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POULTRY INDUSTRY

³Analysis 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

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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

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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

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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.

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if measured by purchasing power parity is estimated to be $475. The economy has suffered in the past from decades of internal political disputes. which mainly encompasses textiles. remained in the 6-8% range in 2004-06 due to economic reforms in the year 2000 by the Musharraf government.4 billion while its per capita income stands at $2. Pakistan's gross domestic product. and other economic factors. Sharpe increase by gains in the industrial and service sectors. Inflation and unemployment are negatively correlated simply stated the lower the unemployment in an economy. education and energy. The central bank is pursuing tighter monetary policy while trying to preserve growth. In Pakistan GDP growth. The poverty rate in Pakistan is estimated to be between 23% and 28%.4% and a low savings rate.7%. the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally.The Economy of Pakistan The economy of Pakistan is the 27th largest in absolute dollar terms. agriculture and other industries. Pakistan's GDP is US$167 billions. inflation is a rise in the general level of prices of goods and services in an economy over a period of time. chemicals. Pakistan has a semiindustrialized economy. In 2005. food processing. Inflation remains the biggest threat to the economy. particularly in water management. following the course in global petrol prices inflation in Pakistan reached as high as 25. transport. Pakistan is regarded as to having the second largest economy in South Asia. In 2007/08. continue to make it difficult to sustain a high growth rate.942.9% in 2006. jumping to more than 9% in 2005 before easing to 7. A large inflation rate of 24. The development emphasis remains on poverty reduction and social protection. particularly on enhancing social safety nets for the weakest sections of society. terrorism etc . Infrastructure is also vital. increasing poverty level and low quality of education. a fast growing population. the higher the rate of inflation. GDP growth was steady during the mid-2000s at a rate of 7% however it¶s slowed down during the Economic crisis of 2008 to 4. . combined with internal political confusion. although there are alternative measures to GDP too. the sharp rise in international oil and food prices. 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. high inflation rate. It is often positively correlated with the standard of living. led to rapidly expanding macroeconomic imbalances in Pakistan. In economics.0%. Today. which makes it the 48th-largest economy in the world or 27th largest by purchasing power adjusted exchange rates. 5 . In 2008.

composition by sector: agriculture: 22% industry: 26% services: 52% (2006 est.) GDP (purchasing power parity): $437.) GDP . to control inflation.) GDP .com/economics/76-the-economy-of-pakistan-2011.1 1 http://www. rejection of opportunities and choices basic to human development are different facets of poverty.eezzi.real growth rate: 6.html 6 . control corruption and make the country on the way of development by honesty. reduce the level of unemployment.600 (2006 est. 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.PAKISTAN STATISTICS ‡ ‡ ‡ ‡ ‡ ‡ ‡ GDP (official exchange rate): $124 billion (2006 est.5 billion (2006 est. 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. sustain high level of GDP. low quality of life.) GDP .per capita (PPP): $2. the insufficiency of income to meet basic needs. Poverty.) The Situation in Pakistan is that of increasing economic and political instability and the destabilized government is losing control.articles.6% (2006 est.

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are important determinants of national competiveness. Porter¶s Diamond of competitive advantage model of nations consists of four main attributes that shape the national environment in which local. states and nations. 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.. Professor Michael Porter of Harvard Business School developed a framework to assess the competitiveness of regions. Industry clusters are geographical concentrations of interconnected businesses.S. U. size of working population. Successful international industries tend to be located within particular cities and regions. In the early 1980s. supply capabilities and local infrastructure. higher innovation rates and faster new business developments. This observation initiated a four year study of ten major trading nations and 100 industries that covered 50% of total world exports in 1985. Factors can be country specific or industry specific. chemical transport in Rotterdam. industry saw its economic competitiveness eroded by Japanese and European competitors. connected firms compete: 1. climate. etc. could only partially explain why nations gain competitive advantage in a given industry. Examples are banking in London and New York. which mainly focused on slowly changing.FACTOR CONDITIONS The nation¶s relative position in vital industrial production factors such as skilled labour or infrastructure. Both the level of individual factors and the overall composition of the resource mix must be considered. Clusters lead to productivity increases. 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. ³inherited´ variables such as natural resources. Porter argued that productivity is the main factor for international competitiveness and that the standard of living of a country¶s population can be improved as a direct result of increases in that factor. and associated institutions in a particular field.Porter Model: In the mid-1980s. suppliers.reflected by 8 . Japan¶s large pool of engineers -. Porter concluded that classical international trade theories. Houston and Singapore. film in Mumbai and Hollywood and Internet/Software in Silicon Valley and Bangalore. For example.

a much higher number of engineering graduates per capita than almost any other nation -. Porter stated two additional variables that indirectly influence the diamond: 5. For example.has been vital to Japan¶s success in many manufacturing industries. 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. wars.S. Government can raise the odds of gaining competitive advantage but lacks the power to create advantages on its own. and nations. the technological leadership in the U.S. radical innovations. 4. Until the mid-1980s for example. unexpected oil prices raise revolutions. organised and managed. clusters. 6. AND RIVALRY The national conditions that determine how companies are created. 3. For example. to reduce costs and to invest in new. All conditions need to be present and favorable for an industry/company within a country to attain global supremacy. success in personal computers and several other technically advanced electronic products. semiconductor industry provided the basis for U. DEMAND CONDITIONS The nature of home demand for an industry¶s products and services requires considering both the quantity and quality of the demand. Japan¶s sophisticated and knowledgeable buyers of cameras helped stimulate the Japanese camera industry to improve product quality and to launch new. etc. STRUCTURE. 2. Furthermore. as well as the nature and extent of domestic rivalry. more advanced technologies. 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. Successful government policies work in those industries where underlying determinants of national advantage are present and reinforced by government actions. GOVERNMENT Government choice of policies can influence each of the four determinants. For example. innovative models. These six attributes promote or impede the creation of competitive advantages of firms. domestic rivalry creates pressure to launch new products. RELATED AND SUPPORTING INDUSTRIES The presence or absence in the nation of internationally competitive supplier and related industries is a key factor. to improve quality. Adoption of the automobile took off in the USA after the construction of a national system of highways and gas stations. FIRM STRATEGY. 9 .

com/577/diamond-model---competitive-advantage-of-nations/michael-e.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.-porter/ 10 . Government officials can use the model for guidance on how to best build a supporting policy framework for a given industry.2 2 http://www.provenmodels. The model helps entrepreneurs decide where to start their next venture.

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. Phase 3: The Production Boom 1976-1980. The increase volume of production was forced through limited marketing channels. Phase 2: Institutional Development 1971-1975. 11 . disease outbreaks and consumer preferences for Desi birds. Serious financial setbacks to poultry farming in Pakistan culminated from discontinuation of poultry exports. the nationalization of other industries contributing the entry of capital into poultry industry. 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. The Federal Poultry Board was established to coordinate government and industry activities. Broiler production increased form 7. Research services were offered through the Poultry Research Institute with the assistance of UNDP/FAO funds. During this period the early poultry ventures. Commercial egg production increased from 624 million eggs in 1976 to 1223 million eggs in 1980. and limited supply of feed ingredients. availability of technologies and supportive government policies resulting from the perception of a protein deficiency in Pakistani diet. particularly in the Punjab. 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. A number of catalytic forces shaped the early development of the poultry industry. A dramatic increase in poultry production resulted due to diverted investments form the nationalization of industries in other sectors. in the layer and broiler business. deteriorating feed quality. The early development of the industry was also characterized by emerging problems including rising feed costs.g. disease problems. At the same time. high relative prices of poultry feed. resulted in the poultry production boom. Poultry Producers struggled with the adverse effects of government programmes e.4 million birds during the same period. the government strengthened institutions serving the new industry. As poultry production became a significant enterprise in the agricultural economy of Pakistan. This phase is characterized by both the greatest success of the poultry industry and its greatest failure. 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. The government of Pakistan also established the Directorate of Poultry Production at Karachi. These forces included potential profits in the industry.Overview Of Poultry Industry Phase 1: The Introductory Period 1965-1970. The Directorate of Poultry Development was established in Punjab similar to that in Karachi.2 million birds to 17. The government of Sindh followed a policy to attract investment in poultry farming by offering estate land under ten year leases. which provided extension services to the growing numbers of poultry farmers.

