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LIVESTOCK VISION 2025 PRIVATE SECTOR-LED GROWTH
March 2015
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Table of Contents
LIST OF ABBREVIATIONS 5
PRESIDENT’S STATEMENT 6
PRIME MINISTER’S STATEMENT 7
PRELUDE 9
MESSAGE FROM CHIEF MINISTER, PUNJAB 12
MESSAGE FROM CHIEF MINISTER, SINDH 13
MESSAGE FROM CHIEF MINISTER, KHYBER PAKHTUNKHWA 14
MESSAGE FROM CHIEF MINISTER, BALOCHISTAN 15
1. INTRODUCTION AND BACKGROUND 16
1.1 NATIONAL VISION 2025 16
2. LIVESTOCK SECTOR SNAPSHOT 17
2.1 DAIRY 20 2.2 MEAT 20 2.3 POULTRY 22 2.4 FISHERIES AND AQUACULTURE 23 2.5 EQUINES, CAMELS AND PETS 25 2.6 KEY IMPEDIMENTS 25
3. CASE FOR CHANGE – WHY LIVESTOCK VISION 2025 29
3.1 GROWING DEMAND 29 3.2 FOOD SECURITY 31 3.3 ECONOMIC SIGNIFICANCE AND OPPORTUNITY TO MAKE AN IMPACT 32 3.4 PAKISTAN’S COMPARATIVE ADVANTAGE 33 3.5 INTERNATIONAL GROWTH DRIVERS 34 3.6 ENVIRONMENTAL CHALLENGES 34
4. LIVESTOCK VISION 2025 34
4.1 VISION STATEMENT 35 4.2 OBJECTIVES AND GOALS OF LIVESTOCK VISION 2025 36 4.3 KEY ENABLERS FOR LIVESTOCK VISION 2025 38 4.4 KEY PILLARS 38
5. STRATEGIC PILLARS 39
5.1 INSTITUTIONAL AND HUMAN RESOURCE DEVELOPMENT 39 5.2 DISEASE SURVEILLANCE, ANIMAL HEALTH AND EXTENSION SERVICES 44 5.3 LIVESTOCK PRODUCTIVITY ENHANCEMENT AND MARKETING 47 5.4 ACCESS TO FINANCE, SUSTAINABILITY, REGULATIONS & COMPLIANCE REGIME 52 5.5 INVESTMENT PROMOTION AND ENTERPRISE DEVELOPMENT 56
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6. CONCLUSION 58
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List of Figures Figure 1: Agriculture Sector and Sub-Sectors Growth 2007-2014 ................................... 18 Figure 2: Livestock Population Growth 2000 - 2025 (Actual and Projected) .............. 19 Figure 3: Gross Milk Production .................................................................................................... 20 Figure 4: Meat Production ................................................................................................................ 21 Figure 5: Population of Camels, Horses, Asses and Mules ................................................... 25 Figure 6: Meat Consumption Trend in Pakistan ...................................................................... 30 Figure 7: Livestock Vision 2025 – Vision and Key Goals ...................................................... 36 Figure 8: Strategic Pillars of Livestock Vision 2025 ............................................................... 39
List of Tables Table 1: Livestock Products Production ..................................................................................... 21 Table 2: Domestic/Rural & Commercial Poultry ..................................................................... 22 Table 3: Poultry Statistics 2013-14 .............................................................................................. 23 Table 4: Inventory of Pakistan’s Aquatic Resources, by Province .................................... 24 Table 5: Supply of Agricultural Credit by Institutions ........................................................... 28 Table 6: Per capita Meat Consumption (Kg) 1983-2020 ...................................................... 30
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LIST OF ABBREVIATIONS AI Artificial Insemination
DVM Doctor of Veterinary Medicine
FAO Food and Agriculture Organization
FMD Foot and Mouth Disease
GDP Gross Domestic Product
ha hectares
HACCP Hazard Analysis & Critical Control Points
HS Haemorrhagic septicaemia
ICT Information and Communication Technology
KPK Khyber Pakhtunkhwa
MFB Microfinance Bank
MINFAL Ministry of Food, Agriculture and Livestock
MoFS&R Ministry of National Food Security & Research
NCA National Commission of Agriculture
OIC Organization of Islamic Countries
PEEP Punjab Enabling Environment Project
PKR Pakistani Rupee
PPA Pakistan Poultry Association
PPR Pest des Petits Ruminants
PPCBL Punjab Provincial Cooperative Bank Ltd
PPP Public Private Partnership
PSQCA Pakistan Standards and Quality Control Authority
R&D Research & Development
SBP State Bank of Pakistan
SFG Small Farmers Group
SMIIC The Standards and Metrology Institute for Islamic Countries
UHT Ultra-high-temperature processing
USAID United States Agency for International Development
USD United States Dollar
UVAS University of Veterinary and Animal Sciences
VLEW Village Livestock Extension Worker
WWF World Wildlife Fund
ZTBL Zarrai Tarraqiati Bank Ltd.
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PRESIDENT’S STATEMENT MAMNOON HUSSAIN
PRESIDENT OF PAKISTAN
With Livestock Vision 2025, the Planning Commission has achieved a highly
important task of developing a national framework for what needs to be done for
upgrading the livestock sector and contributing towards national economic growth.
The Livestock Vision flows out of the National Vision 2025 and sets ambitious
benchmarks and targets for the sector for the next ten years and puts forward a plan
to achieve them. The five key pillars of the vision present a comprehensive
framework to bring Pakistan’s livestock sector at par with the top most livestock
producing countries through strengthening our human resource base, developing
state-of-the-art institutions and systems, providing access to market to poor
farmers and ensuring provision of credit. More importantly, the vision is built
around Pakistan’s indigenous strengths in the sector and it stipulates how these can
be capitalized on. Pakistan’s untapped potential in livestock sector provides ample
room for growth and with the right strategy; there is no reason, why we cannot tap
it. I am extremely confident that Livestock Vision 2025 provides a concrete
foundation for establishing a modern, progressive and state-of-the-art livestock
sector by the year 2025. I also encourage all provinces to work in synergy to turn
this vision document into a reality and achieve double digit growth.
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PRIME MINISTER’S STATEMENT MOHAMMAD NAWAZ SHARIF
PRIME MINISTER OF PAKISTAN The Livestock Vision 2025 is yet another milestone for the Government of Pakistan
and I would like to commend Planning Commission for achieving this. National
Vision 2025 presented a national growth framework to bring Pakistan back on a
rapid growth trajectory and the sector-specific visions takes this journey a step
further and present implementable strategies for achieving high economic growth in
the next ten years. What is more important is that rather than being a government-
driven strategy, this vision emphasizes on private sector led growth and brings
together aspirations of government, academia and private sector in a coherent form.
Planning Commission has informed me that this document has been developed by
University of Animal Sciences Lahore, with collaboration of experts, researchers,
policy makers and academicians from all across the country and the quality of this
document is a testament to these valuable efforts driven by all these partners. The
Livestock Vision 2025 not only presents medium term goals for the livestock sector
but also lays out a comprehensive strategy to realize these goals. The Vision
integrates existing efforts by all provinces to boost livestock sector and builds on
existing strengths and initiatives, making it a national vision in the true sense. What
we need now is a firm commitment and resolve to turn this vision into a reality and
contribute towards the prosperity of Pakistan. I hope with the successful launch of
Livestock Vision 2025, other sectors will follow suit and will come up with their own
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visions to align with the National Vision 2025 and take part in this exciting journey
of growth and prosperity.
9
PRELUDE PROF. AHSAN IQBAL
FEDERAL MINISTER FOR PLANNING, REFORM & DEVELOPMENT
Government of Pakistan is committed to put the country on a healthy growth
trajectory through sound economic planning, good governance and consistency in
policy implementation. Government has articulated this commitment through its
long-term policy document – Vision 2025. In order to support this vision, the
Government has also embarked on a journey to develop sector-specific visions.
Livestock is one of the biggest economic sectors of Pakistan, with a contribution of
55.9% to agricultural GDP and 11.8% to the total GDP of Pakistan, providing
employment opportunities and livelihood to millions of rural families. Despite of its
importance, there was no clear national roadmap that could reflect the aspirations
and potential of this sector in the context of a fast changing world.
Though after 18th amendment, a lot of power has been shifted to the provinces
regarding the livestock policy and strategy formulation, nonetheless responsibility
lies with the Federal Government of Pakistan to provide an overall vision for the
sector to set its future direction, in line with national macroeconomic framework
including monetary & fiscal policies. Moreover, banking, taxation, international
trade, sanitary and phytosanitary regime come under federal purview, which
directly or indirectly affect the performance of the sector.
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With this backdrop Planning Commission of Pakistan has developed the Livestock
Vision 2025 after undertaking extensive consultation with all stakeholders and
develop the Livestock Vision 2025 that speaks out the salient features of national
strategic direction and sets long term priorities. The Livestock Vision 2025 would
directly support Pillar II - Achieving Sustained, Indigenous and Inclusive Growth,
Pillar IV - Water, Energy and Food Security and Pillar VI - Private Sector and
Entrepreneurship Led Growth, of the National Vision 2025.
Livestock Vision 2025 is aimed at transforming Pakistan’s livestock sector through
private-sector led growth as a vibrant industry, well positioned to fully cater to local
demands, claim a greater share in livestock exports, match international quality
standards and achieve double-digit growth in the sector by the year 2025. The
Livestock Vision 2025 is about creating a strong foundation in the next ten years,
preparing it to become a world leader in future in the livestock sector through
private sector-led growth and removing market distortions and establishing a
platform for private enterprises to make increasing investments in the sector and
contribute towards economic development.
I am especially thankful to University of Veterinary and Animal Sciences (UVAS) for
playing a leading role in formulation of this vision. We are also very grateful to
USAID for providing assistance to develop this document through its Punjab
Enabling Environment Project (PEEP), which is working to create an internationally
competitive agriculture sector while improving the quality and quantity of produce
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in domestic markets, through accelerating advocacy for policy, regulatory, and
institutional reforms through the private sector; supporting institutional capacity
building to create reforms that will lead to a better enabling environment; and
mobilizing major private sector investments in horticulture, livestock, and dairy
thus driving economic growth.
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MESSAGE FROM CHIEF MINISTER, PUNJAB
MUHAMMAD SHAHBAZ SHARIF
I am extremely pleased to know that the Ministry of Planning, Development and
Reforms has developed the National Livestock Vision 2025. The sector focus of this
document is aligned with national and provincial priorities as we see livestock and
agriculture as engines for future growth. Healthy growth in livestock sector in turn
is likely to result in redistribution of poverty and bring improvement in livelihoods
of rural population. Being the source of employment for millions, the Vision will
directly benefit the unemployment situation with its focus on value addition and
productivity enhancement. With the implementation of this vision, the sector will
witness increased production, higher yields and greater value added, tremendously
contributing to the national economic growth.
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MESSAGE FROM CHIEF MINISTER, SINDH
QAIM ALI SHAH
I would like to congratulate Mr. Ahsan Iqbal, Federal Minister for Planning,
Development and Reform as well as the Planning Commission for producing this
excellent document and coming up with such a comprehensive strategy for livestock
sector’s growth. In particular I’m extremely impressed with the export-oriented
perspective of Livestock Vision 2025 and the aim to create a significant place for
Pakistan in global meat exports. This would address the current account deficit and
would bring the well-needed foreign exchange to the country. This would also
correct the export-import imbalance. With the steps highlighted in the vision
document, the sector will definitely witness a renewed growth and increased
exports.
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MESSAGE FROM CHIEF MINISTER, KHYBER PAKHTUNKHWA
PARVEZ KHATTAK
Planning Commission has indeed performed a marvelous job by developing the
Livestock Vision 2025 and presenting a growth strategy for the sector. The vision
not only covers productivity and growth in the sector but also encompasses the
critical food security dimension, whereby it aims at protecting the most food-
insecure segments of the population through effective relief measures and by
establishing a modern, export-oriented livestock sector. In order to mitigate the
food security risks in future it is essential to ensure that all relevant value chains are
targeted towards provision of stable and affordable access to adequate and food and
the Livestock Vision 2025 exactly aims at this direction.
