poultry industry

Poultry

IndustryPresented By:

Sameen Baree Anum Ghani

Agriculture

Major CropsMinor Crops

Live Stock

ForestryFisheries

Dairy farming Poultry

Industry

“Overview”• The second largest livestock sector in Pakistan after dairy farming.

• Heading towards the target and playing very vital role in the provision of animal protein at very affordable prices as compared to mutton and beef.

• Plays an important role in meeting the nutrition needs for the population at large in Pakistan.

• The commercial poultry farming sector as a private sector enterprise is moving with a phenomenal growth of 8-10% per annum.

• The achievement of this rapid growth was made to the incentives granted by the government

• Pakistan is the 2nd largest producer of Boiler Meat in the sub-continent.

“Overview”

• Per capita consumption increase 4% per annum• GDP Share of Poultry 1.1% • In Agriculture GDP 4.8%• Contribution in total meat production 19%• Poultry Farms in the country 21674• Poultry Feed Mills 141• Current investment Rs 200 billion• Directly or Indirectly connected people 1.5 million

• Poultry in Pakistan was kept as a backyard business for household needs.

• Prior to 1963 the native breed "Desi" was mainly rose which produced a maximum of 73 eggs per year under local conditions.

• In early 60’s; Pakistan International Airline in collaboration with Shaver Poultry Breeding Farms started the first commercial hatchery in Karachi.

• 1st commercial Feed Mill was started by Lever Brothers in Rahim Yar Khan

“History of Poultry Industry”

Phase 1: The Introductory Period 1965-1970

• Directorate of Poultry Production at Karachi,

• The income tax exemption,

• Liberal import of parent and grand parent stocks,

• Machinery and equipment,

• Free export of poultry and its products.

Phase 2: Institutional Development 1971-1975

• The Federal Poultry Board established

• Research services were introduced.

• 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.

This phase is characterized by both the greatest success of the poultry industry and its greatest failure.

Phase 3: The Production Boom 1976-1980

• A policy to attract investment in poultry farming by offering estate land under ten year leases.

• Commercial egg production and Broiler production increased in this period.

• Serious financial setbacks to poultry farming in Pakistan.

• Formation the Pakistan Poultry Association in 1979 on the advice of the Federal Poultry Board.

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.

• 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.

1991 to Now:

• 1990 - Hydro pericardium syndrome.

• 1991-92 - Gumboro attacked the chicks of broiler, layer and parent flock that resulted in great

mortality.

• At national level institutes done efforts to reduce these diseases.

• 1995 - Avian Influenza appeared and mortality in parent flock rose up to 80%.

1991 to Now:

• 1996 - Parent flock increased in number due to absence of planning.

• 1997 - Ban on serving of dinner in marriage parties that reduced the demand of poultry products in the market up to 40%.

• 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.

• 2006 - Bird Flu broke out again due to which 40% of the industry was destroyed.

“The Poultry Sector”• Poultry produced in Pakistan is being developed

through two management systems i.e.

• Commercial farming • Rural poultry farming.

• Now the investment and incentives have resulted in the establishment of infrastructure comprising of:

– Hatcheries (no.) 285– Capacity to produced day old chicks 600 m

• Broilers 574 m• Layers 26 m

– Feed Mills (no.) 141– Feed production 5 m/tons– Poultry farms (no.) 21674

“The Poultry Sector”

• The present total poultry population is estimated 518 million

Out of which:

• Rural 227.92 m 44%

• Broilers 259.0 m 50%

• Layers 25.9 m 5%

• Breeding stock 5.18 m 1%

“Division of Poultry Industry”

1 Hatchery sector:• Backbone of poultry industry.• Eggs are placed in incubators for 21 days and day old

chicks sold to the farming sector. • Its establishment requires significant investment.

2 Poultry farming sector:• Rearing of poultry birds / chicks for meat and eggs is

classified as poultry farming. • 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– Layer Farming – Boiler Framing

3 Feed sector:• Major expense ion poultry industry.• Feed mills requires huge investments for development

of infrastructure.