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%. With the passage of time efforts to reduce the incidence of these diseases and prophylaxes regarding vaccination and bio-security were done. Slowly in 1998 it started improving and by increase in price of chick the companies got a great profit. broilers and commercial layers. However. 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. in the later part of 1980¶s starting form 1985 industry seemed to be readjusted with much rise in poultry number particularly in broilers. Baluchistan and NWFP. a great planning is required in this regard. Now still there are many threats to the poultry industry the manor of which is the marketing problems of chicks to finished products. At national level institutes like Poultry Research Institute. Conferences at the diagnosis of this disease were conducted in which scientists discussed their point of views. The farmers also built houses with controlled environments for breeders. 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. 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. The large Karachi poultry estates began to close in 1984 and a number of poultry farms closed in other areas of Sindh. some of more successful farmers decided to produce under more modernized conditions and to establish their poultry farms in cooler. lower productivity and numerous environmental and climatic difficulties. 1999 again a syndrome like influenza broke that cause great loss in some areas while some areas were safe. 12 . less polluted area of the country. layer and parent flock that resulted in great mortality. Faced with disease problems. after great loss measures were adopted that resulted in controlling the disease. this also resulted in establishment of new medicine companies and the importation of vaccines form abroad started. to the base of the Murree Hills and to the Valley of Quetta. In 1991-92 an other disease Gumboro attacked the chicks of broiler. Production showed a decreased growth or even depression during early 1980 particularly of increases in the Punjab. in 1990 the farmers suffered a great loss due to Hydro pericardium syndrome specially the farmers of Broiler and Broiler Breeder Birds. 1991 to Now: In this period was a disaster due to diseases. Veterinary Research Institute and Agriculture University Faisalabad also done efforts to reduce these diseases. Breeding farms in Karachi and Punjab thus relocated to Abbotabad.Phase 4: Depression and Adjustment 1981-1990. Disease problems posed a serious threat to the sound development and consolidation of the industry.

7. 2-3 per bird as compared to conventional farming.8 in controlled environment farm (2.5 kg weight). Feed Conversion Ratio (FCR) in conventional farm is more 2 to 2. In controlled environment farm only one person at daytime and one at night time are sufficient to look after a flock of 35. Being controlled environment the incidence of diseases could be minimized and cut down the cost of vaccine and medication of Rs.2 (3 to 3.8 kg feed to gain 1.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. 2. 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. The temperature can be brought down by 10°C to 15°C in controlled environment farm as compared to the conventional farm and makes environment more comfortable for birds. 3.3 kg feed to gain 1.5 kg weight) 13 . Mortality has been decreased to 2 to 3 percent in controlled environment farm as compared to 10 percent in conventional farm. 6. 5.000 birds. The temperature remains consistent round the clock providing very conducive environment to the broilers. Whereas conventional farm nearly 6-8 persons are required to manage such a flock. In controlled environment farm a broiler flock is ready for market in 37 days as compared to 45 days in conventional farm. 8. whereas FCR is improved to 1.

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. 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. MODULES 1 PURCHASE MANAGEMENT SYSTEM 2 BREEDING AND CONSUMPTION MODULE 14 .POULTRY CHICKS BREEDING CONTROL SHED SOFTWARE Quick Details Products Status: Stock.

SHED WISE) DAILY FANS USED (FLOCK WISE. FLOCK WISE. MEDICINE CATEGORY WISE) FUEL PURCHASE AND RETURNS( (DESIEL. FEED CATEGORY WISE) MEDICINE PURCHASE AND RETURNS( (MEDICINE WISE. SHED WISE) DAILY FUEL CONSUMPTION (FLOCK WISE. SHED WISE) DAILY TEMPERATURE MAINTAINED (FLOCK WISE. CUSTOMER WISE) 5 PAYROLL MANAGMENT MODULES STAFF HIRING STAFF ATTENDANCE MARKING STAFF LEAVE MARKING STAFF ADVANCES STAFF LOAN 15 . SUPPLIER WISE. CATEGORY WISE) MEDICINE STOCK REPORT (ITEM WISE. SUPPLIER WISE. SUPPLIER WISE) 2 BIRD BREEDING AND CONSUMPTION MANAGMENT MODULES DAILY BIRD BREEDING WEIGHT (FLOCK WISE. SHED WISE) DAILY FEED CONSUMPTION (FLOCK WISE. SHED WISE) DAILY MEDICINE CONSUMPTION (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.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. COAL WISE. SHED WISE) FEED STOCK REPORT (ITEM WISE. CATEGORY WISE) FUEL STOCK REPORT (CATEGORY WISE) 4 SALES MANAGMENT MODULES CHICKS SALE WITH WEIGHT SCALE INTEGRATION (SHED WISE. SHED WISE) DAILY BIRD MORTALITY (FLOCK 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. DATE WISE) CASH RECEIPTS (ACCOUNT HEAD WISE.65 10 100 PRICE PER KG Rs.STAFF STAFF SALARY SLIP SALARY SHEET 6 ACCOUNTS MANAGEMENT MODULES CASH PAYMENTS (ACCOUNT HEAD WISE.000 0.85 6 35.110 16 . DATE WISE) BANK RECEIPTS (BANK ACCOUNT HEAD WISE. LIVE WIEGHT 1. ft) Sale price growth rate (%) Production capacity utilization (%) AVG. DATE WISE) BANK PAYMENTS (BANK ACCOUNT HEAD WISE.000 40 15 210.

5 million people.org/wiki/Diamond_model http://en. The strategy revolves around Improving regulatory framework. The current investment in poultry industry is about Rs.wikipedia. The diamond model is an economical model developed by Michael Porter in his book The Competitive Advantage of Nations. Poultry meat contributes about 19% of the total meat production in the country. It envisages poultry sectors growth of 15-20 percent per annum. capital resources and infrastructure. disease control and genetic improvement in rural poultry.5 million people. Poultry meat is a good source of cheap. Specialized resources are often specific for an industry and important for its competitiveness. The production of total poultry birds.Factor Conditions Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan.com. 200 billion. hi-tech poultry production under environmentally ± controlled housing.pk) it has been reported that Poultry sector is one of the most vibrant segments of agriculture sector in Pakistan. where he published his theory of why particular industries become competitive in particular locations. knowledge resources. 4 Factor conditions can be further divided into further categories. Improving bio-security. Specific resources can be created to compensate for factor disadvantages. need based research and development and farmers training & education. Factor conditions of poultry industry in Pakistan.org/wiki/Diamond_model 17 .3 Factor conditions are human resources. each category can be then analyzed individually according to the secondary data available. Pakistan. was 518 million.Poultry Development Policy visions sustainable supply of wholesome poultry meat.wikipedia. This Economic Survey 2009-10 sector generates employment (direct/indirect) and income for about 1. and total meat production remained 601 thousand tons during 2007-08 (Govt. 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. 2008). It generates direct or indirect employment for about 1. processing and value addition. 2074-7764 (ONLINE) Accessible at: (www. Human resources According to Pakistan Veterinary Journal ISSN: 0253-8318 (PRINT). including domestic and commercial poultry birds. Poultry meat contributes 23. physical resources.pvj.8 percent of the total meat production in the country . This sector has shown an annual growth of 8-10%. palatable 3 4 http://en.

and nutritious protein and contributes around 1. 4.pvj. 2007).com.pk) 18 . A poultry enterprise produces meat in eight weeks.1% in the national Gross Domestic Product (GDP). and eggs in 24 weeks. 200 billion. 5 (www.8% in the agricultural GDP (Sabir.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. Moreover the stats provided in the article are very much up to date and the source of the article is also authentic.

