Pakistan’s current red meat production is 3.2 million tons with 1.76 million tons of beef and million tons of mutton produced during  Despite the large livestock resources, Pakistan has not been able to exploit those potentially and make its mark in the international meat trade.  The major reasons are unavailability of indigenous meat breeds, lack of improved animal husbandry and modern practices regarding animal fattening for meat purpose, absence of well equipped, modern and certified slaughterhouses and meat processing units. Argi Business Quarterly, Pg#4, JULY - SEP 2012

Land Use by Farming The UK Market for Agri-Food and Horticultural Products, July 2013, Report

Food Supply Chain Management, Edited by Michael and Paul, Blacwell Publishing, P-78

Organization and structure of the supply chain  Some 300 Livestock auction marts are operational in the UK still account for over 50% of finished cattle sales and 70% of sheep sold live weight.  13 million ‘cattle units (cu)’ (one cattle unit is equivalent to one cow, or seven sheep or three pigs).  Around 450 operational abattoirs in the UK, of which about 250 were full throughput plants in 1997, accounting for 95% of total throughput  Decrease in slaughter  The massive FMD outbreak of 2001–2002 resulted in the slaughter of ‘only’ 6 million animals in total (mostly sheep) versus a normal annual kill of about 32 million animals. Food Supply Chain Management, Edited by Michael and Paul, Blacwell Publishing, P-77

Technical complexity of the supply chain Auction trade traditionally happens through livestock auction markets, deal in breeding stock, between regular buyers and sellers, and even via electronic auctions, Depends on establishment of reliable quality and grading systems Market variety of types, grades and conformations (breeds and cross-bred animals) fed through four different feeding regimes, producing three different carcass grades Slaughter hung and matured after slaughter as a carcass, for the necessary biochemical and biophysical changes to occur to produce tender and tasty meat Depending upon the grade Food Supply Chain Management, Edited by Michael and Paul, Blacwell Publishing, P-75,76

Technical complexity of the supply chain Cutting breakout of the carcass into joints and cuts and the all-important by-products, offcuts and offals final consumer products Distribution retailed through a variety of different outlets such as traditional butchers, supermarkets, corner stores and independent grocers, catering establishments Food Supply Chain Management, Edited by Michael and Paul, Blacwell Publishing, P-75,76

The UK Market for Agri-Food and Horticultural Products, July 2013, Report

Meat price  According to DEFRA (2001b), meat price changes (both increases and decreases) are fully or largely transmitted through the supply chain from producer to retail  Retailers try to reduce the variability of retail prices called ‘levelling’ behavior  overall there was little dispute that in the wake of the BSE crisis,  costs in the supply chain rose significantly and the overall value of the carcass fell because of the reduction in the value of some of the by-products. At the same time, consumer demand for beef and lamb fell, making it impossible for retailers to raise prices Food Supply Chain Management, Edited by Michael and Paul, Blacwell Publishing, P-79

Livestock sector of Pakistan  livestock makes up almost 55.1% of the agriculture value added and contributes up to 11.6% of the GDP  future high growth in agriculture is expected to be led by the livestock sector.  livestock is growing at an annual average rate of 4% since 2007  herd population is lower than the demand for livestock products it would be a challenging situation in the future to cope with the supply-demand gap  The present strategy of the government is to encourage the private sector to invest into the livestock business. “private sector-led development” initiative. ENHANCING LIVESTOCK SECTOR EXPORT COMPETITIVENESS Report, Pg #2

Meat Consumption Trends  World's top ten consumers of goat meat and beef based on USDA data.  Pakistan's goat meat consumption of 779,000 tons in ranks it among the top 3 in the world.  1.7 million tons of beef consumption in Pakistan is ranked 9th among beef consuming nations  18 Kg per person, it's less than half of the world average of 42 Kg per capita meat consumption reported by the FAO Pakistan Among Top Meat Consuming Nations; Report

