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1
Meat Industry Research
Report on Meat Industry
July 25 2011
2
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan Animal Supply Analysis
4. Pakistan Meat Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
3
The global population reached 6.9 Billion in 2010. Thecurrent growth rate is 1.15% per annum and is expected todecline steadily to less than 1% by 2020
Average per Capita Production of Meat elevated from 40.6Kg in 2007 to 41.1 Kg in 2010 with CAGR of 0.41%
Beef Production hiked from 62,838 KT in 2005 to 64,927 KTin 2010 with CAGR of 0.8%
Poultry Production increased worldwide from 83,234 KT in2005 to 97,546 KT in 2010 with CAGR of 3.3%
The Sheep Meat Production rose from 12,455 KT in 2005 to12,819 KT in 2010 with CAGR of 1.1%
58,000
59,500
61,000
62,500
64,000
65,500
67,000
68,500
70,000
2005 2006 2007 2008 2009 2010
“00
0”
MT
Global Beef and Veal Production
50,000
60,000
70,000
80,000
90,000
100,000
110,000
2005 2006 2007 2008 2009 2010
“00
0”
MT
Global Poultry Meat Production
11,800
12,000
12,200
12,400
12,600
12,800
13,000
13,200
13,400
2005 2006 2007 2008 2009 2010
“00
0”
MT
Global Sheep Meat Production
Global Meat Industry
Rising Commodity Prices
Curtailed Production
Global Recession declined mutton production in wake of lower demand
Global Recession declined production growth rate in wake of lower demand
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
4
The meat consumption worldwide had a steady growthfrom 2005 to 2010.
Average per Capita Consumption of Meat from 2007 to2010 elevated from 38.5 Kg to 38.99 Kg with CAGR of0.55%
The consumption of Beef from 2005 to 2010 rose from61,621 KT to 64,273 KT with CAGR of 0.87%
Global Poultry Production from 2005 to 2010 hiked from82,820 KT to 97,511 KT with CAGR of 3.41%
Global Sheep Meat Production from 2005 to 2010 rosefrom 12,318 KT to 12,802 KT with CAGR of 1.27%
59,000
60,000
61,000
62,000
63,000
64,000
65,000
66,000
2005 2006 2007 2008 2009 2010
“00
0”
MT
Global Beef and Veal Consumption
75,000
80,000
85,000
90,000
95,000
100,000
2005 2006 2007 2008 2009 2010
“00
0”
MT
Global Poultry Meat Consumption
12,000
12,200
12,400
12,600
12,800
13,000
2005 2006 2007 2008 2009 2010
“00
0”
MT
Global Sheep Meat Consumption
Global Meat Industry
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
5
Global Beef and Veal Demand Forecast
Factors that derive the Meat demand are human populationGrowth Rate, Per Capita GDP and Meat Prices
Per Capita GDP is an important factor that effects the meatdemand, given the fact that most of the Global population ispoor. The relation between the marginal propensity toconsume meat and Per Capita GDP will not be linear ,in fact, itwill have an exponential relationship
Meat Prices are inversely proportional with Meat Demand
The Global demand for beef is expected to grow at a CAGR of1.3%
Global Beef and Veal Supply Forecast
The primary drivers of Meat Supply are Animal BreedingRate, Commodity Prices and Meat Prices
Meat Supply is directly related to Animal Breeding Rate andMeat Prices while inversely related to Commodity Prices asCommodity Price determines the cost of raising animals
Beef Supply is expected to grow at CAGR of 1.3%, althoughDemand & Supply growth rates are equal, the Global BeefSupply is expected to exceed Beef Demand by 674 KT in 2015due to higher base effect
Global Meat Industry: Demand & Supply Forecast (Beef)
62,000
64,000
66,000
68,000
70,000
2011 2012 2013 2014 2015
“00
0”
MT
Global Beef and Veal Supply Forecast 2011 - 2015
62,000
64,000
66,000
68,000
70,000
2011 2012 2013 2014 2015
“00
0”
MT
Global Beef and Veal Demand Forecast 2011 - 2015
Source: OECD FAO
Source: OECD FAO
6
Global Poultry Meat Demand Forecast
Global Poultry Meat Demand is Forecasted togrow from the base of ~100,135 KT to 109,491 KTwith a CAGR of 2.44%
The growth of Poultry Demand can be primarilyattributed to the following factors:
Increase in Global Human Population.
Lower Poultry Prices as compared to Beef andMutton.
Increase in GDP per Capita
Global Poultry Meat Supply Forecast
Global supply of poultry meat is forecasted to growfrom the base of 100,115 KT to 109,473 KT with aCAGR of 2.4%
Slightly lower Supply Base as compared to Demandbase and lower Poultry Meat Supply Growth Rateas compared to Poultry Meat Demand GrowthRate will produce a deficit of 18 KT in 2015
Global Meat Industry: Demand & Supply Forecast (Poultry)
95,000
100,000
105,000
110,000
115,000
2011 2012 2013 2014 2015
“00
0”M
T
Global Poultry Meat Demand Forecast 2011 - 2015
95,000
100,000
105,000
110,000
115,000
2011 2012 2013 2014 2015
“00
0”M
T
Global Poultry Meat Supply Forecast 2011 - 2015
Source: OECD FAO
Source: OECD FAO
7
Global Sheep Meat Demand Forecast
Global Sheep Meat demand is forecasted to be onthe higher side with a CAGR of 2.03%
Demand is Forecasted to grow from the base of~12,802 KT to 14,155 KT.
