The strategic location of the country and potential of livestock sector creates a good export avenue for our livestock and livestock products. The major exports include animal casings, bone and its products, animal wastes, live animals, meat, dry milk, wool, hair, feeding stuff for animals and poultry. In order to enhance the export potential of livestock sector, export of livestock meat has been allowed. The establishment of abattoirs is encouraged in the private sector.
As far as export of live animals is concerned all the animals are kept under quarantine for the required period and after necessary vaccination and tests are allowed for export. There is a great demand for the export of live animals from Pakistan to Middle East countries and Afghanistan also but it is subjected to Government policy for export of live animals which off and on banned by the government.
The export of animal casings is allowed only from the registered and approved processing units. Similarly, there are registered bone-crushing factories in country that are only allowed for export. The factories are up-grading their facilities to fulfill the more international trade requirements. However, all these factories are fulfilling the international hygienic requirements and W.T.O. standards. Measures have also been taken to meet Sanitary and Phytosanitary (SPS) requirements under WTO for quality assurance and to improve exports of livestock and animal products.
The consumption of meat, eggs, and milk in the world is on the continuous rise for past two decades, the tow most important factors for this increase in consumption are the growth in population, urbanization and increasing income of people. This has led to include a variety of meats, eggs, and dairy products in people diets. This increased consumption has created an incentive for the poor farmers to increase livestock production thus creating an additional source of income. Moreover, livestock products also plays very important role in covering the dietary protein deficiency for the farmers and human population.
It is assumed that the demand for food from animal origin will continue to rise, so there is a need on the part of the government & representative trade bodies to assist, facilitate and guide the potential exporters of live stock to earn for our beloved country. These measures would include amendments in the regulations to over come some of the drawbacks which have resulted from increased population and consumption of livestock. Thus reserving most of our lives stock/meat to be exported.
Primary focus should be on improvement of livestock production on sustainable basis which depends upon the general animal health and better control of livestock diseases. Moreover improvement is required in livestock marketing and trading system. In addition the institutions and human recourse capacities also have to be strengthened.
Compared to the growth in agriculture sector, which mainly resulted from investment in new production techniques leading towards increase in supply, the growth in livestock sector is derived from increase in demand. The continuously increasing demand has stretched the capacity of existing livestock production systems; the only exception is poultry sector in which the technological progress had played a major part in increasing the supply.
Until recently, the expansion of live stock food production was dependent on increased number of animals rather than higher carcass weight per animal. The increase in the demand has put great stress on the production system which is mainly dependent on range grazing and thus has resulted in over grazing and destruction of pastures. As a result of higher demand, the government has shifted its focus to increasing the use of new recourses rather than depending on the old production system of pastures. The Livestock and Dairy Development Board (LDDB) feedlot fattening project is the result of such policy to reduce pressure from pastures and improve the productivity of farmers.
Following are the major opportunities and threats related to livestock sector in Pakistan:
Livestock Sector Business Opportunities in Pakistan
- Swift increase in consumption/demand of live stock products; in land and abroad.
- Increasing demand of by-products, blood, skin, etc.; abroad.
- Technological improvement in live stock production and processing in developed countries which can be replicated in the developing countries.
Threats to the Livestock Industry in Pakistan
- Rise in the use of cereal based feeds for livestock hence increasing the cost of cereals for human consumption
- The continuous drought in the past decade and increasing demand of livestock has put greater stress on grazing resources
- Environmental and human health related concerns of urban dairy farms and poultry farms near Major cities.
The livestock sector is a leading sub-sector of the agriculture sector in Pakistan. In 2005-06 it contributed over 10.7 per cent to the GDP which is more than the aggregated contribution of entire crop sector of the country . About 30-35 million people of rural areas are engaged in raising livestock while deriving 30-40 per cent of their incomes from this sector. According to Livestock Census 2006, there were 29.56 Million heads of cattle, 27.33 million buffaloes, 26.49 million sheep and 53.79 million goats in Pakistan. Nationwide the combined population of large ruminants, i.e. cattle and buffalo, was 56.89 million while the population of small ruminants, i.e. goats and sheep, was 80.27 million.
