The livestock sector in Pakistan contributes 11.3% to national GDP and accounts for 52% of agricultural value addition. Pakistan has the 3rd largest herd size in the world, with cattle, buffalo, sheep, and goat populations all growing between 35-68% from 2000-2006. The livestock sector employs around 35 million people. In Punjab, almost 75% of the rural population is directly or indirectly employed by the livestock sector, which generates $35 billion annually. The meat and dairy industries in Punjab are underdeveloped and fragmented, with opportunities for investment and growth.

2. Overview of Livestock Sector

3. Livestock Sector - Pakistan
Key Facts & Trends
• Livestock sector contributes 11.3% to the national GDP
• Accounts for 52% of agricultural value addition
• Total investment base in livestock is valued at PKR 1
trillion
• ~35 million people depend on the Livestock sector for
their livelihood
• Pakistan has the 3rd largest herd size in the world
Source: Punjab Economic Report 2008-09

4. Herd Size - Pakistan
Livestock Pop. 2000 2006 Growth
(millions)
Cattle 8.6 14.4 68%
Buffaloes 13.2 17.8 35%
Sheep 4.1 6.4 54%
Goats 13.7 19.8 45%
Poultry 25.0 25.9 ~4%
Source: Punjab Development Statistics

5. Livestock Sector - Punjab
Key Facts & Trends
• Almost 75% of Punjab's rural-population is either directly
or indirectly employed by the livestock sector
• Sector generates approximately USD 35 billion annually
• Livestock sector in Punjab is fragmented
▫ 86% of farmers have holdings of less than 5 animals
• Punjab possesses the 2nd largest buffalo population in the
world
Source: Punjab Economic Report 2008-09 and FAOSTAT

6. Punjab’s Meat Industry
Key Facts & Trends
• Pakistan produced 3 million tons of meat in 2008
• Demand for meat in Punjab is estimated to be growing at 6%
per annum
▫ Demand/supply gap is widening at 4.2% per annum
• The meat industry is fragmented and lacks formal channels
▫ A vast majority of production and distribution is primarily
limited to the informal channels
• There is need for investment in integrated meat processing
and value-addition
Source: FAOSTAT and Punjab Development Statistics

7. Punjab’s Meat Industry
Key Facts & Trends
(Cont’d)
• Besides growing domestic demand, meat industry has
enormous export potential
▫ To both traditional and non-traditional (“Halal”) markets
▫ Punjab is considered the most cost-effective region for the
production of beef in South-Asia
Source: FAOSTAT, Punjab Development Stats and US Dept. of Agriculture (2004)

8. Overview of Dairy Sector

9. Dairy Sector - Pakistan
Key Facts & Trends
• Pakistan is amongst the world’s 5 largest milk producing nations
• Produces~42 billion liters annually
▫ However, only 34 billion liters becomes available for
consumption due to wastage
• Milk industry is under-developed and unorganized; lacks
infrastructure
▫ Annual milk yield is 1000 Kg per animal per year which is roughly
half of the world average
• Informal channels service 97% of domestic dairy consumption
while remaining 3% is serviced by formal/organized channels
Source: SMEDA Reports

10. Dairy Sector - Punjab
Key Facts & Trends
• Punjab is the 3rd largest milk producer in the world (IFCN 2009)
• Punjab’s contribution to Pakistan’s total milk production is
approximately ~67%
▫ This equates to 28 billion liters annually
• Milk available for consumption in Punjab falls short of demand
by 15%-20 % each year
▫ Deficit is met by importing milk powder
• Furthermore, demand for milk in Punjab is expected to grow
3.2% annually
• Only 2%-3% of total milk produced is processed and distributed
through formal, organized channels
Source: Punjab Economic Report 2008-09 and FAOSTAT

11. Thank You