The growth in Sheep Meat Demand can beprimarily attributed to the following factors:
Increase in Global Human Population
Increase in GDP per Capita
Global Sheep Meat Supply Forecast
Global Sheep Meat Supply growth is expected tooutperform Demand growth by a margin of 7 bpsfor the period under consideration
In addition to higher growth rate as compared toDemand, Supply also outperforms demand interms of absolute numbers, thanks to higher baseeffect i.e. 12,819 KT, however the Global DemandSupply gap remains at a minimal level with thesurplus Supply of 67 KT
Global Meat Industry: Demand & Supply Forecast (Sheep)
12,500
13,000
13,500
14,000
14,500
2011 2012 2013 2014 2015
“00
0”M
T
Global Sheep Meat Demand Forecast 2011 - 2015
12,500
13,000
13,500
14,000
14,500
2011 2012 2013 2014 2015
“00
0”M
T
Global Sheep Meat Supply Forecast 2011 - 2015
Source: OECD FAO
Source: OECD FAO
8
Uruguay leads the beef and veal consumption per capitawith 62.1 KG/person per annum while Argentina is rankednumber at number two with per capita consumption of55.8kg/person per year. Graph shows that developingcountries consume Beef and Veal more than developedcountries
Kuwait consumes the most poultry meat in terms of percapita i.e. 59.9kg/person per year followed closely by UAEwith almost similar consumption of 59.1kg/person per year
Iran has the highest Sheep Meat Per Capita Consumptionwith ~16 Kg Per Person consumption Per annum followedby Australia with ~11 Kg Per Person consumption
Global Meat Industry: Consumption Wise Top 5 Countries
0
10
20
30
40
50
60
70
Uruguay Argentina United States
Brazil Paraguay
KG
/ P
ers
on
Beef and Veal Per Capita Consumption 2010
010203040506070
Kuwait United Arab
Emirates
Brazil United States
Hong Kong
KG
/ P
ers
on
Poultry Meat Per Capita Consumption 2010
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
16
11
6
3 3
-
4
8
12
16
20
Iran Australia Saudi Arabia
China South Africa
KG
/ P
ers
on
Sheep Meat per Capita Consumption2010
9
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan Animal Supply Analysis
4. Pakistan Meat Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
10
Current Global Muslim population is estimated to
be 1.9 Billion
Global Halal products market was estimated at
US$2.3 trillion excluding Islamic banking in 2010
Food and Beverages covers a significant share of
the overall Halal Products Market
The volume of trade in Halal food business is
enormous with an estimated annual value of USD
644 Billion globally
Major Halal Meat Importing Muslim Countries
include GCC Countries, Iran and Malaysia, while
major Meat Exporting countries include
Brazil, Australia and India
Global Halal Food Industry
Statistics 2008 2009
ContinentMuslim
Population (Million)
Muslim Population
(Million)
Africa 462.4 514.50
Asia 1,130.8 1,258.26
Europe 51.5 57.26
North America 7.1 7.93
South America 2.4 2.68
Oceania 0.5 0.56
Total 1,654.6 1,841.2
153
406
67
2 16
-
100
200
300
400
500
Africa Asia Europe Australia American
USD
Bill
ion
Global Halal Food Market Size 2010
Source: WHF Secretariat
Source: www.islamicpopulation.com
11
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan Animal Supply Analysis
4. Pakistan Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
Agricultural sector plays a pivotal role in Pakistan’seconomy, as second largest sector with contribution ofover 22% to the GDP and employing ~45% of totallabor force
Livestock has a Lion’s share of 50% in the Agriculturalsector
Livestock is further subdivided into:
Milk Meat
Milk having larger share due to lack of attentiontowards meat processing industry
12
22%
24%
55%
0% 20% 40% 60%
FY 2010 - 11
Sector Contribution to GDP
Services Industry Agriculture
50%50%
Subsectors Contribution to Agriculture
Crops Livestock
0
4,000
8,000
12,000
16,000
FY06 FY07 FY08 FY09 FY10
Historic GDP in PKR Billion
Pakistan Supply Analysis: Overview of Pakistan
Source: Economic Survey 2010 – 2011 Source: Economic Survey 2010 – 2011
Source: SBP Website
13
Province Name
Cattle Buffaloes Sheep Goats Poultry
Punjab 16,711,848 19,990,672 6,666,615 22,069,396 27,616,195
Sindh 8,029,928 8,267,924 4,148,195 13,991,265 15,068,745
Balouchistan 2,613,146 360,282 13,417,779 13,114,868 6,301,559
KPK 6,920,078 2,171,121 3,524,412 10,682,471 29,523,502
Total 34,275,000 30,790,000 27,757,000 59,858,000 78,510,000
Pakistan Animal Supply Analysis: Province Wise
Source: Economic Survey 2010 – 2011
Administrative Unit (Punjab) Cattle Buffalo Sheep Goats Poultry
Islamabad District 59,349 95,095 854 85,594 192,426
Rawalpindi District 398,497 279,062 17,849 544,361 1,136,360
Attock District 447,810 136,720 189,618 699,598 1,015,310
Jehlum District 193,391 164,191 62,088 337,396 351,547
Chakwal District 504,725 163,888 165,703 646,001 873,017
Gujran Wala District 260,739 707,522 90,368 192,589 748,632
Hafiza Bad District 212,315 563,835 24,415 119,703 487,026
Gujrat District 168,698 465,848 37,315 231,575 293,516
Mandi Bahawul Din District 261,808 640,308 17,270 203,692 601,692
Sialkot District 317,292 688,186 91,161 178,692 394,962
Narowal District 181,221 350,141 20,131 196,768 267,019
Lahore District 156,864 454,082 42,645 130,796 297,481
Kasor District 452,322 1,221,581 103,461 407,079 680,444
14
Pakistan Animal Supply Analysis: District Wise (Punjab No. of Heads)
Province Wise RankingAdministrative Unit (Punjab) Cattle Buffaloe Sheep Goats Poultry
Okara District 381,995 991,651 95,116 396,616 568,249
Sheikhupora District 327,946 598,141 78,964 204,929 599,070
Nankana Sahib District 151,551 451,709 41,023 284,449 460,996
Faisala Bad District 534,127 1,292,636 57,377 1,007,057 942,807
Toba Tek Singh District 316,943 494,382 49,356 560,518 427,283
Jhang District 1,012,080 1,323,706 403,501 1,120,653 1,519,329
Sargodha District 666,612 774,605 140,800 653,977 954,156
Khushab District 400,012 189,668 175,277 588,905 619,812
Mian Wali District 529,658 216,018 240,760 560,716 814,447
Bhakkar District 624,162 293,750 481,561 729,792 1,087,533
Multan District 578,093 469,137 84,594 661,378 778,090
Loodhran District 424,393 262,815 38,453 476,705 532,319
Vihari District 401,215 690,737 105,600 707,169 715,852
Jhang District has the largest
population of Buffaloes while second largest
Population of Cattle in Punjab, Located at the center of Punjab
15
Supply Analysis: Pakistan – District Wise ( Punjab )
Jhang District has the largest
population of Buffaloes while second largest
population of Cattle in Pakistan.
