Supply/Demand Basics
- Poultry is the second largest industry, growing at 10-12% annually. Nearly 95% of the chicken is sold in the wet market. Per capita consumption of chicken is 7.5 kg and eggs at 88 per year.
- Poultry feed demand was 8 MMT in 2019, which dropped to 6.6 MMT in 2020 due to COVID and should grow to 7.5 in 2021. Imports of raw materials (corn/DDGS and SBM) face high duties.
- Livestock feed demand is 30 MMT of which organized sector produces 1.5 – 2 MMT. Rest is home mixing and basic raw material feeding.
- Current feed costs are much higher than 2019/20 and cost of production has increased substantially.
Country Overview
- Pakistan is facing significant economic challenges due to its weak, unbalanced economy. Country has received a bailout package from IMF.
- Pakistan’s undocumented economy comprises approximately 36% of the total economy and creates major trade and economic challenges.
- Nearly 35% of the population is below poverty line.
Trade and Market Share Overview
- Pakistan exports about 90 percent of their molasses-based ethanol to the European market for potable use at a premium.
- Pakistan is a major importer of energy products, with petroleum and crude oil imports valued at $6.3 million and $4.9 million respectfully.
- Gasoline demand is increasing by 7% annually.
- Pakistan exports corn to Sri Lanka and sporadically, to other countries.
- Pakistan is a significant importer of soybeans, importing 655 TMT of soybeans in 2019.
- Barley, sorghum and U.S. DDGS, are imported when required and feasibility permits.
Policy Overview
- Pakistan has high tariffs on key agricultural products to safeguard the interests of leading agri-production groups, including corn growers and domestic OMC’s.
- Pakistan’s business environment is difficult – but ranks well above others at 108 on the World Bank’s Ease of Doing Business Index.