Province wise distribution shows that different provinces have different strength in specific species of livestock. Geographic conditions including availability of fodder and water makes Punjab more suitable for large ruminants including buffaloes and cattle, Punjab contains 65 percent of buffaloes and 49 percent of cattle in the country. Sindh contains 30 percent of camels, 27 percent of buffalo and 23 percent of goat’s population; KPK contains 20 percent cattle and 18 percent goats of the national population. Balochistan, with its major production of sheep and goats, contains about 48 percent of sheep and 22 percent of goat population in the country.
Initiatives by Government to Improve Livestock Industry in Pakistan
Government has provided following incentives to increase livestock and poultry production in the country:
- Regulatory measures include allowing import of high yielding animals, semen and embryos for crossbreeding, expansion/improvement and modernization of laboratory facilities to diagnose and treat livestock diseases; introduction of mobile animal health service to provide diagnostic services at the door steps of farmers, duty free import of veterinary dairy and livestock machinery/equipment, not manufactured in the country.
- Government has allowed import of Incubators, Brooders, Evaporation cooling pads, cooling system, Grain storage silos for poultry, poultry equipment, milk and meat processing machinery/equipment (not manufactured locally), at zero percent custom duty. Private sector has imported milk and meat processing machinery/equipment worth of Rs 285 million during July-March, 2007-08.
- In order to reduce input costs in poultry production, poultry vaccines, feed additives, coccidiostats, Growth promoters premixes, Vitamin premixes, Fish feed, Zinc sulphate, Copper sulphate used in poultry feed has been zero-rated. Sales tax exemption has been allowed to un-cooked poultry meat; processed milk, yogurt, cheese flavored milk, and butter cream. In addition, poultry, vaccines, feed additives and coccidiostats used in poultry feed manufacturing have been allowed at zero percent custom duty.
- Livestock Production and Development project is of five years duration (2005 – 2010) and has total allocation of Rs 1520 million. It is assisting in the establishment of 2590 fattening farms (1040 beef and 1550 mutton), 08 Slaughterhouses and 20 butcheries in private sector.
- Milk Collection Processing and Dairy Production and Development Program Project is of five years duration (2005 – 2010) with a total cost of Rs 1588 million. More than 10,000 rural subsistence dairy farmers are likely to enter into the milk marketing chain due to project interventions, 15000 to 20000 additional breeding animals of better genetic potential for milk production will become available in the project area.
- Livestock Project is of 05 years duration (2005-2010) and initiated at a total cost of Rs 1992 million. It is aimed at enhancing the livestock productivity through the provision of livestock production and extension services at farmer’s doorsteps, targeting 13 million rural poor in 1963 union councils in 80 districts of the country.
- Improving reproductive efficiency of cattle and buffaloes in stallholders production system Project is of five years duration (2007-2012) and has total cost Rs 495.15 million. The project aimed at establishment of Embryo Transfer Technology Centre, Semen Production and Processing center, Strengthening of Provincial Semen Production Units and Support of semen Production in private sector. The center will produce 5000 embryo per year for farm use and supply to others.
- Construction of Animal Quarantine Facilities at various places including Northern Area, Wahga Border, Lahore and Khokrapar project has total coat of Rs 300 million. It is of five years duration (2006-2011). The project is aimed at improving quarantine facilities and establishing new entry exit points to facilitate trade of animal and animal products
Animal Quarantine Department of Pakistan
The Animal Quarantine Department is working under Ministry of Live Stock . The Animal Quarantine Department was established in 1980 to implement the Pakistan Animal Quarantine (Import and export of animals and animal products) Act, 1979 and the Pakistan Animal Quarantine (Import and export of animals and animal products) Rules, 1980.
