Poultry industry in Pakistan

History & Development of Poultry Industry in Pakistan

Prior to 1963 the native breed "Desi" was mainly raised which produced a maximum of 73 eggs per year under local conditions. An improved breed "Lyallpur Silver Black" was evolved in 1965-66 in the department of Poultry Husbandry, University of Agriculture, Faisalabad. The layers of this breed are capable of producing 150 egg/year and gaining 1.4 kg weight in 12 weeks of age under favorable management and feeding conditions.

Poultry in Pakistan was kept as backyard business for household needs. In early sixties the need of commercial poultry was felt which resulted in 1963, in the form of a national campaign to enhance the production of feed products in the country. Under this campaign the government announce a tax exemption policy on the income derived from poultry farming. Pakistan International Airlines (PIA) in collaboration with Shaver Poultry Breeding Farms of Canada started first commercial hatchery in Karachi. Simultaneously, a commercial poultry feed mill was started by Lever Brothers (Pvt), Pakistan Ltd., at Rahim Yar Khan, which was followed by other pioneers like Arbor Acres Ltd.

Special emphasis was laid by the Government on development of poultry industry in the country during 1965-75. The Government made major policy decisions to provide all possible facilities to poultry industry in the annual development plans. The incentives provided to poultry farmers/poultry industry included.

1. Tax exemption on income derived from poultry farming.

2. Import of flock and incubators was permitted under free list.

3. Allotment of state land on lease for poultry farming at very nominal rates.

4. Established poultry research institutes at Karachi and Rawalpindi through Food and Agricultural Organization (FAO) of the United Nations to facilitate research services specifically concerning disease control programmes.

5. Two meatless days were announced to encourage poultry meat consumption.

6. Subsidy on grains to form low cost quality ration, through UNDP-grains.

7. Loan through ADBP for the construction, of poultry sheds.

8. Established directorates of Poultry Production in Karachi and Punjab to provide extension services to the poultry farmers.

9. Establishment of Federal Poultry Board to coordinate government and industry activities in the poultry business.

The subsequent development of Pakistan’s Poultry Industry can be divided into four phases

Phase 1: The Introductory Period 1965-1970.During this period the early poultry ventures, involving risks were supported by Government policies that exempted poultry production form national tax levies and permitted producers to import genetically improved breeding stocks and equipment such as incubators. A number of catalytic forces shaped the early development of the poultry industry.

These forces included potential profits in the industry, availability of technologies and supportive

government policies resulting form the perception of a protein deficiency in Pakistani diet. The government of Pakistan also established the Directorate of Poultry Production at Karachi, which provided extension services to the growing numbers of poultry farmers. The early development of the industry was also characterized by emerging problems including rising feed costs, disease outbreaks and consumer preferences for Desi birds.

Phase 2: Institutional Development 1971-1975.As poultry production became a significant enterprise in the agricultural economy of Pakistan, the government strengthened institutions serving the new industry. The Federal Poultry Board was established to coordinate government and industry activities, in the layer and broiler business. Research services were offered through the Poultry Research Institute with the assistance of UNDP/FAO funds. The Directorate of Poultry Development was established in Punjab similar to that in Karachi. Poultry Producers struggled with the adverse effects of government programmes e.g. the ban on export of poultry products and the consequences of some major planning flaws such the establishment of poultry estates clustered together without adequate sanitation and health control. This phase is characterized by both the greatest success of the poultry industry and its greatest failure. A dramatic increase in poultry production resulted due to diverted investments form the nationalization of industries in other sectors. At the same time the clustering of production units led to large disease outbreaks and the lack of marketing facilities due to ban on export of poultry products limited industry growth.