Country Wise Ranking
Pakistan Animal Supply Analysis: District Wise (Punjab No. of Heads)
Source: Pakistan Census Survey 2006 figures adjusted for Economic Survey 2010 – 2011 figures
Administrative Unit (Punjab) Cattle Buffalo Sheep Goats Poultry
Sahiwal District 276,480 755,309 52,907 531,710 613,042
Pakpattan District 222,180 654,466 61,281 353,111 434,778
Khanewal District 491,692 637,786 163,105 792,622 867,580
D G khan District 571,328 246,402 675,944 955,330 1,117,878
De Ex Area of D.G.Khan District 176,082 904 496,319 749,263 430,062
Rajanpur District 431,700 225,599 410,696 705,031 704,242
De Ex Area of Rajanpur District 15,368 - 168,829 71,613 26,632
Layyah District 674,679 339,349 529,500 635,946 974,872
Muzafargarh District 1,359,470 676,647 362,894 1,177,505 1,708,315
Bahawalpur District 638,306 686,261 167,695 1,162,641 1,059,971
Bahawalnager District 630,259 853,876 205,193 1,065,308 1,041,534
Rahim Yar Khan District 602,431 923,480 143,904 1,656,285 1,186,309
Cholistan District 658,058 11,177 373,084 286,325 91,608
Grand Total 16,711,848 19,990,672 6,666,615 22,069,396 27,616,195
16
Muzafargarh District has the largest
population of Cattle while second largest population of Poultry
in Pakistan. Strategically located near Sindh Province
Muzafargarh District has the largest
population of Cattle and Poultry in
Punjab. It is located in the Southern Belt
of Pakistan near Rahim Yar Khan
Province Wise Ranking
Country Wise Ranking
Pakistan Animal Supply Analysis: District Wise (Punjab No. of Heads)
Source: Pakistan Census Survey 2006 figures adjusted for Economic Survey 2010 – 2011 figures
Administrative Unit (Sindh) Cattle Buffalo Sheep Goats Poultry
Hyderabad District 88,687 348,240 30,530 329,368 336,233
Badin District 365,687 561,230 233,761 643,572 651,934
Thatta District 476,129 413,519 169,900 391,025 1,037,522
Dadu District 543,601 434,769 297,325 890,368 853,422
Jamshoro District 189,856 133,748 179,978 460,941 300,423
Tando Allah Yar District 67,427 156,821 17,945 236,633 255,036
Matiari District 309,492 264,346 54,350 367,251 227,924
Tando Muhammad Khan District 66,577 177,896 25,394 151,647 255,302
Mirpur Khas District 233,688 263,968 71,177 741,186 389,343
Umer Kot District 228,789 110,209 156,146 596,930 191,825
Ghotki District 326,643 277,995 77,025 417,224 466,114
Sanghar District 429,307 364,437 87,584 775,208 466,216
Sukkur District 245,388 221,342 49,747 277,760 463,754
17
Pakistan Animal Supply Analysis: District Wise (Sindh No. of Heads)
Administrative Unit (Sindh) Cattle Buffalo Sheep Goats Poultry
Tharparkar District 872,291 52,184 1,241,346 2,468,211 280,822
Khair Pur District 572,155 594,596 114,971 1,002,100 1,544,768
NawabShah District 393,306 439,586 106,689 976,555 920,131
Naushero Feroz District 388,170 597,587 54,035 913,024 993,535
Larkana District 250,694 598,487 54,740 276,056 948,556
Shahdad Kot District 266,253 422,547 167,602 391,077 1,201,241
Shikar Pur District 592,578 619,102 307,531 380,662 1,136,063
Jaccoba Bad District 588,173 528,484 387,408 583,585 1,131,266
Kashmore District 221,326 220,440 144,973 164,729 553,891
Karachi District 313,714 466,391 118,038 556,152 463,423
Grand Total 8,029,928 8,267,924 4,148,195 13,991,265 15,068,745
18
Tharparkar has the largest population of
Goats while third largest population of
Cattle & Sheep . Khair Pur has the
fourth largest population of Poultry.
Tharparkar has the largest population of Cattle, Sheep & Goat
in Sindh, while Shikarpur & Khair
Pur have the largest population of
Buffaloes & Poultry respectively
Province Wise Ranking
Country Wise Ranking
Pakistan Animal Supply Analysis: District Wise (Sindh No. of Heads)
Administrative Unit (Balochistan) Cattle Buffalo Sheep Goats Poultry
Quetta District 13,038 28,776 171,648 133,972 136,803
Pishin District 106,021 1,120 877,352 561,455 566,856
Killa Abdullah District 61,585 540 340,595 128,431 310,968
Chagai District 7,625 23 215,583 333,153 99,066
Sibi Distrcit 63,438 6,908 210,575 231,625 271,413
Kohlu District 201,956 1,648 1,369,351 905,404 183,848
Dera Bugti District 167,973 7,654 530,346 862,877 197,671
Ziarat District 2,237 14 125,807 154,066 53,726
Loralai District 152,836 5,213 822,575 369,181 269,599
Musa Khel District 228,801 1,859 1,024,600 516,513 242,807
Barkhan District 135,999 2,258 433,671 173,142 166,210
Killa Saifullah District 80,428 170 1,117,804 872,073 292,423
Pakistan Animal Supply Analysis: District Wise (Balochistan No. of
Heads)
Administrative Unit (Balochistan) Cattle Buffalo Sheep Goats Poultry
Zhob District 207,163 6,222 1,231,027 974,789 244,952
Jafara Bad District 311,596 176,199 253,014 315,969 540,764
Naseera Bad District 192,213 94,872 155,617 237,369 311,500
Bolan District 175,946 4,676 130,538 852,581 375,857
Jhal Magsi District 90,786 4,815 64,232 332,400 168,177
Lasbella District 117,212 8,989 384,861 883,949 241,677
Mastung District 10,005 514 489,267 372,707 233,119
20
Zhob District has the 11th largest
population of Goats while third largest
population of Sheep in Pakistan.
