1. POULTRY INDUSTRY
API PRESENTATION
-TALHA KHAN
-MOID SHAHEEN
-AHMAD MUAZ
-HASSAAN HABIB
-MOAZZAM AYAZ

2. OVERVIEW OF THE POULTRY SECTOR
OF PAKISTAN
• Poultry Pakistan was kept as backyard business
for household needs till the early 60’s
• In 1963 a national campaign was launched to
enhance the production of feed products in the
country
• Under this campaign the government announced
a tax exemption policy from the income derived
from poultry
• PIA in collaboration with Shaver Poultry breeding
farms of Canada started the first ever commercial
hatchery in Karachi in 1964

3. OVERVIEW OF THE POULTRY SECTOR
OF PAKISTAN
• The Government made major policy decisions to
provide all possible facilities to poultry industry in the
annual development plans in 1965-75 . The incentives
provided to poultry farmers/poultry industry included.
– Import of flock and incubators was permitted under free
list.
– Allotment of state land on lease for poultry farming at very
nominal rates.
– Established poultry research institutes at Karachi and
Rawalpindi through Food and Agricultural Organization
(FAO) of the United Nations to facilitate research services
specifically concerning disease control programmes

4. OVERVIEW OF THE POULTRY SECTOR
OF PAKISTAN
– Two meatless days were announced to encourage poultry
meat consumption.
– Subsidy on grains to form low cost quality ration, through
UNDP-grains.
– Loan through ADBP for the construction, of poultry sheds.
– Established directorates of Poultry Production in Karachi
and Punjab to provide extension services to the poultry
farmers.
– Establishment of Federal Poultry Board to coordinate
government and industry activities in the poultry business.

5. The subsequent development of Pakistan’s
Poultry Industry can be divided into four
phases
• The Introductory Period 1965-1970.
• Institutional Development 1971-1975.
• The Production Boom 1976-1980.
• Depression and Adjustment 1981-1990.
• 1991 to Now.

6. Factors condition
•Human resources
•Physical resources
•Capital resources
•Infrastructure

7. Human Resources
1. Pakistan produces about 530 million birds annually.
2. Poultry sector is one of the most organized branches of the
agro based sector of Pakistan. Its growth rate is 10-12%
annually.
3. This sector generates employment (direct/indirect) and
income for about 1.5 million people.
4. At present over 50 Billions' of agriculture produce and Bio
products of Agriculture are being used in poultry feeds.
5. In our Country per capita consumption of meat is only 7 KG
and 60-65 eggs annually.
6. Whereas developed world is consuming 41 KG meat and over
300 Eggs per capita per year.

8. Human Resource Requirements
of a control Shed

9. Traditional Rural Poultry
• Almost every rural household and some urban
households raise poultry
• Poultry Population 73.65 million
• Contribution to egg production 41.6%
• Contribution to meat production 24.3%
• Breeds: 3 local, 2 imported
• Hatching: Brooding hens
• Feeding: Scavengers
• Important Diseases: Newcastle disease, Fowl cholera,
Fowl pox
Census 2006

10. Intensive (Commercial) Poultry
• Status
– Share in poultry meat 75.7 %
– Share in eggs 58.4 %
– Grand parents 5 companies
– Breeders 6.8 million
– Layers 25 million
– Broilers 434 million
– Farms 25,897
– Hatcheries 305
– Feed Mills 154

12. PROVINCE WISE POULTRY STATISTICS

13. CAPITAL RESOURCES
• Machinery and Equipment Requirement (COH)

14. DEMAND CONDITIONS

15. Rural Poultry
• 25-28% of total poultry production is
rural.(desi)
• Rural poultry is more expensive as compared
to commercial.
• Higher protein value, better for health, less
exposed to epidemic diseases.
• Raised in clusters of 4-15 animals by
individuals or families.