The Meat Value Chain  The meat value chain in Pakistan may be divided into five segments namely; a. Inputs used in breeding of the livestock b. Breeding of live animals meant for procuring meat and meat products c. Marketing of animals bred for obtaining meat and meat products d. Processing of meat products and value addition e. Marketing of meat in Domestic market International markets ENHANCING LIVESTOCK SECTOR EXPORT COMPETITIVENESS REPORT

ENHANCING LIVESTOCK SECTOR EXPORT COMPETITIVENESS, REPORT

The rise of Pakistan in the global meat trade The Express Tribune, May 9th, 2011

Supply Channels Channel 1 rural farmer selling 80% of the meat animals to the village beopari 34.5% to the live animal market and 15% to the rural butchers. Channel 2 beopari selling 98% of the meat animals in the live animals market,2% to the rural butchers Channel 3 52% of the meat animals are purchased by the contractors, 15% by the traders/wholesalers, 31% by the urban butchers and only 2% by the rural butchers Channel 4 27% of the meat animals to traders/wholesalers, 1% to the exporters and 72% to the urban butchers. Channel 5 16% of the meat animals are purchased by the slaughterhouses from the traders/wholesalers, while 84% are purchased by the urban butchers ENHANCING LIVESTOCK SECTOR EXPORT COMPETITIVENESS, REPORT

Meat Prices in Pakistan  According to the United States Department of Agriculture (USDA) Statistics 2012, Pakistan ranks amongst the top three countries in mutton consumption at 779,000 tons in , and ninth in beef consumption at 1.7 million tons in the same year  Price of meat has increased by 25 % in one year  Shows upward moving trend ENHANCING LIVESTOCK SECTOR EXPORT COMPETITIVENESS, REPORT

Applying Lean Thinking to the Red Meat Industry  Segmented supply chain in Pakistan  Rates are independently set at every level  Check and Balance  Improved Animal Health & Traceability Food Chain Center ; David Taylor and David Simons, Cardiff University

Applying Lean Thinking to the Red Meat Industry Food Chain Center ; David Taylor and David Simons, Cardiff University

Opportunity for Halal Food Market  The halal food market, at just over $640 billion a year worldwide, is one of the largest opportunities in the food and agribusiness sector  Between 2001 and 2009, the global beef trade grew at an average of 10.4 per cent to reach just over $30 billion according to FAO  The market for halal beef imports in the Middle East and Southeast Asia alone grew by over 18.2 per cent to reach just under $2 billion a year during that same period.  Punjab is considered the most cost-effective region for the production of beef in South-Asia The rise of Pakistan in the global meat trade The Express Tribune, May 9th, 2011 Livestock and Diary; Punjab Investment Conference 2010 Report

Pakistanis in Business  Pakistan’s market share within this rapidly growing market is a paltry 2.9 per cent  Pakistani red meat exports have risen by an average of 68.6 per cent a year  Iran, in particular, seems to be keen for Pakistani beef. The Iranian government has invested 50 per cent of the capital in the Lahore Meat Company, a dedicated abattoir that will export meat to Iran.  PK Livestock, a Karachi-based abattoir which has been exporting red meat to the Middle East for over two decades.  Zenith, a Lahore-based exporter, became the first Pakistani company to sell beef to Malaysia  Pakistan’s total meat exports may come close to $100 million in 2011 and could surpass the $500 million mark in about five years, according to projections by ASI Partners. The rise of Pakistan in the global meat trade The Express Tribune, May 9th, 2011

PAMCO (Punjab Agriculture & Meat Company)  Government owned Organization  Aimed at formalizing horticulture and meat sector through interventions at each tier of value chain under compliance of international quality standards  PAMCO has collaborated with international recognized firms to ensure traceability system of animals at registered farms through e-tagging and certification  Exporting meat in more then 15 countries  Capacity of 1000 beef and mutton animals per day PAMCO; Pakistan Halal Meat Hub. REPORT

Limitations  Aprox.6-7 million male calf slaughtered in first month of age  Non commercial-less productive system  Lack of modernized processing system  Lack of Value Chain approach( Production, Marketing, Processing/Value addition)  Lack of integration among various institutions  Quality control issues Pakistan halal meat sector challenges; slideshare.net

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