POULTRY INDUSTRY

Analysis of Pakistani Industries

Submitted to: Dr. Khadija Bari

Group Members: M.Talha Khan Moid Shaheen Ahmad Muaz Moazzam Ayaz Hassaan Habib Gondal

Class: BBA IV

Date:

June 8th 2011

Contents
Contents ..................................................................................................... Error! Bookmark not defined. Letter of Acknowledgement..................................................................................................................... 4 The Economy of Pakistan ......................................................................................................................... 5 Porter Model: .......................................................................................................................................... 8 Overview Of Poultry Industry ................................................................................................................. 11 Benefits of Poultry Farming in Controlled Environment.......................................................................... 13 Factor Conditions .................................................................................................................................. 17 Human Recourse Requirements ......................................................................................................... 19 Physical resources.............................................................................................................................. 19 Capital Resources And Infrastructure ................................................................................................. 29 Equipment and Machinery Requirement............................................................................................ 31 Firm structure, rivalry and strategy ........................................................................................................ 33 Feed mills .......................................................................................................................................... 34 Poultry Farms .................................................................................................................................... 34 Vaccine and medicine production houses .......................................................................................... 35 Hatcheries ......................................................................................................................................... 35 Wholesalers ....................................................................................................................................... 36 Middlemen ........................................................................................................................................ 36 Retailers ............................................................................................................................................ 36 The Supply Chain ............................................................................................................................... 37 Integration......................................................................................................................................... 37 Investment in the sector .................................................................................................................... 38 Pricing and Competition..................................................................................................................... 39 RELATED AND SUPPORTING INDUSTRY OF POULTRY FARMING .............................................................. 40 POULTRY FEED INDUSTRY .................................................................................................................. 40 Vaccination Industry .......................................................................................................................... 45 Poultry By-Products ........................................................................................................................... 55 Demand Conditions ............................................................................................................................... 56

Demand of poultry: ............................................................................................................................ 56 Problems faced by poultry producers: ................................................................................................ 58 Conclusions........................................................................................................................................ 58 Demand function ............................................................................................................................... 59 Major Consumers: ............................................................................................................................. 60 Government policies .......................................................................................................................... 60 BENCHMARKING WITH INDIA ................................................................................................................ 63 Poultry Industry in India ..................................................................................................................... 63 Transformation from a Backyard Activity to a Major Commercial Activity ................................ 64 Regional Variation in Poultry Development ................................................................................... 64 Growing Production of Eggs and Broilers ...................................................................................... 64 Increasing Scale of Operation ......................................................................................................... 64 Structure of the Poultry Industry .................................................................................................... 65 Concentration of Poultry Units Around Cities and Urban Centers ............................................... 65 Low Per Capita Consumption ......................................................................................................... 65 Slow Changes in Consumption Habits ............................................................................................ 65 Exports ............................................................................................................................................. 66 Employment ..................................................................................................................................... 66 Issues Relating to Animal Welfare and Environmental Pollution .................................................. 66 Constraints on the Growth of the Poultry Industry........................................................................ 66 Policy Measures ............................................................................................................................... 67 RECOMMENDATION FOR THE POULTRY INDUSTRY OF PAKISTAN........................................................... 71 BIBLIOGRAPHY....................................................................................................................................... 73 Appendix ............................................................................................................................................... 75 Questionnaire........................................................................................................................................ 75

Letter of Acknowledgement

First of all we would like to thank Almighty Allah that by His Grace we were able to complete this report successfully. We would also like to express our gratitude to Ms Khadija Bari for her patience, support and efforts in guiding us towards the completion of this report. Her openness and welcoming attitude towards our queries is commendable. During our field research, we surveyed the market and took the help of many Control Shed Experts and open shed owners to gather information about the market of poultry industry. All of them were very supportive and welcomed our questions despite their busy routines. Last but not least, we would like to specially thank the senior manager of BIG BIRDS Mr. Basit Ahmed and Mr. Khasif Aslam for their contributions towards the completion of our report.

The Economy of Pakistan

The economy of Pakistan is the 27th largest in absolute dollar terms. Pakistan has a semiindustrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. The economy has suffered in the past from decades of internal political disputes, a fast growing population, high inflation rate, increasing poverty level and low quality of education, terrorism etc . The gross domestic product (GDP) is the market value of all final goods and services produced within a country in a given period of time. It is often positively correlated with the standard of living, although there are alternative measures to GDP too. Pakistan's GDP is US$167 billions, which makes it the 48th-largest economy in the world or 27th largest by purchasing power adjusted exchange rates. Today, Pakistan is regarded as to having the second largest economy in South Asia. In Pakistan GDP growth, Sharpe increase by gains in the industrial and service sectors, remained in the 6-8% range in 2004-06 due to economic reforms in the year 2000 by the Musharraf government. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally. Pakistan's gross domestic product, if measured by purchasing power parity is estimated to be $475.4 billion while its per capita income stands at $2,942. The poverty rate in Pakistan is estimated to be between 23% and 28%. GDP growth was steady during the mid-2000s at a rate of 7% however its slowed down during the Economic crisis of 2008 to 4.7%. A large inflation rate of 24.4% and a low savings rate, and other economic factors, continue to make it difficult to sustain a high growth rate. In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In 2008, following the course in global petrol prices inflation in Pakistan reached as high as 25.0%. The central bank is pursuing tighter monetary policy while trying to preserve growth. In 2007/08, the sharp rise in international oil and food prices, combined with internal political confusion, led to rapidly expanding macroeconomic imbalances in Pakistan. The development emphasis remains on poverty reduction and social protection, particularly on enhancing social safety nets for the weakest sections of society. , Infrastructure is also vital, particularly in water management, transport, education and energy. Inflation and unemployment are negatively correlated simply stated the lower the unemployment in an economy, the higher the rate of inflation.

PAKISTAN STATISTICS GDP (official exchange rate): $124 billion (2006 est.) GDP - per capita (PPP): $2,600 (2006 est.) GDP - real growth rate: 6.6% (2006 est.) GDP (purchasing power parity): $437.5 billion (2006 est.) GDP - composition by sector: agriculture: 22% industry: 26% services: 52% (2006 est.)

The Situation in Pakistan is that of increasing economic and political instability and the destabilized government is losing control. In growth and in Investment we lose investor because of political situations and collapse of external demand for its exports and decline in accessibility of external capital to finance or invest in growth process of the country. Poverty, the insufficiency of income to meet basic needs, low quality of life, rejection of opportunities and choices basic to human development are different facets of poverty. The main objectives of government policies are should be to raise the standard of living and improve the socioeconomic conditions of the people and thus reduce the incidence of poverty, to control inflation, reduce the level of unemployment, sustain high level of GDP, control corruption and make the country on the way of development by honesty.1

http://www.articles.eezzi.com/economics/76-the-economy-of-pakistan-2011.html

Porter Model:
In the mid-1980s, Professor Michael Porter of Harvard Business School developed a framework to assess the competitiveness of regions, states and nations.

In the early 1980s, U.S. industry saw its economic competitiveness eroded by Japanese and European competitors. Porter concluded that classical international trade theories, which mainly focused on slowly changing, inherited variables such as natural resources, climate, size of working population, etc., could only partially explain why nations gain competitive advantage in a given industry. This observation initiated a four year study of ten major trading nations and 100 industries that covered 50% of total world exports in 1985.

Successful international industries tend to be located within particular cities and regions. Geographic concentration is vital for firms to efficiently draw on each others resources and capabilities and to benefit from a shared culture and learning experience, supply capabilities and local infrastructure. Industry clusters are geographical concentrations of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters lead to productivity increases, higher innovation rates and faster new business developments. Porter argued that productivity is the main factor for international competitiveness and that the standard of living of a countrys population can be improved as a direct result of increases in that factor. Clusters may take different forms between firms producing different products across value-added chains or between firms producing similar products at different stages of the same chain. Examples are banking in London and New York, chemical transport in Rotterdam, Houston and Singapore, film in Mumbai and Hollywood and Internet/Software in Silicon Valley and Bangalore.

Porters Diamond of competitive advantage model of nations consists of four main attributes that shape the national environment in which local, connected firms compete: 1.FACTOR CONDITIONS The nations relative position in vital industrial production factors such as skilled labour or infrastructure, are important determinants of national competiveness. Both the level of individual factors and the overall composition of the resource mix must be considered. Factors can be country specific or industry specific. For example, Japans large pool of engineers -- reflected by
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a much higher number of engineering graduates per capita than almost any other nation -- has been vital to Japans success in many manufacturing industries. 2. DEMAND CONDITIONS The nature of home demand for an industrys products and services requires considering both the quantity and quality of the demand. For example, Japans sophisticated and knowledgeable buyers of cameras helped stimulate the Japanese camera industry to improve product quality and to launch new, innovative models. 3. RELATED AND SUPPORTING INDUSTRIES The presence or absence in the nation of internationally competitive supplier and related industries is a key factor. Until the mid-1980s for example, the technological leadership in the U.S. semiconductor industry provided the basis for U.S. success in personal computers and several other technically advanced electronic products. Adoption of the automobile took off in the USA after the construction of a national system of highways and gas stations. 4. FIRM STRATEGY, STRUCTURE, AND RIVALRY The national conditions that determine how companies are created, organised and managed, as well as the nature and extent of domestic rivalry. For example, the predominance of engineers on the top-management teams of German and Japanese firms results in emphasising the improvement of the manufacturing processes and product design. Furthermore, domestic rivalry creates pressure to launch new products, to improve quality, to reduce costs and to invest in new, more advanced technologies. Porter stated two additional variables that indirectly influence the diamond: 5. CHANCE EVENTS Disruptive developments outside the control of firms and governments that allow in new players who exploit opportunities arising from a reshaped industry structure. For example, radical innovations, unexpected oil prices raise revolutions, wars, etc. 6. GOVERNMENT Government choice of policies can influence each of the four determinants. Successful government policies work in those industries where underlying determinants of national advantage are present and reinforced by government actions. Government can raise the odds of gaining competitive advantage but lacks the power to create advantages on its own. These six attributes promote or impede the creation of competitive advantages of firms, clusters, and nations. All conditions need to be present and favorable for an industry/company within a country to attain global supremacy.
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Managers can use the diamond model during their internationalization efforts to determine if the home market can support and sustain a successful internationalization effort or to asses in which country to invest next. The model helps entrepreneurs decide where to start their next venture. Government officials can use the model for guidance on how to best build a supporting policy framework for a given industry.2

http://www.provenmodels.com/577/diamond-model---competitive-advantage-of-nations/michael-e.-porter/

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Overview Of Poultry Industry

Phase 1: The Introductory Period 1965-1970.
During this period the early poultry ventures, involving risks were supported by Government policies that exempted poultry production form national tax levies and permitted producers to import genetically improved breeding stocks and equipment such as incubators. A number of catalytic forces shaped the early development of the poultry industry. These forces included potential profits in the industry, availability of technologies and supportive government policies resulting from the perception of a protein deficiency in Pakistani diet. The government of Pakistan also established the Directorate of Poultry Production at Karachi, which provided extension services to the growing numbers of poultry farmers. The early development of the industry was also characterized by emerging problems including rising feed costs, disease outbreaks and consumer preferences for Desi birds.

Phase 2: Institutional Development 1971-1975.

As poultry production became a significant enterprise in the agricultural economy of Pakistan, the government strengthened institutions serving the new industry. The Federal Poultry Board was established to coordinate government and industry activities, in the layer and broiler business. Research services were offered through the Poultry Research Institute with the assistance of UNDP/FAO funds. The Directorate of Poultry Development was established in Punjab similar to that in Karachi. Poultry Producers struggled with the adverse effects of government programmes e.g. the ban on export of poultry products and the consequences of some major planning flaws such the establishment of poultry estates clustered together without adequate sanitation and health control. This phase is characterized by both the greatest success of the poultry industry and its greatest failure. A dramatic increase in poultry production resulted due to diverted investments form the nationalization of industries in other sectors. At the same time the clustering of production units led to large disease outbreaks and the lack of marketing facilities due to ban on export of poultry products limited industry growth.

Phase 3: The Production Boom 1976-1980.

The government of Sindh followed a policy to attract investment in poultry farming by offering estate land under ten year leases. At the same time, the nationalization of other industries contributing the entry of capital into poultry industry, particularly in the Punjab, resulted in the poultry production boom. Commercial egg production increased from 624 million eggs in 1976 to 1223 million eggs in 1980. Broiler production increased form 7.2 million birds to 17.4 million birds during the same period. The increase volume of production was forced through limited marketing channels. Serious financial setbacks to poultry farming in Pakistan culminated from discontinuation of poultry exports; disease problems; high relative prices of poultry feed; deteriorating feed quality; and limited supply of feed ingredients. Poultry farmers faced with financial problems and seeking remedial measures formed the Pakistan Poultry Association in 1979 on the advice of the Federal Poultry Board. 11

Phase 4: Depression and Adjustment 1981-1990.