16. Distribution of meat Demand (Gallup)
Chart Title
Chicken
Beef
Mutton

17. Determinants of poultry demand
• Household income (0.001)
• Family size (0.653)
• Bird Flue (-1.583)
• Price (-0.418)

18. • Per capita consumption: Pakistan (7kg)/(3kg)
Canada (32kg) USA (41kg) India (2 kg)
• Daily protein requirement (102.7 grams), in
Pakistan average is only 69.61 grams
• Sources of animal protein (milk, beef, eggs)
• Approximately 66% of Pakistanis are protein
deficient

19. Consumption
• Household
• Commercial (restaurants, hotels, fast food chains)
• Demand particularly surges in Ramadan and during
marriage season.
• Government policies also affect demand of poultry
meat.
• Recently government decided to impose RGST on
poultry feed which will increase the overall price by
almost Rs 40 per kg and as a consequence demand will
fall
• Similarly govt’s decisions like one dish add marriages
also affect poultry demand

20. Farm meat production in Pakistan (kilotons
Farm meat production in Pakistan (kilotons

21. Firm Strategy, Rivalry and
Structure

22. Players in the Industry
• Feed mills
• Poultry farms
• Vaccine and medicine production houses
• Hatcheries
• Wholesaler
• Retailer
• Middlemen (Distributors)

23. Farming
• Open house farming (non control-shed driven)
have less capacity
• Control Shed driven farms, single, double or
triple
• 30000 birds per control shed
• Open house capitalize on little cost of
production

24. The Supply Chain
Farm
Arti
Wholesaler
Retailer
Consumer (End user)

25. Vertical and Horizontal Integration
• Branding
• Big Players, K&Ns, Mon Salwa and Season’s
Menu are vertically integrated and capitalize
on their strengths
• Barrier to entry in the industry
• Horizontal in small businesses

26. Investment (millions)
40000
35000
30000
25000
20000
Investment (millions)
15000
10000
5000
0
1968 1977 1980 1985 1990 1995 2000

27. Firm Operations and Human Resources
• Retailers : Simple operations. Semi
skilled, usually permanent workers.
• Wholesalers : role of Artis. Unskilled workers
do the job.
• Feed Mills : Highly skilled personnel required
for handling the production of feed
• Hatcheries : Highly skilled, permanent
workers. Incubators and brooders.

28. • Farms:
• Advantages of computerized control sheds
• Open house farming
*Per control shed

29. Pricing and Competition
• Almost no price wars
• The only determining factor is the availability
of your flock in the market at the right time
• Knowledge regarding how to capitalize on
demand
• From Ramzan upto Eid-ul-Zuha, Demand rises

30. • Price is purely set on demand and supply
conditions
• No government regulation whatsoever
• In days of high demand, when DCO is usually
on a holiday, nobody is there to control the
price
• Farmers declare the number of birds available
that they would supply and the wholesalers
make estimates of demand from retailers.

31. • Poultry Feed
• Medicines
• By Products

32. Poultry Feed Industry
• First Feed Mill was setup by Lever Brothers in
1962 at Rahim Yar Khan
• Second Feed mill Ani Feeds was established in
1967 a Gujarawala
• Up to Date, 141 feed mills are operational
producing 2540 thousand tons of compound
feed per annum
• 60% of total Cost is spent on feed

33. Contd…
– 70% of feed is provided by Feed mills
– Ingredients: Wheat, Rice, Maize, Sorghum
Barley, Sea Food, Pulses and Vitamins
– Consumption of feed per day for a chicken is 124-
135 grams
– Previously for 8 weeks old chicken Food
Conversion Ratio (FCR) was 3kg of feed to 1kg of
live weight

35. R&D in Feed Industry
• Modified feeds that contain balanced Diets
(Medium Protein Diet)
• Automatic Batch Controller and computerized
manufacturing program has minimized human
involvement and reduced chances of impurity
• Export Quality Feeds
• In present the Feed conversion Ratio (FCR)
has dropped below 2kg of feed per 1kg of live
weight

36. Vaccination Industry
• Medicines
• Veterinary Doctors

37. • Before 2000, health was a great concern for
poultry farmers
• Little attention was given to find the root
cause of diseases and relied mostly on rural
medicines
• Bird Flu disease and Influenza

38. • Vaccination 5 times for;
• bronchitis
• Infectious Bursal Disease
• Influenza
• Pasteurella

39. • In Pakistan, 3 Companies are producing
medicines
• 90% of medicines are imported, most of them
from USA and Germany
• R&D in medicines is very expensive
• Controlled sheds

