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Livestock & Dairy

With complete value chains of animal husbandry, modern farming techniques, milk and meat processing plants, Punjab leads the national livestock and dairy sector. Punjab caters to the local national consumption and also exports to regional markets through production and value addition; generating a 13% of Pakistan’s total foreign exchange. Being one of the baseline sectors of Pakistan’s economy and contributing to more than 62% to its parent sector i.e., agriculture’s GDP share, livestock accounts for 8-10% of total agriculture related exports. It accounts for 14.04% of the national GDP, the sector recorded a growth of 3.26% in 2021-22.

The Dairy sector aggregates 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). It is important to note that only 3% of the total milk production of Pakistan is processed for creating value-added export potential thereby showing a huge margin for investments in processing and packaging for exports.

One of the major sub-sectors of livestock is Halal Meat Industry contributing to about 16% of the total world trade. Pakistan currently ranks 18th in the production index of Halal Meat Market with an annual output of 2.2 million tons and its share is 2.9% in the global output. Production of clean beef and buffalo meat in Pakistan spiked from 903,000 tons in 2001 to 1,820,000 tons in 2020. It grew by 1.2% during 2021 - 2022.

    		  

    Key Facts

    • Pakistan is the 4th largest milk producer in the world
    • The livestock and dairy sector provide job opportunities to more than 8 million rural families
    • Punjab contributes 57% to the national livestock sector with more than 70,000 acres of livestock and dairy farms
    • An estimated 40 million people are engaged in raising livestock in the province
    • Pakistan’s annual production of milk remained more than 65.7 million tons during 2021 - 22
    • The small farmers supply more than 80% of the total milk production of Pakistan

    Value Chain Investment Opportunities

    Corporate Dairy Farming

    Semen and Embryo Production

    Milk Collection Center & Supply Chain
    Large farms can serve as primary source of purchase of animals for new farms as well as dairy colonies which have high turnover of animals. Crossbred cattle are important source of milk supply in the country. However, the availability of these animals from known sources is a major problem. The semen production units in private sector are being offered for meeting demands through good quality animals in future. Establishment of milk collection centers in the milk pockets with chillers offer a good investment opportunity with allied dairy products including pasteurized milk, flavored milk, milk with various fat levels, condensed milk, milk powder and various flavored and fat percentage yogurts.
         

    Animal Vaccine Production

    Seed Production & Sale of Multi-Cut Fodder Varieties

    Animal Feed Manufacturing
    Being the most common disease in animals, the vaccine for Foot and Mouth Disease is too costly for most of the farmers to use which requires local intervention for production. Fodder varieties which ensure round the year fodder availability are in high demand. Cattle feed industry caters for less than 5% of the required balanced feed needs. The demand for livestock feed of various types (dairy, fattening, bulls, etc.) is definitely going to increase, thus cattle feed industry is poised to grow.
         

    Silage & Hay-Making

    Diversification of Dairy Products

    Feed-Lot Fattening for Beef & Mutton Production
    Currently more than 58 companies are making silage on commercial basis but still there is a huge gap between demand and supply. Initiation for investment in this sector will accelerate the economic activity, generation of employment and reasonable returns to the potential investors. With the development of many outlets of fast foods particularly in all large cities, the demand for various types of cheese is also increasing. These developments offer good investments opportunities for diversification of dairy products. The traditionally raised beef and mutton animals will not be able to meet the future demands. The only way to meet the demand of mutton and beef in the country locally is conversion to feed-lot fattening.
         

    Modern Abattoir & Meat Processing

    By-Products Processing Units

    Integrated Poultry Production Units
    Slaughter houses have traditionally been built and operated by local governments in the country. Furthermore, establishment of slaughter houses and model butcheries with grading system and commercial cuts will add value. Slaughter house by-products are an important source of income in all developed countries. Setting up by-products plants alongside the bigger slaughter houses offer very good return. The future growth of poultry industry will depend upon vertical integration of different components including environmentally controlled houses for broilers and layers and processing and value addition like ready to cook products.

    Punjab caters to the local national consumption and also exports to regional markets through production and value addition; generating a 13% of Pakistan’s total foreign exchange. Being one of the baseline sectors of Pakistan’s economy and contributing to more than 62% to its parent sector i.e., agriculture’s GDP share, livestock accounts for 8-10% of total agriculture related exports. The Dairy sector having immense export potential can offer a huge margin for investments in processing and packaging for exports.