Jafarabad Districthas the largest population of
Cattle, and buffaloes while Kohlu and
khuzdar District have the largest
population of Sheep and Goat
Province Wise Ranking
Country Wise Ranking
Pakistan Animal Supply Analysis: District Wise (Balochistan No. of
Heads)
Administrative Unit (Balochistan) Cattle Buffalo Sheep Goats Poultry
Kalat Distrct 36,985 667 1,298,894 898,764 353,898
Khuzdar District 119,869 6,513 1,158,380 1,152,939 358,626
Awaran District 21,434 45 131,799 383,182 118,846
Kharan District 17,224 133 697,812 707,487 215,581
Kech (Turbat) District 50,363 345 67,793 506,792 222,527
Gawadar District 14,314 57 19,243 98,935 56,385
Panjur District 26,099 55 95,394 155,115 68,259
Grand Total 2,613,146 360,282 13,417,779 13,114,868 6,301,559
21
Kalat District has the 2nd largest
population of Sheep in Pakistan.
Khuzdar District has the fifth largest
population of Goats
Khuzdar District has the 5th largest population of
poultry in Balochistan, while
Kalat District has the 2nd largest
population of Sheep and 4th largest
population of goats
Province Wise Ranking
Country Wise Ranking
Pakistan Animal Supply Analysis: District Wise (Balochistan No. of
Heads)
Administrative Unit (KPK) Cattle Buffalo Sheep Goats Poultry
Peshawar District 258,754 161,616 70,429 295,214 2,064,431
Nowshera District 221,091 120,403 73,403 219,728 956,248
Charsadda District 278,176 124,689 49,560 192,762 1,234,015
Mardan District 286,926 130,483 54,067 224,058 1,674,656
Sowabi District 235,477 116,656 15,578 182,177 1,234,545
Kohat District 202,109 30,725 114,265 326,465 758,499
Hangu District 81,692 10,724 8,734 100,906 442,934
Karak District 246,400 2,314 35,153 324,207 695,826
D I Khan District 477,077 231,625 260,398 649,831 1,364,588
Tank District 77,811 20,247 81,687 134,288 223,617
Bannu District 195,880 63,282 96,580 246,971 1,531,907
Laki Marwat District 114,274 4,311 51,030 324,637 731,354
Abbotta Bad District 129,192 117,801 13,737 272,720 824,133
Pakistan Animal Supply Analysis: District Wise (KPK No. of Heads)
23
Kohistan District has the 2nd largest
population of Goats in KPK, and 3th
largest population of cattle in KPK. Siwat has the 2nd largest population of cattle
in KPK
Province Wise Ranking
Country Wise Ranking
Administrative Unit (KPK) Cattle Buffalo Sheep Goats Poultry
Nari Pur District 150,991 120,424 7,130 239,933 729,031
Mansehra District 211,007 215,214 90,885 352,512 1,080,502
Battagram District 138,797 88,121 16,012 136,509 721,301
Kohistan District 290,943 57,630 205,927 747,130 563,438
Siwat District 294,283 131,902 83,884 262,892 1,217,050
Shanglapar District 237,646 145,351 62,278 266,898 955,183
District 153,044 89,711 33,438 145,728 786,468
Chitral District 202,739 333 189,826 387,254 451,724
Upper Dir District 269,031 5,591 95,601 392,274 760,604
Lower Dir District 288,737 18,313 50,244 325,558 1,118,882
F R Peshawar 26,441 389 25,650 128,913 229,296
F R Kohat 18,978 294 7,304 58,378 118,030
F R D.I.Khan 121,184 420 175,881 221,567 70,825
Seven out of top ten Districts in terms of
largest population of Poultry are from KPK
including Peshawar, Mardan,
Bannu, Khyber Agency and D.I.Khan
Pakistan Animal Supply Analysis: District Wise (KPK No. of Heads)
24
F.R. Bannu is ranked 57th in the country in terms of sheep
population, while it has the 27th largest population of Goats
in the country
F.R.Bannu has the 2nd largest
population of Goats in KPK, while
Mansehra District has the 2nd largest
population of Buffaloes in the KPK
province
Province Wise Ranking
Country Wise Ranking
Administrative Unit (KPK) Cattle Buffalo Sheep Goats Poultry
F R bannu 112,974 12,978 134,603 711,778 503,274
F R Mansehra 37,945 36,627 16,222 84,223 104,260
F R Kurrum 120,976 1,577 145,011 227,749 542,316
F R Tank 59,051 964 112,592 122,646 154,755
F R Laki Marwat 75,279 - 41,310 117,496 153,919
Malakand Agency 85,882 22,027 6,212 71,848 269,795
Bajour Agency 153,379 17,129 55,566 192,925 743,400
Khyber Agency 180,678 11,573 199,605 588,873 1,404,877
Mohmand Agency 269,647 3,874 140,303 420,938 1,099,653
Kurrum Agency 140,836 3,572 80,373 126,409 565,652
Aurakzai Agency 74,601 14,619 50,512 120,114 373,890
North Waziristan Agency 244,063 21,082 244,753 293,775 538,895
South Waziristan Agency 156,089 16,532 328,668 444,188 529,730
Grand Total 6,920,078 2,171,121 3,524,412 10,682,471 29,523,502
Pakistan Animal Supply Analysis: District Wise (KPK No. of Heads)
25
Southern Punjab Highest Animal Concentration
Pakistan Animal Supply Analysis: Freight Cost
Source: Primary Research
Supply of Cattle grew at CAGR of 3.99% , while Supply of Buffaloes grew at CAGR of 3.16% for the period FY 2006 – 2010
Supply of Sheep grew at CAGR of 1.2%, while Supply of Goats grew at CAGR of 2.82% for the period FY 2006 – 2010
Supply of Poultry grew at CAGR of 1.65% , while Total Meat Supply grew at CAGR of 2.56% for the period FY 2006 – 2010
Although for the period FY 2006 – 2010 animal CAGR is recorded at 2.56%, however going forward we assume that it will belower in comparison with the historic number due to the regime change