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MESSAGE FROM CHIEF MINISTER, BALOCHISTAN
ABDUL MALIK BALOCH
I would like to pay my heartiest felicitations to Prof. Ahsan Iqbal, the Hon. Federal
Minister for Planning, Development and Reform for undertaking the arduous job of
developing the Livestock Vision 2025. Livestock production is an especially
important source of income for the rural poor in Pakistan. Livestock sector provides
cash income from rural women, while providing livestock insurance for
marginalized farmers. Livestock Vision 2025 is about these rural farmers, who are
likely to benefit from livestock sector growth, while earning significant dividends for
national growth in the years to come.
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1. Introduction and Background Pakistan is a middle-income country but it’s ranking on the social indicators drag it down to the rank of least developed countries. Presently, Pakistan is at a critical crossroad with a number of social, economic, security and governance challenges. However, the government is committed to put the country back on a healthy growth trajectory through sound economic planning, good governance and consistency in policy implementation. Government has articulated this commitment through its long-term policy document – Vision 2025 – aiming at achieving the proposed sustainable development goals of zero poverty and hunger, universal access to health services, education, modern energy services, clean water and sanitation and join the league of upper middle income countries by the year 2025. The vision is also seen as an intermittent step towards more rapid growth in subsequent future making Pakistan one of the ten largest economies of the world by year 2047, at the culmination of 100 years of country’s independence.
1.1 National Vision 2025 Vision 2025 is aimed at creating some fundamental enabling conditions to realize its targets. These conditions include shared national vision, political stability, peace and security, rule of law and social justice.
The Vision 2025 has also identified seven pillars to translate the vision into concrete action areas. These areas are
• Pillar I: Putting People First – Developing Human and Social Capital
• Pillar II: Achieving Sustained, Indigenous and Inclusive Growth
• Pillar III: Democratic Governance, Institutional Reform and
Modernization of the Public Sector
• Pillar IV: Water, Energy and Food Security
• Pillar V: Private Sector and Entrepreneurship Led Growth
• Pillar VI: Developing a Competitive Knowledge Economy through Value
Addition
• Pillar VII: Modernizing Transportation Infrastructure and Greater
Regional Connectivity
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2. Livestock Sector Snapshot Pakistan has a strong agrarian base with vast tracts of cultivable land, with agriculture base of exceeding 79.6 million hectares of land out of which 22 million hectares of land is under cultivation. The agriculture sector contributes 21% to national GDP, while providing employment to 44% of labor force. Agriculture sector also contributes tremendously to the exports base, with 70% of exports being agricultural and agro-processed products1. Within agriculture, the livestock sector has been claiming the largest share, contributing about 55.9% to the agriculture value added and about 11.8% to the national GDP. Moreover, the livestock’s value exceeds the combined value of all the major and minor crops by about 6.1%. The share of livestock products in the generation of foreign exchange is about 13%. More significantly, livestock is an integral part (30-40%) of livelihood of about 30 to 35 million rural farmers2. Presently gross value addition of livestock stands at PKR 1,172 billion, whereas livestock share in export is 8.5%3. Pakistan ranks 4th in total livestock population of the world, 2nd in buffalo population, 4th in goat population, 5th in number of equids (horses, donkeys and mules)4 and 12th in cattle-milk production5. During 2013-14 agriculture sector grew by 2.1%, however interestingly much of this growth was contributed by livestock sector, which grew by 2.9% during the same period. Gross value addition of livestock has increased from PKR 756.3 billion (2012-13) to PKR 776.5 billion (2013-14), showing an increase of 2.7% as compared to last year.
1 Economic Survey of Pakistan 2013-14 2 LFS 2007-08 3 Economic survey of Pakistan 2013-14 4 www.faostat.fao.org 5 Food and Agriculture Organization (faostat.fao.org)
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Figure 1: Agriculture Sector and Sub-Sectors Growth 2007-2014
Healthy growth in livestock sector has a direct impact in redistribution of poverty and improvement in livelihoods of rural population. It provides employment to majority of labor force too, thus it is an important means of livelihood security in the country. Because of the continuous deceleration over the last two decades in rate of production of most of the food and non-food grain crops, the role of livestock sector has become all the more vital in maintaining the growth in agriculture sector. Pakistan's livestock population, estimated at 125 million in 2006, is one of the largest in the world, which according to estimates has grown to 170 million by now. The same is expected to grow to a staggering 203 million by the year 20256.
6 Source: Calculations based on data from Economic Survey of Pakistan
1.83.5
0.2
2.03.6
2.9 2.12.9
-20
-15
-10
-5
0
5
10
15
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Agriculture and Sub-Sectors Growth
Crops Livestock Forestry Fishing Overall Agriculture
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Figure 2: Livestock Population Growth 2000 - 20257 (Actual and Projected)
Livestock sector has traditionally been the mainstay of farming communities and the sector is dominated by subsistence smallholders, who meet their needs of nutrients and cash income on daily basis. Livestock is considered a source of food livelihood at rural level, helping to reduce disparity in income and providing security in case of any untoward eventuality of crop failure. But in recent years, population growth, urbanization, increase in per capita income and export opportunities have been fueling the demand of livestock and livestock products changing the market dynamics and brining in the commercial perspective. 7 Source: Calculations based on data from Economic Survey of Pakistan
0 50 100 150 200 250
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
No. in Millions
Cattle Buffalo Sheep Goat
20
2.1 Dairy Dairy sector in Pakistan consists of three types of producers; 83% small farmers raising more than 50% of total milk animals (herd size <5), 14% medium-sized farmers/producers raising 29% milk animals (herd size 5-10), 3% large-scale producers sharing 21% of milk animals (herd size >10).8 Animals are raised in agricultural lands spread over an area of 263,000 sq. km. and almost 1/5th of this land is used as pasture land to raise animals including milk-producing animals. Medium and large size producers are mostly located in peri-urban areas having better farm-to-market access.
Figure 3: Gross Milk Production9
During 2013-14, milk production increased by 3.2% and meat 4.5% as compared to corresponding period last year.
2.2 Meat According to United States Department of Agriculture statistics, Pakistan ranks 9th among top beef producing and consuming countries and also ranks 9th among sheep producing countries. Pakistan exported 58,730 metric tons of meat and meat preparations during 2013-14 (July-March)10 . The export of meat and meat preparations fetched US$ 177.5 million. During same period export of livestock by-products like animal casing, bones, horns and hooves, gelatin fetched US$ 50.0 million11.
8 Pakistan, Livestock census 2006 9 Source: Ministry of National Food Security & Research / Economic Survey of Pakistan 10 Economic survey of Pakistan 2013-14 11 MOFS&R, 2014
47,859 49,400 50,990 52,632
16,741 17,372 18,027 18,706
29,473 30,350 31,252 32,180
779801 822 845
829 840 851 862
0
10,000
20,000
30,000
40,000
50,000
60,000
2011-12 2012-13 2013-14 2014-15
00
0 T
on
ne
s
Overall Milk Cow Buffalo Sheep Goat Camel
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Figure 4: Meat Production12
Table 1: Livestock Products Production
Species Units 2011-12 2012-13 2013-14
Eggs Million Nos. 13,114 13,813 14,556
Hides 000 Nos. 13,938 14,410 14,868
Cattle 000 Nos. 6,995 7,258 7,532
Buffalo 000 Nos. 6,842 7,050 7,232
Camels 000 Nos. 101 102 104
Skins 000 Nos. 49,582 50,713 51,872
Sheep Skin 000 Nos. 10,745 10,873 11,001
Goat Skin 000 Nos. 24,237 24,986 25,664
Fancy Skin 000 Nos. 14,509 14,854 15,207
Lamb skin 000 Nos. 3,192 3,229 3,268
Kid skin 000 Nos. 11,318 11,624 11,939
Wool 000 Tonnes 43 43.6 44.1
Hair 000 Tonnes 23.8 24.4 25.1
Edible Offal’s 000 Tonnes 353 363 373
Blood 000 Tonnes 59.8 61.3 62.8
Guts 000 Nos. 50,089 51,232 52,403
Casings 000 Nos. 14,832 15,333 15,817
Horns & Hooves 000 Tonnes 50.9 52.5 54
Bones 000 Tonnes 757.5 780.5 802.9
Fats 000 Tonnes 241.7 248.8 255.8
Dung 000 Tonnes 1,071 1,104 1,136
12 Source: Ministry of National Food Security & Research / Economic Survey of Pakistan
3,2323,379
3,5313,696
1,769 1,829 1,887 1,951
629 643 657 671
834 907 987 1,074
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2011-12 2012-13 2013-14 2014-15
00
0 T
on
ne
s
Overall Meat Beef Mutton Poultry meat
22
Urine 000 Tonnes 329 338 348
Head & Trotters 000 Tonnes 220.1 226.3 232.3
Ducks, Drakes & Ducklings
Million Nos. 0.5 0.5 0.5
2.3 Poultry Poultry sector is one of the important and vibrant segments of livestock sector in Pakistan. This sector has contributed 1.3% in GDP during 2013-14 while its contribution in agriculture and livestock value-added stood at 6.1% and 10.8% respectively. Poultry meat contributes 28% of the total meat production in the country. Poultry sector has shown a robust growth at 8-10% per annum, which reflects its inherent potential. The poultry value-added at current factor cost has increased from PKR 121.7 billion (2012-13) to 130.7 billion (2013-14) showing an increase of 7.4% as compared to previous year.
Table 2: Domestic/Rural & Commercial Poultry
Type Units 2011-12 2012-13 2013-14
Domestic Poultry Million Nos. 79.68 80.87 82.08
Cocks Million Nos. 10.1 10.38 10.66
Hens Million Nos. 38.09 38.78 39.47
Chicken Million Nos. 31.48 31.72 31.95
Eggs Million Nos. 3,809 3,878 3,947
Meat 000 Tonnes 106.51 108.62 110.79
Duck, Drake & Duckling
Million Nos. 0.54 0.52 0.5
Eggs Million Nos. 24.13 23.13 22.17
Meat 000 Tonnes 0.73 0.7 0.67
Commercial Poultry
000 Tonnes 44.1 47 50.1
Layers Million Nos. 34.82 37.25 39.86
Broilers Million Nos. 597.02 656.72 722.39
Breeding Stock Million Nos. 9.25 9.71 10.19
Day Old Chicks Million Nos. 623.58 685.94 754.54
Eggs 2 Million Nos 9,281 9,912 10,586
Meat 000 Tonnes 726.66 797.47 875.24
Total Poultry
Day Old Chicks Million Nos. 655 718 786
Poultry Birds Million Nos. 721 785 855
Eggs Million Nos. 13,114 13,813 14,556
Poultry Meat 000 Tonnes 834 907 987
Current turnover of poultry industry in Pakistan is estimated around PKR 732 billion annually. Poultry industry generates employment and provides source of
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income to more than 1.5 million people of Pakistan. There are 400 hatcheries, 150 feed mills and about 25000 poultry farms in the country. Breeding stock population is around 12 million and there are 40 million layers. Quail farming is also growing at very fast pace in the country. At present over 40% of agriculture produce and by-products of agriculture are being used in poultry feed.
Poultry Development Policy envisions sustainable supply of wholesome poultry meat; eggs and value added products to the local and international markets at competitive prices and aimed at facilitating and support private sector-led development for sustainable poultry production. The strategy revolves around improving regulatory framework; disease control and genetic improvement in rural poultry; hi-tech poultry production under environmentally – controlled housing; processing and value addition; Improving bio-security; need based research and development and framers training & education. It envisages poultry sectors growth of 15-20% per annum.