Hubbard has 50% market share and the Al-Noor Group is the only onethat has layer grandparents. The remaining 25% share goes to small farmers. Annual production is 0.7 334.col1 19 .000 farms. These companies have a 75% share of market. Grand Parent Poultry (Pvt) Ltd (Hubbard) in Lahore.com/p/articles/mi_hb092/is_8_33/ai_n28959903/pg_2/?tag=content.3 million layer parents.00 million parent stock chicks. 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. 141 feed mills and related infrastructure. 285 hatcheries.Human Recourse Requirements Physical resources Current structure The investment in the poultry sector is about one billion US$. Their total annual production is 5. the bulk of which are owned by six breeder companies. GP companies are. Haider Grand Parent Project (Hybro-PN) in Gujrawala and Quality Poultry Breeders (Arbor Acres) in Rawalpindi.4 6 http://findarticles. Al-Noor Group (Star Bro/Shaver) in Faisalabad.3 Layers 18.1 18. Grandparent (GP) projects: The country has four grandparent poultry companies operating as franchisees of US and European suppliers. It includes over 20. Layer breeder / Broiler breeder farms: In all there are 430 layer breeder / broiler breeder farms in Pakistan.

2 4348.Broilers Breeding Stock Eggs Poultry Meat 253. 20 . and through advanced technology in this sector the physical resource are increasing day by day and are leading to healthy rise in the production.2 4423. 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.0 256.1 264.3 6.0 266.8 The above figures basically show the physical resources moreover it tell us about the production which has been received by the poultry sector.4 6.

21 .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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7 % 58.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.6% 24. c.8 million 25 million 434 million 25. e. Share in poultry meat Share in eggs Grandparents Breeders Layers Broilers Farms Hatcheries Feed Mills 75. Fowl cholera. 2 imported Hatching: Brooding hens Feeding: Scavengers Important Diseases: Newcastle disease. Fowl pox 73. g.897 305 154 23 .4 % 5 companies 6.3% Intensive (Commercial) Poultry 1. d. b. h. i. Status a.65 million 41. f.

Physical Resources 24 .

Layer Farming Layer birds are raised for the purpose of eggs production. medium hatcheries comprise of 3-20 incubators. It needs the purchase of quality imported incubators ranging between Rs. Hatchery is a place where eggs are placed in incubators for 21 days and day old chicks sold to the farming sector.3. 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. Although there are relatively cheap locally manufactured incubators available in the market.0 million. Establishing a hatchery requires huge investment as compared to other subsectors of the poultry. These birds produce eggs for normal consumption. For first 16 weeks the farmer needs to spend money on feed and maintenance and receives no return on his investment during this period. vaccination. while large hatcheries consist of more than 20 incubators. However. 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. The farmer starts making profit after 6 months of successfully running the layer flock. chick. Poultry Farming Sector Rearing of poultry birds / chicks for meat and eggs is classified as poultry farming.1. The investment required for establishing a poultry farm is quite low as compared to other sub-sectors of poultry.5 million to Rs. he recovers his total running expenses incurred on the flock. 25 . For next 10-12 weeks however. it is labor intensive and requires investment for working capital mainly for the purchase of feed.Division of Poultry Hatchery Sector Hatchery sector is the backbone of poultry farming as it provides day old chicks to the poultry farms. Small hatcheries can be established with 1-2 incubators. One layer bird in a year produces 250-280 table eggs under an average management condition. etc. their efficiency is low.how as compared to other sub-sectors of poultry farming.

e. Leghorn 3.Broiler Farming The most common form of poultry farming is broiler farming i.5 kg and consumes feed about 4 kg. The usual process is to buy day old chicks. It requires low level of investment as well as low technical know ± how as compared to other subsectors of poultry farming. 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. Light Sussex 26 .2. feed them for 6-8 weeks before their marketing / selling. rearing of day old chicks for meat. Buff Rock 2. Important Breeds Some of the most important breeds are: 1. A typical table meat bird weighs nearly 2. Therefore.

Dhoki 27 . Rhodes Island red 5.4. Foyoumi 6.

PROVINCE WISE POULTRY STATISTICS 28 .

160 million broilers (50%). The quality of these chicks is of international standards. In Pakistan Poultry farming consists of meat production which is in the form of chicken meat. Olympia Poultry Farms in Lahore and Sadiq Brothers in Rawalpindi. 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. 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. Because it is being an easy and relatively cheap method of raising dietary standard of the people. Rhodes Island red are also hatched successfully in the country at desired traits. A few layer breeder farms have switched from litter housing to cage system because of its obvious advantages. 17 million layers (5%) and 5 million breeding (2%) stock annually. Six major players in broiler / layer breeding operations are. Proper techniques are employed in bird housing such as evaporative cooling and humidity control mechanisms.old chicks per annum. K&N Group of Poultries in Karachi. 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.pakistaneconomist.htm 29 . Modern poultry farming has a special importance for countries such as Pakistan. leghorn.Capital Resources and Infrastructure Applied technology The poultry sector deploys modern methods and technology in the areas of poultry breeding and mass production. Islamabad Chicks in Rawalpindi. Better R&D has helped improve the chicken breed which helps in better quality of meat production and egg production. In the same fashion eggs are obtained through commercial hatcheries and conventional farms. Hi-Tech Poultry Breeders in Lahore. out of which 137 million is rural (44%). light Sussex. Chicken meat is obtained either by chicken produced through open farming and through control shed.7 Knowledge resources With improved technology and greater infrastructure the production in poultry sector is on the rise. Some of the important breeds of the world such as buff rock. 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. The present total poultry population is estimated to be 319 million.com/issue2000/issue32/i&e3. Big Bird Group of Companies from Lahore. 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.

at 8 weeks of age. The product is concentrated around the large urban centers in the provinces of Sindh. 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. There are also some local breeds.com/issue2000/issue32/i&e3. The majority of such farmers are generally in and around the cities like Karachi. Then it declined slightly reaching 124g / bird/ day at 33 weeks of age.htm 30 .8 The above mentioned paragraph clearly explains that how different kind of breed helps in increasing the production.pakistaneconomist. Peshawar. It reached its peak (135g/bird/ day) at 25 weeks age. These important poultry breeds of fowls are cross bred with each other to produce. 8 http://www.5 thousand million eggs and 340 thousand tonnes poultry meat. 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. Lahore.grams ( or 1. and Faisalabad.2 kg). Pakistan produces 6. The consumption of poultry feed increased with their ages. Punjab and NWFP. In these days prices of poultry are very high due to the cost of ingredients needed for the manufacturer of the feed meal. which are highly productive and are more adaptive to the local conditions.

Equipment and Machinery Requirement 31 .

32 .

This is done merely for the purpose for achieving operational efficiency. the firms are able to achieve economies of scale as the feed is their own. the whole supply chain comes under a single owner. there exist different kinds of businesses. The whole supply chain comprises of a number of firms and businesses.Firm structure. there are a number of kinds. The concept of vertical and horizontal integration would be discussed later in the report. medicines and even hatcheries are their own. At some places. rivalry and strategy Talking about firms or players in the poultry industry of Pakistan. Through this. Starting from the hatcheries up to the retailers or butchers. The key players in the industry are as follows ‡ ‡ ‡ ‡ ‡ ‡ ‡ Feed mills Poultry farms Vaccine and medicine production houses Hatcheries Wholesaler Retailer Middlemen (Distributors) 33 .