Disease problems posed a serious threat to the sound development and consolidation of the industry. The large Karachi poultry estates began to close in 1984 and a number of poultry farms closed in other areas of Sindh. Production showed a decreased growth or even depression during early 1980 particularly of increases in the Punjab, Baluchistan and NWFP. However, in the later part of 1980s starting form 1985 industry seemed to be readjusted with much rise in poultry number particularly in broilers. Faced with disease problems, lower productivity and numerous environmental and climatic difficulties, some of more successful farmers decided to produce under more modernized conditions and to establish their poultry farms in cooler, less polluted area of the country. Breeding farms in Karachi and Punjab thus relocated to Abbotabad, to the base of the Murree Hills and to the Valley of Quetta. The farmers also built houses with controlled environments for breeders, broilers and commercial layers.

1991 to Now:
In this period was a disaster due to diseases, in 1990 the farmers suffered a great loss due to Hydro pericardium syndrome specially the farmers of Broiler and Broiler Breeder Birds. In 1991-92 an other disease Gumboro attacked the chicks of broiler, layer and parent flock that resulted in great mortality. With the passage of time efforts to reduce the incidence of these diseases and prophylaxes regarding vaccination and bio-security were done, this also resulted in establishment of new medicine companies and the importation of vaccines form abroad started. At national level institutes like Poultry Research Institute, Veterinary Research Institute and Agriculture University Faisalabad also done efforts to reduce these diseases.

In 1995 a new disease Avian Influenza appeared in Murree and Abbotabad and mortality in parent flock rose up to 80% due to this disease and set a challenge to the scientists at national level. Conferences at the diagnosis of this disease were conducted in which scientists discussed their point of views, after great loss measures were adopted that resulted in controlling the disease. In 1996 parent flock increased in number due to absence of planning that resulted in depression in the market and the price of chicks decreased several times its cost of production. This depression in Poultry market continued in 1997 as result of ban on serving of lunch in marriage parties that reduced the demand of poultry products in the market up to 40%. Slowly in 1998 it started improving and by increase in price of chick the companies got a great profit. 1999 again a syndrome like influenza broke that cause great loss in some areas while some areas were safe. Now still there are many threats to the poultry industry the manor of which is the marketing problems of chicks to finished products, a great planning is required in this regard. At this time it is supposed that big firms like Be Be Jan can be help full to reduce the instability of the market but it may be before time.

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Benefits of Poultry Farming in Controlled Environment

Poultry Farming in Controlled Environment has brought a great change in poultry industry of Pakistan and is rapidly becoming popular among broiler producers due to its following significant advantages: 1. The temperature remains consistent round the clock providing very conducive environment to the broilers. 2. The temperature can be brought down by 10C to 15C in controlled environment farm as compared to the conventional farm and makes environment more comfortable for birds. 3. In conventional farming the broiler production in summer is almost stopped and only four flocks could be taken whereas in controlled environment farming 6-7 flocks could be raised 4. Being controlled environment the incidence of diseases could be minimized and cut down the cost of vaccine and medication of Rs. 2-3 per bird as compared to conventional farming. 5. Mortality has been decreased to 2 to 3 percent in controlled environment farm as compared to 10 percent in conventional farm. 6. In controlled environment farm only one person at daytime and one at night time are sufficient to look after a flock of 35,000 birds. Whereas conventional farm nearly 6-8 persons are required to manage such a flock. 7. In controlled environment farm a broiler flock is ready for market in 37 days as compared to 45 days in conventional farm. 8. Feed Conversion Ratio (FCR) in conventional farm is more 2 to 2.2 (3 to 3.3 kg feed to gain 1.5 kg weight), whereas FCR is improved to 1.8 in controlled environment farm (2.8 kg feed to gain 1.5 kg weight)

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POULTRY CHICKS BREEDING CONTROL SHED SOFTWARE Quick Details

Products Status: Stock, Used Type: Programming & Development Operating Systems Supported: Windows Version Type: Enterprise Brand Name: DIGITALSOFTS Model Number: POULTRY CONTROL SHED SOFTWARE Place of Origin: Pakistan FEED PURCHASE MANAGMENT

MEDICINE PURCHASE MANAGEMENT CHICKS PURCHASE MANAGMENT DAILY BREEDING AND CONSUMPTION MANAGMENT. INVENTORY CONTROL: forms and reports ACCOUNTS MANAGMENT: forms and reports CHICKS SALES MANAGEMENT: forms and reports WEIGHT SCALE INTEGRATION: forms and reports

Specifications
This software helps the breeders to maintain the day to day activities and feed medicine consumption of the control shed for FCR SOFTWARE MODULES AND FEATURES

Sr. MODULES 1 PURCHASE MANAGEMENT SYSTEM 2 BREEDING AND CONSUMPTION MODULE

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3 STOCK MANAGEMENT SYSTEM 4 SALE MANAGEMENT SYSTEM 5 ACCOUNTS MANAGEMENT SYSTEM

1 PURCHASE MANAGMENT MODULES CHICKS PURCHASE (FLOCK WISE, SUPPLIER WISE, CHICKS CATEGORY WISE) FEED PURCHASE AND RETURNS( (FEED WISE, SUPPLIER WISE, FEED CATEGORY WISE) MEDICINE PURCHASE AND RETURNS( (MEDICINE WISE, SUPPLIER WISE, MEDICINE CATEGORY WISE) FUEL PURCHASE AND RETURNS( (DESIEL, COAL WISE, SUPPLIER WISE) 2 BIRD BREEDING AND CONSUMPTION MANAGMENT MODULES DAILY BIRD BREEDING WEIGHT (FLOCK WISE, SHED WISE) DAILY BIRD MORTALITY (FLOCK WISE, SHED WISE) DAILY FEED CONSUMPTION (FLOCK WISE, SHED WISE) DAILY MEDICINE CONSUMPTION (FLOCK WISE, SHED WISE) DAILY FUEL CONSUMPTION (FLOCK WISE, SHED WISE) DAILY TEMPERATURE MAINTAINED (FLOCK WISE, SHED WISE) DAILY FANS USED (FLOCK WISE, SHED WISE) Daily Bird Reports FCR (FEED CONSUMPTION REPORT) FCC (FEED CONSUMPTION PER CHICK REPORT) 3 INVENTORY CONTROL SYSTEM MODULES CHICKS STOCK REPORT (FLOCK WISE, SHED WISE) FEED STOCK REPORT (ITEM WISE, CATEGORY WISE) MEDICINE STOCK REPORT (ITEM WISE, CATEGORY WISE) FUEL STOCK REPORT (CATEGORY WISE)

4 SALES MANAGMENT MODULES CHICKS SALE WITH WEIGHT SCALE INTEGRATION (SHED WISE, FLOCK WISE, CUSTOMER WISE) 5 PAYROLL MANAGMENT MODULES STAFF HIRING STAFF ATTENDANCE MARKING STAFF LEAVE MARKING STAFF ADVANCES STAFF LOAN

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STAFF STAFF SALARY SLIP

SALARY

SHEET

6 ACCOUNTS MANAGEMENT MODULES CASH PAYMENTS (ACCOUNT HEAD WISE, DATE WISE) CASH RECEIPTS (ACCOUNT HEAD WISE, DATE WISE) BANK PAYMENTS (BANK ACCOUNT HEAD WISE, DATE WISE) BANK RECEIPTS (BANK ACCOUNT HEAD WISE, DATE WISE) JOURNAL ENTRIES ACCOUNT LEDGER DAY BOOK RECEIABLES AND PAYABLES TRIAL BALANCE PROFIT AND LOSS BALANCE SHEET

Production Assumptions
Assumptions used for the product mix are as follows: PRODUCT Chicken Number of Flocks per year Number of Birds per Flock Time required per Flock (Days) Lag time required per Flock (Days) Total Annual Production Capacity Shed Space Required per Bird (sq. ft) Sale price growth rate (%) Production capacity utilization (%) AVG. LIVE WIEGHT 1.85 6 35,000 40 15 210,000 0.65 10 100 PRICE PER KG Rs.110

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Factor Conditions
Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan. This Economic Survey 2009-10 sector generates employment (direct/indirect) and income for about 1.5 million people. Poultry meat contributes 23.8 percent of the total meat production in the country .Poultry Development Policy visions 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 farmers training & education. It envisages poultry sectors growth of 15-20 percent per annum.

Factor conditions of poultry industry in Pakistan. The diamond model is an economical model developed by Michael Porter in his book The Competitive Advantage of Nations, where he published his theory of why particular industries become competitive in particular locations.3 Factor conditions are human resources, physical resources, knowledge resources, capital resources and infrastructure. Specialized resources are often specific for an industry and important for its competitiveness. Specific resources can be created to compensate for factor disadvantages. 4 Factor conditions can be further divided into further categories, each category can be then analyzed individually according to the secondary data available. Human resources According to Pakistan Veterinary Journal ISSN: 0253-8318 (PRINT), 2074-7764 (ONLINE) Accessible at: (www.pvj.com.pk) it has been reported that Poultry sector is one of the most vibrant segments of agriculture sector in Pakistan. It generates direct or indirect employment for about 1.5 million people. Poultry meat contributes about 19% of the total meat production in the country. The current investment in poultry industry is about Rs. 200 billion. This sector has shown an annual growth of 8-10%. The production of total poultry birds, including domestic and commercial poultry birds, was 518 million, and total meat production remained 601 thousand tons during 2007-08 (Govt. Pakistan, 2008). Poultry meat is a good source of cheap, palatable
3 4

http://en.wikipedia.org/wiki/Diamond_model http://en.wikipedia.org/wiki/Diamond_model

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and nutritious protein and contributes around 1.1% in the national Gross Domestic Product (GDP), 4.8% in the agricultural GDP (Sabir, 2007). A poultry enterprise produces meat in eight weeks, and eggs in 24 weeks.5This article talks about the human resources employed in poultry sector in detail and moreover it also explains the amount of direct investment that is flowing in this sector which is about Rs. 200 billion. Moreover the stats provided in the article are very much up to date and the source of the article is also authentic.

(www.pvj.com.pk)

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Human Recourse Requirements

Physical resources
Current structure The investment in the poultry sector is about one billion US$. It includes over 20,000 farms, 285 hatcheries, 141 feed mills and related infrastructure. Grandparent (GP) projects: The country has four grandparent poultry companies operating as franchisees of US and European suppliers. GP companies are; Al-Noor Group (Star Bro/Shaver) in Faisalabad, Grand Parent Poultry (Pvt) Ltd (Hubbard) in Lahore, Haider Grand Parent Project (Hybro-PN) in Gujrawala and Quality Poultry Breeders (Arbor Acres) in Rawalpindi. Their total annual production is 5.00 million parent stock chicks. Hubbard has 50% market share and the Al-Noor Group is the only onethat has layer grandparents. Annual production is 0.3 million layer parents. Layer breeder / Broiler breeder farms: In all there are 430 layer breeder / broiler breeder farms in Pakistan, the bulk of which are owned by six breeder companies. These companies have a 75% share of market. The remaining 25% share goes to small farmers.

According to economic survey in 2000-2001 it was estimated that the physical resources which are currently deployed in the sector are following: *(In million tons)6 Production 2000-2001 Estimated 2001-2002 Day old chick 319.7 334.3 Layers 18.1 18.4
6

http://findarticles.com/p/articles/mi_hb092/is_8_33/ai_n28959903/pg_2/?tag=content;col1

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Broilers Breeding Stock Eggs Poultry Meat

253.3 6.2 4348.0 256.1

264.4 6.2 4423.0 266.8

The above figures basically show the physical resources moreover it tell us about the production which has been received by the poultry sector. Although the data given in this article might be outdated but it gives us a clear picture as how many resources are being used in this sector, and through advanced technology in this sector the physical resource are increasing day by day and are leading to healthy rise in the production.

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Productions of broiler in Pakistan

The following table basically shows the total meat production compared to the other livestock products, it basically provides us the idea that how much poultry contributes to the Livestock sector of Pakistan.