The statutory authority and related regulations governing the transportation of animals and animal products for import and export and regulation designed to prevent the introduction and dissemination of exotic diseases and issuance of health certificates are the responsibilities of the federal government under the constitution.
The Animal Quarantine Department is the executive veterinary authority of the federal government with primary responsibility to regulate the import, export and quarantine of animals and animal products in order to prevent the introduction and spread of exotic diseases. The Animal Quarantine Department is not only important to safeguard the domestic livestock of Pakistan but also has a very important role from human health point of view, since there are number of bacterial viral and parasitic diseases which are communicable from animals and animal products to human being.
The Animal Quarantine Department has a country-wide network of its Office cum Laboratories. The Head office is at Karachi and sub-offices at Lahore, Islamabad, Peshawar, Quetta, Multan, Sialkot, Gawadar, Khokhrapar and Khunjrab.
Procedure for Quarantine of Animals to be Exported from Pakistan
The Quarantine department provides certification service to the importers and exporters of animals and animal products of uniform standard through examination and tests to meet the international trade requirements. The department is also responsible to prevent the unauthorized import and export of animals and animal products. It provides round-the-clock services to the importers, exporters and general public with regard to import and export of animals and animal products. Every point of entry and point of exit has to be guarded to prevent the introduction or spread of diseases. Therefore, the department has office-cum microbiology laboratories of international standards located at Karachi, Lahore, Peshawar, Islamabad, Quetta, Multan and Sialkot as per Clause-J of Section-2 of Pakistan Animal Quarantine (Import and Export of Animals and Animal Products) (Amendment) Act, 1985.
The department handles all kinds of Animal which includes birds, cold blooded creatures: by means of which any diseases may be carried or transmitted: four footed beasts which are not mammals; mammals except man and the Animal Products. It means anything originating or made, whether in whole or in part from an animal or from a carcass and other substance of animal origin as specified by the Federal Government by notification in the official Gazette.
Pakistan being the member of OIE (Office of International Des Epizootics) and WTO is obliged to maintain quarantine services of high standards. To safeguards the livestock industry of Pakistan and foreign countries and human health from communicable diseases. The Animal Quarantine Department is in a position to fulfill the international quarantine requirements. A Laboratory for Drug Residues Detection from Animal Products at Karachi is established to meet international trade standards for residues limit in animal products.
Procedure / Requirement for Quarantine of animals which are to be exported, under the Pakistan Animal Quarantine (import and Export of Animals and Animal Products) Rules, 1980 is as under:
Section 12. Regulation of export: Every export of animals or animal products shall, as far as may be, be regulated in accordance with the rules, regulations and zoo-sanitary conditions of the country where such animals and animal products are exported.
Section 13. Quarantine of animal before export: All animals shall, before their export, be kept in quarantine for such period and manner as the Quarantine Officer may determine for carrying out tests and examinations and providing rest to such animals before their transportation for export.
Provided that the period of rest shall not be less than ten hours which shall include three consecutive hours between sunrise and sunset; Provided further that if during the rest period of an animal, any other animal is brought into quarantine, then the rest period of first animal detained in quarantine shall commence from the time of arrival of the last animal in quarantine.
Section 14. Health certificate of an animal and animal product. (1) Where after the examination of an animal or animal product and expiry of the rest period, the Quarantine Officer is satisfied that such animal and animal product are free from disease, he shall issue a health certificate in Form VII, Form IX or in product are intended to be exported. No animal or animal product shall be exported unless it is accompanied by a health certificate referred to in sub-rule. (1).
Section 15. Disembarkation of certain animals. Where an animal is injured during transportation for export or loading in a vessel, aircraft or vehicle , or is found unfit to travel due to illness, or where ealving or lambing of the animal during transit is reasonably probable, or where adverse weather conditions are likely to cause serious injury or suffering to such animal, the Quarantine Officer may under notice to the exporter , require the master of the vessel, pilot of the aircraft or the person in charge of the vehicle, as the case may be, to unload the animal and remove it to quarantine for rest and treatment
Section 16. Disinfection of aircraft, vehicle, etc. Before transportation of an animal or animal product, the Quarantine Officer shall cause the cleaning and disinfection of a vessel, aircraft or vehicle to be used for transportation for such animal and animal product by an approved disinfectant .