Regime change is caused by the current hype in meat prices that occurred due to the start of meat export, the regimechange is explained in the following diagram
Regime Change
26
Male Animals
Female Dairy Animals
Female Breeding Animals
Historical Trend Historically majority of animal used for
Meat consumption were only taken from Male animals or Dairy or Breeding animals that were old were used
Regime Change However due to current hike in prices what
happened was that animal stockholders notonly sell male animals but also Breedinganimals and Dairy animals , which will causea Supply Shock in the future period
Pakistan Animal Supply Analysis: Forecast (Regime change causing Supply
Shock)
27
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan Animal Supply Analysis
4. Pakistan Meat Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
Beef and Veal meat demand in Pakistan remained stablebetween 2005 and 2010. On an average Pakistan hasconsumed 1,333 KT of Beef and Veal per year.
Sheep meat demand has decreased in 2010 because ofunexpected increase in price during that period. In 2010consumption of Sheep meat in Pakistan was 392 KT
Poultry demand in Pakistan have had an increasing trendfrom 2005 to 2010 . Demand declined in 2010 because ofartificial increase in prices of Poultry meat. Bird flu inChicken is also negatively impacting demand of poultrymeat
28
-
200
400
600
800
1,000
1,200
1,400
1,600
2005 2006 2007 2008 2009 2010
"00
0"M
T
Beef and Veal Demand 2005 - 2010
-
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010
"00
0"M
T
Sheep Meat Demand 2005 - 2010
-
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010
"00
0"M
T
Poultry Meat Demand 2005 - 2010
Pakistan Meat Demand Analysis: Historic
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
Regression Analysis is the methodology adopted by SFA todetermine future demand forecast
In order to predict future Demand, historic Demand wasregressed against various variables that were expected toeffect Meat Demand such GDP Per Capita, Historic MeatPrices, Population Growth Rate etc
Regression results indicate that Meat Demand is highlysensitive to GDP Per Capita and Average Price of Meat
For unit change in GDP Per Capita and Average Price MeatDemand increases by 0.83 and -0.0015 units respectively
29
Pakistan Meat Demand Analysis: Regression for Demand Forecast
-
500
1,000
1,500
2,000
2,500
3,000
-
50,000
100,000
150,000
200,000
2004 2005 2006 2007 2008 2009 2010
Demand Vs Average Price
Average Price Demand
2004 2005 2006 2007 2008 2009 2010
-
500
1,000
1,500
2,000
2,500
3,000
"00
0"
MT
Predicted Demand Vs Actual Demand
Predicted Demand Actual Demand
Meat Demand = 365.1407-0.00151 * (Average Price)+0.83246 * (GDP Per Capita)
R Square = 0.91
-
500
1,000
1,500
2,000
2,500
3,000
2004 2005 2006 2007 2008 2009 2010
Meat Demand Vs GDP per Capita
Demand Gdp per CapitaSource: OECD FAO, Economics Survey of Pakistan Source: OECD FAO
Source: OECD FAO
Beef and Veal Meat Demand, Sheep Meat Demand
and Poultry Meat Demand in Pakistan is expected
to rise with a CAGR of ~2.8% assuming the
relationship discovered through regression holds
and assuming Per Capita Growth Rate of 4.19%
per annum and Meat Price inflation of 10% per
annum for the period 2011 – 2010
30
Pakistan Meat Demand Analysis: Meat Demand Forecast
1,400
1,450
1,500
1,550
1,600
1,650
1,700
2011 2012 2013 2014 2015
"00
0"M
T
Beef and Veal Meat Demand Forecast2011 – 2015
390 400 410 420 430 440 450 460 470 480
2011 2012 2013 2014 2015
"00
0"M
T
Sheep Meat Demand Forecast2011 – 2015
520
540
560
580
600
620
640
2011 2012 2013 2014 2015
"00
0"M
T
Poultry Meat Demand Forecast2011 – 2015
31
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan Animal Supply Analysis
4. Pakistan Meat Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
32
Top 4 Beef exporting countries that export to theMena region are depicted in the graph, currentlyBrazil has the highest Market share in Beef exportsto the region
In Sheep Meat exporting countries, Australia is atthe top with the figures of 412, 559 MT in 2010
Top 4 Poultry meat exporting countries areBrazil, Australia, India and Pakistan. Pakistan is atthe 4 spot with 149 MT of Poultry meat exportedby Pakistan in 2010
Regional Analysis: Top Exporting Countries
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
3,678.8
32.3 4.7 0.1 0
1,000
2,000
3,000
4,000
Brazil Australia India Pakistan
"00
0"M
T
Top 4 Poultry Exporting Countries
1,860
1,472
700
20 -
400
800
1,200
1,600
2,000
Brazil Australia India Pakistan
"00
0"M
T
Top 4 Beef Exporting Countries
412.6
23.6 8.0 0.0 0
100
200
300
400
500
Australia India Pakistan Brazil
"00
0"M
T
Top 4 Sheep Exporting Countries
33
Beef and Veal meat live cost has historicallyshown an upward trend. Prices rose from668 USD/MT to 1,132 USD/MT from 2004 to2008
Similar trend can be seen in Sheep meatprices. In 2008 cost for producers was 1,307USD/MT
Brazil is the top Poultry meat exporter withthe live cost of 1,247 USD/MT in 2008
Regional Analysis: Major Exporters – Brazil (Cost Analysis)
-
200
400
600
800
1,000
1,200
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Historic Live Cost