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Traditional Rural Poultry

Almost every rural household and some urban households raise poultry Poultry Population Contribution to egg production Contribution to meat production Breeds: 3 local, 2 imported Hatching: Brooding hens Feeding: Scavengers Important Diseases: Newcastle disease, Fowl cholera, Fowl pox 73.65 million 41.6% 24.3%

Intensive (Commercial) Poultry

1. Status a. b. c. d. e. f. g. h. i. Share in poultry meat Share in eggs Grandparents Breeders Layers Broilers Farms Hatcheries Feed Mills 75.7 % 58.4 % 5 companies 6.8 million 25 million 434 million 25,897 305 154

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Physical Resources

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Division of Poultry
Hatchery Sector
Hatchery sector is the backbone of poultry farming as it provides day old chicks to the poultry farms. Hatchery is a place where eggs are placed in incubators for 21 days and day old chicks sold to the farming sector. Establishing a hatchery requires huge investment as compared to other subsectors of the poultry. It needs the purchase of quality imported incubators ranging between Rs.1.5 million to Rs.3.0 million. Although there are relatively cheap locally manufactured incubators available in the market, their efficiency is low. Small hatcheries can be established with 1-2 incubators, medium hatcheries comprise of 3-20 incubators, while large hatcheries consist of more than 20 incubators.

Poultry Farming Sector

Rearing of poultry birds / chicks for meat and eggs is classified as poultry farming. The investment required for establishing a poultry farm is quite low as compared to other sub-sectors of poultry. However, it is labor intensive and requires investment for working capital mainly for the purchase of feed, chick, vaccination, etc. Poultry farming can further be classified into following three categories

Breeder farming
The eggs used in hatcheries to produce broiler and layer chicks come from the parent flock /grandparent of selected breeds and farming of such breeds for the production of eggs is called breeder farming. Breeder farms require relatively high level of investment for the import of parent flock/ grandparent of best breed and farmers need to have better technical skills and know- how as compared to other sub-sectors of poultry farming.

Layer Farming
Layer birds are raised for the purpose of eggs production. These birds produce eggs for normal consumption. One layer bird in a year produces 250-280 table eggs under an average management condition. For first 16 weeks the farmer needs to spend money on feed and maintenance and receives no return on his investment during this period. For next 10-12 weeks however, he recovers his total running expenses incurred on the flock. The farmer starts making profit after 6 months of successfully running the layer flock.
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Broiler Farming
The most common form of poultry farming is broiler farming i.e. rearing of day old chicks for meat. It requires low level of investment as well as low technical know how as compared to other subsectors of poultry farming. The usual process is to buy day old chicks, feed them for 6-8 weeks before their marketing / selling. A typical table meat bird weighs nearly 2- 2.5 kg and consumes feed about 4 kg. Therefore, the profit / loss in broiler farming can broadly be assessed by subtracting the cost incurred on purchase of day old chick and feed from the market price of broiler chick.

Important Breeds
Some of the most important breeds are: 1. Buff Rock

2. Leghorn

3. Light Sussex

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4. Rhodes Island red

5. Foyoumi

6. Dhoki

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PROVINCE WISE POULTRY STATISTICS

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Capital Resources and Infrastructure

Applied technology
The poultry sector deploys modern methods and technology in the areas of poultry breeding and mass production. Proper techniques are employed in bird housing such as evaporative cooling and humidity control mechanisms. A few layer breeder farms have switched from litter housing to cage system because of its obvious advantages. The hatchery operations use modern incubators such as Chick Master to produce broiler as well as layer chicks using sophisticated electronic systems and egg grading machines. The quality of these chicks is of international standards. Six major players in broiler / layer breeding operations are; Big Bird Group of Companies from Lahore, Hi-Tech Poultry Breeders in Lahore, Islamabad Chicks in Rawalpindi, K&N Group of Poultries in Karachi, Olympia Poultry Farms in Lahore and Sadiq Brothers in Rawalpindi. In Pakistan Poultry farming consists of meat production which is in the form of chicken meat. Chicken meat is obtained either by chicken produced through open farming and through control shed. In the same fashion eggs are obtained through commercial hatcheries and conventional farms. Now the large scale investment and proper incentives have resulted in the establishment of infrastructure comprising of 252 hatcheries with capacity to produce 346 million day- old chicks per annum, 141 feed mills with the capacity to produce 2540 thousand tons of compounds feed per annum and 13154 poultry farms with the capacity to produce 98 million broilers. The present total poultry population is estimated to be 319 million, out of which 137 million is rural (44%), 160 million broilers (50%), 17 million layers (5%) and 5 million breeding (2%) stock annually. These figures speak of the potential that has been established in the country to increase production of eggs and poultry meat thereby reducing further the gap of availability of animal protein foods. Modern poultry farming has a special importance for countries such as Pakistan. Because it is being an easy and relatively cheap method of raising dietary standard of the people.7 Knowledge resources With improved technology and greater infrastructure the production in poultry sector is on the rise. Better R&D has helped improve the chicken breed which helps in better quality of meat production and egg production. Some of the important breeds of the world such as buff rock, leghorn, light Sussex, Rhodes Island red are also hatched successfully in the country at desired traits. A laying bird produces an average of 250 eggs per year and the average live weight of the broiler is recommended as 1200
7

http://www.pakistaneconomist.com/issue2000/issue32/i&e3.htm

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grams ( or 1.2 kg), at 8 weeks of age. Pakistan produces 6.5 thousand million eggs and 340 thousand tonnes poultry meat. The consumption of poultry feed increased with their ages. It reached its peak (135g/bird/ day) at 25 weeks age. Then it declined slightly reaching 124g / bird/ day at 33 weeks of age. There are also some local breeds, which are highly productive and are more adaptive to the local conditions. These important poultry breeds of fowls are cross bred with each other to produce. The product is concentrated around the large urban centers in the provinces of Sindh, Punjab and NWFP. The majority of such farmers are generally in and around the cities like Karachi, Lahore, Peshawar, and Faisalabad. The capacity of the layers farm varies from 2000 to 20000 birds and that of the broilers farms from 103 to 403 birds per annum. The higher cost of poultry feed is mainly due to the increase in the price of the various ingredients particularly fishmeal in their poultry feed. In these days prices of poultry are very high due to the cost of ingredients needed for the manufacturer of the feed meal.8 The above mentioned paragraph clearly explains that how different kind of breed helps in increasing the production.

http://www.pakistaneconomist.com/issue2000/issue32/i&e3.htm

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Equipment and Machinery Requirement

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Firm structure, rivalry and strategy

Talking about firms or players in the poultry industry of Pakistan, there are a number of kinds. The whole supply chain comprises of a number of firms and businesses. Starting from the hatcheries up to the retailers or butchers, there exist different kinds of businesses. The concept of vertical and horizontal integration would be discussed later in the report. At some places, the whole supply chain comes under a single owner. This is done merely for the purpose for achieving operational efficiency. Through this, the firms are able to achieve economies of scale as the feed is their own, medicines and even hatcheries are their own. The key players in the industry are as follows

Feed mills Poultry farms Vaccine and medicine production houses Hatcheries Wholesaler Retailer Middlemen (Distributors)

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Feed mills
Feed mills can be seen as the backbone of this industry for a number of reasons. It is the feed mill that produces the particular feed for the flock that enables it to grow to their fullest within just 7 weeks. Good feed mills in Pakistan are few. Some of them are owned by the few big packed food companies like the K&Ns and Menu. The feed mill consists of a plant that produces the feed by mixing a lot of things in a particular proportion. The ingredients include a number of vegetable oils, corns and different kinds of other small crops. Feed mills require semi-skilled to highly-skilled workers to control and work on the plant for the production of feed. These workers are not on the basis of daily wages rather they are permanent employees and sometimes the owner of the feed mill provides them with residence and other facilities nearby the mill where they work.

Poultry Farms
Poultry farms are the actual core business area. It is in the poultry farm that chicks are added and within 7 months, they are kept with care until they become fully grown broiler flock, ready for consumption. Poultry farms work in two ways as said earlier too. y y The control shed Open house

Control shed is a computerized system for maintaining a favorable temperature and to avoid the spread of bacteria. It is a very efficient system to protect the flock against the spread of diseases and keeping them at a cool temperature. Caustic soda is kept outside the farm so that if someone has to enter, he or she will have to get his shoes dipped in caustic soda so that the bacteria die before he goes into the shed. Adding to this, transportation vehicles tires are also soaked in a chemical before it enters the farm. There are various capacities for control sheds. Starting from 30000 birds, up to 90000 birds depending upon whether the shed is double, single or triple. On the other hand, the open house farming is also quite prevalent. In fact, more than 50% of our farms operating currently are working on an open house basis. Having said this, they have capacities of hardly 5 to 6 thousand birds per farm which is a very small number. Talking about the kind of labor required, the open house farms require semi-skilled workers as there is nothing very difficult to handle as in a control shed. In a control shed, as opposed to this,
34

the labor required is highly skilled and they know how to operate the shed and how to take precautionary measures in order to protect the flock. The following chart gives the details of the personnel required for a single control shed driver farm.

Vaccine and medicine production houses

Since there are a number of diseases that spread really fast among the flocks, to have medicine production factories is a necessity. Just like the feed mills, some of the local firm own their own vaccine and medicine houses whereas many other multi-national pharmaceutical companies also produce products specifically tailored for the broiler flocks. Pfizer is an example.

Hatcheries
Hatcheries are small farm like structures where there are incubators and brooders. Incubators and brooders have a capacity of few thousands eggs as well. Eggs are artificially made to hatch and chicks are kept in intensive care units. The eggs are artificially provided the same heat and movements as a mother hen would when she sits on eggs. Hatcheries are the core suppliers of chicks to the poultry farms which then feed them and make them ready for consumption within a period of 7 weeks.

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Wholesalers
Wholesalers usually are situated in a wholesale market in every city. They act like a warehouse or a core supplier to the retailers from which the end user or the consumer buys the meat at the end. Wholesalers buy the birds from the farms on daily basis and then supply them to the retailers at a particular percentage kept as their commission.

Middlemen
The middlemen are usually the wholesalers themselves. What they do is, they keep their own transportation vehicles through which they pick up birds from the farms on daily basis and then supply them to the retailers. They are called ARTIs in local language. In the case where wholesalers are not ARTIs, the price of the meat at the retailers rise because in addition to the wholesalers, the middleman has to also keep a specific percentage as his commission.

Retailers
Retailers are usually the butchers from whom the consumers buy the broiler meat for consumption. The labor required at this stage is semi-skilled as the slaughtering of the birds is not a very rigorous process. Retailers charge a price to the end users or consumers after keeping a particular percentage as their commission.

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The Supply Chain

Farm Arti Wholesaler Retailer Consumer (End user)

Integration
Few big players in the industry which are operating currently have owned the whole supply chain so that they achieve economies of scale and capitalize on little cost of production. A good example of this is the K&Ns. K&Ns owns feed mills, farms, hatcheries and even their own wholesalers and retailers. This allows them to earn more profits and diversify their product lines too.

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Investment in the sector

Investment (millions)

40000 35000 30000 25000 20000 15000 10000 5000 0 Investment (millions)

The graph shows the investment pattern that has been seen in the poultry industry for over past 30 years or so. The trend in investment tells us that initially this sector attracted investments but then with time, as the concept of control sheds emerged and a few large firms entered the business, the investment curve near 2000 turns towards horizontal axis to show the trend is decreasing

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Pricing and Competition

The pricing in this industry is typical to that of any other pricing mechanism. The demand and supply are the basic determinants. There are no as such policies by the government to control the prices of broiler in Pakistan but during the time when prices get astronomical, the corresponding DCO takes notice of it and calls up meeting of the union of the retailers and wholesalers to control the prices. Examples of such seasons are the month of Ramadan and the Eid Occasions. The basic Mechanism for pricing that is being followed in the industry starts with the retailers telling the wholesalers that they would need this much amount of birds for tomorrow. They tell the figure based on the sales of the previous day and forecasts that they do based on the orders that are placed by the consumers. The wholesalers then check up with the farms to see if there are enough supplies for the next day. If the supply is greater, the price falls for the next day and if the supply is lesser compared to the demand, the price rises. Talking about competition in the industry, there is no as such price wars between the firms because any farm owner, if had put a flock of 30000, for example in his farm, would want to sell it as soon as it gets ready. The reason is that the additional weight gained per unit of feed consumed when they grow up, is much lesser than the weight that they gain when they are young. Having said this, the whole competition lies on the better forecasting of when your flocks should be available in the market so that the owner is able to capitalize on the high prices that might be prevalent during the time his flock comes into market. .

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RELATED AND SUPPORTING INDUSTRY OF POULTRY FARMING

Poultry farming has become one of the most profitable agricultural businesses in Pakistan. Increasing prices of mutton and meat has resulted in phenomenal investment in this sector. As a result role of related and supporting industry of poultry has become integral part poultry farming. There are mainly three industries associated which are feeding, vaccination and by products of chickens.