Table 3: Poultry Statistics 2013-14
PPA Data Economic Survey
Breeders 12 Million 10.19 Million Broiler Day Old Chicks 1.2 Billion 0.754 Billion Broiler (Table Birds) Produced 1.0 Billion 0.722 Billion Average Annual Growth 12.5% 8-10% Live Weight 1.84 Billion Kg Broiler Meat including Giblets 1.34 Billion Kg Per Capita Poultry Meat Availability 6.6 Kg Per Capita Egg 55 Layer Parent Stock 0.65 Million Table Egg Layers 40 Million Total Table Egg Production 11.2 Billion Feed 6.4 Million MT
2.4 Fisheries and Aquaculture Fisheries contribute directly to food supplies - a source of livelihood for the coastal inhabitants - as well as towards export earnings. Fish also is a good source of many vital nutrients (micro- and macro-nutrients) and especially a source of protein with high biological value similar to that of land animals. Fishery products are one of the most traded foods and feed commodities. Apart from marine fisheries, inland fisheries (based in rivers, lakes, ponds, dams etc.) are also an important activity throughout the country. Pakistan’s major export destinations for fisheries include China, Thailand, Malaysia, Middle East, Sri Lanka, Japan, etc. During the year 2013-14 (July- March), a total of 103,833 metric tons of fish and fish preparations were exported earning US$ 253.1 million compared to 103,796 metric tons, earning US$ 232.5 million corresponding period last year. During 2013-14 (July- March), total marine and inland fish production was estimated 514,500 metric tons out of which 349,500 metric tons was marine production and the remaining catch came from inland waters. The export of fish & fishery products increased by 0.04% in quantity, while increased by 8.8% in value term during 2013-14 (July- March).
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Inland Natural Resources - Pakistan has wide spread inland natural resources, comprising rivers, canals, dams, reservoirs attached to barrages/headworks, lakes, water-logged areas and village ponds etc., with a total area of about 3.0 million hectares including private fish farming area of about 60,000 acres in Punjab only. All these resources possess great development potential to meet the increasing protein demand. Dominant features of the Indus river system are the numerous reservoirs and extensive canals/irrigation system. The fish fauna is rich and about 183 species of fresh water fish are found in Punjab province, out of which about 17 species are edible. The common one include Indian major carps (Rohu, Mori, Thaila) and exotic Chinese carps (Common carp, Grass carp, Silver carp and Big head) which are culturable and are of good economic value. There are two exotic (brown trout, Salmo trutta, and rainbow trout, Oncorhynchus mykiss) and 26 indigenous cold water fish species in Pakistan, mainly restricted to the north of the country's KPK Province and Northern Areas.
Marine Resources - Pakistan has a coastline of about 1,120 km, with a number of bays and broad continental shelf lying in front of the Indus deltas. Major fish centers include Karachi, Gwadar and Pasni. Most of the marine catch is done within 12 nautical miles. About half of the fish exported from Pakistan is netted on the Sindh coast. The coastal/marine areas of Pakistan support large fisheries. Fishing grounds for large pelagic species, tuna, mackerel, sharks etc. are located in our offshore waters. Species such as mullet, silver wittings and other small sized demersal fishes, especially juveniles of large commercially important estuarine fish, are harvested from shallow waters in the creek area of the Indus and other small rivers and also in enclosed and semi-enclosed bays throughout the coastal waters.
Table 4: Inventory of Pakistan’s Aquatic Resources, by Province
Resources Sindh (Area in ha)
Punjab (Area in
ha)
Balochistan (Area in ha)
KPK (Area in ha)
Total (Area in ha)
Rivers/ streams 160,000 2,940,000 -- 2,408 3,102,408 Canals, drains & abandoned canals
321,340 23,700 -- 1,763 346,803
Lakes 110,000 6,700 4,047 6,362 127,109 Dams/ reservoirs 97,000 65,800 6,070 26800 195,670 Waterlogged areas 3,000,000 30,000 -- 1,600 3,031,600 Deltaic area 700,000 * -- -- -- 700,000 Flood water area 1,000,000 -- -- -- 1,000,000 Fish farms ** 49,170 10,400 100 560 60,230 Territorial Marine Waters (km)
352 km x 12 N.Miles
-- 1,129 x 12 N.Miles
-- 1,481 x 12 N.Miles
Source: Department of Fisheries, Govt. of Punjab * WWF-Pakistan ** Areas of fish farms are likely to be underestimated as many farms are not registered and no inventory system exists.
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2.5 Equines, Camels and Pets An important role and contribution by working equine (horse, donkeys and mules) and different kinds of pets in Pakistan cannot be denied. The equine population in the country is 4.75 million: including 0.34 million horses, 4.26 million donkeys, and 0.15 million mules according to Government of Pakistan, Livestock Census, 2006. In Pakistan, nearly half of the total equine population concentrates in urban and peri-urban areas of the country where the working equine are used by the equine owning communities as main source of their livelihood in different ways. Similarly, extension support provided by working equine in rural setup for food security and livelihood chain is of significant importance. It is estimated that over 2 million families or more than 15 million poor people depends on working equine animals directly or indirectly for their living and economic survival in the country. However with mechanization, the role of the draft animals would decrease in the future.
Figure 5: Population of Camels, Horses, Asses and Mules13
2.6 Key Impediments Despite this huge potential for the sector, livestock sector has been facing a number of impediments. Low Productivity – Livestock sector in Pakistan suffers from low productivity due to non-exploitation of prevailing genetic pool14, unproductive animals, dominance of subsistence farming, unregulated breeding strategies and low access of rural farmers to improved breeding services, poor farm management practices, with
13 Ministry of National Food Security & Research / Economic Survey of Pakistan 14 This includes issues like negative selection through slaughter of progeny of high yielding buffaloes through slaughtering of buffalo calves as well as slaughtering of potential buffaloes in urban and peri-urban areas like cattle colonies in Karachi.
1.0
1.0
1.0
1.0
0.4
0.4
0.4
0.4
4.8
4.9
4.9
5
0.2
0.2
0.2
0.2
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
2011-12
2012-13
2013-14
2014-15
No. in Millions
Camels Horses Asses Mules
26
fodder, concentrate feed, silage and mineral mixtures being mostly unavailable to the subsistent farmers due to limited knowledge, high cost and limited accessibility. Small farmers are unable to make use of modern machinery due to their poor economic conditions and high cost of technology leading to issues of hygiene and productivity. Although large farmers do use machinery and equipment, yet they are unable to match international production and sanitary standards. Trainings facilities are very limited for the farmers and dairy processors. In the informal sector, the labor is found to be inefficient as mainly the families are involved in raising animals as part of the rural culture.
Poor Institutional Infrastructure - Despite free vaccination availability by the government, limited knowledge about animal healthcare, difficult access to qualified veterinarians and their higher costs (informally charged) restrict small farmers to use vaccines. Poor vaccination coverage and high disease incidence greatly, is attributed to poor livestock support institutional infrastructure. Estimates show that only about 15% to 25% animal population is vaccinated. Inadequate levels of parasite control and insufficient levels of vaccination result in considerable losses in terms of livestock productivity. Curative health services despite a large public network of veterinary hospitals and dispensaries are not accessible to rural farmers. Therefore, there is great need to extend the extension, curative and preventive healthcare services support to livestock farmers. Similarly, research and development infrastructure is almost nonexistent. There is hardly any well-manned and equipped facility for this purpose. There is not a single institution for the dairy development technology in the country and those having dairy research as a side activity have no focused direction to problem solving of the industry.
Non-availability of Good Quality Semen – Limited availability of quality semen is another constraining factor for livestock sector. Public sector facilities are inadequate to meet the demand of quality semen to enhance milk and meat yield. Existing insemination centers face multiple inefficiencies including staff absenteeism, restricted mobility, poor monitoring and accountability mechanisms, lack of regulatory regime, lack of expertise, poor breeding policy and poor infrastructure. Breed Factor – Breed factor is an important reason of late maturity, low productivity and long calving. Shortening of service period by one day yields an increase of 5 to 7 liters milk and one estrus cycle results in additional 105 to 147 liters milk. Reproductive disorders in female cattle and buffaloes lead to significant economic losses. The studies show that Punjab is losing about 11.57 million tons of milk each year on account of this reproductive disorders. When converted into monetary figures, this loss comes out to be about PKR 120 billion in buffalos15 only. In KPK, the specific type of hilly, mountainous and arid terrain is supporting mainly goats, small-sized cattle and sheep, which comprise poor breed quality associated with low inputs in terms of feed and management support; leading to slower growth
15 Poverty Focused Invetsment Strategy Punjab; 2005
27
rate, poor productivity, fertility and economic returns. The low input and low outputs system prevalent in the province is the biggest impediment in the livestock production. In recent past, increase in milk production resulted due to appropriate farming of imported and cross bred cows from Australia, Denmark and Sweden with higher yields. However, the quantum of increase is marginal keeping the limited number of farmers adopting such business practices as against a huge sized informal sector. Inadequate Feed - Irrespective of the genetic potential, underfed cattle can hardly give higher yield. The National Commission on Agriculture (NCA) 1988 suggested that "if all animals in milk receive full diet which meets their daily appetite without changing the feed mix i.e. maintaining the present poor nutritional requirement balance, this alone could increase milk yield by 100 per cent." Research suggests that about 70-75%, of the feed intake serves solely for the maintenance of the livestock16. It is the remaining 25-30% of intake that actually matters for productivity enhancement. Hence little training and support to livestock workers on nutritional aspects of livestock care can bring about amazing results. The country resources are not adequate to fully support feed requirements of the existing livestock population and are deficient by almost 30% in protein and energy need. Over half of the native feed resource come from poor quality crop residues. Similarly, fodder yield hardly meet 60 percent requirements of our livestock. The feed gap will further widen in the future driven by increasing livestock population combined with an urge to enhanced productivity and on the other hand diminishing land and threatened natural resources. Livestock Products Processing and Marketing - Reliance on traditional marketing systems results in suboptimal performance of the sector. It results in wastage, prevents the livestock owners from getting a fair price and the consumer from quality product at fair price. The sector’s optimal performance is constrained due largely to non-availability of a robust and efficient marketing strategy and mechanisms. Livestock and livestock products marketing and trade face several constraints and challenges including:
• Poor market infrastructure and distorted marketing system for livestock and livestock products;
• Poor and costly transportation system for livestock and livestock products; • Little or no livestock product diversification; • Poor or little knowledge (inadequate information) of the markets (domestic
and export) for livestock and livestock products; • Non-existent livestock producers organizations, eliminating the bargaining
power of farmers and no economies of scale in marketing of livestock and livestock products, leading to high transaction costs, wastage and inefficiencies;
• Weak linkages and coordination among actors in the livestock value chains;
16 Younas and Yaqoob; 2005
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• Inadequate entrepreneurship and business skills especially among smallholder resource poor livestock producers; and
• Absence of market regulations and non-compliance with international quality standards
Additionally, there is little value addition in the livestock value chains characterized by lack of grading of livestock and livestock products, low awareness about fattening of animals to improve quality prior to marketing, inadequate infrastructure for processing and poor handling of livestock products, etc. Moreover, processing costs are high, and farmers generally have inadequate knowledge and skills about small scale processing. The challenge therefore is to improve value addition in the livestock value chains at affordable cost and at a smaller scale for rural communities. The absence of effective market linkages negatively affects both backward and forward supply chain of livestock and livestock products. Fisheries Sector Constraints – Fisheries sector has also been facing a number of impediments including over-exploitation of aquatic resources; lack of facilities for resource surveys and stock assessment; increasing pollution and environmental degradation completely wiping out some of the important coastal fishing grounds; post-harvest losses due to poor handling practices; lack of preservation facilities on board fishing vessels and in the landing centers; etc. Low Government Spending and Limited Access to Credit - Poor performance of dairy and livestock sector is also the result of low spending by the government. Despite more than 11% contribution to the national GDP, livestock’s allocation remains less than 1% during last five years17. Additionally, agriculture sector in general and livestock sector in particular have been facing restricted access to credit. Poor smallholders have to rely on expensive informal credit sources, in the absence of any collateral-free credit mechanism. Government is already trying to extend agricultural credit and ensure increased flow. The supply of agriculture credit target for FY 2013-14 is 20% higher than the last year.
