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Pakistan Poultry Industry and WTO
April 4: Pakistan's Poultry Industry would suffer
in the post WTO era due to its high input cost,
inflated administrative expenditures and the slow
breeding of birds. Besides, the production cost
when compared to Chinese and the Indian industries
are much more. Moreover, the country lacks a
comprehensive infrastructure to check the standard
of chicken meat.
Conclusively, all international chains of
restaurants operating access Pakistan either
operate their own farms or import chicken meat
from abroad. According to figures made available
Indian Poultry farmers Rs. 32 (one Indian rupee =
1.33 Pak rupees) for grooming a bird, which
delivers one-kilogram meat. Similarity, the Sino
farmers have to spend around Rs. 28 for rearing a
bird of one kg weight. That was why open the
frozen chicken was imported from China through
sea, they were competitive in the domestic market
despite the additional duties.
Currently, poultry farmers in Pakistan spend Rs.
52 to Rs. 55 to groom a bird having one kg meat,
which is quite higher as compared to both India
and China. Discussing the reasons of high input
cost in Pakistan the main difference is the cost
of energy (electric, furnace oil, etc) and
transportation. The said that the Poultry Industry
should not survive in the post WTO scenario
following its high input cost, low productivity by
farmers due to their improper training and the
comparatively smaller market size as compared in
our neighbors.
According to a study by the American soybean
Association (ASA) Pakistan's feed industry, which
provides feed to the poultry sector, produces
around 2.823 million metric tons of products per
annum. It is small as compared to (about) 88
million metric tons of China and about 64 million
metric tones of India. In China, major inputs like
electricity, is free for the poultry feed as the
Chinese Government has ……… the industry in the
basket of agricultural industry as per requisite
for food security. Therefore, the seller and
farmers have to bear the cost of the liquid fuel
only, which makes the cost of farming 10 times as
compared to Pakistan. In India too, the Poultry
industry is not different from China as the Indian
government has declared both the Poultry and its
supporting industries, feed milling Industry as an
agricultural industry and the government supplies
electricity at 66 percent subsidized prices.
It is believed that around 70 percent of
Pakistan's Poultry feed industry operates old
palette machines. Which cannot maintain and
conserve the nutrition value of grinded grains.
They produce heat during the grinding process and
subsequently burn a respectable portion of
proteins and calories, the exports said adding
that the expander technology has taken over the
Poultry industry all across the world and the
Pakistan's Poultry Industry should would have to
switch over the latest technology for preserving
the better nutritionist value of chicken feed. The
overall investment on the country's Poultry
Industry is around Rs. 90 million, right from the
feed industry to the farms and chicken meat
processing industry. While 1,60,000 individuals
are directly or indirectly engaged with industry
and almost 95 percent of them are small and medium
entrepreneurs.
Conclusion:
In order to coap with the WTO the Paksitan Poultry
Industry and the government will have to take the
necessary actions to save this second largest
Industry in Pakistan from claps and to be in a
position to compete with our neighbors China and
India.
1. The import of chicken meat to be totally
banned.
2. Supply of electric power to the Poultry
Industry such as Feed Mill and Hatcheries be
declared as Agricultural Industry and a subsidy be
granted to this industry as so done in India. The
Poultry Industry has suffered due to rumors by the
media over Rs. 4 billion in one month, as on the
other hand there was no truth what so ever about
epidemic of Bird Flu in Pakistan.
3. The rumors of Bird Flu have also badly effected
the Agriculture produce, such as corn as 80% corn
is used in Poultry Industry and besides this
broken rice is also a main source of Poultry Feed
ingredients.
4. Cost of high fuel prices have also badly hit
the Poultry Industry and accordingly the transport
has become very costly.
By M Yousaf Ehsan Kokhar
PPA |
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Pakissan.com; Advisory Point
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