INVESTMENT OPPORTUNITIES IN AGRICULTURE, FISHERIES &

LIVESTOCK

MINISTRY OFNATIONAL FOOD SECURITY & RESEARCH

Agriculture Overview

Contribution to GDP = 20.9%

Labour force employed = 43.5%

Provides Livelihood to rural population = 66.7%

Average Growth rate in last 5 years = 2.8%

Share of agriculture in total exports = 57.3%

Agriculture Overview

Agricul-ture Sec-

tor20.88%

Industrial Sector20.30%

Services Sector58.82%

Crops8.27%

Live-stock11.77

%

Fisheries0.43% Forestry

0.41%

Sectoral Share in Agri.GDP2014-15

Contribution of Different Sectors in GDP (%) 2014-15

Source: Economic Survey of Pakistan 2014-15

Cotton and Cotton Based

Products58.60%

Fruit, Rice Fish and Livestock

27.50%

Others13.90%

87% of total Exports of Pakistan

Share of Agro-based Products in Export Earnings

Pakistan Bureau of Statistics

Export Patterns

Other Sectors3%

Leather7%

Engg1%

Food10%

Textile68%

Other Manuf.11%

2001-02

Other Sectors7%

Leather

5%

Other Manuf.

12%

Engg.1%

Food19%Textile

& Gar-

ments56%

2014-15

Source: Pakistan Bureau of Statistics

Overview

Total Area 79.61 M. Ha

Cultivated Area 22.00 M. Ha

Irrigated 80%

Population (2014-15) 191.7 Million Rural population 116.5 Million

Urban population 75.2 Million

Source: Pakistan Economic Survey, 2014-15

Sr.# Commodity Production Ranking

1 Chickpea 0.5 m ton 3rd

2 Cotton 14.0 m bales 4th

3 Livestock population 175.0 m heads 4th

4 Mango 1.9 m ton 5th

5 Sugarcane 63.0 m ton 5th

6 Milk 52.0 b litres 5th

7 Date 0.6 m ton 6th

8 Kinnow 2.0 m ton 6th

9 Apricot 0.3 m ton 6th

10 Wheat 25.5 m ton 8th

11 Onion 1.8 m ton 8th

12 Rice 7.0 m ton 13th

Status of Agriculture

WhyAgriculture?

Guarantees Food Security to over 190 million people

Jobs opportunities for millions through services and value addition

Minimum cost of development

Maximum return with minimum investment

Minimum gestation period

Most potent weapon for poverty alleviation

Equitable distribution of wealth

Life line for industrial sector

Minimum dependence on energy

Why Investment in Agriculture?

Investment Opportunities

1. Aquaculture Value Chain Development

2. Olive & Grapes Value Chain

3. Farm Mechanization

4. Inclusive Value Chain for Horticulture

5. Seed Enterprise (Vegetable Seed Production)

6. Livestock Breeding Farms

7. Dairy Products

8. Meat Production & Value Addition

9. Veterinary Vaccine & Pharmaceutical Production

Investment Opportunities

Aquaculture Value Chain Development

Grow out Farming Inland Areas Coastal and Marine

Existing Status Existing Farms 250,000 Acres (10 Clusters), Mainly Carps

25 Acres

Existing Production

1 ton/Acre Total 250,000 tons

Experimental

Potential to develop

Productivity 1 ton to 3.5 ton for carp &Upto 100 ton for catfish

6 ton per acre

Target to develop

One million ton carp and other fishOne million ton shrimp and high value fish

Investment required

Hatcheries 150 multi-purposes hatcheries (Rs. 30 million per hatchery)

150 Multipurpose hatcheries (Rs. 150 million per hatchery)

Feed mills 500 feed mills (Rs. 100 million per feed mill)

500 feed mills (Rs. 100 million per feed mill)

Cold Chain4000 refer trucks (each cost Rs. 5 million)

4000 refer trucks (each cost Rs. 5 million)

Processing Plants

800 fish processing plants 1000 fish processing plants

Manpower training required

Trained 50,000 farmers (training cost Rs. 50,000/farmer)

Trained 250,000 farmers (training cost Rs. 50,000/farmer)

Olive & Grapes Value Chain

Olive Value Chain Total Suitable Area 12.72

million ha Plantation Area 03

million ha Capital Cost (Plants) Rs.2

million Operational Cost

Rs.1 million/annum Value

Rs.25 million/annum

Grapes Value Chain Table Grapes demand in EU (Winter) 1.5 million ton Area in Pakistan

15000 ha Existing Production 66000

tons Potential area in Pakistan 1 million ha Value of Export as Summer Crop Rs.10.5 billion

Farm Mechanization

Total cultivated area 22 million ha (58.5%)

Total farms and types 8 million (93% small )

Farm mechanization in Pakistan Limited to tractors, cultivators,

trolleys , threshers & tube wells

Overall Power available One tractor/400 ha (arable land)

or 1.4kw/ha

Total Potential Clusters in Pakistan: 5000

Establishment of Rental Company (cluster of 1000 ha)