POULTRY FEED INDUSTRY

First feed mill was setup in 1962 at Rahim Yar Khan by a multinational Lever Brothers. The second mill was established in 1967 by the name of Ani Feeds at Gujranwala and till present there are 141 feed mills which can produce up to 2540 thousand tons of compound feed per annum. Big Bird Group and HiTech feeds are the biggest producers of poultry feeds in Pakistan today. Per bird consumption of feed vary from 124-135 grams per day. At present farmers use commercial and home mixture feeds which are made from wheat, rice, maize, sorghum barley, sea food, pulses and vitamins. About 70% of feed supply is catered by commercial mills. The feed plays an important part in finalizing the price of eggs and chicken as they are significant part of the costs. Recently the prices of feed have increased which have resulted in increase in the cost of production by 60%. Previously feed producers didnt give attention to the quantity of ingredient in a meal which resulted in malnutrition birds. Earlier 8 week old Broiler with a weight between 1.25-1.50 kilograms with Feed Conversion Ratio (FCR) of 3kg of feed to 1 kg of live weight was considered to be healthy. Currently feed manufacturers are continuously improving the quality of the feed so that the production of poultry products could increase. New feeds are modified and contain proteins, carbohydrates and fat content that is very important for the growth of birds. Feed mills are producing balanced diets (For example using medium-protein diet) that not only have increased the weight of birds but also reduce the cost of feeds. In present the Feed conversion Ratio (FCR) has dropped below 2kg of feed per 1kg of live weight. There has been constant upgrading in production of feed by the mill owners and production is now more mechanized and advanced. Automatic batch controller and computerized manufacturing program has minimized human involvement and impurity that has resulted in export quality feeds9. Pakistan is self sufficient in providing poultry feed, local farmers buy feed directly from
9

http://en.engormix.com/MA-poultry-industry/nutrition/articles/poultry-feed-industry-pakistan-t1307/141-p0.htm

http://www.pakistaneconomist.com/issue2000/issue32/i&e3.htm

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them rather than importing. On major reason for self sufficiency is that ingredients used for feed are mostly by products of agricultural products which are available in the country in abundance. Feeds for poultry Poultry feeding is one of the important aspect of poultry science. Poultry feeds are of three types 1. Starting poultry feed: An all mash ration to be fed to chicks upto the age of 8 weeks. 2. Growing poultry feed: A ration to be fed to growing chickens after 8 to 20 weeks or until laying commences. 3. Laying poultry feed: A ration to be fed to laying birds after 20 weeks onwards or after laying commences. Following are the nutrient constituents of poultry feeds Proteins: In poultry, the products produced consists mainly of protein. On a dry weight basis the carcass of an 8 weeks old broiler is more than 65% protein and the egg contents are about 50% protein. Typical broiler rations will contain from 22 to 24% protein and in layers ration the amount varies between 16-17%. Source: Meat scraps (lysine), fish meal (lysine, methionine), poultry by-product meal (tryptophan, lysine), blood meal, liver and glandular meal, feather meal (hydrolyzed), animal tankage, milk products, cottonseed meal, peanut meal, soybean meal, sesame meal, sunflower seed meal. Carbohydrates: The main function of carbohydrates in the diet is to provide energy to the animal. The polysaccharides of major importance are starch, cellulose, pentosans and several other complex carbohydrates. Although cellulose and starch are composed of glucose units, chickens possess enzymes that can hydrolyze only starch. Cellulose, therefore, is completely indigestible. Cereal grains and their by-products are excellent source of starch and thus constitutes a bulk of poultry ration. Source: Corn, sorghum grains (milo) barley, rye, oats, wheat, wheat middlings, various grain byproducts. Fats: Fats make up over 40% of the dry egg and about 17% of the dry weight of a broiler. Although fats supply concentrated form of energy (2.25 times more energy than carbohydrate and protein) their inclusion as true fats or oils in the ration is seldom practised because of high cost and the risk of rancidity which develops on prolong exposure to air, heat, sunlight, etc. Most
http://www.thepoultrysite.com/digital-publication/

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feed ingredients (maize, barley, safflower, milo, wheat, rice, bran, etc.) contain 2-5% fat and that is enough for the inclusion of one essential fatty acid (Linoleic acid), which must be present in the young growing chicks or they will grow poorly, have an accumulation of liver fat and be more susceptible for respiratory infection. Laying hens with diets deficient in linoleic acid will lay small eggs that will not hatch well. Source: Animal tallow (beef), lard, corn-oil, other vegetable oils. Minerals: The body of the chicken and the egg excluding shell contain nearly 4 and 1% mineral matter respectively. The elements known to be required in the diet of poultry are calcium, phosphorus, sodium, potassium, magnesium, chlorine, iodine, iron, manganese, copper, molybdenum, zinc and selenium. Usually the grains and vegetable protein ingredients are relatively poor in mineral contents when compared with those of animal protein feed stuffs. The common mineral supplements in poultry feed are as follows: i. ii. iii. iv. v. vi. vii. viii. Limestone Bone meal Oyster shell Sodium chloride Dicalcium phosphate Manganese sulphate Potassium iodide Superphosphate.

Source: Meat scraps, fish meal, milk products, ground limestone (calcium), ground oyster shells (calcium), dicalcium phosphate (calcium, phosphorus), defluorinated rock phosphate (phosphorus, calcium), steamed bone meal (phosphorus, calcium), salt (sodium, chlorine, iodine), manganese sulfate (manganese), manganese oxide (manganese), zinc carbonate (zinc), zinc oxide (zinc). Vitamins: Vitamins most commonly function as coenzymes and regulators of metabolism. The 13 vitamins required by poultry have been summarised in tabular form. Apart from natural sources, commercial vitamin mixture suitable for poultry are also available. One point to remember, of course, is that the natural vitamins are likely to have other factors associated with them. These may be other recognised nutrients or they may be unidentified factors. Diets continuously deficient in any one of the required vitamins will seriously tell initially upon the egg production and then the life of the chickens. Source: Yeasts, fish solubles, distillers solubles, liver meal, alfalfa meal, milk by-products.
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Feed additives: Additives are never nutrients. They either singly or in combinations are added to a basic feed, usually in small qualities for the purpose of fortifying these with certain nutrients or stimulants or medicines. Often they are called "non-nutrient" feed additives.10 Recommended range of proportion of poultry feeds. Ingredients Grain and Seeds Bajra, bajra (Pennisetum typhoides) Barley(Hordeum vulgare) Black-gram (Phaseolus mango) Proportion (% by wt of materials) 10-15 5-10 10-15

Chinna, cheena (Panicum miliaceum) 10-15 Kulthior horse-gram (Dolichos biflorus) 10-20 Jowar,Cholam (Sorghum vulgare) 10-15 Oat (Avena sativa) Arhar (Cassia tora) Ragi (Eleusine coracana) Yellow maize 5-20 5-10 10-20 15-50

Minerals, Vitamins and antibiotics Common salt 0.3-0.5 Dicalcium phosphate (fluorine content not exceeding 1-2 0.5%) Limestone Oyster shells Vitamins (mineral stabilised) Manganese sulphate Antibiotic feed supplement 1-3 1-3 As recommended manufacturer 0.02-0.3 0.1-0.5

by

the

Oil-cakes and meals

10

http://www.pakissan.com/english/allabout/livestock/poultry/feeds.shtml

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Copra cake, coconut cake Cottonseed oil cake (decorticated) Groundnut oil cake (decorticated) Guar (Cyamopsis tetragonoloba)meal Safflower (Carthamus tinctorious)cake Mustard cake: Expeller Deoiled

5-10 Up to 5% by weight 15-3 Up to 5% by weight 10-15 10-20 25-50

Salseed cake (Shorea robusta) 0-5 Sesamum (Sesamum indicum orientale)cake 10-20 Soyabean meal 10-20 Karanja deoiled cake (Pongamia glabra) 7-8

Proposed GST on Poultry Feed Pakistan Poultry Association has demanded of the government to avoid implementation of general sales tax (GST) on poultry feed, says a press release issued here Thursday.

The PPA Chairman Khalil Sattar, PPA (Tariff and Taxation Committee) convenor Dr. Mohammad Sadiq and former chairman Dr. Mohammad Aslam made the demand to this effect while addressing a press briefing here at the National Press Club.

They said that the local poultry industry was fulfilling the demands of entire country. The private sector has invested around Rs400 billion in the industry and around 1.5 million people were attached to it.

They said if implemented, the GST would not only double chicken prices but also a cheap source of finest protein would go out of reach of the common man.

In the budget proposals of poultry industry, they said GST on poultry feed would also jack up prices of processed chicken that was already consumed less than 5 per cent in Pakistan.

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They said there was no GST on eggs and chicken therefore the poultry owners could not transfer the burden on GST on the produce and would eventually face hardship in running their business. This situation, they said would lead to closure of poultry farms not only affecting the overall supply of chicken and eggs to the market, but also making many people unemployed.

The Pakistan Poultry Association also staged a protest demonstration in front of the National Press Club. The protest demonstration was led by PA Chairman Khalil Sattar and former chairman PPA Dr. Mohammad Aslam.11

Vaccination Industry
Before year 2000, health was a great concern for the poultry farmers. The farming system in Pakistan was mostly unstructured and farmers paid little attention in finding the root cause of diseases and relied on rural medicines which were harmful for the animals. Bird flu disease was an eye opener for poultry farmers who had suffered heavy losses and had to eliminate their entire stock. Chicks have to be vaccinated five times to prevent bronchitis and Infectious Bursal Disease. Antibiotics are given to keep chicken healthy. Role of vet doctor is very important because their chemotherapy and management can bring profits. The decision to give medicines is very critical; multiple drug therapy is very unprofessional and can lead fungal infection, digestive problems and delay the growth of chicks. The infections if not controlled can leave their traces in meat which is very harmful for humans. Pakistan is facing a shortage in specialized and trained vet nary doctors specially the rural areas which decreases the productivity of farms. For the first time a local company i.e. Big Bird farms initiated to open a new department that produced vaccines for the birds..Currently in Pakistan only 3 companies are producing vaccines which have a very nominal contribution to fulfill domestic demand. Most of the vaccines are imported from USA. Little investment is done locally to produce medicines. Poultry farmers argue that R&D in vaccination is very important and expensive, the industry cant invest in the sector without the involvement of government. Moreover private investors are investing in controlled sheds and hatcheries rather than conventional farming which have mechanized the process with hygienic and controlled environment and minimizing the use of medicine.12

11

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=48013&Cat=6&dt=5/20/2011
http://www.pakissan.com/english/allabout/livestock/poultry/misuse.of.drugs.and.development.of.their.resistance.shtml

12

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The role of imported veterinary medicine and vaccine in the poultry sector Contribution of the Livestock and Poultry Sector to the growth and development of Pakistans Agrarian Economy :-

Population engaged in Agrarian Economy Agricultures Contribution of GDP Livestock sectors contribution to agriculture Livestock sectors contribution to GDP Livestock contribution to exports

70 % 25 % 40 % 10 % 10 %

In addition, Livestock and Poultry Sector provide food to 140 Million population in the form of Protein-Milk, Meat, Eggs as well as skins and hides for value-added exports of quality leather goods. Seen in the above perspective, the Veterinary Medicine Business in Pakistan is supporting a vital segment of the economy even though the veterinary Business is still in an early stage of Market Development, covering just about 10 % of the total Livestock and Poultry industry potential in Pakistan.

Prevention and control of disease is most difficult and important in the poultry and Livestock industry. Disease has progressively acquired a place of high significance and the major turning point for the success or failure of this sector. Of all other multiple reasons, this single factor is pregnant with far reaching consequences as far as the farm economics are concerned, direct losses can be colossal due to out right deletion of the flock. The role of corrective chemotherapy can, never the less, not be ignored. Had it not been for research in the development of EFFICACIOUS THERAPEUTIC AGENT and selective use of corrective medicine, Poultry and Livestock sector would not had taken its roots in the developing countries. The due care and discretion in the selection of medicines and uses was very important towards the improvement in the health management of Poultry and Livestock sector. Substandard medicines and quackery
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had also aggravated this problem. It is here in this area of Poultry and Livestock sector that the Veterinarians and qualified prescribers acquire importance. Much depends on their professional competence and discretionary acumen. To prescribe a correct medicine in the line of treatment calls INDEPTH AWARENESS of the interaction between body, drugs and disease. Greater responsibility rest on Veterinarians to organize effective monitoring of the medicine available and offered for sale.