Table 5: Supply of Agricultural Credit by Institutions18
(Rs in billion)
Banks Target (2013-
14)
2013-14* Target (2012-
13)
2012-13*
Flow % Achieved
% Share in Total
Flow % Achieved
% Share in Total
5 Big Commercial Banks
188 133.5 71 52.2 153.5 123.67 80.6 53.5
ZTBL 69.5 45.9 66 17.9 72 37.95 52.7 16.4
PPCBL 10 5.4 54.4 2.1 9 5.43 60.3 2.4
17 Pakistan Livestock Development Policy; Government of Pakistan 18 Source: State Bank of Pakistan / Economic Survey of Pakistan (*Based on nine months data)
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14 DPBs 90.4 54.2 59.9 21.2 66.7 51.02 76.5 22.1
7 MFBs 21.6 16.2 75.1 6.3 13.8 12.96 93.9 5.6
3 Islamic Banks 0.5 0.5 94.6 0.2 - - - -
Total 380.0 255.7 67.3 100.0 315.0 231.0 73.3 100.0
Fragmented Supply Chain & Unreliable Milk & Meat Supply – The fragmented structure of supply chain of milk pose another problem, with high collection costs due to dispersed supply sources, poor supply chain infrastructure and absence of cold chain resulting in substantial losses and poor quality of milk, adulteration by middlemen and others. Lack of dairy supply chain result in high losses up to 20%, especially in summer. The geographical dispersion of the large number of smallholders in the dairy sector and use of conventional transportation, inappropriate storage and inefficient practices results into wastage of almost one-fifth of the milk collected. Similarly, in meat supply, absence of an effective compliance regime and widespread informal and often illegal slaughtering facilities result in unreliable supply of meat to the consumers. The smallholders in Pakistan supply over 80% milk and meat. Changes in competition patterns, consumer preferences and market requirements often place smallholder farmers in a vulnerable position, without any agility or resources to adapt to ongoing changes.
3. Case for Change – Why Livestock Vision 2025 Given this situation, the need to focus on the livestock sector is imperative for boosting agricultural productivity and ushering in economic growth into our rural areas, as well as improving the lives of the vast majority of poor citizens of the country.
3.1 Growing Demand Rapid population growth, urbanization and income growth in developing countries have resulted in profound increase in demand for food of animal origin. The resulting demand comes from changes in the diets of billions of people and could provide income growth opportunities for many rural poor. Governments and industry must prepare for this continuing transformation with long-run policies and investments that will satisfy consumer demand, improve nutrition, direct income growth opportunities to those who need them most and alleviate environmental and public health stress. Within the livestock sector, both global as well as domestic demand for meat and dairy products is also rising, thereby creating investment opportunities in this sector in the domestic, regional and global markets. Besides milk, meat and poultry products and by-products, livestock provides an important source of raw material particularly for leather, carpet and woolen cloth industries.
On the local front, population of Pakistan is estimated to be 186 million with a
30
56
%
55
%
55
%
54
%
53
%
20
%
20
%
19
%
19
%
19
%24
%
25
%
26
%
27
%
28
%
2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4
Beef Mutton Poultry
population growth rate of 1.49. In Pakistan per capita consumption of meat is 6.6 Kg and 55 eggs annually, whereas developed world is consuming 25-28 Kg meat and over 250 eggs per capita per year. As per standard of World Health Organization, daily requirement of animal protein for a person is 27 grams whereas in Pakistan it stands at merely 17 grams, highlighting the immense demand potential for livestock products. Table 6: Per capita Meat Consumption (Kg) 1983-202019
Countries 1983 1993 2020
Developed world 74 76 83
Developing world 14 21 30
Pakistan 11 16 26
In addition to local demand, meat and products are also important exportable commodities, which could be a very good source of revenue generation. In comparison to the world trade of meat and livestock, Pakistan’s share is miniscule.
Figure 6: Meat Consumption Trend in Pakistan
Halal Market - Halal market comprises of 1.90 billion consumers across 112 countries around the globe with an estimated worth of 2.3 trillion US dollars annually. About 70
19 Source: Delgado et al. 1999, Livestock to 2020, the next food revolution & GOP 2003, TCP-PAK-0168 Livestock Action Plan Draft Report MINFAL
31
% of the Muslim population that consume halal meat resides in Middle East and Asia Pacific region, which is most conveniently accessible from Pakistan. Brazil is main exporter of Halal meat in this Halal market. Turkey and Malaysia are growing as exporter of Halal meat to the market. Pakistan has advantage of using pork free feed for poultry production and use of hand slaughtering rather than stunning for meat processing. Going forward, Pakistan’s enhanced penetration in global halal market is going to be an important area for increasing national exports.
3.2 Food security
Food security requires achieving self-sufficient quantity of nutritious food for the population and one of the key objectives of agriculture and livestock sector is to ensure adequate production and availability of food for the population and provide livelihoods to people directly involved in the sector. However, Pakistan agriculture and food security concerns remain high on the policy agenda at national level for the government. According to National Nutrition Survey about 60% of national population is facing food insecurity, with nearly 50% of the women and children being malnourished. Presently Pakistan ranks at 76th position out of 107 countries compared in the Global Food Security Index, primarily owing to inefficiencies in food distribution, low spending on agricultural R&D and inadequate food safety nets for the extremely poor. These challenges are expected to worsen further, with rapidly growing population and imminent water shortage in the years to come. With this impending food security threat, there is a need to focus on enhancing agricultural and livestock productivity through a coherent well thought out approach, capitalizing on the immense agricultural potential of the country and the vast irrigation system in a sustainable manner. Livestock products are an appealing and convenient nutrient source. Protein and micronutrient deficiencies remain widespread in developing countries because people subsist on diets that are almost entirely made up of starchy staples. The addition of milk and meat provides protein, calcium, vitamins, and other nutrients that go lacking in diets that are exclusively made up of staples such as cereals.
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Livestock Vision 2025 is aimed at addressing the imminent food security threat through promoting investments in livestock sector. Not only the Vision will support all the above-mentioned objectives, in particular, the Livestock Vision will also:
• Improve access to animal source food by the poor households • Introduce targeted productivity enhancement programs for small livestock • Increase production of critical food items such as milk and meat mainly in
the remote areas of Pakistan where dependency on livestock keeping is high. • Strengthen nutritional status of children through targeted education linked
programs
3.3 Economic significance and Opportunity to Make an Impact Livestock production is an especially important source of income for the rural poor in developing countries in general and in Pakistan in particular. It enables poor and
Pakistan Vision 2025 seeks a Pakistan where “all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life”. Pakistan Vision 2025 envisages food security in the context of the entire supply-chain- from production, processing, storage and distribution to consumption. Vision 2025 envisages following key objectives for achieving food security:
1. Protect the most food-insecure segments of the population through
effective relief measures, including long-term arrangements and
adaptation mechanisms.
2. Create a modern, efficient and diversified agricultural sector – aligned
with associated water and energy infrastructure –that can ensure a
stable and adequate provision of basic food supplies for the country’s
population, and provide high quality products to its industries and for
export.
3. Optimize production and supply mix in line with current and projected
needs by leveraging our unique strengths.
4. Ensure that the entire supply-chain related to food security is geared
towards provision of stable and affordable access to adequate, nutritious
and safe food for a healthy life.
5. Use the resource base in an efficient and sustainable manner–with
outcome-based benchmarks agreed in line with regional and global
standards.
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landless farmers to earn income using public common-property resources such as open rangeland. Livestock consume many crop by-products would otherwise become waste, they often can be raised on land that has no other sustainable agricultural use, and they can employ labor during periods of slack in other agricultural activities. In Pakistani scenario, the poor women, in particular, often rely on the cash income from a livestock and a few chickens kept in the household. As livestock consumption increases there is considerable interest in how the poor can retain their market share of livestock production. Livestock also store value and provide insurance for people who have no other financial markets available to them. Not only the livestock sector enjoys immense economic significance, but its potential due to low productivity has not yet tapped and offer room for improvement, emphasizing the concern that a coherent and targeted strategy can yield significant dividends in the years to come. Over the years, the structure of the agricultural sector GDP has steadily been changing, with the share of crops, both major and minor, decreasing and that of livestock increasing significantly. For instance, the share of crops fell from 61.4% in 1999-2000 to 59.9% in 2006-2007. On the other hand, the share of the livestock sector in Pakistan has grown from about 25% in 1996 to about 50% in 2006. Growth in the livestock sector is estimated to be around 4.5% to 5% at present, yet this growth rate is significantly below the full potential of the economy. As explained earlier, the global market for value added livestock and dairy products continues to expand as world population increases and per capita incomes rise. However, in contrast to this rising demand, livestock holdings in Pakistan are small and fragmented. Small livestock holders (with one to five animals) constitute 83% of the livestock herds in Pakistan and 88% of the herds in the Punjab. It is also important to note that livestock is raised by more than 0.5 million landless families in the rural areas and is their main livelihood source. It is a form of social security for the poor, who cash it at the time of need and it also serves as security against crop failure in barani (rain-fed) areas.
3.4 Pakistan’s Comparative Advantage Pakistan has many comparative advantages, which must be exploited and capitalized on, especially in the context of livestock sector. As explained earlier, Pakistan has a large livestock base and a huge milk production base, making it one of the top few countries. Most of the farmers are smallholders, who can actually provide better animal care and productivity, if organized along the lines of Indian Amul model, getting ownership in the value chain. Another comparative advantage is Pakistan’s strategic location, including proximity to Middle East, the largest halal food market, as well as its adjacent borders with Afghanistan and then access to Central Asian states. Moreover, being an Islamic country, Pakistan has pork-free feed and has inherently sound credentials to become a halal food exporter.
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3.5 International Growth Drivers Over the last few decades, the world has witnessed a swift global expansion in production and consumption of animal products that has led to an increased demand for livestock and livestock products, primarily on the back of growing world population, rapid urbanization and rising income growth. According to FAO, livestock sector is expected to provide 50 percent of global agricultural output in value terms in the next ten years, owing to improvements in technology especially in poultry and dairy production, availability of cheap fuel, and often subsidized feed grain, which have accelerated the sector’s growth. Given this international window of opportunity, there is a need for a coherent framework to enable Pakistan to take advantage of it.
3.6 Environmental Challenges Livestock sector globally has also been associated with a number of environmental challenges such as land degradation, greenhouse gas emissions, water pollution and biodiversity loss. According to FAO estimates, livestock sector is responsible for 18% of greenhouse gas emissions globally, making it even a bigger contributor than transport. The sector accounts for 9%20 of anthropogenic carbon dioxide emissions, primarily owing to expansion of pastures and arable land for feed crops; 37% of anthropogenic methane, mostly from enteric fermentation by ruminants; and 65% of anthropogenic nitrous oxide, mostly from manure with greater potential to warm the atmosphere. Livestock production also greatly impacts world's water supply, accounting for more than 8% of global human water use, mainly for the irrigation of feed crops. Moreover, livestock sector is considered the single largest sector responsible for water pollution, attributed to animal wastes, antibiotics, hormones, chemicals from tanneries, fertilizers and pesticides used for feed crops, and sediments from eroded pastures. In order to manage these environmental challenges and ensure sustainable development, the government will pro-actively manage these concerns through its medium-term vision.
4. Livestock Vision 2025 As highlighted earlier, the livestock sector in Pakistan faces a number of major challenges, with relatively slow growth in recent years. This can be attributed to limited use of technology and virtually no innovation, reliance on traditional farming techniques and absence of progressive farming, low productivity and sub-optimal feed, high disease incidence, outdated value chain infrastructure, marketing
20 http://www.fao.org/ag/magazine/0612sp1.htm
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issues, limited amounts of credit for livestock production and processing and limited flow of investment in the sector. The Livestock Vision 2025 aims at addressing all these constraints and boosting the sector growth21.
4.1 Vision Statement Livestock Vision 2025 is:
Transforming Pakistan’s livestock sector through private-sector led growth as a vibrant industry, well positioned to fully cater to local demands, claim a greater share in livestock exports, match international quality standards and achieve double-digit growth in the sector by the year 2025.
The Livestock Vision 2025 is about creating a strong foundation in the next ten years, preparing it to become a world leader in future in the livestock sector through private sector-led growth. Livestock Vision 2025 is about removing market distortions and establishing a platform for private enterprises to make increasing investments in the sector and contribute towards economic development.