Caustic soda is kept outside the farm so that if someone has to enter. transportation vehicles¶ tires are also soaked in a chemical before it enters the farm. they are kept with care until they become fully grown broiler flock. On the other hand. Adding to this. The feed mill consists of a plant that produces the feed by mixing a lot of things in a particular proportion. more than 50% of our farms operating currently are working on an open house basis. as opposed to this. Feed mills require semi-skilled to highly-skilled workers to control and work on the plant for the production of feed. There are various capacities for control sheds. the open house farming is also quite prevalent. It is in the poultry farm that chicks are added and within 7 months. 34 . the open house farms require semi-skilled workers as there is nothing very difficult to handle as in a control shed. they have capacities of hardly 5 to 6 thousand birds per farm which is a very small number. 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. It is a very efficient system to protect the flock against the spread of diseases and keeping them at a cool temperature. ready for consumption. single or triple. up to 90000 birds depending upon whether the shed is double. Starting from 30000 birds. Poultry farms work in two ways as said earlier too. he or she will have to get his shoes dipped in caustic soda so that the bacteria die before he goes into the shed. Poultry Farms Poultry farms are the actual core business area. The ingredients include a number of vegetable oils. Talking about the kind of labor required. Good feed mills in Pakistan are few. 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. corns and different kinds of other small crops. Some of them are owned by the few big packed food companies like the K&Ns and Menu. 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. In a control shed. Having said this.Feed mills Feed mills can be seen as the backbone of this industry for a number of reasons. In fact.

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. 35 . 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. Eggs are artificially made to hatch and chicks are kept in intensive care units. Incubators and brooders have a capacity of few thousands eggs as well. Hatcheries Hatcheries are small farm like structures where there are incubators and brooders. The following chart gives the details of the personnel required for a single control shed driver farm. 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. Vaccine and medicine production houses Since there are a number of diseases that spread really fast among the flocks. Just like the feed mills. Pfizer is an example. to have medicine production factories is a necessity. The eggs are artificially provided the same heat and movements as a mother hen would when she sits on eggs.

Wholesalers Wholesalers usually are situated in a wholesale market in every city. 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 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. 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. They are called µARTIs´ in local language. Retailers charge a price to the end users or consumers after keeping a particular percentage as their commission. Middlemen The middlemen are usually the wholesalers themselves. the price of the meat at the retailers rise because in addition to the wholesalers. The labor required at this stage is semi-skilled as the slaughtering of the birds is not a very rigorous process. In the case where wholesalers are not ARTIs. 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. What they do is. 36 .

hatcheries and even their own wholesalers and retailers. 37 .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. farms. This allows them to earn more profits and diversify their product lines too. K&Ns owns feed mills.

The trend in investment tells us that initially this sector attracted investments but then with time.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 investment curve near 2000 turns towards horizontal axis to show the trend is decreasing 38 . as the concept of control sheds emerged and a few large firms entered the business.

If the supply is greater. there is no as such price wars between the firms because any farm owner. the corresponding DCO takes notice of it and calls up meeting of the union of the retailers and wholesalers to control the prices.Pricing and Competition The pricing in this industry is typical to that of any other pricing mechanism. the price falls for the next day and if the supply is lesser compared to the demand. 39 . if had put a flock of 30000. The demand and supply are the basic determinants. 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. The wholesalers then check up with the farms to see if there are enough supplies for the next day. is much lesser than the weight that they gain when they are young. The reason is that the additional weight gained per unit of feed consumed when they grow up. 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. . would want to sell it as soon as it gets ready. for example in his farm. the price rises. 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 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. Talking about competition in the industry. Having said this.

Recently the prices of feed have increased which have resulted in increase in the cost of production by 60%.com/issue2000/issue32/i&e3. carbohydrates and fat content that is very important for the growth of birds. vaccination and by products of chickens. The feed plays an important part in finalizing the price of eggs and chicken as they are significant part of the costs.htm http://www. local farmers buy feed directly from 9 http://en. Previously feed producers didn¶t give attention to the quantity of ingredient in a meal which resulted in malnutrition birds. About 70% of feed supply is catered by commercial mills. Automatic batch controller and computerized manufacturing program has minimized human involvement and impurity that has resulted in export quality feeds9. There has been constant upgrading in production of feed by the mill owners and production is now more mechanized and advanced. pulses and vitamins. Pakistan is self sufficient in providing poultry feed.com/MA-poultry-industry/nutrition/articles/poultry-feed-industry-pakistan-t1307/141-p0. Currently feed manufacturers are continuously improving the quality of the feed so that the production of poultry products could increase.RELATED AND SUPPORTING INDUSTRY OF POULTRY FARMING Poultry farming has become one of the most profitable agricultural businesses in Pakistan. In present the Feed conversion Ratio (FCR) has dropped below 2kg of feed per 1kg of live weight. POULTRY FEED INDUSTRY First feed mill was setup in 1962 at Rahim Yar Khan by a multinational Lever Brothers. Increasing prices of mutton and meat has resulted in phenomenal investment in this sector. New feeds are modified and contain proteins. rice. At present farmers use commercial and home mixture feeds which are made from wheat. Per bird consumption of feed vary from 124-135 grams per day.engormix. Earlier 8 week old Broiler with a weight between 1. sorghum barley.50 kilograms with Feed Conversion Ratio (FCR) of 3kg of feed to 1 kg of live weight was considered to be healthy. 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.25-1. As a result role of related and supporting industry of poultry has become integral part poultry farming. 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.htm 40 . maize. Big Bird Group and HiTech feeds are the biggest producers of poultry feeds in Pakistan today. There are mainly three industries associated which are feeding.pakistaneconomist. sea food.

peanut meal. Following are the nutrient constituents of poultry feeds Proteins: In poultry. feather meal (hydrolyzed). Source: Meat scraps (lysine).them rather than importing. blood meal. fish meal (lysine. milk products.com/digital-publication/ 41 . cellulose. various grain byproducts. rye. Source: Corn. sunflower seed meal. pentosans and several other complex carbohydrates. animal tankage. The polysaccharides of major importance are starch. poultry by-product meal (tryptophan. methionine). therefore. sunlight. oats. Starting poultry feed: An all mash ration to be fed to chicks upto the age of 8 weeks. sesame meal. Growing poultry feed: A ration to be fed to growing chickens after 8 to 20 weeks or until laying commences. Cereal grains and their by-products are excellent source of starch and thus constitutes a bulk of poultry ration. cottonseed meal. 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. is completely indigestible. 2. 3. lysine). chickens possess enzymes that can hydrolyze only starch. soybean meal.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. liver and glandular meal. Feeds for poultry Poultry feeding is one of the important aspect of poultry science. Cellulose. Most http://www. Poultry feeds are of three types 1. heat. Typical broiler rations will contain from 22 to 24% protein and in layers ration the amount varies between 16-17%. sorghum grains (milo) barley.thepoultrysite. 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. Fats: Fats make up over 40% of the dry egg and about 17% of the dry weight of a broiler. wheat middlings. the products produced consists mainly of protein. etc. Although cellulose and starch are composed of glucose units. wheat. Laying poultry feed: A ration to be fed to laying birds after 20 weeks onwards or after laying commences. Carbohydrates: The main function of carbohydrates in the diet is to provide energy to the animal. Although fats supply concentrated form of energy (2.

potassium. zinc carbonate (zinc). chlorine. iron. lard. copper. distillers¶ solubles. 42 . The common mineral supplements in poultry feed are as follows: i. v. These may be other recognised nutrients or they may be unidentified factors. rice. calcium). iv. fish meal. Source: Animal tallow (beef). etc. The elements known to be required in the diet of poultry are calcium. vii. ii.feed ingredients (maize. ground oyster shells (calcium). commercial vitamin mixture suitable for poultry are also available. milk products. defluorinated rock phosphate (phosphorus. dicalcium phosphate (calcium. alfalfa meal. magnesium. zinc oxide (zinc). liver meal. vi. manganese. is that the natural vitamins are likely to have other factors associated with them. milk by-products. Vitamins: Vitamins most commonly function as coenzymes and regulators of metabolism. steamed bone meal (phosphorus. manganese oxide (manganese). viii. fish solubles. calcium). of course. phosphorus. chlorine.) contain 2-5% fat and that is enough for the inclusion of one essential fatty acid (Linoleic acid). safflower. iodine. Source: Meat scraps. wheat. Source: Yeasts. Minerals: The body of the chicken and the egg excluding shell contain nearly 4 and 1% mineral matter respectively. sodium. iii. milo. 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. molybdenum. which must be present in the young growing chicks or they will grow poorly. One point to remember. bran. phosphorus). Usually the grains and vegetable protein ingredients are relatively poor in mineral contents when compared with those of animal protein feed stuffs. other vegetable oils. manganese sulfate (manganese). have an accumulation of liver fat and be more susceptible for respiratory infection. zinc and selenium. iodine). Limestone Bone meal Oyster shell Sodium chloride Dicalcium phosphate Manganese sulphate Potassium iodide Superphosphate. Laying hens with diets deficient in linoleic acid will lay small eggs that will not hatch well. salt (sodium. barley. The 13 vitamins required by poultry have been summarised in tabular form. ground limestone (calcium). Apart from natural sources. corn-oil.