Life is a dynamic process, characterize by emerging challenges and their effective solutions. The Poultry and Livestock sector is no exception to this phenomena. The advancement and survival of any field depends on its ability to cope with a challenges it is facing. This is possible only through the process of continuing scientific research and its effective application. Since our independent research and development had not been one of our top priorities due to a number of reasons, the goal of self reliance cannot be achieved without giving proper attention on scientific research. Unfortunately the gap in this field between developed and developing countries is quite wide and likely to remain so.

The inherent relationship between Farmers, Veterinarians and Veterinary sale teams plays a very important role. This bond between them plays the essential role of Technical application of latest technology in the animal health. This relationship is also vital for national economy in general and animal health in particular.

The poultry sector had long been seen having all the qualities of industry with export potential but it still remains in the uncertainty because of multi factors. The research and development is need of time to transform poultry and Livestock sector into an industry.

The importers who are marketing the vaccines and medicines are not mere business representatives but are also effectively transferring Technologies to our local industry. Three prime role is to provide quality vaccines and medicines for the best care of poultry and Livestock sector. The imported vaccines and medicines with high efficacy had given a clear health protection to this industry. Plan prepared to strengthen Veterinary Research Institute In order to control epidemics and prevent diseases of animals and poultry, Punjab Livestock Department has prepared a project of Rs 65 million for strengthening Veterinary Research Institute (VRI) so that quality control and vaccine production capacity could be improved.
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Under the project, the Veterinary Research Institute (VRI) will develop Newcastle Disease (ND) vaccine for poultry and introduce new vaccines namely Paste Petite Ruminants (PPR), tissue Culture Rabies Vaccine and Infections Bursal Disease (IBD) vaccine to enhance the facilities at VRI by adopting new and modern technology. This animal diseases caused significant economic losses to the livestock and poultry industry in the country, which have been estimated to be rounded 11 percent per annum in cattle and buffalo and 20.30 percent per annum in poultry.

VRI is playing role of saviours towards maintenance of animal health and creating conditions suitable for developing poultry and livestock. It is manufacturing 100 million doses annually of quality vaccines for combating contagious diseases like Haemorrhage septicaemia, Black Quarter, Enterotoxaemia, Pox group of diseases, etc.13 Causes and effects of vaccination failure Since Adams birth pathogens and living creatures are to be dagger drawn on each other. To take the bull of infection on right its horn and pay back in the same coins is the achievement of vaccination. The main purpose of all vaccines and consequently vaccination is to administer an optimum and safe amount of antigen to elicit immune response in the bird. Vaccination does not give guarantee that birds are protected. There are number of factors which may furnish the success of a vaccine. It is a worth remembering that antigens or vaccine or vaccination itself does not produce immunity rather it is the birds immune system in general and immune cells in particular that provoke the immune response and present the antigen to T lymphocytes and by macrophages and from there it is expressed to b lymphocyte where the immune response initiated in items of antibodies. These antibodies are identical to the antigen of vaccine. The successful vaccination comes up in terms of higher and stonger immunity. On most of occasions we get proper protection with vaccination but immunity breakdown is usually not known. There current topic highlighted the factors which will come up in term of good immunity. GENERAL PRINCIPLES OF VACCINATION : Vaccination involves the administration of antigen to stimulate the immune system to produce
13

http://www.pakissan.com/english/news/2002/october/plan.prepare.vaternary.institute.shtml

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specific antibodies against viral, vacterial, and protozoal disease. Vaccination program should be based on the following considerations. Diseases prevalent in the urea of operation. Risk of exposure. Immune status of parent stocks. Cost of acquisition and administration of vaccines Flock placement programs. Availability of specific vaccines. Cost benefit ratio associated with vaccination taking into account the risk of infection and financial loses from disease. PRECAUTION FOR USE OF VACCINES : 1. Do not vaccinate the birds during stress period particularly few days before or after the debeaking, transfer shifting and grading. In these conditions negative Immuno-modulation occur which ended with low level of active immunity. 2. It is not wise to vaccinate the birds during extreme weather, because heat stress on one end affect the bird and on other end effect the vaccine due to high environment temperature. 3. Avoid using metal drinkers and containers for mixing of vaccines, as the metal ions and metals react with the vaccines to inactivate the live vaccines offered through the drinking water. Aluminum and brass containers are not recommended due their maximum inactivation properties. It is recommended to use the PVC or PET containers (Plastic). 4. Use clean equipment and drinkers and sterile syringes, so not use any chemical to disinfect the vaccine utensils because the residues of these chemicals inactivate the vaccines. Rinse the utensils with fresh water to avoid the errors. 5. Always use sterile diluents preferably of the same company for reconstitution of injectable vaccines as the different sources are not synchronized with the optimal requirements. Some diluents contains dyes more than optimum levels which act as sterilizes for diluent and at the same time inactive the vaccine . 6. Do not use waterfor vaccine dilution containing disinfectants, particularly the Bleaching Powder (Chlorine compounds) to avoid the possibility of these chemicals either stop usage of these substances a day earlier the vaccine is offered or two days earlier the vaccine is offered or two days vaccination, enteric forms of vaccines are more sensitive to these type of chemicals. 7. Try to use the vaccines as soon as possible the vaccines are reconstituted, delay to offer by the
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farmers or sonsumption by the birds leads to temporal decrease in the vaccine tillers. 8. In those areas where the salt concentration is too high preferably vaccine the birds through injection or eye, nose or mouth dropping. 9. Addition of skim milk is recommended, as the particles of vaccines are distributed well in the water. In case milk with fat or fresh milk is used it make aggregates on or near the surface of the container ( due to light weight fat) where the vaccine is mixed, leading to develop different concentration zones in the container. 10. Lower limit of skim milk per liter is fixed but there is no upper limit, the higher the milk concentration the best will be the suspension of vaccine in drinking water, the drinkers should be empty in one hour maximum taking in consideration of temperature of house and feed time, the off water time may be adjusted. ROUTE OF ADMINISTRATION : It is emphasized that appropriate control over the reconstitution of live vaccines is required to ensure potency. The actual administration of vaccines of should be monitored by submission of serum samples to diagnostic laboratory for titer assay using ELISA or acceptable technique. Various methods of administrating vaccines are used commercially, including: 1. INTRANASAL: By instillation or dipping the beak up to the naries. In birds nose, mouth and lachrymal duct opened in mouth, therefore, each of the route ended up with the same results with exception of the sensitivity and accommodation by the eyelid epithelium otherwise routes are nearly same. In these route please do not dip the beak for too long short time. 2. INTRAOCULAR: Eye dropping is most popular route of vaccination. There some ereors in the eye dropping made during the vaccination. Eye drop and intranasal routes suitable for hatchery adminstration and during brooding of chicks. In Pakistan the eye droppers are 30ml for 1000 birds, the vaccinator make the vial and drop the birds until and unless the whole of the vaccine is not spent. The too longer time holding the vaccine. In these cases contaminated diluents or vaccines leads to infection of eye and blocked of lachrymal duct and drooling of water from the eye used for vaccination. This reaction may some time normally occur after vaccination of ILT. 3. IN DRINKING WATER: This corresponds to oral and intra nasal administration. Drinking water administration, can be implemented at low cost but it is of limited effectiveness against some infections.

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4. INJECTION: Subcutaneous, intra muscular depending on the type of vaccine and the direction of the manufacturer,. Subcutaneous, injection to administer either live or inactivated emulsion vaccines to chicks rearing stocks and breeders. 5. IN OVO VACCINATION: At 18 days of incubation using the patented Inovoject system. Most commonly recommended in the case of Gumboro and Mareks vaccines. 6. POST-HATCH SPRAY VACCINATION: In cabinets for mass-adminstration of aerosol vaccines to day old chicks. This is mostly employed for ND, IB vaccination on day one in hatchery or farm. 7. WING-WEB STAB: This method is used to administer fowl pox vaccine or other live vaccines directly to each bird. Be careful that eye of the needle carries vaccine each time or not. 8. AEROSOL ADMINISTRATION: Using a knapsack or electric sprayer to deliver vaccines to flocks as a coarse spray. FAILURE OF VACCINE : USE OF EXPIRED VACCINE Vaccines re expired by many ways, among the most common are the expired in storage due to sale, expired in storage due to sale, expired due to less shelf life ( it must be year plus when reached in Pakistan ) expired supply by the manufacturer only with few months in hand. GENETIC RESISTENCE The major histocompatibility complex varies from bird to bird and its structure dictates if a bird will respond to an antigen at all. Due to some structural lacks in MHC it is possibility that the birds are recognize the one of the antigens. Therefore that strain of birds might be more susceptible to pathogen. IMPROPER STORAGE OF VACCINES This is the most common cause of vaccine failure in routine uses of vaccines. This might be due to transportation from market to farm or from manufacturer to distributor to market, failure of electricity, failure of refrigerators, storage in deep freezers, exposure of sunlight. Ignoring the use of ice box, coolers or thermos and using the translucent thin membrane shoppers permitting the sunlight exposure. Exposure of heat, sunrays, room temperature, brooding house temperature to diluents mixed vaccines. To avoid the damages bottles either packed in cold bucket or use chilled diluents. Do not open the lid of vaccine in the open environment as the vaccines are contained in
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negative pressured bottles. Use disposable syringe to constitute the vaccine or open the bottle lid inside the water to avoid the sudden change in pressure. Avoid to use the improper disinfected syringes and needles. Always use wide bore needles for vaccine suction or dilution, narrow bore needle may retained the cell culture vaccines, which make the non uniform mixing of vaccine and lower the antigen amount. Exposure to viricidal disinfectants (phenols, alcohol) may be avoided as these chemicals inactivate the vaccinal virus. HEALTH STATUS OF THE FLOCK The infectious agents such as Chicken Anemia Agent (Circo virus), Gumboro Disease Virus (Birna virus), Mareks Disease Virus (Herpes Virus ), REO Virus, Salmonella and Mycoplasma etc. may cause varying degree negative immunomodulation which consequently may lead to vaccinal failure or adverse reaction in the face of these disease. IMMUNO SUPPRESSION DUE TO DRUGS Continuous administration of Immuno-suppressive drugs such as chloramphenicol, furazolidone may cause cause poor immunity development. MYCOTOXINS Presence of mycotoxin in the feed affect the vaccinal response very badly. Mycotoxin reduce host immunity directly by reducing the Macrophage engulfing tendency and production of toxin, lymphocytes which give poor out put in immunity development. Mycotoxin indirectly affect the bird by producing steroids from the adrenal glands which decrease the lymphocytes and increase the neutrophils by the virtue of increased nutrophil the bird become Immune compromised. WATER DEPRIVATION AND HEAT STRESS Due to water deprivation the bird is exposed to heat stress. Due to heat stress lot of steroid production do occur which decrease the lymphocytes produce the antibodies. This is common observation that the dehydrated and heat exposed birds commonly infected with coli septicemia and other diseases. COLD AND HIGH DENSITY STRESS These are social stress as well as stress like heat stress and decrease the immunity by decreasing the number of lymphocyte, which is the factory of antibodies.

POOR NUTRITION Hypoprotenemia especially protein hurt the immune response as antibodies are made up of amino acids. Poor nutrition causes problem with metabolism, protein synthesis and immunity.