21 Global Insights - There are a number of global success stories as well as failures, which provide valuable insights in terms of what may or may not work. Some of these examples include animal health services reforms in Kenya; productivity enhancement projects in Cambodia; rangeland development experience from various countries in Africa; small-farmer focused strategies from Bangladesh, Indonesia and Nepal; vet code of conduct examples from Ireland and Australia and community participation models in India. While the vision document draws on a number of such international experiences, the future vision is set based on the ground realities and Pakistani context.
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Figure 7: Livestock Vision 2025 – Vision and Key Goals
4.2 Objectives and Goals of Livestock Vision 2025
The overall objective of the Livestock Vision 2025 is to develop a competitive and more efficient livestock industry that contributes to the improvement of the livelihoods of livestock farmers and other value chain partners, stimulating the national economic growth through a private sector-led strategy, supported by well-calibrated public sector driven interventions.
The specific objectives of the Livestock Vision 2025 are to:
• Contribute towards national food security through increased production, processing and marketing of livestock products to meet national nutritional requirements;
• Improve living standards of small livestock farmers through increased income generation from livestock;
• Increase the supply and quality of livestock and livestock products for local consumption as well as for export;
• Promote integrated and sustainable use and management of natural resources related to livestock production in order to achieve environmental
LIVES
TO
CK V
ISIO
N 2
02
5
TransformingPakistan’slivestocksectorthroughprivate-sectorledgrowthasavibrantindustry,wellposi onedtofullycatertolocaldemands,claimagreatershareinlivestockexports,matchinterna onalqualitystandardsandachievedouble-digitgrowthinthesectorbytheyear2025.
q Raisingthegrowthrateoflivestocksectorfromexis ng2.9%to10%q Improvingservicedeliverytofarmerswith100%farmeraccessto
qualityfeed,vaccines,breedingandhealthservices
q Meatandmilkproduc vitywouldbeimprovedby25%q Publicinvestmentinlivestocksectorwillberaisedtoatleast5%of
thetotalpublicsectordevelopmentexpenditureatfederalandprovinciallevel
q PrivateinvestmentofPKR100billionwillbemobilized
PRIVATESECTOR-LEDGROWTH
37
sustainability; • Promote production of safe and quality foods of animal origin in order to
safeguard public health
The Livestock Vision 2025 aims at achieving these objectives through defining the roles and responsibilities of all stakeholders and facilitating coordination, monitoring and evaluation of the livestock sector development interventions. The Livestock Vision 2025 is a framework for further coordinated initiatives in the sector.
Under Livestock Vision 2025, the key goals are to:
• Raise the growth rate of livestock sector from existing 2.9% to 10% • Improve service delivery to farmers with 100% farmer access to quality feed,
vaccines and breeding and health services • Improve meat and milk productivity by 25% • Raise public investment in livestock sector to at least 5% of the total public
sector development expenditure at federal and provincial level • Mobilize private investment of PKR 100 billion
These ambitious targets will be achieved through multiple means – including improving livestock extension services and developing robust communication systems using modern ICT tools; educating and incentivizing farmers to make efficient use of inputs, adopt progressive farming techniques, improve livestock breed and maximize their yields; developing state-of-the-art capacity to manage disease outbreaks and developing an early warning system; improving animal nutrition through access to quality feed; creating an enabling environment by removing the regulatory bottlenecks; upgrading livestock value chain infrastructure; subscribing to higher quality standards; and promoting public and private investments in the sector. The federal government in collaboration with provincial governments will develop plans for building scientific research capacity and reform existing research apparatus in close partnership with academia and linking that with private sector through an efficient dissemination regime. Reforms in livestock regulations will minimize the role of middlemen, claiming greater value for the farmers and improving the quality of livestock products. Under Livestock Vision 2025, the industry will undergo a structural transformation, gearing the sector towards production of high value-added products in dairy, fisheries, livestock and poultry. By introducing measures such as basic hygiene practices, compliance with international standards for export, and packaging, better animal healthcare and superior branding and marketing, the productivity of these subsectors will be greatly enhanced. Cluster based development approach will be used as a means to stimulate rural economic growth by targeted interventions in livestock sector.
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4.3 Key Enablers for Livestock Vision 2025 In order to realize the Livestock Vision 2025, Government has identified five key enablers and five strategic pillars. The key enablers include the following:
• Wider Access to Requisite Inputs and Knowledge - The first key enabler to realize Livestock Vision 2025 and to stimulate investment is to ensure that livestock farmers have access to requisite inputs in terms of resources such as feed, semen, medicines and vaccines, etc. as well as knowledge such as technical skills, modern farming techniques, etc. The provision of these resources would mean that any farmer willing to grow and improve quality of his enterprise has the technical means and capacity to do that.
• Efficient Access to Market - The second enabler is that livestock producers have efficient access to downstream infrastructure such as markets and processing capabilities. This would also mean timely access to market information. This enabler would mean that farmers are able to claim greater value from the value chain and the value chain is well positioned to promote value addition. Equally important is the forward market linkages where producers and processors could sell their produce with a reasonable profit margin which ultimately encourage input flow in the system for enhancing productivity.
• Promoting New Investment and Access to Finance - The third enabler is to
make sure that while existing players in the value chain grow, new investment is stimulated in the sector. This would on one hand mean ensuring access to finance for livestock producers and other value chain partners and on the other that more formal large-scale national and global investors are interested to invest in the sector.
• Improving Quality Standards - The fourth enabler is to improve the quality
of the value chain and gradually move towards international benchmarks for quality standards. This would on one hand ensure that value chain partners comply with high quality standards and on the other are also incentivized in a market, where high quality is rewarded.
• Creating Enabling Environment - Last but not the least is to create an
enabling environment where value chain partners have certainty about government policies and regulations and laws are such that investors feel confident to invest in the sector.
4.4 Key Pillars The Livestock Vision 2025 rests on the following five strategic pillars:
39
• Institutional and Human Resource Development • Disease Surveillance, Animal Health and Extension Services • Livestock Productivity Enhancement and Marketing • Access to Finance, Sustainability and Regulations & Compliance Regime • Investment Promotion and Enterprise Development
Figure 8: Strategic Pillars of Livestock Vision 2025
5. Strategic Pillars
5.1 Institutional and Human Resource Development Strong institutional support and well-qualified human resource capacity would form the foundation for Livestock Vision 2025. This would entail identifying and bringing about institutional changes - a paradigm shift that aim to strengthen research, extension and training capacities. Therefore under this pillar, the government intends to build capacities of provincial livestock departments, propose an implementation and coordination mechanism for realizing Livestock Vision 2025, support and strengthen veterinary and livestock education and training, bolster research facilities, etc. With the provision of requisite capacities, it is expected that
Ins tu onalandHumanResourceDevelopment
DiseaseSurveillance,Animal
HealthandExtensionServices
LivestockProduc vity
EnhancementandMarke ng
AccesstoFinance,SustainabilityandRegula ons&
ComplianceRegime
InvestmentPromo onandEnterprise
Development
LIVESTOCK VISION 2025
LowProduc vity
PoorIns tu onalInfrastructure
Non-AvailabilityofQualitySemen
BreedFactor
InadequateFeed
PoorMarke ng
LowGovt.Spending
FragmentedSupplyChain
EconomicOpportunity
Interna onalGrowthDrivers
FoodSecurity
EnvironmentalChallenges
GrowingDemand
Compara veAdvantage
CASE FOR CHANGE K
EY IM
PED
IMENT
S
PovertyA
llevia
on
EconomicG
rowth
Incre
asedExp
orts
40
all institutional layers would perform at their optimal level and would contribute towards growth of the livestock sector.
5.1.1 Strengthening Livestock Institutions In the wake of 18th constitutional amendment the provincial livestock departments have even a greater role to play and support different components under this vision document. Besides these provincial line departments, some provinces also have other public institutions, such as companies established under Section 42 of the Companies Ordinance 1984, which are working in this domain. In fisheries sector some of the relevant institutions include Fisheries Development Commissioner, fishing harbor authorities, Mercantile Marine Department and Coastal Development Authorities in Sindh and in Balochistan. Most of these institutions have deficient capacities in terms of vacant positions and personnel shortage, lack of budgets, equipment and vehicles, limited or no resources for trainings, etc. Moreover, there is also a need to strengthen the capacities at federal Ministry of National Food Security and Research. One of the key initiatives under Livestock Vision 2025 would be to undertake a comprehensive institutional review of all these institutions and develop and implement a robust capacity and institutional development plan so that these institutions are well positioned to play an instrumental role towards realizing the vision.
5.1.2 Creating a Pool of Animal Health Workers Considering the thin presence of public veterinary staff in districts and tehsils all across Pakistan vis-à-vis the huge and rapidly growing livestock population, there is a need to develop and maintain a vast pool of animal health workers who are disseminating awareness and working to meet the fundamental needs of livestock farmers in their respective communities. Such animal health workers can form the critical tier to link state-of-the-art research, methods and tools to on-ground livestock management practices of the farmers, passing on new technology and modern practices to these livestock raisers. Therefore, under the Livestock Vision 2025, a new cadre of personnel would be trained as Village Livestock Extension Workers (VLEWs), as has been done under various development projects over the last few years. The primary responsibility of these VLEWs will be to provide first aid in case of disease emergencies and perform regular vaccination. They will be regulated by respective provincial livestock departments and will work as a liaison between the farming community and the field veterinary staff of the department. After the initial training, these workers can be part of large alumni group with government managing them through a comprehensive database. Modern communication tools can then be used to send these animal workers relevant material through SMS communication and refresher courses. Some of these workers can then also be given special certificate trainings in areas like artificial insemination and breeding, nutrition, poultry management, etc. Availability and optimal use of such institutional layers is expected to bring about significant improvement in husbandry practices and livestock productivity enhancement as experienced elsewhere in other developing countries.
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5.1.3 In-Service and Pre-Service Training Regime A number of public sector universities across the country are delivering training to livestock undergraduate students in the DVM program, the graduates of which are then absorbed in public and private sectors. Besides the undergraduate programs, some institutions are also offering a host of other training programs as well as master, M. Phil and PhD programs. However, considering the tremendous potential of the sector and the need for advancement of technology and research in the sector, there is a clear capacity gap between the graduates of these universities and the requirements of the sector, apart from a few exceptions where some of the universities have made significant improvements in their curricula in recent years. Therefore in order to improve these institutions and to upgrade the overall quality of livestock training, all veterinary and livestock faculties in the country working in the public sector would be given support under Livestock Vision 2025 to build their capacities to improve their pre-service training programs as well as transforming them into centers of excellence and using them effectively for in-service training as well. The universities would also be linked with the provincial livestock departments and their extension staff so that the latest practices can be disseminated directly into the field. Universities would also be given due support to form international linkages for exchange of faculties, undertaking joint programs, conduct study visits and undertake joint research projects. Besides these well-established faculties, any newly started degree awarding institution in public or private sectors would also be eligible for such support. Pakistan Veterinary Medical Council would play an active role in this regard and make sure that their programs meet already established requirements and the requisite standards.
5.1.4 Comprehensive Curriculum Review and Improvement A critical step for improving in-service and pre-service training would be to carry out a comprehensive review of all curricula for livestock training to make them responsive to evolving needs of the livestock sector in line with Livestock Vision 2025. Provincial livestock departments will work closely with Pakistan Veterinary Medical Council and the privates sector to continuously review and revise existing curriculum and syllabi to bring at par with international best practices. Such curricula would not only cover technical content but would also include areas like extension methodology, communication skills, small business management techniques and participatory techniques for forming farmer organizations.
5.1.5 Rehabilitate and Equip Livestock Training Institutes Apart from degree awarding institutes all the para-vet training centers would also be upgraded and linked with the universities to ensure that they have the requisite technical support available for training of Livestock Assistants and AI Technicians. Some of these institutions are severely under-resourced, with limited access to quality trainers, infrastructure, training equipment and animals for practical demonstration purposes and lack functional linkages with government and private
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farms. Under Livestock Vision 2025, these para-vet institutes’ staff would be provided state-of-the-art in-service training to bring them at par with quality professionals. Special emphasis will be given in improving training material and infrastructure at these institutes. Moreover all line departments would make a formal yearly in-service training calendar to provide regular refresher trainings for upgrading the technical and other professional skills of in-service Livestock Assistants/Technicians, DVM graduates and other staff. Private sector would also be encouraged to develop quality institutions for para-vet trainings with the collaboration of public sector universities to meet the growing demand of livestock workforce. Universities would be encouraged to develop standardized special courses for private sector institutes to deliver in areas like ‘poultry assistant diploma’, ‘diploma for poultry supervisors’, medical technician courses (for diagnostic laboratories), livestock farm management, etc., with special emphasis for training of women.