40. International Vaccine Brands
• SELMORE- COREPSOL
• ALLTECH – BIOPLEX
• GOLDEN HARVEST – AVI PRO
• BEDSON- FOSBAC

41. Vet Doctors
• Chemotherapy and Management
• Multiple Drug therapy
• Fungal infection, Digestive problems, delay
growth, traces

42. By Product
• Rice Husk

43. Affect of 2010 floods on poultry sector
of pakistan
• In late July 2010 Pakistan faced worse floods in its
63 years history
• About 20 per cent of Pakistan, a country the size
of England, was devastated by weeks of flooding.
• 17 million acres or upwards of 30 per cent of the
Pakistan’s cultivated farmland and about 20 per
cent of Pakistan’s total agricultural production
was affected or damaged by this flooding.
• Millions of head of livestock (i.e.
cattle, sheep, buffalo, goats, donkeys, chickens, et
c.) were killed or threatened due to the flooding.

44. • The United Nations Foreign Agricultural
Organization has asked for $5.7 million USD in
emergency aid for feed and medicine relief for
livestock.
• About thirty countries have responded offering
up $700 million USD in relief with the Asian
Development Bank offering Pakistan $2 billion
USD in emergency loans.
• Pakistan had been seeking Malaysia’s expertise
and technology in slaughtering, processing, and
commercial marketing.

45. • the Competition Commission of Pakistan (CCP) issued a Show Cause
Notice to the Pakistan Poultry Association (PPA) in July 2010.
• After being prompted by numerous consumer complaints the CCP
conducted a raid of the Pakistan poultry Association’s (PPA) offices
in Islamabad, Lahore, and Karachi
• Upon investigation the CCP found that the PPA had been serving as
a hub for the various sectors (i.e. hatcheries, feed
manufacturers, breeders, broiler farms, layer farms, etc.) helping to
control production levels and fix prices.
• The CCP found the PPA in violation with Section 4 of the
Competition Ordinance 2010.
• PPA was issued a penalty of $50 million Rupees ($577,861 USD) for
operating like a cartel in August 2010.

47. BENCHMARKING WITH INDIA
• Pakistan’s agriculture sector’s contribution in national GDP
is 21.0%,
• Livestock share in national GDP is 11.4%
• Livestock sector contribute approximately 53.2%of the
agriculture value added.
• Livestock Population in Pakistan: (2009-10)
– Pakistan possesses some of the finest dairy breed like
NiliRavi , kundi buffalo ,Red
– Sindhi and Sahiwal cattle and more than 30 small
ruminants breeds .
– Livestock population include Buffalo 30.8 ( Million), Cattle
34.3 M Goat 59.9 M , Sheep 27.8 M , and poultry 610.0 M.

48. Poultry Industry in India
• one of the fastest growing segments of the
agricultural sector in India today
• 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.
• India is now the world's second largest egg
producer and the eighteenth largest producer
of broilers

49. • Transformation from a Backyard Activity to a
Major Commercial Activity
• Regional Variation in Poultry Development
• Growing Production of Eggs and Broilers
• Increasing Scale of Operation
• Structure of the Poultry Industry
• Concentration of Poultry Units Around Cities
and Urban Centers

50. • Low Per Capita Consumption
• Slow Changes in Consumption Habits Exports
• Employment
• Issues Relating to Animal Welfare and
Environmental Pollution
• Constraints on the Growth of the Poultry
Industry
• Policy Measures

51. Recommendations
• The government should take measures to ensure that the
• meat is disease free.
• ‡Processing plants should be made responsible for
producing
• hygienic, nutritious and healthy chicken meat.
• ‡Production of poultry meat as per international standards
• should be ensured.
• ‡10% import duty and 16% sales tax on evaporative cooling
• system must be with drawn to make the poultry business
cost-
• effective

52. • Investment to modernized the industry should be
encouraged.
• ‡Fiscal incentives should be provided and long-term
policies
• should be made and implementation should be assured.
• ‡A committee of competent people should also be set up
to
• monitor this sector and help in bringing this industry at par
• with the international level.
• ‡Health centers should be opened to provide veterinary
• services