-
200
400
600
800
1,000
1,200
1,400
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Live Cost
-
200
400
600
800
1,000
1,200
1,400
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Historic Live Cost
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
34
Price of Beef and Veal meat was at its peak in 2008
with the figure of 2,310 USD/MT
Price of Sheep meat also rose gradually from 1470
USD/MT in 2004 to 2467 USD/MT, in 2008
Poultry meat prices were 522, 649, 1,096, 1,384
and 1,619 USD/MT from 2004 to 2008 respectively
Regional Analysis: Major Exporters – Brazil (Price Analysis)
-
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Meat Historic Price
-
500
1,000
1,500
2,000
2,500
3,000
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Prices
-
400
800
1,200
1,600
2,000
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Meat Historic Prices
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
35
For brazil, future of Beef and Veal meat export
looks optimistic. In 2011, Beef and Veal meat
export quantity is forecasted to be 1,883 KT. Major
jump in Brazilian Beef and Veal meat is expected to
come in 2015 when brazil is expected to export
1,990 KT. CAGR is forecasted to be almost 2% for
Brazilian Beef and Veal meat export
Poultry meat export figures are forecasted to be
3,426, 3,346, 3,464, 3,509 and 3,740 thousand MT
from 2011 to 2015 respectively. Except for year
2011, where the exports are expected to
decline, Brazilian Poultry meet growth is forecasted
to be positive
Regional Analysis: Major Exporters – Brazil (Exports Forecast)
1,800
1,840
1,880
1,920
1,960
2,000
2011 2012 2013 2014 2015
“00
0”M
T
Beef and Veal Meat Export Forecasted
3,000
3,200
3,400
3,600
3,800
2011 2012 2013 2014 2015
“00
0”M
T
Poultry Meat Export Forecast
Source: OECD FAO
Source: OECD FAO
36
In Australia cost of producing Beef and Veal meatwas 1,131 USD/MT in 2004, while in 2008 live costwas 1,323 USD/MT
Sheep meat price had a downward trend from2004 to 2007, but price rose considerably in 2008with the figure of 1,136 USD/MT
Poultry meat live cost rose gradually from 996USD/MT in 2004 to 1,319 USD/MT in 2008
Regional Analysis: Major Exporters – Australia (Cost Analysis)
-
300
600
900
1,200
1,500
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Historic Live Cost
1,020
1,050
1,080
1,110
1,140
1,170
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Live Cost
-
300
600
900
1,200
1,500
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Historic Live Cost
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
37
Beef and Veal meat prices showed mixedtrend historically. Prices were highest in2007 and lowest in 2004.
Sheep meat prices rose steadily from 4,843to 5,823 USD/MT from 2004 to 2008
Poultry meat prices were highest in 2008and lowest in 2006. In 2008 prices were1,709 USD/MT
Regional Analysis: Major Exporters – Australia (Price Analysis)
-
600
1,200
1,800
2,400
3,000
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Meat Historic Price
-
1,200
2,400
3,600
4,800
6,000
7,200
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Prices
-
300
600
900
1,200
1,500
1,800
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Meat Historic Prices
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
38
Australian Beef and Veal meat export quantity is
expected to have a positive growth rate.
Forecasted export quantity of Beef and Veal meat
shows an upward trend from 2011 to 2015. It is
expected that in 2015 export quantity will reach
1,516 thousand MT
Forecast for Sheep meat export also shows the
same trend for Australia. The forecasted Australian
Sheep meat export is 423 thousand MT, whereas in
2015 it is expected that exports will increase to
approximately 455 thousand MT, as show in the
graph
Regional Analysis: Major Exporters – Australia (Exports Forecast)
1,380
1,410
1,440
1,470
1,500
1,530
2011 2012 2013 2014 2015
“00
0”M
T
Beef and Veal Meat Export Forecasted
400
410
420
430
440
450
460
2011 2012 2013 2014 2015
“00
0”M
T
Sheep Meat Export Forecasted
Source: OECD FAO
Source: OECD FAO
39
Regional Analysis: Major Exporters – India (Price Analysis)
-
500
1,000
1,500
2,000
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Live Cost
-
1,000
2,000
3,000
4,000
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Prices
-
400
800
1,200
1,600
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Historic Live Cost
-
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Meat Historic Prices
Source: OECD FAO Source: OECD FAO
Source: OECD FAOSource: OECD FAO
40
India is expected to increase its share of Beef and
Veal meat in global market, forecasted results
show an upward trend. Growth rate is positive
from 2011 to 2014. However, due to religious
factors, the exports are expected to be
volatile, since, Hindu activists are protesting to
cease Cattle slaughtering through legislation. If this
happens, there will be a big gap created in supply
and demand of beef in global market
In 2011 Sheep meat export is expected to be 23
KT. it will rise gradually and by 2015 it is expected
that India will export 31 KT of Sheep meat.