5.1.6 Strengthening Livestock Research and Academia-Industry Linkages The public sector already has a number of research institutes working in different areas. Similar to other public sector institutions, not only these are poorly resourced but are also being managed like traditional public sector organizations, without any incentives to produce quality research. Moreover most of these facilities are stand-alone without any inter-linkages or support from other national or international institutions. Under Livestock Vision 2025, a livestock research network would be formed linking all these research facilities with each other to enable them to share ideas research and work in unison and produce meaningful and applicable results through forming research consortia. This would allow development of an integrated research agenda without any duplication and redundancy. This network would be supported by a web-based digital platform to support virtual discussions and online availability of research materials. Moreover, government would ensure provision of substantial funding to these research institutions to ensure up-gradation of infrastructure, laboratory and equipment facilities and trainings of laboratory and technical staff, in addition to researchers themselves. The research agenda would be closely aligned with the needs of the private sector and would be expected to enable improved diagnosis and eradication of diseases, greater availability of better quality vaccines and research solutions of applied problems in nutrition, reproduction, genetics, food safety and communicable diseases. Through provincial line departments, these research facilities would also develop close liaison with farmers and with extension services for developing their research agenda, as well as testing their research interventions. Some of the research areas covered and supported under Livestock Vision 2025 would include meat and milk productivity improvement; livestock by-products – hides and skins, bones, blood, hooves, hair preservation, processing methods and utilization; animal feed resources, pasture, forages, compounded supplementary feeds and feeding of ruminant and non-ruminant livestock; animal genetic resources characterization, conservation and improvement, promotion and utilization of non-conventional livestock species;
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animal diseases surveillance, prevention and control, diagnostics, vaccine development and testing; animal drawn implements, biogas and animal welfare; and value addition, marketing, consumption, trade and policy.
5.1.7 Technology Transfer Offices at Livestock Universities Subsequent to improvements in livestock research infrastructure, technology transfer framework would be critical to support any ideas coming out of the research portfolio. Under Livestock Vision 2025, technology transfer offices would be established in selected universities to ensure greater coordination and synergy between research and technology development. Considering that this is a new area for Pakistan, international donor assistance would be particularly sought for this to ensure that these offices are well functioning and to ensure a smooth process for transferring skills, knowledge, technologies, practices coming out of these research institutes to a wider range of users who can then further develop and exploit the technology into new processes and methods and improving production, productivity and value-addition.
5.1.8 Promoting Community Participation Besides the role of government, farmer community organizations also play an important role in organizing and running various livestock sub-sectors such as meat, dairy, poultry and fisheries. These organizations provide a united platform to farmers for dealing with government and other agencies, to protect and fight for their causes, to help them in marketing, negotiating good prices for their produce, employ better technologies with shared costs and facilitate them in claiming greater value from the value chain. There is a need to establish and strengthen such farmer communities. Under Livestock Vision 2025 provincial livestock departments would undertake special projects to provide legal and financial support regarding training, education, and facilitation to foster farmers’ participation in community based projects for improvement of livestock breeds, nutrition, health and management practices. This would require revamping the conventional outreach approach presently adopted by livestock departments. Such efforts would specially be focused in rural areas with high concentration livestock clusters.
5.1.9 Human Resource for Fisheries Sector Traditionally no formal training is required to seek employment in the fish harvesting, handling and processing sectors or in ancillary industries. Due to rapid commercialization, there has been an increasing demand for trained manpower in the fisheries sector. Under Livestock Vision 2025, Government will strengthen the existing fisheries training institutes and will develop trained human resource skilled in the areas of quality of water, breeding of fish and shrimp, raising of juveniles to adult stage in ponds, fish pans, fish cages, control of fish diseases, and overall farm management.
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5.1.10 National Framework for Vision 2025 Implementation Post-18th constitutional amendment, livestock and agriculture are exclusively provincial subject but federal government reserves its domain on the issue of food security and policy coordination. Therefore in order to realize and implement Livestock Vision 2025 and national working and implementation group would be formed under the Planning Commission with representation from Ministry of Food Security, provincial livestock departments, international donors, leading academics, private sector organizations and farmer associations. The working group would develop an implementation plan with concrete milestones and the working group would meet quarterly to track progress against the goals set under the vision. Moreover, this framework would directly linked with the National Vision 2025 implementation setup. The federal government may issue guidelines to provincial governments to develop their respective policies and plans to support the National Livestock Vision 2025.
5.2 Disease Surveillance, Animal Health and Extension Services Livestock sector in Pakistan is constrained by a number of livestock diseases and the capacity to handle such epidemic and endemic infectious and non-infectious diseases rests on strength of the preventive and curative veterinary services. The ability to monitor and conduct surveillance of the health and productivity of the animal populations and monitor the health related attributes of animal products and veterinary biologics can be feasible if quality veterinary services are widely available. Therefore easy and unrestrictive farmer access to quality animal healthcare services is an integral pillar of Livestock Vision 2025.
5.2.1 Improvement in Animal Health Services Delivery The presently provided field support animal health services by the government do not satisfy the growing requirements of the livestock farmers, who often rely on makeshift private veterinarians, without valid credentials. In order to address this problem, the Livestock Vision 2025 envisages a robust in-service training program for these public sector veterinarians, creation of a wide pool of qualified animal health workers, improving the skills of livestock assistants and enhancing the institutional capacity of provincial livestock departments, as has already been discussed. Moreover the provincial line departments would also improve their monitoring mechanisms to ensure that the field staff is working to deliver the requisite services at an acceptable quality level. Additionally, in order to meet the growing demand for these services, the government will develop a mechanism formally involving private sector in this function, on curative animal health, through developing guidelines for private sector entities to undertake management of extension services and providing accreditation to ensure quality services.
5.2.2 Improved Disease Surveillance and Establishment of Disease Free Zones One of the key initiatives under Livestock Vision 2025 would be to develop the knowledge pool on disease incidence across various regions in the country and
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maintaining a comprehensive up-to-date disease map, for evolving effective control measures, improving disease surveillance capabilities, introducing ICT-backed measures and forming the foundation for establishing a robust animal disease reporting and epidemiology system. Special focus would be given to control more common infectious diseases like Foot and Mouth disease, PPR, HS and enterotoxaemia and strengthening the animal quarantine to check spread of trans-boundary diseases. Similarly on poultry side, Newcastle disease, avian influenza, Infectious bronchitis, Mycoplasmosis, Colibacillosis, Fowl typhoid, Fowl cholera, Coryza and coccidiosis diseases will be especially focused. As a follow-on step, government will then develop disease-free zones in selected regions, to meet international marketing standards and enabling export of livestock products to high value markets. This will involve improvements in vaccination and disease control through a strengthened veterinary institutional capability, movement controls and investments in livestock breeding and marketing infrastructure to raise the quality, quantity and value of livestock products that Pakistan can export.
5.2.3 Institutional Mechanism for Disease Outbreak Management Infectious disease outbreaks in livestock can seriously compromise food security through serious loss of livestock products such as meat, milk and dairy products, fibers, skins and hides; result in loss of valuable livestock of high genetic potential; add significantly to the cost of livestock production; seriously disrupt or inhibit trade in livestock; and inhibit sustained investment in livestock production. Government will develop an effective institutional mechanism for animal disease emergencies or unexpected outbreaks of epidemic diseases to manage and minimize the economic losses, based on a robust early warning and mitigating systems. This would entail capability building for managing early reaction to disease epidemics and other animal health emergencies, through preparation of generic and disease-specific contingency plans and standard operating procedures; training and development of capabilities at national, provincial and district level. It will be important to involve other relevant government and private sector services and farming communities in developing an effective comprehensive emergency response; and establishment of the appropriate legal and administrative structures to deal with an emergency.
5.2.4 Improvement in Diagnostic Regime A key pre-requisite for improving disease surveillance mechanism would be through strengthening existing institutional structures such as directorates of disease surveillance in various provinces along with national, provincial and district diagnostic labs. Not only the capacity of these labs would be enhanced for better diagnostics regarding the livestock diseases but Government will also enhance the scope of these diagnostic labs to include testing the quality of feed and fodder, milk and milk products, meat and meat products as well as poultry and poultry products. Capabilities of these laboratories would be improved for providing analytical services and monitoring standards fixed for feed, fodder, milk, milk products, meat and eggs etc. Special diagnostic facilities for poultry will be developed for areas with
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high poultry concentrations. The establishment of these facilities is proposed at the sub-provincial level to ensure enforcement of quality assurance standards and compliance regime for better public health and higher exports. Additionally, private sector participation in establishing diagnostic facilities will also be explored.
5.2.5 Provision of Drugs and Vaccines One of the key constraints facing by the government in controlling animal diseases includes lack of easy and unrestricted availability of vaccines and veterinary drugs. Under Livestock Vision 2025, government will ensure adequate supply of affordable and quality veterinary drugs and vaccines. At present, most of the veterinary vaccines production is undertaken in the public sector, however the quality of these vaccines is sub-optimal and quantities produced are limited with low vaccine coverage. Government will seek private sector participation in production of most commonly required vaccines such as FMD and PPR vaccines and will ensure significant investments in infrastructure and technology in vaccine production. Moreover, national standards and benchmarks will be developed for efficient procurement of veterinary drugs, coupled with a quality assurance regime to ensure availability if quality drugs through both public and private channels.
5.2.6 Strengthening Extension and Outreach Services One of the initiatives under Livestock Vision 2025 would be to improve and strengthen the extension services to address the low education and awareness amongst livestock farmers particularly in the rural areas and enable them to adopt new technologies pertaining to livestock production and animal health. Government will ensure availability of these livestock extension services at grassroots level bridging knowledge gaps and training needs of livestock farmers, through establishing and strengthening livestock farmers training centers in various divisions/districts; conducting farmer field schools for livestock activities on regular basis; model farming practices demonstrations; and building capacities of extension staff.
Mobile Animal Services
Existing institutional ability of the government to provide quality veterinary services is constrained due to lack of mobility owing to lack of adequate operational funds for the provincial livestock field staff as well as absence of requisite transport, resulting in dismally low coverage of vaccination and AI services. Where private vets are available, poor marginalized farmers cannot afford the expensive treatment by these private service providers, highlighting the need for developing an alternative approach to provide quality veterinary services to farmers at their doorstep. Under Livestock Vision 2025, government will develop alternative approaches for better service delivery including piloting and possibly scaling up mobile animal services model with a host of quality veterinary services to farmers at their doorstep, through private sector participation and would provide and deepen the coverage of quality vaccination services to livestock farmers. Such a model will
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also cover extension services through farmer field schools, including specific sessions for women, based on the principles of innovative, participatory, interactive and experiential learning on improved farm practices, marketing, feeding, disease prevention, feeding and fodder management. The same mobile units will also be used for allied services including registration of animals/farmers, de-worming, first-aid treatment, etc.
5.2.7 Robust ICT-Based Farmer Communication Programs Considering the wide scale of livestock production in Pakistan and involvement of millions of livestock farmers dispersed across the country, there is a need to develop a robust communication program to supplement the more formal extension services, focusing on disease control, livestock nutrition, farming practices and marketing. Under Livestock Vision 2025, government will work with international donors to capitalize on information and communication technology and develop a modern farmer communication program, capitalizing on high mobile phone usage in the country and local radio channels.
5.3 Livestock Productivity Enhancement and Marketing Improved livestock management through productivity enhancement measures and better marketing systems is the most important pillar under Livestock Vision 2025. While Pakistan ranks in the top five countries in the world in terms of livestock population, the sector has been facing the challenge of sub-optimal productivity and low yields. Government is aiming to improve these yields on one hand to fully capitalize on the genetic potential of local livestock breeds, through better management of this existing livestock population and on the other through a viable breed policy. In order to support this pillar, the provincial livestock departments will be focus on nutrition and feed supply, application of better farm practices and strengthening linkages between R&D and extension services, which will enable the creation of a modern livestock sector. Another important dimension of this pillar is to improve access to market for livestock producers to enable them seek a better value for their produce.