Phase 3: The Production Boom 1976-1980.The government of Sindh followed a policy to attract investment in poultry farming by offering estate land under ten year leases. At the same time, the nationalization of other industries contributing the entry of capital into poultry industry, particularly in the Punjab, resulted in the poultry production boom. Commercial egg production increased from 624 million eggs in 1976 to 1223 million eggs in 1980. Broiler production increased form 7.2 million birds to 17.4 million birds during the same period. The increase volume of production was forced through limited marketing channels. Serious financial setbacks to poultry farming in Pakistan culminated from discontinuation of poultry exports; disease problems; high relative prices of poultry feed; deteriorating feed quality; and limited supply of feed ingredients. Poultry farmers faced with financial problems and seeking remedial measures formed the Pakistan Poultry Association in 1979 on the advice of the Federal Poultry Board.

Phase 4: Depression and Adjustment 1981-1990.Disease problems posed a serious threat to the sound development and consolidation of the industry. The large Karachi poultry estates began to close in 1984 and a number of poultry farms closed in other areas of Sindh. Production showed a decreased growth or even depression during early 1980 particularly of increases in the Punjab, Baluchistan and NWFP. However, in the later part of 1980’s starting form 1985 industry seemed to be readjusted with much rise in poultry number particularly in broilers. Faced with disease problems, lower productivity and numerous environmental and climatic difficulties, some of more successful farmers decided to produce under more modernized conditions and to establish their poultry farms in cooler, less polluted area of the country. Breeding farms in Karachi and Punjab thus relocated to Abbotabad, to the base of the Murree Hills and to the Valley of Quetta. The farmers also built houses with controlled environments for breeders, broilers and commercial layers.

1991 to Now:In this period was a disaster due to diseases, in 1990 the farmers suffered a great loss due to Hydro pericardium syndrome specially the farmers of Broiler and Broiler Breeder Birds. In 1991-92 an other disease Gumboro attacked the chicks of broiler, layer and parent flock that resulted in great mortality. With the passage of time efforts to reduce the incidence of these diseases and prophylaxes regarding vaccination and bio-security were done, this also resulted in establishment of new medicine companies and the importation of vaccines form abroad started. At national level institutes like Poultry Research Institute, Veterinary Research Institute and Agriculture University Faisalabad also done efforts to reduce

these diseases.

In 1995 a new disease Avian Influenza appeared in Murree and Abbotabad and mortality in parent flock rose up to 80% due to this disease and set a challenge to the scientists at national level. Conferences at the diagnosis of this disease were conducted in which scientists discussed their point of views, after great loss measures were adopted that resulted in controlling the disease. In 1996 parent flock increased in number due to absence of planning that resulted in depression in the market and the price of chicks decreased several times its cost of production. This depression in Poultry market continued in 1997 as result of ban on serving of lunch in marriage parties that reduced the demand of poultry products in the market up to 40%. Slowly in 1998 it started improving and by increase in price of chick the companies got a great profit. 1999 again a syndrome like influenza broke that cause great loss in some areas while some areas were safe. Now still there are many threats to the poultry industry the manor of which is the marketing problems of chicks to finished products, a great planning is required in this regard. At this time it is supposed that big firms like Be Be Jan can be help full to reduce the instability of the market but it may be before time.

Potential of poultry industryPoultry types include principally chicken, turkey ducks and geese. Poultry is raised for meat and eggs. The poultry industry has made great strides in the last few decades in Pakistan and has increased at the rate of 20 to 25 per cent Per annum

Yearly. . At present there are about more than 10,000 poultry farms in the country.

Modern poultry farming plays an important role as far as nutrition is concerned in Pakistan, it being an easy and relatively cheap method of raising the dietary standards of the people. The shortage of animal protein in Pakistan has been estimated about 1.5 million tonnes on the basis of even population of 140 million. Processing of Poultry and Its Importance in Human Diet

At present there are about 12000 poultry farms in the country with an investment of Rs. 10,000 million and are located in big cities such as Karachi, Lahore, Rawalpindi and Peshawar, etc, and some areas of Punjab. The average consumption of the animal protein is about 17 grams as against the daily requirements recommended of 28 grams. This deficiency can be met with the increase of production of poultry meat at a reasonable cost.