(2) No vessel, aircraft or vehicle shall be used for transportation fo an animal or animal product unless it has been properly cleaned, disinfected and certified by the Quarantine Officer in Form X.
Section 17. Quarantine charges and fees etc. to be notified. The rate of quarantine charges, costs of keeping animals and animal products in quarantine, including feeding charges, fees for examination, tests and certificates shall be fixed by the Federal Government , from time to time by notification in the official Gazette.
Section 18. Destruction and disposal of diseased animals etc.
- Any diseased animal or animal product ordered to be destroyed under clause (e) of section 6 of the Ordinance or under these rules shall be destroyed in accordance with the directions of the Quarantine Officer.
- The carcass and destroyed animal product shall be disposed of by burying, burning, cremated or incinerated.
- No compensation of an animal or animal product ordered to be destroyed shall be paid to the owner.
- The items of any clothing, fittings or harness which had been in contact with a diseased animal or animal product and not taken back by the importer after disinfection shall be sold through auction
Section 19. Sale proceeds to be deposited in Government treasury. All sale proceeds received under these rules by sale or auction shall be deposited in the Government treasury under the head “1260 –Receipt from Economic Services-1261-Animal Husbandry-Others.”
Section 20. Application of rules to animals and animal products in transit. These rules shall, mutatis mutandis, apply to all animals an animal Products in transit by a vessel, aircraft or vehicle.
Where the Quarantine Officer examines any animal or animal product landed in Pakistan during transit to another country, he shall make a health report in Form XI.
Livestock Export Constrains in Pakistan
The major potential exports include animal casings, bone and its products, animal wastes, live animals, meat, dry milk, wool, hair, feeding stuff for animals and poultry.
The export of livestock and its products constrained because of the presence of contagious diseases, and poor sanitary/hygiene conditions of our slaughterhouses and slaughtering practices and processing units for value addition.
The major reasons for lack of export trade are:
- Absence of Disease Free Zones
- Lack of proper regulatory law / rules
- Non-existence of modern abattoirs and value addition
- Quarantine procedures requirement in the importing countries
Export of Livestock from Pakistan
Export of live stock means to sell Live Stock in another country. This involves complex procedures, including filing and exchange of documents, both in the country of Export (from where live stock are to be shipped/dispatched) and in the country of Import (where these live stock are to be discharged/delivered). The requirement of documentation arises due to the fact that the live stock that are exported are to be sold to some one who is thousands of miles away, speaking a different language, having different customs, preferences, currency and import regulations. In order to facilitate trade with other countries, certain sets of rules have been developed by the trading nations over the centuries, which are normally followed in foreign trade today. The International Trade is governed by rules made by the World Trade Organization (WTO).
Export of live animals is allowed but you have to obtain an NOC from Ministry of Live stock Government of Pakistan. In first step all animals shall before be kept in quarantine for such period & manners as the Quarantine Officer may determined for carrying out tests, examination and providing rest to the animals before their transportation for export. All animals and birds under quarantine are subjected to the quarantine fees. The fee for Quarantine and issuance of health certificate is different for different species and animal products that is published in official gazette. Normally the duration of quarantine period is two weeks but may be extended in certain conditions.
Export Markets for Pakistani Livestock
Pakistan is geographically located close to the Middle East and South-East Asia. Both of these regions are deficient in livestock products and depend upon import from other countries. The livestock industry in most of the developed world is highly subsidized. With reduction of subsidies in the wake of WTO, the local livestock sector should have better opportunities to compete.
Procedure for Livestock, Milk & Meat Export
The rules and regulations covering different livestock activities are given below:
- The import and export of livestock and livestock products are regulated by Pakistan Animal Quarantine (Import and Export of Animal and Animal Products) Act, 1979 and Rules 1980.