com/english/allabout/livestock/poultry/feeds.5 by the Oil-cakes and meals 10 http://www. cheena (Panicum miliaceum) 10-15 Kulthior horse-gram (Dolichos biflorus) 10-20 Jowar.3 0.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.1-0.shtml 43 . bajra (Pennisetum typhoides) Barley(Hordeum vulgare) Black-gram (Phaseolus mango) Proportion (% by wt of materials) 10-15 5-10 10-15 Chinna. Often they are called "non-nutrient" feed additives.02-0.5%) Limestone Oyster shells Vitamins (mineral stabilised) Manganese sulphate Antibiotic feed supplement 1-3 1-3 As recommended manufacturer 0. Vitamins and antibiotics Common salt 0. Ingredients Grain and Seeds Bajra.3-0.10 Recommended range of proportion of poultry feeds.pakissan. usually in small qualities for the purpose of fortifying these with certain nutrients or stimulants or medicines.Feed additives: Additives are never nutrients.5 Dicalcium phosphate (fluorine content not exceeding 1-2 0. They either singly or in combinations are added to a basic feed.

5 million people were attached to it. 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. 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. In the budget proposals of poultry industry. They said if implemented. 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. Mohammad Aslam made the demand to this effect while addressing a press briefing here at the National Press Club. The PPA Chairman Khalil Sattar.Copra cake. PPA (Tariff and Taxation Committee) convenor Dr. The private sector has invested around Rs400 billion in the industry and around 1. They said that the local poultry industry was fulfilling the demands of entire country. says a press release issued here Thursday. 44 . Mohammad Sadiq and former chairman Dr.

pk/TodaysPrintDetail. Mohammad Aslam.11 Vaccination Industry Before year 2000. Pakistan is facing a shortage in specialized and trained vet nary doctors specially the rural areas which decreases the productivity of farms. 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. multiple drug therapy is very unprofessional and can lead fungal infection. The infections if not controlled can leave their traces in meat which is very harmful for humans.com. Chicks have to be vaccinated five times to prevent bronchitis and Infectious Bursal Disease. Poultry farmers argue that R&D in vaccination is very important and expensive.Currently in Pakistan only 3 companies are producing vaccines which have a very nominal contribution to fulfill domestic demand.thenews..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.and.of.12 11 http://www.pakissan.shtml 12 45 . Bird flu disease was an eye opener for poultry farmers who had suffered heavy losses and had to eliminate their entire stock. health was a great concern for the poultry farmers. but also making many people unemployed. The decision to give medicines is very critical.com/english/allabout/livestock/poultry/misuse. This situation.their. The protest demonstration was led by PA Chairman Khalil Sattar and former chairman PPA Dr.drugs. Antibiotics are given to keep chicken healthy. The Pakistan Poultry Association also staged a protest demonstration in front of the National Press Club.of. the industry can¶t invest in the sector without the involvement of government. For the first time a local company i.development. Big Bird farms initiated to open a new department that produced vaccines for the birds. Little investment is done locally to produce medicines. Most of the vaccines are imported from USA. they said would lead to closure of poultry farms not only affecting the overall supply of chicken and eggs to the market.aspx?ID=48013&Cat=6&dt=5/20/2011 http://www. 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.resistance. Role of vet doctor is very important because their chemotherapy and management can bring profits.e. digestive problems and delay the growth of chicks.

Eggs as well as skins and hides for value-added exports of quality leather goods. this single factor is pregnant with far reaching consequences as far as the farm economics are concerned. not be ignored.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 Pakistan¶s Agrarian Economy :- Population engaged in Agrarian Economy Agriculture¶s Contribution of GDP Livestock sector¶s contribution to agriculture Livestock sector¶s contribution to GDP Livestock contribution to exports 70 % 25 % 40 % 10 % 10 % In addition. Had it not been for research in the development of EFFICACIOUS THERAPEUTIC AGENT and selective use of corrective medicine. Meat. Prevention and control of disease is most difficult and important in the poultry and Livestock industry. Livestock and Poultry Sector provide food to 140 Million population in the form of Protein-Milk. never the less. 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. Disease has progressively acquired a place of high significance and the major turning point for the success or failure of this sector. covering just about 10 % of the total Livestock and Poultry industry potential in Pakistan. Substandard medicines and quackery 46 . Seen in the above perspective. Of all other multiple reasons. 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. Poultry and Livestock sector would not had taken its roots in the developing countries. direct losses can be colossal due to out right deletion of the flock. The role of corrective chemotherapy can.

characterize by emerging challenges and their effective solutions. Three prime role is to provide quality vaccines and medicines for the best care of poultry and Livestock sector. Unfortunately the gap in this field between developed and developing countries is quite wide and likely to remain so. Much depends on their professional competence and discretionary acumen. The inherent relationship between Farmers. The advancement and survival of any field depends on its ability to cope with a challenges it is facing. 47 . Life is a dynamic process. Since our independent research and development had not been one of our top priorities due to a number of reasons. 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. This bond between them plays the essential role of Technical application of latest technology in the animal health. drugs and disease. the goal of self reliance cannot be achieved without giving proper attention on scientific research. Plan prepared to strengthen Veterinary Research Institute In order to control epidemics and prevent diseases of animals and poultry. It is here in this area of Poultry and Livestock sector that the Veterinarians and qualified prescribers acquire importance. 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. To prescribe a correct medicine in the line of treatment calls INDEPTH AWARENESS of the interaction between body. The importers who are marketing the vaccines and medicines are not mere business representatives but are also effectively transferring Technologies to our local industry. This is possible only through the process of continuing scientific research and its effective application. The imported vaccines and medicines with high efficacy had given a clear health protection to this industry. The research and development is need of time to transform poultry and Livestock sector into an industry.had also aggravated this problem. Veterinarians and Veterinary sale teams plays a very important role. This relationship is also vital for national economy in general and animal health in particular. Greater responsibility rest on Veterinarians to organize effective monitoring of the medicine available and offered for sale. The Poultry and Livestock sector is no exception to this phenomena.

Vaccination does not give guarantee that birds are protected. This animal diseases caused significant economic losses to the livestock and poultry industry in the country. The successful vaccination comes up in terms of higher and stonger immunity.com/english/news/2002/october/plan. 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. which have been estimated to be rounded 11 percent per annum in cattle and buffalo and 20.30 percent per annum in poultry. There are number of factors which may furnish the success of a vaccine. 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. It is a worth remembering that antigens or vaccine or vaccination itself does not produce immunity rather it is the bird¶s 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. Black Quarter.pakissan. the Veterinary Research Institute (VRI) will develop Newcastle Disease (ND) vaccine for poultry and introduce new vaccines namely Paste Petite Ruminants (PPR). etc. tissue Culture Rabies Vaccine and Infections Bursal Disease (IBD) vaccine to enhance the facilities at VRI by adopting new and modern technology. VRI is playing role of saviours towards maintenance of animal health and creating conditions suitable for developing poultry and livestock. These antibodies are identical to the antigen of vaccine.vaternary. Enterotoxaemia.shtml 48 .prepare. On most of occasions we get proper protection with vaccination but immunity breakdown is usually not known.13 Causes and effects of vaccination failure Since Adam¶s birth pathogens and living creatures are to be dagger drawn on each other.institute. It is manufacturing 100 million doses annually of quality vaccines for combating contagious diseases like Haemorrhage septicaemia.Under the project. Pox group of diseases. To take the bull of infection on right its horn and pay back in the same coins is the achievement of vaccination.