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PRESENCE OF AMMONIA IN HOUSES On the port of entry from where the pathogens are entered the body to produce infection there are some host defense mechanism which prevent the entry of pathogens. Hairs cilia moist membranes are among the preventive cushions. The moist membranes of or the mucous membranes among the gut , trachea, nostrils and bronshi produce Immunoglobulin .a through the lymphocytes present on the surface of these organs. This is called secretory immune mechanism and it is watch dog on the port of entry. If the ammonia levels are high in the house above 30PPM it has bad effect on the birds ability to produce local immunity as the cells on the surface of moist membranes are affected badly with the ammonia because ammonia is water soluble gas. In the absence of the local immunity the bird become susceptible to viral diseases particularly those which proliferates in respiratory tract. Ammonia condentration above 100 PPMm always associated with the respiratory disease. As the ammonia is water soluble gas one can easily felt the ammonia as it dissolved in lachyymal secertion of the eyes . ADMINISTRATION ERRORS QUALITY OF WATER Water quality ispoor in most of the areas of Pakistan, particularly in salinity affected areas such as Faisalabad, Sheikhupura and Multan Division, where the salt level is half of the sea water and EC even in Islamabad is 600-2000. Poor water quality and high salt concentration produce ill effect on the vaccine diluted in such kind of water. MATERNAL ANTIBODIES High maternal antibodies inhibit the chicken immune response. It has negative feed back effect on B lymphocytes. Moreover high levels of maternal antibodies against infectious agent such as Gumboro, also play a role in neutralizing the vaccinal antigen thus making the vaccine less effective and designing the vaccine program more difficult. Due to high maternal antibodies not only the vaccinal antigen is destroyed but also the maternal antibodies are also destroyed leaving the bird exposed to field challenge if earlier vaccination in high titer is done. PRESENCE OF VARIANT IN FIELD It has been observed that with the emergence of new variants the classical vaccines are no more effective to control the disease. Classical vaccine of gumboro is missing the VP-2 protien therefore it is not effective against field variant or strain. The hot intermediate and intermediate plus do have the VP-2 protein and can penetrate up to the site of proliferation. In the same manner classical IB is no more effective against IB variants. POOR ANTIGENICITY OF VACCINES Live vaccines must be applied at a level at or above the minimum infective dose. After the live virus has been applied the bird serves as a virus production site. The bird is media in which the
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initial dose of vaccine can multiply to a level which will stimulate a proper immune response. For potency testing of vaccines, always contact well facilitated Lab. Inactivated vaccines should contain sufficient amount of antigen to stimulate an immune response when applied the bird as there is no multiplication of the virus of bacteria in the bird. INTERFERENCE Do not give live respiratory vaccines (IB,ND,ILT) within 3 to 4 days if not combined by the manufacturer in licensed combination. Reation may be too great or response to the later vaccine may be compromised due to interference. This is also true in case of ND and AI vaccine. Do ND vaccine earlier andthan proceed for AI vaccine. GEONETICS Means simply the geographical influence on the gentics of local poultry ppulation. The geontical influence may affect the ultimate response of birds to vaccine under indigenous environments and may result in vaccine failure. The difference pay more if they are present in MHC. VACCINATION REATIONS Adverse vaccine reaction, however do not serve a useful purpose and should be prevented if at all possible. Several factors can affect the severity of the reaction that occur. These include: Chick quality. Level of maternal antibodies. Vaccine strain. Doses of vaccine used. Route of application. Timing of vaccination. Immuno suppression. House sanitation. Down time. Water,litter and air quality. A normal respiratory vaccine reaction in broiler chicks begins about four days post vaccination and lasts about five days. A build up of dust and ammonia often occurs, and will cause respiratory vaccine reactions to be more severe which may never clear completely between vaccinations. A rolling vaccine reaction is one of increased duration and/or intensity compared to what is normally expected. The bacteria or fungus in haled during few hours of life or present in the yolk sac, can complicate vaccination andresult in airaculitis. These birds will react to respiratory vaccines for several days some time during the entire grown out.14

14

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Poultry By-Products
Poultry by products are usually used as cattle food, fertilizers and fuel. Poultry litter, which are left over of wood shaving, sawdust, peanut hulls sugar cane and straw, is placed on the ground where chicks are been kept. Over a process of 40-45 days, the litter is filled with bird manure. Manure contains urea that is used as an ingredient in fertilizer industry. Litter cost is RS 50006000 per truck and after 45 days the weight doubles due to added manure of hens. This fertilizer is then sold at RS 18000 per truck.It is a very economical ingredient but has a drawback is that poultry litter cannot be transported to long distances because it starts to loose weight. Broiler legs and litter are fed to herbivores; it fulfills the protein requirements of animals and works as medicine against some diseases like Mad Cow disease. Lastly poultry litter is used to produce electricity in developed countries. In Pakistan poultry litter is not used as a fuel. Due to current shortage of electricity in Pakistan, power generation from this can open new opportunities for the investors and can help us to solve the issue of loadsheding.15

http://www.pakissan.com/english/allabout/livestock/poultry/the.role.of.imported.veterinary.medicine. shtml
15

Bagley, C.P.; Evans, R.R. (Apr 1995), Broiler litter as a feed or fertilizer in livestock operations, Mississippi State University: Mississippi State University Cooperative Extension Service, ISSN 0886-7488, US9561988

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Demand Conditions
We would like to begin with an introduction of what are demand conditions: y y y Local demand should be anticipatory of foreign demand. Domestic demand should be stringent and sophisticated. When the market for a particular product is larger locally than in foreign markets, the local firms devote more attention to that product than do foreign firms, leading to a competitive advantage when the local firms begin exporting the product. A more demanding local market leads to national advantage. A strong, trend-setting local market helps local firms anticipate global trends.

y y

Demand of poultry:
Pakistan is an agricultural country and a huge proportion of its population is dependant upon agricultural goods & products for their livelihood. Given, the fact that Pakistans population is growing around 3% per annum, the government has to find ways to increase the production to provide for sustenance as well as generating surplus which can be exported to earn the much needed foreign exchange. Due to poor nature of soil, out-dated techniques & water shortages, the food production has experienced great setbacks. To counter this, meat production is used to in order to overcome the potential food shortage. More than 50% Pakistanis prefer meat over vegetables and pulses. According to a Gilani Research Foundation survey carried out by Gallup Pakistan, meat is the most essential food item in peoples daily diet. In a survey in October 2008, respondents were also asked to list what they would like as the main component of their daily diet. Assuming that financial constraints were removed and price was kept constant the results revealed: y y y 52% would prefer meat 37% would choose vegetables 18% would like to have pulses

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Over the years, many changes have been observed in the pattern of meat consumption in the country. The graph shows how the levels of preference of chicken and mutton have interchanged between the years 1986 and 2009.

Distribution of Meat Consumption

1986 45% 14% 35% 2009 37% 18% 51%

Chicken

Beef

Mutton

In recent years chicken has maintained its position as the largest source of meat consumption in Pakistan. However, after experiencing dramatic rise for some 20 years, chicken lost part of its edge due to apprehensions caused by viruses such as bird flu. After reaching a very high figure of 49% in 2000, the share of chicken in meat consumption fell to 39% in 2007. Most of the loss in level of chicken preference translated into gain in mutton consumption (its level rising from 29% to 36%). However in the most recent survey we see that chicken is gaining back its lost share (45%). The study was carried out by Gallup Pakistan, the Pakistani affiliate of Gallup International, among a sample of 2562 men and women in rural and urban areas of the country during October 19-20, 2008. Error margin is estimated to be approx. + 2-3 per cent at 95% confidence level.

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Problems faced by poultry producers:

The marketing of broilers is in the hands of few functionaries who force the farmers to sell their product at the maneuvered prices. Farmers cannot take the risk of keeping the broilers after the recommended growth period because after that period cost of production increases rapidly than the weight gain of birds. After interviewing different stake holders, it was observed that rapid price fluctuation, under weighing and high charges of commission were the major problems of present marketing system. Many farmers claimed that intermediaries did not follow business ethics and tried to fetch maximum profit from business transactions. They used many tactics such as juggling with weighing scales, under counting and under weighing to deceive the farmers. In view of this, the farmers suggested a tripartite market arrangement in the form of farmers, middlemen and the government. Generally, the main broiler business was operated through three intermediaries namely: commission agents, feed dealers, and butchers who charged certain amount as commission fee for their services. Farmers for timely disposal of their output used the intermediaries, but they reported that commission fees of these intermediaries were very high. Sadly, there was no agency to check such unfair commission rates (Anwar, 2005). Farmers mainly had three outlets for the sale of their products namely: main market, town market and farm. About 70 per cent of producers sold their output in the main markets. At town and farm level, the retailers and feed dealers worked as intermediaries. The procedure of current marketing system was highly criticized by farmers. Marketing system still remains in traditional and heterogeneous condition. As a result, producers could not develop direct linkages with the consumers and therefore, producers are not getting expected prices, while consumers are paying high prices. It is one of the main hindrances to improve the contribution of poultry in protein uptakes. Commission agents/wholesalers are the major player in deciding the price at the retailers level. Reasons of non-remunerative price to producers are: a) Missing direct linkages between producers and consumers, which do not provide chance to producer to understand consumers behavior, and b) Lack of investment to develop infrastructure. The provision of credit to the bird growers will allow them to reach directly to the retailers and could kick the commission agents out of the process. Government should also take initiatives to develop laws which can allow producers to sell their products directly in market (Islam, 2003).

Conclusions
One of the major findings of the study was that middlemen at various levels of poultry marketing system were exploiting the poultry farmers. The contribution of poultry in total nutrients uptake cannot be increased without lowering the prices of poultry products at the consumer level and by increasing the profit of producers. Hence, profit of middlemen should be decreased.
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Demand function
Income is an important variable of demand for poultry meat. In the estimated demand model, the coefficient of income was 0.001 (P<0.01) which revealed that for one unit increase in income (Rupees) there might be 0.001 Kg increase in the demand of poultry meat This is consistent with economic theory that higher income increases the demand of poultry meat. The coefficient of family size was 0.653 (P<0.05) which showed that for every one unit increase in family size (one person) there might be 0.653 Kg increase in demand of poultry meat. Retail price is one of the most important variables affecting demand of poultry meat. The coefficient of this variable was -0.418 (P<0.01) showing that for every one unit increase in price 174 Pak Vet J, 2010, 30(3): 172-174. Variable Income Age Bird Flue Family Size Price Coefficient 0.001 0.009 -1.583 0.653 -0.418

(rupees/Kg) there would be 0.418 Kg decrease in poultry meat. Similar findings were recorded by Rasool (1991) and Zahid (1994). The coefficient of education was 0.139. This variable showed a positive sign with the demand of poultry meat but was non-significant. Similarly, the coefficient of age showed a positive sign with the poultry meat but it was also non-significant. The effect of bird flu on demand of poultry meat was estimated using a dummy variable (Table 2). The value of this variable was -1.583 (P<0.05) which showed that there would be 1.583 times decrease in demand of poultry meat in days of bird flu epidemic. The value of adjusted R2in our analysis was 0.763 which means that independent variables included in the model explained 76% variation in dependent variable. The F-value (16.57) in our analysis was significant, showing correct specification of the model. Professional experience of poultry farmers, average production cost, sale price of poultry birds and bird flu are some of the important variables affecting supply of poultry birds whereas income, family size, retail price and bird flu are the important determinants of demand for poultry meat.
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Major Consumers:
Individual households are one of the major consumers of poultry whereas the rest of the bulk of demand is for commercial ventures like restaurants, fast food chains and hotels. One thing which must be kept in mind here is that in Pakistan with gradual increase in production we have now achieved a level where demand is less than supply but still our poultry products are priced at a level which is out of reach of majority of consumers. This is mostly because of high prices of raw materials, electricity shortfalls (forcing the use of diesel powered generators) and rising fuel price. In Pakistan we have seasonal demand, with an increase in demand during winter and same is the case of Ramadan. Also, other cultural factors like marriage season usually just before Ramadan and Moharram result in an increase in demand. Because government control is minimal and there is no set pricing strategy hence, whenever demand increases it directly raises prices.