5.3.1 Improving Domestic Feed Supply and Animal Nutrition Livestock’s growth pattern, reproductive efficiency are closely linked to the feed they consume and therefore the nutritional value of the feed consumed must be well balanced. One of the primary initiatives under this pillar would be to improve animal nutrition through improved and year-round availability of fodders; better silage and hay making, improved rangeland and balanced concentrate feeds with appropriate mineral inputs. Government is expecting that by providing the required nutrients to existing animals will improve their yield by at least 20% to 25%, shorten their age at puberty and will decrease calving intervals. In order to support this activity, provincial livestock departments would develop the concept of Nutrition Champions on the model of Indian National Dairy Development Board, where these champions will have data on the chemical composition of commonly used feed ingredients and on the nutrient requirements of different categories of
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livestock. These champions selected from local communities will be trained on the preparation of balanced rations and will then disseminate this information in their respective communities by working with farmers. Instead of carrying this activity stand alone, a dairy/meat hub model will be developed where yield improvement input services will be bundled and linked with marketing of farm produce.
Improving Rangeland Management22 Rangelands provide nearly 60% of feed for sheep and goats; about 40% for horses, donkeys, and camels; and only 5% for the cattle and buffaloes. A significant area of the country consists of rangelands, with only five percent lying in the high-rainfall rangelands of Alpine pastures (1.68 million ha) and Himalayan grazing lands (0.67 million ha). Rest of the rangelands is situated in arid and semi-arid areas of the country where annual precipitation is low. Due to climatic and topographic limitations, these areas are not fit for other land uses like forestry or permanent cultivation and therefore livestock grazing on rangelands constitutes the biggest land-use in the country. Rangeland management has traditionally faced a lot of challenges such as institutional and policy constraints, with respective provincial Forest departments managing these resources, with little or no coordination with Livestock departments; continuous degradation of rangelands including elimination of preferred species, reduction in plant cover and bio-diversity, reduction in forage production, and increased soil erosion and runoff of rain water with little or no infiltration; non-existence of grazing management practices; and over-exploitation of natural resources. Under Livestock Vision 2025, range management would be given special importance with emphasis on participatory and community-based approaches for rangeland management; training of grazing associations for provision of basic animal-health services; promotion of education and awareness in areas like nutrition, immunization, disease control, safe drinking-water, and sanitation for pastoral communities; development of forage reserves of evergreen plants; and providing social protection to livestock producers against unexpected drought losses through animal insurance and other means.
5.3.2 Establish Livestock Identification and Traceability System Under Livestock Vision 2025, Government in each province will establish a robust livestock identification and traceability system, initially as a pilot and then as a full-scale project. Such a project will be based on animal tagging through government livestock extension network. The initiative would cover not only putting animal tags and identification marks but also developing a computerized livestock Identification and Traceability System that will effectively control and monitor animal diseases, inhibit local and cross-border stock theft as well as track livestock movements. The traceability of livestock will be linked with market to develop database on livestock
22 Vision for Development of Rangelands in Pakistan – A Policy Perspective; Afzal J.; Ahmed, M.;
and Begum, I.
Rangeland Degaradation and Management Approaches in Balochistan, Pakistan; Ahmad, S.; Aslam, M.; and Mirza, S.
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products for local consumption and export. This would ensure food safety in the long run facilitating fair marketing of livestock and enabling competition in the international market for export.
5.3.3 Improving Livestock Products Processing and Marketing
Government will encourage private sector and international investors to invest in dairy and livestock products and establish dairy and meat processing plants and capitalize on other investment opportunities that exist in the sector value chain.. Besides UHT, companies will be encouraged to establish cold chains and promote use of pasteurized milk. Special incentives will be provided to export-oriented meat and other related value-added products processing plants. The new investors will be facilitated to focus on identified untapped market to bring a wide catchment area into the formal economy and value addition. At rural level small-scale dairy and meat processing would be encouraged to develop a supply network for nearby towns and cities to promote value addition. Punjab Government has recently launched an initiative to establish milk-processing plants in units of three to five villages under public-private partnership. Under Livestock Vision 2025 this project will be scaled up and similar interventions will be replicated in other provinces. Under Livestock Vision 2025, special emphasis will be laid on improving inter-sector linkages of livestock sector with other industries to support their upstream operations, with improved quality and better availability of livestock by-products such hides and skins, bones, blood, hooves, hair preservation through modern and easily adoptable processing methods. Special emphasis will also be placed on poultry and fisheries products processing and marketing.
5.3.4 Access to Market for Small Farmers
Access to efficient markets pose a major challenge considering that majority of livestock farmers are smallholders. In case of dairy, in the absence of milk cooling tank networks in many areas, other than UHT companies’ clusters, farmers are forced to sell their loose milk to informal middlemen. Often they, in their individual capacity, are not in a position to negotiate a good price. The dairy cooperative model is virtually non-existent apart from a few limited examples. Similarly, the livestock mandis (markets) have challenges of their own, where in the absence of appropriate infrastructure, access to transportation, safe market spaces and overnight accommodation, farmers are forced to sell their animals quickly and there is no system for grading, distorting the incentive structure. Small scale processing is also very uncommon with no access to processing technologies and information. While encouraging community participation and establishing and strengthening farmer cooperatives is one of the goals under Livestock Vision 2025, the vision also envisages ensuring efficient access to markets and market information to small livestock farmers so that they can make informed decisions and claim more value from the value chain. Under Livestock Vision 2025, Government will support the farmers through establishing a system for dissemination of livestock market information to livestock producers; brokering strong relationships among various value chain players and farmers through national and provincial rural support
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programs; establish a system for standards and grading to identify high-quality livestock products; and improving livestock market infrastructure. Recently in Punjab under the 'Punjab Chief Minister's Dairy Development Programme' about 700 milk cooling tank are being set up in the province with a view to preserving milk and facilitating its supply to nearby markets. Cooling tanks would be for joint use by three to five contagiously located villages. Under Livestock Vision 2025, this initiative would be scaled up and replicate in other provinces.
5.3.5 Livestock Market Information System Under the Livestock Vision 2025, the government will develop provincial livestock market information systems, possibly through private sector participation, to provide real-time market information to livestock farmers through SMS, radio and in-market digital displays. The proposed systems will collect information from various markets across the province and will analyze, store and disseminate livestock prices and volume market information. This would include complete price and volume data based on animal type, breed, age class, sex and grade to ensure that farmers and traders are making informed decisions.
5.3.6 Breed Management and National Livestock Breeding Policy
Pakistan has the best dairy buffalo and tropical dairy cattle in the world. However, these resources need to effectively managed and continuously upgraded in the future. Under Livestock Vision 2025, this area would be given special importance and national livestock breeding policy will be implemented jointly by all provinces to ensure conservation of indigenous breeds. Each province would develop breeding action plan in the light of guidelines of national policy. Punjab has already created Punjab Livestock Breeding services Authority in 2014 for breed improvement in the province and similar setups need to be initiated in other provinces to manage specific unique breeds of livestock species in respective provinces. These action plans will synergize all breed development and management efforts undertaken by the provinces. Particular emphasis will be given on buffalos, Sahiwal, Cholistani, Red Sindh and Thari cattle and Beetal, Kamori, Pateri and Bari goats. Besides the national policy, the institutional infrastructure for breed improvement and AI services regulation in the province will be strengthened and it will be ensured that government agencies (such as directorates of breed improvement), calf raising centers, semen production units and AI extension services work in an integrated manner. Moreover, lack of any well-defined beef breed to achieve high feed conversion ratio and high dressing percentage for enhanced meat yield is a critical challenge, which are important for reducing the cost of meat production. Under Livestock Vision 2025, this would be further investigated and research will be undertaken to address this gap.
5.3.7 Rural Infrastructure Development
A well-developed and maintained rural infrastructure is essential for livestock development. Investments in rural roads, water supply, transportation, storage,
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rural markets, electrification, communication, water management schemes, auction markets and abattoirs are critical to stimulating increased livestock production. Presently, rural infrastructure in many areas is in poor condition and inadequate for the development of the rural economy, it is also unevenly distributed, leaving some high livestock potential areas with inadequate or no infrastructure at all. Under the Livestock Vision 2025, rural development would be given due consideration and provincial governments will ensure provision of adequate resources for high-potential livestock areas to bridge the infrastructure gaps including farm-to-market roads and market infrastructure as well as incentives and enabling environment for promoting alternative sources of energy such as solar and biogas.
5.3.8 Infrastructure Development for Exports In order to support livestock exports, infrastructure development would be given special importance under Livestock Vision 2025. This would include both public and private infrastructure such as livestock service and health facilities/centers; milk collection facilities; livestock markets; modern slaughterhouses; processing facilities feeder roads; veterinary laboratories; veterinary quarantine stations and check points; meat processing facilities, etc. Similarly for fisheries sector development, the government will strength existing infrastructure and establish new infrastructure for both sea and fresh water fishing industry. On one hand, government will make targeted investments to establish and modernize these facilities and on the other private sector will be encouraged to bring investment in these facilities.
5.3.9 Capturing Halal Export Segment Under Livestock Vision 2025, the government intends to claim a greater share of the global halal livestock and poultry products market. For this purpose, besides providing enabling environment and support infrastructure, government will provide a special incentive package for a limited time to boost investment in this segment. Moreover, special support would be provided encouraging international certifications such as GlobalGAP, HACCP, HALAL certification, etc. Moreover OIC-SMIIC prescribed standards and guidelines will be adopted for certification and accreditation.
Standards and Metrology Institute for the Islamic Countries (SMIIC)
The Standards and Metrology Institute for the Islamic Countries (SMIIC), as a sound mechanism for harmonization of standards among the Organisation of Islamic Cooperation (OIC) countries and for preparation of new ones, aims at realizing harmonized standards in the Member States and eliminating technical barriers to trade and thus developing the trade among themselves. SMIIC is establishing certification and accreditation schemes for the purpose of expediting exchange of materials, manufactured goods and products among Member States beginning with mutual recognition of certificates. The SMIIC also aims at achieving uniformity in metrology, laboratory testing and standardization activities among Member States
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and ensuring education and training and providing technical assistance to the OIC Members in the domain of standardization and metrology.
5.4 Access to Finance, Sustainability, Regulations & Compliance Regime
Government is cognizant of the fact that there are some key pre-requisites and some cross-cutting considerations that are critical to realize Livestock Vision 2025 and this pillar addresses these concerns. These include unhindered access to affordable finance; sustainable development including gender and environmental aspects and an enabling regulatory and compliance regime.
5.4.1 Livestock Market Reforms
Besides developing livestock market infrastructure, as discussed previously in this document, there is a need for effectively regulating the livestock markets to ensure that the livestock is sold by weight and not on approximations, thus providing farmers fair prices for their produce. The existing regulatory regime fails to address exploitation of livestock owners and byproduct producers by market intermediaries and middlemen. Under the present regulatory regime the management and operations of livestock markets is vested in the local governments that are merely contracting our rights to private contractors in lieu of revenue collection. Owing to a natural monopoly of the local governments over livestock markets, there is neither an incentive to provide necessary facilities and services nor any opportunity for the private sector to provide alternative services. As a result there is no competition to lower costs to consumers, or to provide improved services or infrastructure. The current monopolistic situation is underpinned by a lack of regulatory standards, thereby providing no regulatory or financial incentive for market managers to conform to minimum standards of service delivery. Therefore, under the Livestock Vision 2025, a regulation framework will be developed including guidelines and standards to regulate the livestock markets and provide benchmarks for housing, feeding, water availability and disease monitoring and prevention. Moreover, provincial governments will introduce performance contracting in the livestock market contracts under the public private partnership regimes to ensure quality improvement. In Punjab recently the local government has established Cattle Mandi Management Companies under section 42 of Companies Act to institute mandi reforms on modern lines. These companies’ performance will be looked at closely and, if successful, can be replicated in other provinces.