vacterial. delay to offer by the 49 . Use clean equipment and drinkers and sterile syringes. ‡ Cost of acquisition and administration of vaccines ‡ Flock placement programs. enteric forms of vaccines are more sensitive to these type of chemicals. ‡ Immune status of parent stocks. ‡ Availability of specific vaccines. ‡ Risk of exposure. ‡ Diseases prevalent in the urea of operation. 2. Avoid using metal drinkers and containers for mixing of 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. 5. 6. 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. It is not wise to vaccinate the birds during extreme weather. Do not use waterfor vaccine dilution containing disinfectants. and protozoal disease. Aluminum and brass containers are not recommended due their maximum inactivation properties. Do not vaccinate the birds during stress period particularly few days before or after the debeaking. Vaccination program should be based on the following considerations. 3. In these conditions negative Immuno-modulation occur which ended with low level of active immunity. 4. Try to use the vaccines as soon as possible the vaccines are reconstituted. Rinse the utensils with fresh water to avoid the errors. transfer shifting and grading.specific antibodies against viral. because heat stress on one end affect the bird and on other end effect the vaccine due to high environment temperature. Some diluents contains dyes more than optimum levels which act as sterilizes for diluent and at the same time inactive the vaccine . 7. It is recommended to use the PVC or PET containers (Plastic). 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. as the metal ions and metals react with the vaccines to inactivate the live vaccines offered through the drinking water. so not use any chemical to disinfect the vaccine utensils because the residues of these chemicals inactivate the vaccines.

can be implemented at low cost but it is of limited effectiveness against some infections. 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. In Pakistan the eye droppers are 30ml for 1000 birds. Eye drop and intranasal routes suitable for hatchery adminstration and during brooding of chicks. 3. the vaccinator make the vial and drop the birds until and unless the whole of the vaccine is not spent. leading to develop different concentration zones in the container. 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. Drinking water administration. the drinkers should be empty in one hour maximum taking in consideration of temperature of house and feed time. therefore. 50 . including: 1. ROUTE OF ADMINISTRATION : It is emphasized that appropriate control over the reconstitution of live vaccines is required to ensure potency. IN DRINKING WATER: This corresponds to oral and intra nasal administration. 2. INTRAOCULAR: Eye dropping is most popular route of vaccination. the higher the milk concentration the best will be the suspension of vaccine in drinking water. nose or mouth dropping. 10. 8. Addition of skim milk is recommended. This reaction may some time normally occur after vaccination of ILT. In those areas where the salt concentration is too high preferably vaccine the birds through injection or eye. There some ereors in the eye dropping made during the vaccination. The too longer time holding the vaccine.farmers or sonsumption by the birds leads to temporal decrease in the vaccine tillers. as the particles of vaccines are distributed well in the water. mouth and lachrymal duct opened in mouth. 9. Various methods of administrating vaccines are used commercially. Lower limit of skim milk per liter is fixed but there is no upper limit. INTRANASAL: By instillation or dipping the beak up to the naries. In birds nose. 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. the off water time may be adjusted. 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.

sunrays. ‡ Exposure of heat. 6. IMPROPER STORAGE OF VACCINES This is the most common cause of vaccine failure in routine uses of vaccines. exposure of sunlight. room temperature. POST-HATCH SPRAY VACCINATION: In cabinets for mass-adminstration of aerosol vaccines to day old chicks. 8. IN OVO VACCINATION: At 18 days of incubation using the patented Inovoject system. expired in storage due to sale. To avoid the damages bottles either packed in cold bucket or use chilled diluents. FAILURE OF VACCINE : USE OF EXPIRED VACCINE Vaccines re expired by many ways. Be careful that eye of the needle carries vaccine each time or not. storage in deep freezers. ‡ Do not open the lid of vaccine in the open environment as the vaccines are contained in 51 . Most commonly recommended in the case of Gumboro and Marek¶s vaccines. Due to some structural lacks in MHC it is possibility that the birds are recognize the one of the antigens. 5. intra muscular depending on the type of vaccine and the direction of the manufacturer. 7. coolers or thermos and using the translucent thin membrane shoppers permitting the sunlight exposure. This is mostly employed for ND. IB vaccination on day one in hatchery or farm.4. failure of refrigerators. INJECTION: Subcutaneous. brooding house temperature to diluents mixed vaccines.. AEROSOL ADMINISTRATION: Using a knapsack or electric sprayer to deliver vaccines to flocks as a coarse spray. This might be due to transportation from market to farm or from manufacturer to distributor to market. failure of electricity. Therefore that strain of birds might be more susceptible to pathogen. WING-WEB STAB: This method is used to administer fowl pox vaccine or other live vaccines directly to each bird. 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. Ignoring the use of ice box. 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. Subcutaneous. among the most common are the expired in storage due to sale. injection to administer either live or inactivated emulsion vaccines to chicks rearing stocks and breeders.

narrow bore needle may retained the cell culture vaccines. Salmonella and Mycoplasma etc. IMMUNO SUPPRESSION DUE TO DRUGS Continuous administration of Immuno-suppressive drugs such as chloramphenicol. 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. REO Virus. Due to heat stress lot of steroid production do occur which decrease the lymphocytes produce the antibodies. WATER DEPRIVATION AND HEAT STRESS Due to water deprivation the bird is exposed to heat stress. 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. lymphocytes which give poor out put in immunity development.negative pressured bottles. which is the factory of antibodies. This is common observation that the dehydrated and heat exposed birds commonly infected with coli septicemia and other diseases. protein synthesis and immunity. Always use wide bore needles for vaccine suction or dilution. which make the non uniform mixing of vaccine and lower the antigen amount. Poor nutrition causes problem with metabolism. HEALTH STATUS OF THE FLOCK The infectious agents such as Chicken Anemia Agent (Circo virus). Marek¶s Disease Virus (Herpes Virus ). may cause varying degree negative immunomodulation which consequently may lead to vaccinal failure or adverse reaction in the face of these disease. Gumboro Disease Virus (Birna virus). Mycotoxin reduce host immunity directly by reducing the Macrophage engulfing tendency and production of toxin. MYCOTOXINS Presence of mycotoxin in the feed affect the vaccinal response very badly. 52 . ‡ Exposure to viricidal disinfectants (phenols. 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. furazolidone may cause cause poor immunity development. alcohol) may be avoided as these chemicals inactivate the vaccinal virus. POOR NUTRITION Hypoprotenemia especially protein hurt the immune response as antibodies are made up of amino acids.

trachea. 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. 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. The moist membranes of or the mucous membranes among the gut . 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. In the absence of the local immunity the bird become susceptible to viral diseases particularly those which proliferates in respiratory tract. This is called secretory immune mechanism and it is watch dog on the port of entry. After the live virus has been applied the bird serves as a virus production site. Sheikhupura and Multan Division. nostrils and bronshi produce Immunoglobulin . It has negative feed back effect on B lymphocytes. Poor water quality and high salt concentration produce ill effect on the vaccine diluted in such kind of water. Ammonia condentration above 100 PPMm always associated with the respiratory disease. In the same manner classical IB is no more effective against IB variants. As the ammonia is water soluble gas one can easily felt the ammonia as it dissolved in lachyymal secertion of the eyes . where the salt level is half of the sea water and EC even in Islamabad is 600-2000. particularly in salinity affected areas such as Faisalabad. The bird is media in which the 53 . 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.a through the lymphocytes present on the surface of these organs. MATERNAL ANTIBODIES High maternal antibodies inhibit the chicken immune response. 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. Hairs cilia moist membranes are among the preventive cushions.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. ADMINISTRATION ERRORS QUALITY OF WATER Water quality ispoor in most of the areas of Pakistan. POOR ANTIGENICITY OF VACCINES Live vaccines must be applied at a level at or above the minimum infective dose.