Total Investment per cluster Rs. 60 Million

Operational Cost Rs. 5 million/annum

Economic return/cluster/year Rs. 11 Million/Year

Inclusive Value Chain for Horticulture

Total Fruit Production 7 million tons

Existing large scale processing units >1000

Existing Value addition 2-5%

Export Value from Pakistan (USD million) Fresh fruits: 380

Dates: 51 (processed)

World horticulture market80 Billion US$

Pakistan’s share< 250 million US$

Target for next 10 years 20% (1.4 Million Ton)

Gap1.1-1.2 Million Ton

Quantity of Value added products 0.4 Million Ton

International Market Price 5000-7000 US$ per ton

Expected export value (10 year) 2.4 Billion US$

Seed Enterprise (Vegetable Seed Production)

Existing Status Vegetable Area 252,938 ha Local Seed Production Negligible Import of seed of vegetable 5000 tons Crops for seed Production 20 crops (onion, tomato,

chili etc.)

OP Vegetable Seeds Cost for 100 ha Rs.50 million Running cost Rs.25 million Value of seed Rs.70 million

per annum

Hybrid Vegetable Seeds Cost for 100 ha Rs.300 million Running cost Rs.100 million Value of seed Rs.500 million

per annum

Livestock Breeding Farms

Livestock herd: 175 million headsCattle (41.2), buffalo (35.6), Sheep (29.4), Goat (68.4), Camel (1.0)

Nili – Ravi and Kundhi buffaloes, Red Sindhi and Sahiwal cows are famous for milk production, heat tolerance and tick resistance

Elite animal milk production ranges between 20-30 litre/day Less than 50 well reputed public & private farms of elite animals exist Commercial dairying rely on import of exotic animals (Friesian and Jersey) Present number of imported dairy animals 46000 Value of each animal

2000 US$ Total worth

92 million US$ Potential for establishing breeding farm 400,000 each of 100

animals Investment for establishing 100 animal breeding farm:

Capital Investment Rs. 180 million

Operational costRs. 15 million

RevenueRs. 27 million

Dairy Products

Mozzarella Cheese (from Buffalo Milk) Buffalo Milk Production in Pakistan 32

billion litres

Milk processing capacity of cheese plant 1000 Litres /day

Mozzarella yield 150 kg/day (@ 15%)

Capital cost (one time investment) Rs. 7 million

Operational costRs. 22 million

Sale price of cheese (for export market) Rs. 2500/kg

Revenue from sale of cheese Rs. 112 million/year

Potential for channelizing 1 billion litres of milk

3000 cheese preparation plants of 1000 litre/day capacity each

1500 cheese preparation plants of 2000 litre/day capacity each

Goat Milk Cheese Goat Milk Production in Pakistan 850

million litres/year

Goat milk price Rs. 50/Litre

Plants required for processing (1 million/litre) 7 (no)

Milk processing capacity of cheese plant 500 Litres /day

Cheese yield 75 kg/day (@ 15%)

Capital cost (one time investment) Rs. 4 million

Operational costRs. 10 million

Sale price of cheese (for export market) Rs. 3000/kg

Revenue from sale of cheese Rs. 67 million/year

Dairy Products

Meat Production & Value Addition

Calf Fattening for 500 Calves (120-Day Cycle) Total beef production in the country 1951(000 tons) Cattle population

41 million Buffalo population

36 million Input Cost (One time) Rs.13

million Operational Cost

Rs.23 million Profit

Rs.1 million/cycleSmall Ruminant (Sheep/Goats) Fattening for 1000 heads (6-Month Cycle) Total mutton production in the country 671 (000 tons) Sheep population

30 million Goat population

69 million Input Cost (One time) Rs.6.0

million Operational Cost

Rs.16 million Profit

Rs.4.5 million/cycle

Veterinary Vaccines & Pharmaceutical Production

Vaccine coverage 15-20% Local Vaccine Production 10-12 million

doses (FMD, PPR, HS) Total Requirement 100 million doses

(different vaccines) FMD Losses: Rs. 6 billion & PPR: Rs.34 billion annually No vaccines produced for pets, equines and wild animals Veterinary Vaccines Type of products Viral &

Bacterial (Live & Killed) Plant cost Rs.1500

million Production capacity 100 Million

doses/annum Operation cost Rs.300-400

million/annum Expected revenue Rs.500-600

million/annumVeterinary Pharmaceutical Type of products

Antibiotics, anthelmintic, vitamins and other therapeutics

Plant cost Rs.1500 million

Operation cost Rs.450-550 million/annum

Expected revenue Rs.650-750 million/annum

Poultry Vaccine

Poultry Birds1343 million

Poultry vaccine market size Rs.5-6 billion/ annum

Distribution of market share

90 % by imported vaccines

5 % by three public sector institutes (VRI-Lhr, PRI-Karachi, VRI-Quetta)

5 % by four major private sector companies

Plant cost (Area, equipment, building) Rs.800 million

 Capacity120,000 vials/month

 Operational Cost Rs.361 million/month

Profit @ 10-15%Rs.40-50 million/month

Thank You