LAHORE, July 20 (ABC): The Punjab government plans to strengthen the meat and dairy value chains through a Rs149.9 billion public-private investment programme. The initiative aims to raise Pakistan’s livestock exports beyond $4 billion.
According to official documents available with Wealth Pakistan, Punjab’s livestock sector represents a major untapped export opportunity. Pakistan’s meat exports currently stand at $517 million, accounting for only 0.3 per cent of the global meat market.
Meat value chain
The initiative seeks to develop an integrated meat value chain. It will include modern slaughterhouses and feedlots. It will also establish meat processing and packing facilities, certification systems, disease control measures, and research centres.
The proposed meat value chain will cover the entire production process. It will begin with live animals at the farm gate. It will also cover slaughtered carcasses, chilled and frozen meat, edible offal, processed meat products, by-products, and the gelatin and collagen industry.
Of the total Rs149.9 billion investment envisaged under the livestock value stream, the government plans to provide Rs59 billion in financing support. The private sector is expected to invest Rs70 billion.
Pakistan’s meat exports mainly go to the United Arab Emirates (38.4 per cent), Saudi Arabia (29.1 per cent), Kuwait (9.4 per cent), and Qatar (6.3 per cent). The remaining 26.8 per cent go to other markets.
According to the documents, the programme aims to increase milk and meat yields by 25 per cent. It will also create more than 15,000 jobs each in the meat and dairy sectors.
The government expects meat exports to increase by 200 per cent. It also expects post-slaughter losses to decline by 12 per cent. The programme seeks to reduce milk and meat imports by $40 million.
Proposed investments include meat processing plants costing Rs2.7 billion per unit. Modern slaughterhouses and meat offal processing plants will cost Rs2.1 billion per unit. Commercial-scale feedlots will cost Rs750 million per unit, while corporate feedlots and integrated meat packing houses will cost Rs4 billion each.
To improve certification and compliance with international standards, the private sector plans to invest Rs65 billion in the meat value chain. The government will provide a financing subsidy of Rs19.1 billion.
Dairy value chain
Under the proposed programme, the government will strengthen the dairy value chain. It will invest in processing facilities, milk collection centres, cold-chain logistics, livestock financing, farmer training, disease control, and supply chain support systems.
The government will invest Rs1.5 billion in the dairy value chain. Pakistan’s milk exports currently stand at $26.2 million, representing only 0.0001 per cent of the global dairy market.
Punjab has a cattle and buffalo population of 57 million. However, dairy exports remain minimal, while post-harvest milk losses stand at 20 per cent.
The proposed dairy value chain will cover raw milk collection, primary and rural dairy products, fat-based dairy products, fermented dairy products, cheese and other dairy foods, dairy ingredients, nutraceuticals, functional dairy products, and export-oriented dairy production.
According to the documents, planned investments include milk pasteurisation and packaging plants costing Rs30 million per unit. Butter and ghee processing units will cost Rs83 million per unit. Ice cream processing plants will cost Rs150 million per unit, while milk powder processing plants will cost Rs300 million per unit.
Farm-level investments will include total mixed ration wagons (13-tonne) at Rs10 million per unit and 10-animal milking parlours costing Rs25 million each.
The private sector plans to invest Rs5 billion in the dairy value chain. The government will provide a financing subsidy of Rs1.5 billion.
Overall investment
Overall, the government plans to invest Rs59 billion across the livestock value chain. This includes Rs29 billion for meat-sector initiatives and Rs30 billion for dairy development.
Major interventions include the Punjab Livestock Card, development of a meat free zone, supply chain support, livestock farmer training, and heat transformation programmes. According to the documents, these measures will strengthen production, improve exports and reduce dependence on imports.