5.4.2 Veterinary Service Guidelines and Code of Conduct Under Livestock Vision 2025, Government will develop and enforce guidelines and code of conduct for public and private veterinary services practitioners and para-vets. These guidelines will provide benchmarks for service quality as well as provide guidance on their role in disease surveillance and in case of any disease outbreak. Such a code can be developed on the pattern of similar codes formulated in Ireland and Australia and can be implemented under the umbrella of Pakistan Veterinary Medical Council. Such a code should also clearly define negligence,
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misconduct and legal obligations of these practitioners as well as principles of animal welfare. Such guidelines will also apply to existing private sector individual and diagnostic facilities (especially operating in poultry sector).
5.4.3 Livestock Products Quality and Safety Standards In order to ensure that improvements in livestock sectors also reap benefits for ultimate consumers, government will raise food safety standards in line with international standards for dairy and livestock products including standards for chilling of milk, ban on adulteration of milk, minimum pasteurization, quality standards and systems for all milk handling and manufacturing facilities, loose and processed meat and other byproducts, poultry farms, etc. There is a need to develop an integrated food safety regulatory regime, which will be developed with Pakistan Standards and Quality Control Authority (PSQCA) as well as provincial food departments and authorities. This would also require developing sufficient institutional capacity in local governments to ensure compliance.
5.4.4 Calibrating and Refining Import and Export Policy & Regulations Under Livestock Vision 2025, a comprehensive review will be undertaken for the import and export policy and regulations of livestock, livestock products and input support including live animals, dry milk, whey, etc., to ensure that policy structure is well-positioned to deliver medium and long term growth and no incentive distortions exist in the system. Concrete steps will be taken to make these regulations support the livestock sector growth by engaging the concerned public and private stakeholders. The policy review would be comprehensive to cover the whole sector and would include machinery, equipment, feed ingredients, feed additives, medicines, vaccines, etc.
5.4.5 Promoting Micro-finance Linkages and Credit for Small Farmers
Considering the structure of livestock farming with a number of small farmers involved and lack of corporate farming, for any private investment or investor especially in the upstream value chain, it would be critical to form linkages with these smaller farmers. In order to ensure that these farmers can be well integrated in these modernization efforts and can respond with complementing investments and improvements, provincial governments would work closely with micro-finance organizations to ensure that these farmers have adequate access to small loans. Such an approach would not only take the burden off the investors to support these farmers but would also assure a smooth value chain and would align the livestock investments with government’s poverty alleviation agenda. Furthermore, State Bank of Pakistan in consultation with stakeholder has developed a group based financing scheme for the small farmers. The scheme will target farming community involved in small agri-related activities like livestock, dairy, poultry, fisheries, etc. and do not have any tangible security to offer to banks as collateral. The scheme has been structured on group based lending approach wherein banks can finance to
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individuals through Small Farmer Groups (SFG). Under Livestock Vision 2025, this scheme would be further extended and expanded.
5.4.6 Credit for Commercial Farmers and Processors
Agricultural credit is an integral part of the process of modernization of agriculture and commercialization of the rural economy. The introduction of easy and cheap
Credit is critical to promote livestock sector due to seasonal variation in farmers’ returns and a changing trend from subsistence to commercial farming. Provision of credit can stimulate growth and can provide a foundation to these farmers for scaling up their enterprises. Government of Punjab has recently launched a two billion-rupee initiative for poverty alleviation, offering loans of up to PKR 5 million to breeders and unemployed people for dairy and livestock farming as well as poultry and fish farming. Moreover, the project also includes enhancing milk and dairy produce and free post-project veterinary services for animals maintained by breeders that set up dairy and livestock farms under the program. Under Livestock Vision 2025 this program will be scaled up and replicated in all provinces to enhance livestock produce by persuading breeders to provide better veterinary care to animal and ensuring their timely vaccination, de-worming and improving breed through artificial insemination. Furthermore, State Bank of Pakistan has come up with Draft Guidelines for Livestock, Fisheries and Poultry Financing, which will be finalized and would form the foundation for extending an expanded pool of credit to these sub-sectors. Under the guidelines, following instruments are being used:
Working Capital Financing Term Financing Composite Loans Facility
- Purchase and plantation of animal fodder and feeds, feed grinders, tokas, feed mixing machines and feed/milk containers. - Vaccinations, vitamins and other medications for animals including artificial insemination - Overhead expenses i.e. labour electricity /fuel etc. - Utensils for animal feeding, calf feeders, bangles, Rope/Iron chains etc. - Concentrate like cotton seed, cotton seed cake, other additional expenditure, distribution cost, transportation charges on farm milk processing, pasteurization, standardization. - To finance receivables against
- Purchase of mature milk yielding buffaloes/cows - Replacement of existing buffaloes/cows - Purchase of young buffaloes/cows/sheep & goats for rearing for meat production - Purchase of young animal/female heifers aged 3 to 4 years - Milk storage chilling tanks/ refrigeration plants and milk carrying containers - Refrigerated meat storages and refrigerated containers. - Distribution vehicles such as motorcycles, pickups & refrigerated vans etc.
- These loans are aimed at attracting small dairy and meat growers who constitute a bulk of livestock growers in the country and are generally hesitant to avail credit from banks - The composite loans would contain term finance as well as working capital to cater to the needs of small livestock holders for purchase of milch animals, young calf, goat, sheep for fattening etc. and 1-3 months feed / overhead expenses. - The banks should design simple products for this market with the minimum possible documentation and repayments compatible with their cash flows from all sources. - Such loans may be repayable in a period of upto 5 years in
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deferred payment vouchers issued by milk processing units, sweets shops and meat processors/ traders/exporters having relationship with the bank and or enjoining good credit worthiness.
- Construction/procurement of permanent sheds, water tanks, water pump tube well and generators - Fencing and Enclosures - Establishment of slaughter houses (abattoirs)
monthly installments including a grace period of upto three months.
5.4.7 Livestock Insurance Schemes
In order to support access to finance for livestock farmers, a critical part is to have an insurance framework in place to mitigate risk of livestock loss due to disease, natural calamities and accidents. Over the years, most livestock credit schemes have witnessed low credit off-take, primarily owing to limited availability of appropriate insurance products or other risk mitigation tools. Under Livestock Vision 2025, appropriate insurance frameworks will be supported and strengthened to safeguard the interest of farmers. The State Bank of Pakistan, in collaboration with the Securities and Exchange Commission of Pakistan, banks, insurance companies and provincial livestock and dairy departments, has already developed a framework for livestock insurance for the borrowers under Prime Minister Livestock Loan Insurance Scheme, launched in Punjab, KPK, Sindh, Baluchistan., Gilgit Baltistan and Kashmir for Youth Loan Scheme beneficiaries. Under the scheme, banks will obtain insurance of all livestock loans up to Rs5 million for the purchase of animals and will enter into agreements with reputable insurance companies for underwriting livestock insurance for their borrowers. This framework will form an integral part of the Livestock Vision 2025, not only for borrowers but also for livestock farmers in general.
5.4.8 Working Towards Sustainability
Sustainable development will form a core part of Livestock Vision 2025 promoting the role of women in livestock management and development, ensuring conservation of environment and aligning the vision with pro-poor inclusive growth. Special resources will be dedicated to ensure that previous successful pilots to empower women in livestock management are scaled up for projects like training of women as milk collection agents and animal health workers. Other initiatives will also specially target women beneficiaries to ensure gender balance as well as marginalized communities to ensure pro-poor inclusive growth. Similarly, environmental conservation will be given priority under Livestock Vision 2025, promoting proper land use planning in livestock production; promoting indigenous technical knowledge and conventional technologies. Special emphasis will be made to ensure that water pollution is controlled, soil degradation is contained and greenhouse emissions are kept at minimum levels.
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5.4.9 Business Enabling Environment
Pakistan’s security perception has discouraged a number of potential investors and there is a need to dispel that impression and project Pakistan as an investment friendly country. A number of international surveys such as Cost of Dong Business and Investment Climate Assessment make inter-country comparison for making investments and provide valuable insights to potential investors. One of the key activities under Livestock Vision 2025 would be to work with federal and provincial governments and identify key bottlenecks and hurdles that prevent Pakistan from gaining a higher ranking in these international benchmarking surveys. These bottlenecks would then be addressed in due course so as to promote Pakistan in such rankings and gaining investor confidence.
5.5 Investment Promotion and Enterprise Development Provision of adequate resources and investments flow is critical for the promotion of livestock sector and realization of Livestock Vision 2025. Government would assume the role of a facilitator and catalyst through creation of an enabling environment conducive for effective and competitive private sector participation in production, processing and marketing of livestock and livestock products locally, regionally and globally, while private sector would make strategic investments capitalizing on such enabling conditions.
5.5.1 PPPs in Livestock Sector and Basket of Model PPPs Many provinces including Punjab, Sindh and Khyber Pakhtunkhwa have already promulgated their respective public private partnership laws. Similarly in federal government IPDF and other agencies are working for promotion of PPPs. However, despite these regulatory efforts not many PPPs have been successful in taking off in Pakistan. The problem is even more severe in productive sectors including livestock and dairy. This lack of successful PPPs is partly attributed to absence of bankable projects with the government that can be offered to the private sector through competition. One of the key initiatives under Livestock Vision 2025 would be to develop a repository of such selected bankable projects, which can be prepared by respective provincial governments and are then offered to market for private investments and are carefully executed as pilot projects so as to demonstrate the effectiveness of the model and providing replicable examples.
One-Window Investment Facilitation Centers The public private partnership frameworks in all provinces are generic and cross-sector. In Punjab and Sindh for instance, these are supported by PPP Unit/Cell, however, the respective line departments have little or no capacity to implement any PPP projects or to provide an efficient private sector interface. Therefore, one of the key priority areas under the Livestock Vision 2025 would be institutional strengthening of these departments and creation a private sector interface in them
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so that they can lead on delivering the PPP projects. Moreover these departments would also develop one-window facilitation centers to act as an information and facilitation hub for the private sector investors.
5.5.2 Livestock Investment Policy Despite being an agrarian country, Pakistan does not have any agriculture investment policy, let alone one for the livestock sector. However, under this vision, the federal government would develop a national livestock investment policy to promote private investments in this sector. Such a policy would lay out incentive structure provided to future investments in priority sub-sectors and strategic parts of the livestock value chain. In the wake of 18th Amendment, although federal government does not have a direct jurisdiction over livestock, however any tax incentives can only be provided through the federation. Moreover, to support the proposed investment policy, federal government would also work with donors to provide these incentive support mechanisms.
5.5.3 Investor Roadshows and Expos Another approach to promote national and international spotlight on the sector would be to organize and arrange marketing roadshows and expos. All the provincial governments would be encouraged to participate in these events and also invite private sector. Some of these events would be targeted on particular set of national or international investors to seek private financing and investment for selected projects. Other events would provide numerous opportunities for networking and linkage development to players across the livestock value chain as well as across geographies and markets.
5.5.4 Risk Guarantee Fund for Livestock Investors Many a times, investors look for guarantees to make investments in undertaking conditions. Such guarantees are critical to provide comfort and confidence to incoming investors so as to limit their risk in case of a downside. The best possible approach to managing such risks is that government should only guarantee those risks, which it is best capable to handle. With provincial governments in the forefront, provision of sovereign guarantees is quite tricky and can add substantially to contingent liabilities of the government. In order to address these issues, government through donor support would create a guarantee fund to specifically provide risk cover, in selected areas, for investment in livestock sector.
5.5.5 Enterprise Fund for Livestock Sector Government would also create an enterprise fund to promote entrepreneurship amongst veterinary and animal sciences graduates so that they can look into forming their own enterprises. The proposed enterprise fund can provide seed funding on selected students.
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6. Conclusion Despite a number of macro-economic challenges faced by the country, Pakistan is well on its way to becoming the new Asian Tiger economy. Pakistan National Vision 2025 sets the path and way forward for national growth. Livestock being one of the priority sectors is a key contributory sector towards this growth trajectory and Livestock Vision 2025 stipulates how the government intends to do it. All the key enablers and the five strategic pillars articulate government’s plan to promote private sector led growth in livestock and directly resulting in economic growth and poverty alleviation.