However, Cumulative average growth is likely to be
at the lower side
Regional Analysis: Major Exporters – India (Exports Forecasted)
700
720
740
760
780
800
2011 2012 2013 2014 2015
"00
0"M
T
Beef and Veal Meat Export Forecasted
-
5
10
15
20
25
30
35
2011 2012 2013 2014 2015
"00
0"M
T
Sheep Meat Exports Forecasted
Source: OECD FAO
Source: OECD FAO
41
Cost of Beef and veal meat have increasedgradually for Pakistani producers. Prices were 736USD/ MT in 2005 and then steadily climbed to875USD/ MT in 2008
Sheep Meat cost for producers remained relativelyat the same level from 2004 to 2008, except for2007, when it was at 1125 USD/MT
Poultry meat cost in 2007 was 790 USD/MTwhereas in 2008 it increased to 852 USD/MT
Regional Analysis: Major Exporters – Pakistan (Cost Analysis)
-
300
600
900
1,200
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Live Cost
-
200
400
600
800
1,000
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Historic Live Cost
650
700
750
800
850
900
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Historic Live Cost
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
42
Prices of Beef and Veal meat remained stable from2004 to 2006. In 2007 however, it jumped up to1,750 USD/ MT whereas in 2008 price rose to1,890 USD/MT
In 2007 price was 2,249 USD/MT for Sheep meatbut in 2008 , it dropped to 1,957 USD/MT
Poultry meat prices showed a gradual increase inits price from 915 USD/MT in 2004 to 1,151USD/MT in 2008.
Regional Analysis: Major Exporters – Pakistan (Price Analysis)
-
500
1,000
1,500
2,000
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Meat Historic Price
-
500
1,000
1,500
2,000
2,500
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Prices
-
200
400
600
800
1,000
1,200
1,400
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Meat Historic Prices
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
43
In 2010, Pakistan exported 20 KT of Beef and Veal
meat. Forecasted figures for 2011 is 27 thousands
MT, which means a growth rate of almost 35%.
After 2012, it is expected that Pakistani Beef and
Veal meat exports will decrease in the global
market. In 2015 it is expected that Pakistan will
export 26 thousand MT of Beef and Veal meat.
Forecasted figure for 2011 is 8 thousand MT for
Sheep meat export which is same as what Pakistan
exported in 2010. Major export surge in Sheep
meat is likely to come in 2014, when Pakistan will
export approximately 8.5 KT of Sheep meat across
the globe
Regional Analysis: Major Exporters – Pakistan (Exports Forecast)
-
10
20
30
40
2011 2012 2013 2014 2015
"00
0"M
T
Beef and Veal Meat Export Forecasted
4
5
6
7
8
9
2011 2012 2013 2014 2015
"00
0"M
T
Sheep Meat Exports Forecasted
Source: OECD FAO
Source: OECD FAO
44
In 2008 Pakistan had a comparative advantage ofbeing a low cost producer of Beef and Veal meat.Results also show that Brazil and Australia weresuffering from high cost of producing Beef andVeal meet
India has the highest cost of Sheep meat whereasPakistan has lowest cost of 978 USD/MT
Poultry meat stats for 2008 also showed the sametrend, India cost of Poultry meat was highestwhereas Pakistan cost was lowest in top fourExporting countries
Regional Analysis: Comparative Analysis – Exporters (Cost
Analysis)
-
500
1,000
1,500
2,000
Pakistan India Brazil Australia
USD
/ M
T
Sheep Meat Historic Live Cost Comparison 2008
-
400
800
1,200
1,600
Pakistan India Brazil Australia
USD
/ M
T
Poultry Historic Live Cost Comparison 2008
-
300
600
900
1,200
1,500
Pakistan India Brazil Australia
USD
/ M
T
Beef and Veal Historic Live Cost Comparison 2008
N /A
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
45
Australia was charging the highest price of 2,646 in2008 whereas Pakistan was charging the lowestprice of 1,890 USD/ MT
Australia’s Sheep meat price was 5,828 USD/MTwhereas Pakistani Sheep meat price was 1,957USD/MT
In 2008, Indian Poultry meat price was highestamongst the top 4 exporting countries whereasPakistani poultry meat prices ware lowest. Becauseof their low cost they were able to sell Poultry atlower prices
Regional Analysis: Comparative Analysis – Exporters (Price
Analysis)
-
750
1,500
2,250
3,000
Pakistan India Brazil Australia
USD
/ M
T
Beef and Veal Meat Historic Price Comparison 2008
-
1,500
3,000
4,500
6,000
7,500
Pakistan India Brazil Australia
Sheep Meat Historic Prices Comparison 2008
-
500
1,000
1,500
2,000
2,500
Pakistan India Brazil Australia
Poultry Meat Historic Prices Comparison 2008
N /A
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
46
Following Margins were calculated by subtractinglive animal cost from local retail prices:
Australia was enjoying the highest margins in2008, whereas Pakistani Beef and veal meat margins wereat the lower side, shown by the figure of 1,015 USD/MT
Australian Sheep meat had the highest margins in 2008whereas Pakistani Sheep meat had the lowest margins forthe same year.
In poultry meat India had the highest margins whereasAustralia held the 2nd spot in 2008 with the margins of396USD/MT
Regional Analysis: Comparative Analysis – Exporters (Local
Markets Margins Analysis)
-
200
400
600
800
1,000
1,200
1,400
Pakistan India Brazil Australia
USD
/ M
T
Beef and Veel Meat Margins Analysis2008
-
1,000
2,000
3,000
4,000
5,000
Pakistan India Brazil Australia
USD
/ M
T
Sheep Meat Margins Analysis2008
-
100
200
300
400
500
600
Pakistan India Brazil Australia
USD
/ M
T
Poultry Meat Margins Analysis2008
N /A
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
47
Beef and Veal Meat prices increased steadilyduring the period of 2004-2008 in the kingdom ofSaudi Arabia by almost 27%
Sheep meat prices were highest in 2008 in KSA.In 2008 price of Sheep meat was 7,687 USD/MT
Poultry meat prices went on a roller coaster riderising from 1,513 in 2004 to 1,907 in2008, showing higher demand and acute supplyof poultry meat
Regional Analysis: Major Importers – KSA (Price Analysis)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Meat Historic Prices
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Prices
-
500
1,000
1,500
2,000
2,500
3,000
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Meat Historic Prices
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
48
Consumption of Beef and Veal is expected toincrease in KSA which will lead to the increase inimport quantity of Beef and Veal meat.Forecasted import quantity for 2011 is 110 KT.