- Import of livestock is subject to satisfying animal health requirements of Quarantine Departments of importing/exporting countries. In a routine practice exporting country submit specimen health certificate to Ministry of Livestock for vetting prior to commencing export.
- Export of live animals requires NOC from M/O Livestock , however, the issuance of the same is suspended since 12 April 2004.
- Export of semen, hatching eggs, live poultry, dairy products etc from Pakistan is subject to satisfying animal health requirements of importing / exporting countries.
- Export of meat is allowed / authorized from slaughterhouses established in the private sector duly registered with Animal Quarantine Department of Ministry of Livestock and Competent departments of importing countries.
- The slaughtering of animals is regulated by Animal Slaughter Control Act 1963 and Rules 1965 Union Council (Slaughterhouse Rules, 1961, Bye-laws for Regulation of Public Slaughterhouse, 1980).
- Livestock conservation is regulated by conservation (restriction on slaughter) of useful Animals Act, 1956 while livestock breeding is being regulated by livestock breeding schemes, 1960. The livestock protection is regulated by prevention of cruelty to animal rules, 1961 and Ordinance 1981. Livestock nutrition is being regulated by animal compound feeding Act 1974.
- Livestock health is regulated by Animal Contagious Diseases Act 1948. The livestock product quality is being regulated by Pure Food Ordinance 1960, Rule, Rules 1965 and Agricultural Produce (Grading and Marketing) Act 1972.
Signing Of Export Contract
When prices are accepted to export / import live stock then a contract is signed with the firm for supply of live stock which becomes binding on both the buyer & seller. Contract is a document, which normally contains:
- Name of exporter of live stock
- Name of importer of live stock
- Breed of live stock
- Unit price
- Total quantity
- Terms of delivery (FOB, C&F, CIF etc.)* Incoterms
Incoterms (international commercial terms) deal with the questions related to the delivery of the products from the seller to the buyer. This includes the carriage of products, export and import clearance responsibilities, who pays for what, and who has risk for the condition of the products at different locations within the transport process. Incoterms are always used with a geographical location and do not deal with transfer of title.
When the exporter is making an offer, he quotes the price of his product. If the offer is accepted then a contract is signed between the buyer & the seller. The contract includes terms and conditions under which goods are delivered.
The buyer sitting in the overseas market is normally not interested to receive charge of goods at one’s factory site but he may be interested to get charge of goods on FOB basis which means free on Board at airport or seaport. It means that charges of the consignment are fully paid up to that point and the rest of the freight is paid by the buyer. Terms of delivery are not only important for quoting price but it also makes clear as to who is responsible for the goods if anything goes wrong.
- Terms of payment
(There could be basically two arrangements for payment; first being through direct funds transfer without involving any credit facility. This funds transfer could be both before the shipment of goods or after the shipment of goods generally referred as Cash Against Documents (CAD). Second arrangement is through the Letter of Credit (LC). The customer’s bank provides a ‘letter of credit’, which promises to pay the supplier as long as the terms are met. There are two types of LC, LC at sight and LC Deferred payment. The payment may be paid immediately at sight or at a later date).
- Mode of shipment (Sea, Air, Road)
- Currency in which transaction will be made.
- Validity period of a contract & delivery period.
- Shipping marks if any.
- Arbitration clause.
Required Documents for Export of Livestock in Pakistan
The following documents are required while undertaking exports from Pakistan:
- Form V 19
- Form V 18
- E-form (To claim duty drawbacks etc)
- Packing list ( in case of Live stock variety /breed of Live stock )
- Verified Certificate of Origin
- Health certificate of an animal and animal product, issued by the Quarantine Officer, in Form VII/ Form IX, under the Pakistan Animal Quarantine (import and Export of Animals and Animal Products) Rules, 1980.
- BCA (Bank Credit Advice) to be received from commercial banks after foreign exchange is received. The BCA is considered proof for the purpose of rebates, refinance scheme etc.