The ability of poultry to adapt to most areas of the world, the low economic value per unit; the rapid growth rate of poultry and the rapid generation time; all make poultry an ideal starting point

Pakistan: Poultry rates likely to fall as industry enters recovery phase Filed in Asia, Meat & Poultry on 12/03/2010 with no comments

The News – Pakistan

By By our correspondent

LAHORE: The prices of chicken meat will start to decline in couple of months as the industry has

entered recovery phase and the rates of raw materials have also reduced.

These views were expressed by the Executive Director of K&N’s Adil K Sattar while briefing to the

members of Lahore Economic Journalists Association (LEJA) at K&N’s poultry processing plant near

Lahore on Thursday.

Almost 40 per cent industry was closed due to drop in sale of chicken after bird flu and increase in

prices of poultry feed, he said adding that this slump had badly affected the poultry industry and out in

into a sudden slump. All these factors pushed the prices of chicken meat upwards, he observed adding

that the poultry sector has now been recovering from the crisis, which ultimately reduced the prices of

chicken meat.

Talking about chicken export, Adil pointed out that European Union gives subsidy to its poultry sector,

which makes Pakistani raw chicken meat uncompetitive in those markets; however he saw the

potential in exports of value added chicken products, especially to the Middle East.

He said in order to make Pakistani chicken products very competitive in the international market the

government needs to ensure agricultural productivity, which has a direct link with the production of

poultry feed.

He was of the view that Pakistan can enter the global Halal food market, which has been growing at a

rapid pace, even in non-Muslim countries. “Pakistan must establish itself as a reliable supplier of Halal

food products to the world,” he remarked.

Adil emphasized that local poultry industry must continue to modernise for attaining efficiency, and

thereafter should strongly consider adding value to poultry meat if it wants to compete effectively in

the global arena.

Pakistan’s poultry industry in terms of breeder population is considered among top ten poultry

industries worldwide. Country’s broiler production peaked at approximately 800 million per year in

2007-08. Presently the industry is in recovery phase after suffering heavy losses due to some

unfavourable circumstances, which forced a lot of farms and even breeding companies to close down.

He pointed out that the global halal food trade was estimated at $632 billion and overall halal trade

was estimated to be between 1.2 to 2 trillion dollars and Pakistan can get a sizeable share being a

trust worthy Islamic principles abiding country.

Similarly, the Middle East’s annual halal food imports are estimated at $45 billion, whereas France

alone exports 750,000 tons of halal chicken meat to Muslim countries. From Asia, Thailand is the

biggest exporter of halal food products even bigger than Malaysia, which has managed to establish

itself very well as a hub of halal food products.

Adil Sattar said that K&N’s introduced new dimensions, and took the lead in modernising the entire

poultry production chain decades ago for the promotion of poultry in Pakistan.

K&N’s is promoting the poultry industry on modern lines, meeting international standards and

providing consumers with world-class chicken products. He said K&N’s endeavoured to move in this

direction to ensure quality and food-safety.

Later, the journalists visited the poultry processing plant of K&N’s and keenly watched the efforts put

in the production and provision of hygienic and high quality chicken products for local consumers

“Poultry industry has much potential to generate revenue and white meat of poultry for excellent lean protein as well as cheap source as compared to red beef,” 

Recommendations: * The government should ensure that the quality of meat is safe, disease-free and healthy. Processing plants should be made responsible for safe, hygienic, nutritious and healthy chicken meat. The industry should be encouraged to install more plants by providing fiscal incentive and developing policies which will generate more income. For instance, annual sale of chicken meat during 2000 was Rs20 billion. This could be increased. 

Production of poultry meat as per international standards should be ensured. Birds should be vaccinated by opening centres and providing veterinary services to poultry farmers. They should be trained about the modern technology. A committee of competent scientists of livestock, poultry, and economist should be formed to monitor this sector and bring it at par with the international standards.