“Division of Poultry Industry”

“Important breeds”• Some of the important breeds are:

– Buff rock, – Leghorn, – Light Sussex, – Rhodes Island red– Fayoumi– Dhoki

– Red

“Importance of Poultry Industry”

• The shortage of animal protein in Pakistan has been

estimated about 1.5 million tons on the basis of population of 140 million, which is decreasing due to poultry.

• It has proved to be a profitable business and is a good source of cheap, palatable and nutritious food protein.

• Poultry is being an easy and relatively cheap method of raising the dietary standards of the people.

“70% Cost of Production”Poultry feed comprises of grains, such as;

• Wheat, rice, maize, sorghum 55 to 60%• Canola meal 12 % • Soybean meal 5-8 % • Rice polished 10 % • Guar meal 4-5 % • Sunflower meal 4-5 % • Limestone and di-calcium

phosphate 3-4 %• Millet 3-4 %• Fish meal 3-4 %

“Quality of Feed”

• The most important factor in poultry production is the ratio between the feed and egg/meat.

• Different feeds give different results in terms of growth and egg production.

• Layers eat only to satisfy their body's energy.

• Chicks eat less feed in hot weather than when they do when it is cold.

• The Pakistan Standard Institute has already adopted nutritional standards of poultry feed though most of the feed manufacturers do not work to any standard of quality.

“Feed production”

Years (000 MT)

2000 1625

2002 2127

2004 3100

2006 4000

2007 5100

source: Pakistan poultry association

Distribution process

• The distribution process consist of three players:

• Producers

• Commission agent

• Retailers

Distributive margins –

commission agent• The net distributive margins are highest for commission

agent.

– Total marketing margins Rs 6.25 per kg

– Total marketing cost Rs 0.375 per kg

– Profit (% of sale price) 14.90 %

(% of purchase price) 12.70 %

– Total Cost 6 %

– Net Profit 94 %

“Distributive margin” – “Retailers”

Last functionary in the marketing system.

– Total marketing margin Rs 3.75/kg– Total marketing cost Rs 0.25/kg– Profit (% of sales price) 7 % (% of purchase price) 7.57 %

– Share in Cost 6.67 %– Profit Margin 93.33 %

“Poultry Production”Type Units 2005-06* 2006-07** 2007-08**

Domestic Poultry Million No's 72.95 74.02 75.11

Cocks Million No's 8.61 8.84 9.08

Hens Million No's 34.23 34.84 35.47

Chicken Million No's 30.12 30.34 30.57

Eggs Million No's 3423 3484 3547

Meat 000 Tons 94.67 96.54 98.45

Commercial Poultry Million No's

Layers Million No's 23.2 24.82 26.56

Boilers Million No's 337 370.7 407.77

Breeding Stock Million No's 6.9 7.2 7.61

Days Old Chicks Million No's 352 387.2 425.92


Meat 000 Tons 416.55 456.95 501.3

“Total Poultry Production”

Total Poultry Million No's 2005-06* 2006-07** 2007-08**

Day Old Chicks Million No's 352 387.2 425.92

Poultry Birds Million No's 441 477 518


Poultry Meat 000 Tons 512 554 601

• * The figures for the year 2005-06 are the actual live stock census 2006 except for the layer farming and breed stock which were calculated using the census and provisional figures to reflect the most up to date information.

** the figures for the year 2006-07 and 2007-08 were statistically calculated using the figures of 2005-06.

production of poultry meat and eggs

year poultry meat (000 ton's) eggs (million no.s)

1996-97 387 5557

1997-98 284 6015

1998-99 310 8261

1999-00 322 8463

2000-01 339 7505

2001-02 355 7679

2002-03 372 7860

2003-04 378 8102

2004-05 384 8529

2005-06 512 9712

2006-07** 554 10197

2007-08** 601 10712

** the figures for the year 2006-07 and 2007-08 were statistically calculated using the figures of 2005.

Source: Ministry of food, Agriculture & Livestock

“Export”

• 1978 - Export of poultry products started

• 1979-80 - Increased by 102%

• Started declining in the following years due to severe competition from the countries having big home markets.