‡ Vaccine strain. The geontical influence may affect the ultimate response of birds to vaccine under indigenous environments and may result in vaccine failure. This is also true in case of ND and AI vaccine. These include: ‡ Chick quality. INTERFERENCE Do not give live respiratory vaccines (IB. ‡ Timing of vaccination. Several factors can affect the severity of the reaction that occur. The bacteria or fungus in haled during few hours of life or present in the yolk sac. The difference pay more if they are present in MHC. VACCINATION REATIONS Adverse vaccine reaction. can complicate vaccination andresult in airaculitis.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.initial dose of vaccine can multiply to a level which will stimulate a proper immune response.14 14 54 . These birds will react to respiratory vaccines for several days some time during the entire grown out. GEONETICS Means simply the geographical influence on the gentics of local poultry ppulation. 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. ‡ A normal respiratory vaccine reaction in broiler chicks begins about four days post vaccination and lasts about five days. ‡ Immuno suppression. A build up of dust and ammonia often occurs. A rolling vaccine reaction is one of increased duration and/or intensity compared to what is normally expected. ‡ Doses of vaccine used. For potency testing of vaccines. ‡ Down time. and will cause respiratory vaccine reactions to be more severe which may never clear completely between vaccinations. always contact well facilitated Lab.litter and air quality. ‡ Level of maternal antibodies. ‡ House sanitation. ‡ Route of application. Do ND vaccine earlier andthan proceed for AI vaccine. however do not serve a useful purpose and should be prevented if at all possible. ‡ Water.

shtml 15 Bagley. which are left over of wood shaving. Mississippi State University: Mississippi State University Cooperative Extension Service. In Pakistan poultry litter is not used as a fuel. Lastly poultry litter is used to produce electricity in developed countries. power generation from this can open new opportunities for the investors and can help us to solve the issue of loadsheding. (Apr 1995).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. sawdust. it fulfills the protein requirements of animals and works as medicine against some diseases like Mad Cow disease. peanut hulls sugar cane and straw.P.com/english/allabout/livestock/poultry/the. Due to current shortage of electricity in Pakistan. This fertilizer is then sold at RS 18000 per truck. fertilizers and fuel.15 http://www.veterinary. Poultry litter. Litter cost is RS 50006000 per truck and after 45 days the weight doubles due to added manure of hens.imported. R. Broiler litter as a feed or fertilizer in livestock operations. is placed on the ground where chicks are been kept. the litter is filled with bird manure.pakissan. ISSN 0886-7488.Poultry By-Products Poultry by products are usually used as cattle food.. US9561988 55 .R.medicine. Broiler legs and litter are fed to herbivores. Evans. C.role. Over a process of 40-45 days. Manure contains urea that is used as an ingredient in fertilizer industry.of.

the fact that Pakistan¶s population is growing around 3% per annum. Domestic demand should be stringent and sophisticated. A strong. respondents were also asked to list what they would like as the main component of their daily diet. When the market for a particular product is larger locally than in foreign markets. 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 56 . More than 50% Pakistanis prefer meat over vegetables and pulses. In a survey in October 2008. meat is the most essential food item in people¶s daily diet. the food production has experienced great setbacks. meat production is used to in order to overcome the potential food shortage. trend-setting local market helps local firms anticipate global trends. Given. 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. Due to poor nature of soil. According to a Gilani Research Foundation survey carried out by Gallup Pakistan. To counter this. the local firms devote more attention to that product than do foreign firms. out-dated techniques & water shortages.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. A more demanding local market leads to national advantage. 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. leading to a competitive advantage when the local firms begin exporting the product.

The graph shows how the levels of preference of chicken and mutton have interchanged between the years 1986 and 2009.Over the years. 2008. chicken lost part of its edge due to apprehensions caused by viruses such as bird flu. However. many changes have been observed in the pattern of meat consumption in the country. among a sample of 2562 men and women in rural and urban areas of the country during October 19-20. After reaching a very high figure of 49% in 2000. the share of chicken in meat consumption fell to 39% in 2007. 57 . The study was carried out by Gallup Pakistan. + 2-3 per cent at 95% confidence level. Most of the loss in level of chicken preference translated into gain in mutton consumption (its level rising from 29% to 36%). the Pakistani affiliate of Gallup International. after experiencing dramatic rise for some 20 years. 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 in the most recent survey we see that chicken is gaining back its lost share (45%). Error margin is estimated to be approx.

Commission agents/wholesalers are the major player in deciding the price at the retailer¶s level. the farmers suggested a tripartite market arrangement in the form of farmers. 2005). but they reported that commission fees of these intermediaries were very high. They used many tactics such as juggling with weighing scales. and butchers who charged certain amount as commission fee for their services. Hence. In view of this. middlemen and the government. it was observed that rapid price fluctuation. It is one of the main hindrances to improve the contribution of poultry in protein uptakes. and b) Lack of investment to develop infrastructure. feed dealers. Farmers mainly had three outlets for the sale of their products namely: main market. 2003). The procedure of current marketing system was highly criticized by farmers. the retailers and feed dealers worked as intermediaries. Reasons of non-remunerative price to producers are: a) Missing direct linkages between producers and consumers. under weighing and high charges of commission were the major problems of present marketing system. there was no agency to check such unfair commission rates (Anwar. while consumers are paying high prices. Farmers for timely disposal of their output used the intermediaries.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. 58 . profit of middlemen should be decreased. producers could not develop direct linkages with the consumers and therefore. 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. Sadly. the main broiler business was operated through three intermediaries namely: commission agents. Generally. 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. 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. town market and farm. Many farmers claimed that intermediaries did not follow business ethics and tried to fetch maximum profit from business transactions. Conclusions One of the major findings of the study was that middlemen at various levels of poultry marketing system were exploiting the poultry farmers. At town and farm level. Marketing system still remains in traditional and heterogeneous condition. which do not provide chance to producer to understand consumer¶s behavior. under counting and under weighing to deceive the farmers. About 70 per cent of producers sold their output in the main markets. producers are not getting expected prices. As a result. Government should also take initiatives to develop laws which can allow producers to sell their products directly in market (Islam. After interviewing different stake holders.

01) which revealed that for one unit increase in income (Rupees) there might be 0.009 -1. showing correct specification of the model. 59 . The coefficient of family size was 0. In the estimated demand model.418 (P<0.Demand function Income is an important variable of demand for poultry meat.653 Kg increase in demand of poultry meat.001 0.139.653 (P<0.583 (P<0.583 times decrease in demand of poultry meat in days of bird flu epidemic. The value of adjusted R2in our analysis was 0. the coefficient of age showed a positive sign with the poultry meat but it was also non-significant. Similarly. The F-value (16. 30(3): 172-174. sale price of poultry birds and bird flu are some of the important variables affecting supply of poultry birds whereas income.583 0.57) in our analysis was significant. retail price and bird flu are the important determinants of demand for poultry meat.001 Kg increase in the demand of poultry meat This is consistent with economic theory that higher income increases the demand of poultry meat.763 which means that independent variables included in the model explained 76% variation in dependent variable. The coefficient of education was 0.05) which showed that there would be 1.001 (P<0. the coefficient of income was 0. The effect of bird flu on demand of poultry meat was estimated using a dummy variable (Table 2). 2010. Variable Income Age Bird Flue Family Size Price Coefficient 0.01) showing that for every one unit increase in price 174 Pak Vet J. family size. This variable showed a positive sign with the demand of poultry meat but was non-significant. Retail price is one of the most important variables affecting demand of poultry meat. The value of this variable was -1.05) which showed that for every one unit increase in family size (one person) there might be 0. Similar findings were recorded by Rasool (1991) and Zahid (1994).653 -0. The coefficient of this variable was -0.418 Kg decrease in poultry meat. Professional experience of poultry farmers.418 (rupees/Kg) there would be 0. average production cost.