Government policies
RGST Government policies like imposition of taxes also directly affect the poultry demand for example the recent planned imposition of 15 percent Reformed General Sales Tax (RGST) on the poultry sector in the upcoming budget will not only deprive millions of rural population from their livelihood but also push its rates at a level affordable by only the opulent segment of the population. This would also spell adverse consequences for the socio economic uplift of the downtrodden rural populous and it may spell out unemployment and bankruptcy for scores of medium and small farms as well, said Pakistan Poultry Association (PPA) Chairman Khalil Sattar at a press conference eat a local hotel. He said that chicken is in the reach of all classes of consumers as was documented in the Household Integrated Economic Survey 2007-08 which showed that a consumer spending Rs 4,121 per month on food spends approximately Rs 135 on poultry products, Rs 110 on beef and only Rs 15 on mutton. As such, the levy of RGST will overburden all classes of consumers without any exception. The chairman said in UK and rest of the European Union even though the per capita income is above $30,000 per annum and the need for revenue is extremely high, yet all food items including branded, processed, frozen, ready to cook, fully cooked, etc are zero-rated for valueadded tax (VAT) and sales tax. Even in the USA, many governments have exempted prepared food from the levy of VAT and sales tax. The PPA opposed the RGST on the poultry sector and
60

withdrawal of exemption/zero-rating on processed chicken. The government of Pakistan is contemplating to levy a 15 percent RGST on poultry feed while exempting chicken and eggs and withdrawing zero-rating on processed branded chicken, which would result in a levy of 15 percent RGST. He said that poultry feed contributes 80 percent to the input cost. A 15 percent increase would undoubtedly increase the cost of grandparents, parent stock, broiler and egg production operations. He stated that poultry product prices are truly a demand and supply mechanism - as such the increase cannot be passed on to the consumers at will. In the face of losses, he had no doubts that a large number of farms will close down and the prices of chicken meat could, in the face of short supply, increase by 100 percent from Rs 175 per kilogramme (kg) to Rs 350 per kg. He emphasised that this phenomena of short supply and high prices was amply demonstrated as an aftermath of bird flu when the prices had soared more than 150 percent. In such a case, chicken will be produced only for the upper class. He said that presently a day old chicks are being sold at less than 1/3 the price and broilers are being sold at 20 percent below the cost, while eggs at 32 percent below the cost. Imposition of RGST will be the final nail in the coffin. The levy of RGST on poultry feed is against all norms, principles and philosophy of the GST. If the output is exempted the input cannot be subject to GST, he justified. The experiment of levying GST in the year 1996 resulted in a sharp decline of 45 percent in poultry production, which resulted in a price spiral of not only chicken and eggs but also mutton and beef. The sales tax was consequently withdrawn by the government in 1997 to put the poultry sector back on its rails. He said that in order to keep the input cost low, the government of India, Bangladesh, Thailand, Iran, China and even the very affluent countries in the EU, Australia, New Zealand, and many states in the USA have either exempted or zero-rated poultry feed, chicken and eggs.The chairman further emphasised that withdrawal of zero-rating on processed, branded, value-added chicken attracting 15 percent RGST, would result in defeating the government s own policy of 2006 when the Ministry of Food, Agriculture and Livestock and Ministry of Commerce had launched a policy of encouraging value addition to attain qualitative and quantitative objectives and more importantly bringing about stabilisation in poultry product prices to expand the production base for ultimate objective of exports. He further informed that during 1976-2009, eight out of nine processing plants had closed down in the face of challenges from the unorganised street side slaughter. Thus, to provide a level-playing field, the government in 2008 announced zero-rating of poultry processing, which encouraged setting up of two more processing plants. The levy will increase the price of skinless whole chicken by Rs 31 per kg and boneless chicken by Rs 51 per kg increasing the gap between the organised and unorganised sector, he added. He emphasised that processing plants were an essential requirement for food safety and security.
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The greatest danger in transporting live birds to the markets and household was transmission and spread of viral and bacterial diseases endangering not only the poultry but human population as well. In the recent outbreaks of Avian Influenza, a number of countries had banned the sale of live birds and given incentives and patronage to the processing sector so that live birds gradually disappear from the markets. Since we currently process only 0.5 percent of the live birds the policy of encouragement needs to be continued. Marriage Ordinance: The government should put the marriage ordinance before the parliament for final approval and allow at least one-dish meals to save the countrys poultry industry. This was stated by officials of the Pakistan Poultry Association (PPA) and senior executives of the Rawalpindi Chamber of Commerce and Industry (RCCI) in a joint meeting held at the chambers offices. RCCI President Jalil Ahmed Malik presided over the meeting which was attended by office-bearers of PPA and the RCCI members. The participants of the meeting said ban on serving meals in marriages had destroyed the poultry industry and forced poultry farmers to wind up their business. This has also threatened the jobs of millions of people involved with this industry directly and indirectly, they added. Denouncing the reports about bird flu in Pakistan, they said some mischievous people were causing panic to destroy the poultry industry. Poultry industry is the second biggest industry of Pakistan, contributing very high to national exchequer besides providing jobs to a huge population, they said. The participants said Pakistan imposed a ban on import of poultry and poultry products from more than 18 bird flu affected countries which saved the country from this killer disease. It is unfortunate that many Gulf and middle eastern countries have imposed ban on poultry products from Pakistan, and the government should handle the matter to restore the export. They said export of poultry and poultry products to Afghanistan was also stopped as the Afghan government had also banned it. This would be a great setback for the industry and would render many jobless, they added. The participants said they would file a case against Wapda in Nepra for declaring the electricity tariff as commercial instead of industrial. Speaking on the occasion, RCCI President Jalil Ahmed Malik said the poultry industry was facing various problems for the past few years due to various government measures and bird flu.

The overall demand of poultry is bifurcated into commercial and rural demand. Rural means demand of desi poultry. Rural poultry is more demanded by the health conscious portion of the population as its meat has higher protein content and feed given to the birds is natural. Whereas, serious concerns are raised over the feed of commercial chicken or broiler and it is widely believed that it can be a major cause of cancer. Many people have serious concerns over the 44 day cycle of broiler and question have been regularly raised whether it is natural or not and some even say that the meat is not Halal.
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BENCHMARKING WITH INDIA

Poultry Industry in India

Poultry is one of the fastest growing segments of the agricultural sector in India today. While the production of agricultural crops has been rising at a rate of 1.5 to 2 percent per annum, that of eggs and broilers has been rising at a rate of 8 to 10 percent per annum. As a result, India is now the world's fifth largest egg producer and the eighteenth largest producer of broilers. Driving this expansion are a combination of factors - growth in per capita income, a growing urban population and falling real poultry prices. In the context of this emerging scenario, questions are being raised about the impact of the scaling up of production-through structural factors, externalities and policies-on small-scale producers. Do the transaction costs, policy distortion and environment externalities place the small-scale producer at a disadvantage? Why do some poultry farms have higher income than others? Do large farms earn more profit per unit of output than small ones? What explains the differentials in profitability? This report *, which forms part of an ongoing international comparison study on poultry, seeks to address these questions. It attempts to assess the impact of policy and environmental factors on the scale of poultry operations in India as well as the implications of that impact for small-scale production. The study aims to collect and analyze consistent data. * See Mehta R., Nambiar R. G., et.al., itLivestock Industrialization, Trade and Social - Health Environment Impact in Developing Countries: A Case Study of Indian Poultry Sectorle, (Mimeo) Phase I project report submitted to IFPRI, May 2002. The report is organized into eight chapters. Chapter 1 provides a short review of the poultry industry in India - how it has grown over the past two or three decades, the structure of the industry, changes in the scale of operations, and so on. Chapter 2 discusses the objectives and scope of the study, along with hypotheses to be tested. Chapter 3 provides details about data and survey, focusing on survey location, sample size, timing of the survey, and problems encountered. In Chapter 4 the approach for estimating efficiency and scale economies is reviewed. Chapter 5 then presents data based on analyses of sample information about the accessibility of sample units to information, accessibility to assets, technology, production practices, environment, and marketing. These results are followed by estimates of mass 63

balance results in Chapter 6. The empirical results based on application of the model outlined in Chapter 4 are discussed in Chapter 7. Finally, conclusions and policy discussions follow in Chapter 8.

Transformation from a Backyard Activity to a Major Commercial Activity

The poultry sector in India has undergone a paradigm shift in structure and operation. A significant feature of India's poultry industry has been its transformation from a mere backyard activity into a major commercial activity in just about four decades. This transformation has involved sizeable investments in breeding, hatching, rearing and processing. Farmers in India have moved from rearing non-descript birds to today rearing hybrids such as is Hyaline, lt is Shaver, ll and in Babcock, lt which ensure faster growth, good liveability, excellent feed conversion and high profits to the rearers. The industry has grown largely due to the initiative of private enterprise, minimal government intervention, considerable indigenous poultry genetics capabilities, and considerable support from the complementary veterinary health, poultry feed, poultry equipment, and poultry processing sectors. India is one of the few countries in the world that has put into place a sustained Specific Pathogen Free (SPF) egg production project.

Regional Variation in Poultry Development

Another important aspect of poultry development in India is the significant variation in the industry across regions. Figure 1.1 illustrates egg production in India by state during 1998-99. The four southern states - Andhra Pradesh, Karnataka, Kerala and Tamil Nadu - account for about 45 percent of the country's egg production, with a per capita consumption of 57 eggs and 0.5 kg. of broiler meat. The eastern and central regions of India account for about 20 percent of egg production, with a per capita consumption of 18 eggs and 0.13 kg. of broiler meat. The northern and western regions of the country record much higher figures than the eastern and central regions with respect to per capita availability of eggs and broiler meat. Figure 1.2 shows egg production in India by region during 1992-93.

Growing Production of Eggs and Broilers

Table eggs and broiler meat are the major end products of the poultry sector in India. Presently production of eggs is estimated to number about 37 billion, that of broilers 895 million, and that of poultry meat 735,000 tonnes. The value of egg and poultry production in India during 1980-2000 is illustrated in Figure 1.3. In addition, organized facilities have been set up over the years for the manufacture of egg powder and frozen, processed broiler meat essentially to cater to export markets and markets in the metropolitan areas of India.

Increasing Scale of Operation

The growth of the poultry sector in India is also marked by an increase in the size of the poultry farm. In earlier years broiler farms had produced on average a few hundred birds (200-500 chicks) per cycle. Today units with fewer than 5,000 birds are becoming rare, and units with 5,000 to 50,000 birds per week 64

cycle are common. Similarly, in layer farms, units with a flock size of 10,000 to 50,000 birds have become common. Small units are probably finding themselves at a disadvantage because of high feed and transport costs, expensive vaccines, and veterinary care services and the non-availability of credit. Some small units are reported to be shifting from layer to broiler production because output in broiler units can be realized in six weeks.

Structure of the Poultry Industry

The structure of India's poultry industry varies from region to region. While independent and relatively small-scale producers account for the bulk of production, integrated large-scale producers do account for a growing share of output in some regions. Integrators include large regional firms that incorporate all aspects of production, including the raising of grandparent and parent flocks, rearing DOCs, contracting production, compounding feed, providing veterinary services, and wholesaling.

Concentration of Poultry Units Around Cities and Urban Centers

There has also been a growing tendency for poultry units to be concentrated around urban areas because of the existence of ready markets for the end products of poultry production.

Low Per Capita Consumption

Even though India is the world's fifth largest egg producer and the eighteenth largest producer of broilers, its per capita consumption of these products is poor - 37 eggs and 1 kg. of poultry meat per capita per annum. Here, again, there is considerable variation in per capita consumption between rural and urban areas and also across the region. Per capita consumption of eggs is only 7.7 per annum in rural areas compared with 17.8 per annum in urban areas. In seven states, per capita consumption is less than 3.5 per annum. Similarly, per capita consumption of poultry meat is 0.24 kg. in rural areas and 1.08 kg. in urban areas.

Slow Changes in Consumption Habits

An analysis of consumption data originating from National Sample Survey (NSS) rounds reveals many interesting facts. First, 42 percent of households are vegetarian in that they do not eat fish, meat or eggs. The remaining 68 percent of households are non-vegetarians. Over time there has been a gradual shift from vegetarianism to non-vegetarianism. The change is more visible in rural areas than in urban areas. For instance, between 1987-88 and 1999-2000, the proportion of households consuming only one of the three items - fish, meat or eggs - increased by only one percent in urban areas, while in rural areas this proportion increased by four percent. Second, calculation of income elasticity of demand for different commodity groups shows that the commodity group that includes meat, fish or eggs ranks second in the quantity of commodities consumed in rural areas (milk and milk products rank first), while in urban areas consumption of the meat, fish, or egg commodity group ranks third. The estimated income elasticity is 1.01 in rural areas and 0.66 in urban areas. Third, the price elasticity also follows the same order. Meat, fish or eggs have the high price elasticity of 0.75 in rural areas and 0.68 in urban areas. Fourth, estimates 65

of income and price elasticities calculated for each of the four expenditure groups show that those elasticities tend to decline as one moves from the poor to the non-poor and the wealthy. The income elasticity is low for the wealthy - 0.5 in rural areas and 0.6 in urban areas. The other two income groups in rural areas have high-income elasticity - greater than unity. Price elasticities are greater than unity for the very poor and the poor in rural areas, and for the very poor in urban areas. A significant policy implication of these consumption habits is that there is lot of scope in raising the demand for poultry products in rural areas.

Exports
Exports of poultry products from India comprise table eggs, meat, live birds and value-added products such as egg powder and frozen yolk. The value of aggregated exports was Rs. 1,683 million in 1996-97. Exports were expected to reach the level of Rs. 5 billion by the year 2000.

Employment
Three decades ago, when egg and broiler production was 10 billion and 30 million, respectively, the total employment numbers in the poultry sector were not so encouraging. As income and employment in the crop sector started diminishing, the non-crop sector, which includes dairy and poultry, underwent a significant shift. With the demand for poultry increasing and production reaching 37 billion eggs and 1 billion broilers, this sector now employs around 1.6 million people. At least 80 percent of employment in the poultry sector is generated directly by these farmers, while 20 percent is engaged in feed, pharmaceuticals, equipment and other services required by the poultry sector. Additionally, there may be a similar number of people roughly 1.6 million who are engaged in marketing and other channels servicing the poultry sector.