• 2006-07 exports declined to $ 4,55,000 from $16,01,000(71.58%)

Country wise decrease in exports

countries 2006-07 2005-06 VARAfghanistan 455 1526 -1071

Bahrain - 35 -35

Germany - 20 -20

Oman - 1 -1

Qatar - 3 -3

UAE - 15 -15

other countries - 1 -1

total 455 1601 -1146there is no increase in export to any country

“Reasons for Decrease in Exports”

• Global Competition

• Disease Attacks

• Lack of Refrigerated Cargo

• Non-Availability of Space for Day-Old-Chick

• High Air Freight Charges

• Lack of Subsidy for Exports

“Government’s Measures and Initiatives”

• Approval of Rs. 5 billion interest free loan by FPB to farm owner affected by bird flu crisis.

• Proposal of interest free loans to small and medium sized farm owners for 10 years.

• The board proposed special loaning facility to be provided on low mark up for establishing of egg processing plants.

• The board recommend that wapda should provide subsidized electricity to poultry farm houses.

• Poultry vaccines , feed additives has been allowed at zero percent custom duty.

• Export poultry zones in the poultry intensive areas has been planned.

• 12 laboratories have been established for surveillance diagnosis of AI.

“Linkages”

• Backward– Feed industry– Hi-Tech industry– Electricity– Fan industry

• Forward – Feed industry– Fertilizers industry– Pharma industry– Biscuit Industry– Paints and varnish industry– Book binding industry– Wine clarification– Leather industry– Textile industry– Soap and shampoo industry.

“Problems Faced”

• The supply of feed is not nutritiously balanced as there is a lack of feed quality control.

• Poultry farms is not bound to any rules and regulations, management and sanitary conditions and bio-security measures are not being observed.

• The scientific way of disposal of birds is either by burying them in incinerator or by burying them deep in the ground in the shape of disposal pits.

“Problems Faced”

• Poultry farms are now being set up by big investors in closed sheds and houses ventilated round-the-clock through fans and coolers, posing a threat to subsistence farming.

• The majority of farmers claim that intermediaries do not follow business ethics and try to fetch maximum profit from business transactions.

• The sales tax on new poultry farms and 16 per cent GST on the import of poultry-related equipment and materials has

compounded the situation.

“Diseases and Side-Effects”Some of the Common Diseases are;

• Newcastle Disease - affects the digestive, respiratory and/or nervous systems.

• Hydropericardium - result of a retarded or interrupted circulation.• Acute Bronchitis - large airways • Mycoplasmosis - respiratory disease • Aflatoxicosis - eating food contaminated with mold • Coccidiosis - parasites that live in the gut wall • Gumboro - immune system • Bird Flu

“BirdFlu”• In Karachi and its suburbs, due to these diseases,

death rate has gone up to hundred per cent.

• It not only causes great losses directly to the poultry farmers but also adversely affects other related sub-sectors indirectly.

• The government had immediately killed all the birds at the two poultry farms and kept the workers under observation unless it proved that they were not affected from the fatal virus.

• The poultry industry had suffered a big blow because of what professionals called “media hype” about bird flu and sales of chicken have dropped by 40 percent.

• WHO was clearly pointing out that well cooked chicken is well protected.

Global spread (2006)

“Advantages of Poultry Industry”

• It serves as a source of income and employment to many and it has good returns.

• Poultry meat carries an advantage over red meat (beef and mutton) in having less percentage of fat than either beef or mutton, and is therefore, termed as non fattening and good dietary source for the prevention of hardening of arteries - a common ailment.

“Disadvantages and Challenges of Poultry

Industry”• Disease are very common in the poultry chicken.

• These diseases affect very quickly and have a tremendous effects on the growth of the birds.

• The excess uses of meat also has ill-effects on the health of their users, because the feed they eat contains lots of un-hygienic ingredients.

• Finding good quality, cheap protein is one of the challenges of raising and keeping chickens.

“Recommendations”

• Quick disease diagnostic facilities.

• Improvements in housing (sheds) and equipment can provide a healthy atmosphere.

• The use of disease-resistant stock, vaccination against specific diseases and use of antibiotics and drugs in food and drinking water of the birds.

• Training should be provided to the farmers regarding farm management and other health issues.


• 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.


• 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.

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