Sheep meat imports will increase during 2011 to2015. Market analysis shows that there will be asignificant surge expected to come in 2014, whenKSA will import almost 116 KT of Sheep meat
It is expected that poultry meat imports will risegradually in KSA and Cumulative average growthrate will be almost 2% during 2011 to 2015
Regional Analysis: Major Importers – KSA (Imports Forecasted)
105
110
115
120
2011 2012 2013 2014 2015
"00
0"M
T
Beef and Veal Meat Imports Forecasted
90
100
110
120
2011 2012 2013 2014 2015
"00
0"M
T
Sheep Meat Imports Forecated
600
650
700
750
800
2011 2012 2013 2014 2015
"00
0"M
T
Poultry Meat Imports Forecasted
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
49
Price of Beef and Veal meat in Malaysia was 3,641USD/MT in 2004. After that price swelled gradually inMalaysia and in 2008 price of Beef and Veal meet was5,059 USD/MT, an increment of 39% from 2004 prices
Sheep meat price was less than Beef and Veal price in2004, 2005, 2006 and 2007, but in 2008 Sheep meat priceof 5,211 USD/MT was greater than Beef price
Poultry meat prices were highest in 2008 and lowest in2004. Overall Poultry meat prices has witnessed a pricelift of 43% during the period of 4 years
Regional Analysis: Major Importers – Malaysia (Price Analysis)
-
1,500
3,000
4,500
6,000
2004 2005 2006 2007 2008
USD
/ M
T
Beef and Veal Meat Historic Prices
-
1,500
3,000
4,500
6,000
2004 2005 2006 2007 2008
USD
/ M
T
Sheep Meat Historic Prices
-
500
1,000
1,500
2,000
2004 2005 2006 2007 2008
USD
/ M
T
Poultry Meat Historic Prices
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
50
It is expected that Beef and Veal meat consumption willincrease in Malaysia in near future. To meet demand, it isforecasted that Malaysia will import almost 164 thousandMT of Beef and Veal meet
Same trend is forecasted for Sheep meat imports. Importquantity will gradually increase during 2011 to 2015.In2011 it is expected that Malaysia will import almost 23thousand MT of Sheep meat (Check graph)
From 2011 to 2015, it is forecasted that Malaysia willimport 56, 55, 58, 56 and 58 thousand MT of poultrymeat respectively
Regional Analysis: Major Importers – Malaysia (Imports Forecasted)
154
161
168
175
182
2011 2012 2013 2014 2015
"00
0"M
T
Beef and Veal Meat Imports Forecasted
19
20
21
22
23
24
2011 2012 2013 2014 2015
"00
0"M
T
Sheep Meat Imports Forecated
54
55
56
57
58
2011 2012 2013 2014 2015
"00
0"M
T
Poultry Meat Imports Forecasted
Source: OECD FAO Source: OECD FAO
Source: OECD FAO
51
Regional Analysis: Freight CostRegional Analysis: Freight Cost
Lahore to Dubai and Jeddah ,Air Freight PKR 56,000 / MT and PKR 57,000 / MT respectivelyKarachi to Dubai and Jeddah ,Air Freight PKR 54,000 / MT and PKR 55,000 / MT respectivelyLahore to Karachi, Refer Container, 16,000 / MT and Karachi to Lahore, Refer Container, 17,000 / MTKarachi to Dubai and Jeddah, Sea Freight, PKR 8,000 / MT and PKR 8,500 / MT
Karachi
Lahore
DubaiJeddah
Source: Primary Research
52
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan Animal Supply Analysis
4. Pakistan Meat Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
Total Population
~10 Million
Young Population Range
( Below 30 Years)
~70%
Total Middle & Upper Class Population
~1.5 Million (Source: Global Health Facts)
53
Meat Shop in Lahore A Case Study: Market Need Assessment
Lahore Need Assessment
Time Constraints
Higher Working Class Population
Population Health Issues
Lower Medical Restrictions
Consumption Pattern
More On hand Disposable Income
Available
Dinning Out Trend
Higher trend of dinning out
Increased Demand
For Processed
Meat
54
Branch in Lahore A Case Study: Pros & Cons
No brand recognition High operating cost New competitors entering
the Lahore market Hyper Markets selling each
and every grocery including fresh meat
Established Competitors: Zenith Meat Shop Neat Meat Lahore Meat company
Meat Shop in Lahore
Increase in Population High margins still enjoyed
by established competitors in Lahore Meat industry
Increase in population of migrants
Increase in average household income of Lahore
Life style changes Favorable Demographics
(Large % of young population)
RecommendationIn light of Pros & Cons
discussed, we recommend to open a Meat Shop in
Lahore
55
Table of Content
1. Global Meat Industry
2. Global Halal Food Industry
3. Pakistan AnimalSupply Analysis
4. Pakistan Meat Demand Analysis
5. Regional Analysis
6. Meat Shop in Lahore A Case Study
7. Investment Highlights
56
Key Investment Highlights
Still few Competitors, not engaged in price warwith each other
Favorable demographics in the local market.
Room is available in global market, industry canincrease its export to meet the demand ofMiddle East
Suppliers are not well organized so they do nothave much bargaining power
Export Quota approval required by GoP forexporting meat
Target County‘s government approval alsomandatory for exporting meat in some targetmarkets making it difficult for new exporters toenter the market
Setting up a distribution channel inDubai, allowing for exporting Meat viasea, there by lowering freight cost
Key Rewards
Low barriers of entry in Local Market
Standardize product
Threat of Substitute Products is also high.They have to keep their prices competitivewith that of ordinary butcher shops
Quality control standards
Export Quota Contraction by GoP
Threat of Import Ban imposition by targetmarket governments, in case any exporterfrom Pakistan exports substandard meat
Local Supply shock of live animal might hurtInternational Margins currently enjoyed byPakistani exporters
Key Risks