Issues Relating to Animal Welfare and Environmental Pollution

Issues relating to animal welfare and environmental pollution by poultry units have been of increasing concern in developed countries such as the U.S. and the European Union (E.U.). But in India these issues have not yet emerged as critical although they are discussed at length in various seminars and forums on poultry production. Considering globalization and the international trade in poultry products, however, these issues may assume significance in a few years because of pressures from importing countries such as those in the E.U.

Constraints on the Growth of the Poultry Industry

A major constraint affecting the growth of the poultry industry in India is the lack of basic infrastructure such as storage and transportation, including cold chain. As a result, there are wild price fluctuations in the prices of poultry products, i.e., eggs and broilers. Another constraint to growth is an inefficient marketing system. The presence of so many market intermediaries harms both the producer and the 66

consumer. A third problem relates to the price availability of feed resources. Maize or corn plays a major role in broiler production, as it constitutes 50 to 55 percent of broiler feed. As the broiler industry is growing at the rate of 15 percent per annum, the demand for maize is thus likely to increase. Presently India grows only 11 million tonnes of maize and only 5 million tonnes are available for poultry, which is not sufficient if the current growth rate of the industry is to be maintained.

Policy Measures
The policy measures that are required to improve the poultry industry must involve: (a) improving infrastructure facilities, which will help not only to stabilize the price of poultry products in the domestic market, but will also make them available in remote areas; (b) creating an efficient marketing channel that will help provide remunerative prices to producers (in other words, India's marketing set-up should also grow along professional lines); and (c) increasing maize production, which will involve using GM (genetically modified) seed varieties or, alternatively, will necessitate finding other sources of feed ingredients that can replace maize.

67

68

Source: Mehta, et.al. (2002) Figure 1.2 Egg Production in India by Region, 1992-93 and 199798

69

Source: Mehta, et.al. (2002) Figure 1.3 Production of Eggs and Poultry in India, 1980-2000

Source: Mehta, et.al. (2002)

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RECOMMENDATION FOR THE POULTRY INDUSTRY OF PAKISTAN

The human diet in Pakistan is deficient with respect to proteins of animal origin. At present 66 per cent of the people are deficient in protein. The requirement of protein is 102.7 gram per head per day while the available protein is 69.61 gram per head per day. The gap in requirement of protein is 33.09 gram. The main source of animal protein is beef, mutton, milk, poultry meat and eggs. In developing countries like Pakistan where the population is growing at a faster rate, the gap in production of food especially of animal origin is widening year after year. The animal protein shortage seems still more grave especially when it is compared with the protein intake of various developed countries like U.S.A., Canada, Germany, France, Japan and U.K., where consumption of protein is 79-95 gram per capita per day of which 46-65 gram is protein of vegetable origin. To overcome the animal protein gap, poultry meat seems to offer much better prospects. It is capable of providing protein in terms of quality and can narrow the animal protein supply gap in minimum possible time as compared to other sources of animal protein. The poultry industry faces problems like the incidence of diseases, substandard and costly feed and inefficient marketing system. In all stages of development, there is a need for improving the efficiency and lowering the cost of distribution. An economical marketing system can help the producers sell their products at reasonable prices and the consumers to buy their needs at minimum cost. If we want to survive in post-WTO scenario, we should give emphasis on quality and price. In a competitive environment only those products will be accepted by consumers which are of good quality and are also available at reasonable price. osses occur in case of death of birds due to diseases and poor handling. Grading is largely ignored in egg trade because of extra cost required for grading. Transportation is the most important component of marketing system. In economic sense, transportation means the moving of goods from surplus production areas to deficient areas. For marketing of eggs and birds, the commission agents and retailers use various means of transportation to take produce to the market. Bicycle, motorcycle, wagons and donkey carts are being used for transportation. The higher losses during transportation are due to longer distance, bumpy roads and lack of modern packing techniques. Poultry farmers don't get fair returns. They put a lot of effort in increasing and developing their business but the commission agents usually get the produce from them at low prices and earn a lot of profit by selling at a higher price. Poultry farmers should do their job both as producer as well as commission agents. So, they can earn more profit out of their business. To improve the present marketing system of poultry, following suggestions may be helpful: To curtail breakage losses, packing and distribution system should be modernized

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 Government should take immediate steps to improve the roads, for timely and quickly delivery of produce. To enhance economic viability of the poultry industry, the prices of feed and medicines should be kept within reasonable limits. Poultry coordination boards should be established at federal as well as provincial level to stabilize and maintain quality prices. Lack of grading at farm level dos not promotes the quality of eggs at a price premium. So practice of grading at producer's level would be encouraged and price information on the basis of grades and standards should be regularly collected and disseminated. Inadequate health facilities are one of the major constraints in poultry production. It is due to viral, bacterial infection and parasitic infestation. For this, a long run vaccination and de-worming campaign policy should be started at national level.

Government should construct veterinary laboratory for drug residue testing in the poultry products. This will ensure quality in exported products. Federal Government should to set up a permanent commission for livestock sector entrusted with the assignment of constant monitoring of the situation in this area and reacting immediately in case of an emergency or crisis . The mandate of this commission should also include to curb the spread of misinformation regarding the spread of these diseases

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BIBLIOGRAPHY
y National Bank of Pakistans report on Poultry Farming Controlled Environment(35,000 Birds) R & D and Training Wing Agriculture Finance Group, Head Office, Lahore, Dr.

Nasir Mahmood Nasir y Guidelines for Poultry Financing, STATE BANK OF PAKISTAN, Agricultural Credit department y Pre-Feasibility Study Poultry Breeder Farm , Small and Medium Enterprise Development Authority, Government of Pakistan May, 2008 y y y y y y Mehta, et.al.(2002) Modernization of poultry farming , Asif Maqbool, Naeem Sarwar and Khuda Baksh et al. http://www.gallup.com.pk/Polls/30-3-09.pdf http://www.pvj.com.pk/pdf-files/27_1/page%2025-28.pdf http://www.pvj.com.pk/pdf-files/30_3/172-174.pdf http://www.dailytimes.com.pk/default.asp?page=2011%5C05%5C18%5Cstory_18-52011_pg5_14 y y y y http://archives.dawn.com/2006/02/09/nat6.htm http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=48013&Cat=6&dt=5/20/2011 http://www.pakissan.com/english/allabout/livestock/poultry/feeds.shtml http://www.pakissan.com/english/news/2002/october/plan.prepare.vaternary.institute.sht ml y http://www.pakissan.com/english/allabout/livestock/poultry/the.role.of.imported.veterinar y.medicine.shtml y y
1 1

http://www.articles.eezzi.com/economics/76-the-economy-of-pakistan-2011.html http://www.provenmodels.com/577/diamond-model---competitive-advantage-of-

nations/michael-e.-porter/ y
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1

http://en.wikipedia.org/wiki/Diamond_model

y y y

1 1 1

http://en.wikipedia.org/wiki/Diamond_model (www.pvj.com.pk)

http://findarticles.com/p/articles/mi_hb092/is_8_33/ai_n28959903/pg_2/?tag=content;col 1 y y y
1 1 1

http://www.pakistaneconomist.com/issue2000/issue32/i&e3.htm http://www.pakistaneconomist.com/issue2000/issue32/i&e3.htm http://en.engormix.com/MA-poultry-industry/nutrition/articles/poultry-feed-industry-

pakistan-t1307/141-p0.htm y y y y y http://www.pakistaneconomist.com/issue2000/issue32/i&e3.htm http://www.thepoultrysite.com/digital-publication/

1

http://www.pakissan.com/english/allabout/livestock/poultry/feeds.shtml http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=48013&Cat=6&dt=5/20/2011

1 1

http://www.pakissan.com/english/allabout/livestock/poultry/misuse.of.drugs.and.develop ment.of.their.resistance.shtml y
1

http://www.pakissan.com/english/news/2002/october/plan.prepare.vaternary.institute.sht ml y http://www.pakissan.com/english/allabout/livestock/poultry/the.role.of.imported.veterinar y.medicine.shtml y

1

Bagley, C.P.; Evans, R.R. (Apr 1995), Broiler litter as a feed or fertilizer in livestock

operations, Mississippi State University: Mississippi State University Cooperative Extension Service, ISSN 0886-7488, US9561988

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Appendix
Questionnaire [Type the document title]
For our research aiming at the analysis of the POULTRY sector in Pakistan, we request you to please answer this questionnaire regarding your company. Name of Company _________________________ Name of Respondent________________________ Contact No.________________________________ Email address ______________________________ Designation ________________________________

SECTION-I
Understating the poultry industry model; Value chain perspective.

Firm Level (In the value chain the products pass through all activities of the chain in order, and at each activity the product gains some value) 1. In the chain of activities of your poultry farm what gives your products more added value at each step of the procedure? 2. Can u specify any specific processes that are used in the poultry industry? For example we have heard about the 60 day cycle vs the 90 days cycle of the growing processing of hens? At this level of value chain there two products: eggs and chicks The primary activities of the value chain model include:
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1. Inbound logistics: for example if movement of eggs and chicks when they are immature 2. Operations (production): production process, how do you facilitate the growing process of the chicks? 3. Outbound logistics: 4. Marketing and sales (demand): The "support activities" include: 1. 2. 3. 4. Administrative infrastructure management: Human resource management: Technology (R&D): Procurement:

Identifying the key players of the industry/related industries - Our focus: Poultry Farming Other players of the industry; Along the value chain Levels of Value Chain Players

Estimated final product contributions Margins* (%age)

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Suppliers In-Bound Logistics Operations Middle Men (Levels) Seller Eg., Delivery ______________________ Buyer (Consumer) y Contribution margin in terms of final product pricing

To get the information about the environment OF the industry

SECTION -II
We would like to begin with the issues and challenges about the poultry industry in general to have a more elaborate and structured view about it. We would like you to tell us about the following factors relating to the industry. PESTLE ANALYSIS 1. Political factors: in respect to the current political environment of the country what are the implications specific to the poultry industry? 2. Economic factors: given the present economic circumstances how have these affected the growth of the industry? Are there (industry) health statistics that you can tell us about? 3. Technological factors: Has any technological advancements played any role in the performance of the industry 4. Legal factors: (comment: For example a legislation has been passed on taxation of the middlemen in the agriculture sector can you tell us about any such legislation that have influenced your industry) Similarly can you also tell us about: 5. Social factors : 6. Environmental factors

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To get the information about the business/operational environment WITHIN the industry

SECTION-III
1. Factor conditions (human, physical, knowledge, capital and infrastructure resources.) Specialized resources are often specific for an industry and important for its competitiveness. How do you think have you utilized these resources at your poultry farm? 2. Demand conditions (home market can help companies create a competitive advantage) Have the home market buyers pressurized the poultry firms to innovate faster and to create more advanced products that those of competitors? What role companies like KnN s play in the respect? 3. Related and supporting industries (Industries that can produce inputs which are important for innovation and internationalization).Do the supporting industries of the poultry sector provide cost-effective inputs, which participate in the upgrading process?
4. Firm strategy, structure and rivalry (The way in which companies are created, set goals

and are managed is important for success) Is the presence of intense rivalry in the home base present? If yes, then do you personally feel that it creates pressure to innovate in the sector?

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SWOT ANALYSIS OF THE POULTRY FARM

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. 1. (Strengths) can u state some specific characteristics of your particular business that gives you an advantage over others in the industry. 2. (Weaknesses) what are the characteristics that place your poultry farm at a disadvantage relative to others. 3. (Opportunities) do u find some external chances to make greater sales or profits in the environment. How do you capitalize on them? 4. (Threats) Can you identify some external elements in the environment that could cause trouble for your poultry farm?

In order to understand the firms position with respect to other players in the market in more detail

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Key information from secondary research: Poultry Industry in Pakistan

y y y y y y y y y y y y y Growth of poultry sector is 15-20 % per annum Per Capita Consumption is 3.696 Kg Share in GDP is 1.1% Share in agriculture GDP is 4.8% Contribution in total meat production is 23.8% Number of Poultry Farms is 28,000 Number of Poultry feed mills is 141 Number of Hatcheries is 285 (as per 2008) Current investment in Poultry Sector is Rs.200 Billion Directly or indirectly employed people are 1.5 million Chicken Meat Production in Pakistan is 707(000) Tones out of Asia s 28691.1(000) Tones. Currently Pakistan is at the 11th Three main types of local chicken breeds o Asil o Afghan game fowl o Buff chicken

Some of the important breeds of the world such as buff rock, leghorn, light Sussex, Rhodes Island red are also hatched successfully in the country at desired traits. There are also some local breeds, which are highly productive and are more adaptive to the local conditions. These important poultry breeds of fowls are cross bred with each other to produce.

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