´ said Pakistan Poultry Association (PPA) Chairman Khalil Sattar at a press conference eat a local hotel. other cultural factors like marriage season usually just before Ramadan and Moharram result in an increase in demand. the levy of RGST will overburden all classes of consumers without any exception.000 per annum and the need for revenue is extremely high. many governments have exempted prepared food from the levy of VAT and sales tax. 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. 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.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. with an increase in demand during winter and same is the case of Ramadan. frozen. Even in the USA. In Pakistan we have seasonal demand. The chairman said in UK and rest of the European Union even though the per capita income is above $30.121 per month on food spends approximately Rs 135 on poultry products. Because government control is minimal and there is no set pricing strategy hence. As such. 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. processed. ³This 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. The PPA opposed the RGST on the poultry sector and 60 . whenever demand increases it directly raises prices. electricity shortfalls (forcing the use of diesel powered generators) and rising fuel price. fast food chains and hotels. ready to cook. Rs 110 on beef and only Rs 15 on mutton. fully cooked. Also. yet all food items including branded. This is mostly because of high prices of raw materials. etc are zero-rated for valueadded tax (VAT) and sales tax.

In the face of losses. he added. He said that poultry feed contributes 80 percent to the input cost. would result in defeating the government ¶s own policy of 2006 when the Ministry of Food. in the face of short supply. A 15 percent increase would undoubtedly increase the cost of grandparents. 61 . Australia. New Zealand. The experiment of levying GST in the year 1996 resulted in a sharp decline of 45 percent in poultry production. value-added chicken attracting 15 percent RGST. Thailand. he justified. 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. parent stock. the government of India. In such a case. 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. broiler and egg production operations. to provide a level-playing field. 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. chicken and eggs. increase by 100 percent from Rs 175 per kilogramme (kg) to Rs 350 per kg. Iran. he had no doubts that a large number of farms will close down and the prices of chicken meat could. chicken will be produced only for the upper class. 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. eight out of nine processing plants had closed down in the face of challenges from the unorganised street side slaughter. principles and philosophy of the GST.The chairman further emphasised that withdrawal of zero-rating on processed. which resulted in a price spiral of not only chicken and eggs but also mutton and beef. If the output is exempted the input cannot be subject to GST. which would result in a levy of 15 percent RGST. Imposition of RGST will be the final nail in the coffin. He emphasised that processing plants were an essential requirement for food safety and security. while eggs at 32 percent below the cost. The sales tax was consequently withdrawn by the government in 1997 to put the poultry sector back on its rails. 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.as such the increase cannot be passed on to the consumers at will. Bangladesh. He said that in order to keep the input cost low. branded.withdrawal of exemption/zero-rating on processed chicken. The levy of RGST on poultry feed is against all norms. China and even the very affluent countries in the EU. the government in 2008 announced zero-rating of poultry processing. He stated that poultry product prices are truly a demand and supply mechanism . Thus. and many states in the USA have either exempted or zero-rated poultry feed. which encouraged setting up of two more processing plants. He further informed that during 1976-2009.

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. 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. ³It is unfortunate that many Gulf and middle eastern countries have imposed ban on poultry products from Pakistan.´ they said. The overall demand of poultry is bifurcated into commercial and rural demand. 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. 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. This would be a great setback for the industry and would render many jobless. 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 chamber¶s offices. ³Poultry industry is the second biggest industry of Pakistan. 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. 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. 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. 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 country¶s poultry industry. and the government should handle the matter to restore the export.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. 62 . they said some mischievous people were causing panic to destroy the poultry industry. Speaking on the occasion. This has also threatened the jobs of millions of people involved with this industry directly and indirectly. The participants said they would file a case against Wapda in Nepra for declaring the electricity tariff as commercial instead of industrial. Since we currently process only 0. RCCI President Jalil Ahmed Malik presided over the meeting which was attended by office-bearers of PPA and the RCCI members. they added.5 percent of the live birds the policy of encouragement needs to be continued. Whereas. Denouncing the reports about bird flu in Pakistan. they added. contributing very high to national exchequer besides providing jobs to a huge population. Rural means demand of desi poultry.´ They said export of poultry and poultry products to Afghanistan was also stopped as the Afghan government had also banned it.

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

5 kg. In addition. and considerable support from the complementary veterinary health.13 kg.account for about 45 percent of the country's egg production.000 birds per week 64 .Andhra Pradesh. conclusions and policy discussions follow in Chapter 8. lt which ensure faster growth. Presently production of eggs is estimated to number about 37 billion. Figure 1. The industry has grown largely due to the initiative of private enterprise. poultry feed. Farmers in India have moved from rearing non-descript birds to today rearing hybrids such as is Hyaline. The value of egg and poultry production in India during 1980-2000 is illustrated in Figure 1. with a per capita consumption of 18 eggs and 0.000 tonnes. poultry equipment. good liveability. 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. minimal government intervention.balance results in Chapter 6. Transformation from a Backyard Activity to a Major Commercial Activity The poultry sector in India has undergone a paradigm shift in structure and operation. of broiler meat.000 to 50. The empirical results based on application of the model outlined in Chapter 4 are discussed in Chapter 7. Today units with fewer than 5. 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. Finally. rearing and processing.3. considerable indigenous poultry genetics capabilities. ll and in Babcock. India is one of the few countries in the world that has put into place a sustained Specific Pathogen Free (SPF) egg production project. excellent feed conversion and high profits to the rearers. Regional Variation in Poultry Development Another important aspect of poultry development in India is the significant variation in the industry across regions. Karnataka.1 illustrates egg production in India by state during 1998-99. Kerala and Tamil Nadu . This transformation has involved sizeable investments in breeding. and that of poultry meat 735.000 birds are becoming rare. Figure 1. Growing Production of Eggs and Broilers Table eggs and broiler meat are the major end products of the poultry sector in India. In earlier years broiler farms had produced on average a few hundred birds (200-500 chicks) per cycle. processed broiler meat essentially to cater to export markets and markets in the metropolitan areas of India. The four southern states . that of broilers 895 million. with a per capita consumption of 57 eggs and 0. The eastern and central regions of India account for about 20 percent of egg production. lt is Shaver. of broiler meat. and units with 5. and poultry processing sectors. hatching. 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. organized facilities have been set up over the years for the manufacture of egg powder and frozen.2 shows egg production in India by region during 1992-93.

fish or eggs have the high price elasticity of 0. Small units are probably finding themselves at a disadvantage because of high feed and transport costs. again.8 per annum in urban areas. First. In seven states. while in urban areas consumption of the meat. fish or eggs ranks second in the quantity of commodities consumed in rural areas (milk and milk products rank first). calculation of income elasticity of demand for different commodity groups shows that the commodity group that includes meat.37 eggs and 1 kg. in layer farms. its per capita consumption of these products is poor . units with a flock size of 10. contracting production.01 in rural areas and 0. integrated large-scale producers do account for a growing share of output in some regions.000 to 50. the proportion of households consuming only one of the three items . Third. meat or eggs.7 per annum in rural areas compared with 17. 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. fish.5 per annum.08 kg. per capita consumption is less than 3.24 kg. providing veterinary services. including the raising of grandparent and parent flocks. Integrators include large regional firms that incorporate all aspects of production.75 in rural areas and 0. The remaining 68 percent of households are non-vegetarians. Low Per Capita Consumption Even though India is the world's fifth largest egg producer and the eighteenth largest producer of broilers. while in rural areas this proportion increased by four percent. in urban areas. Some small units are reported to be shifting from layer to broiler production because output in broiler units can be realized in six weeks. Over time there has been a gradual shift from vegetarianism to non-vegetarianism. Fourth. Meat. of poultry meat per capita per annum.cycle are common. between 1987-88 and 1999-2000. The estimated income elasticity is 1. there is considerable variation in per capita consumption between rural and urban areas and also across the region. The change is more visible in rural areas than in urban areas. and wholesaling. While independent and relatively small-scale producers account for the bulk of production. Second. Similarly. Similarly. estimates 65 . meat or eggs . For instance. 42 percent of households are vegetarian in that they do not eat fish. in rural areas and 1. the price elasticity also follows the same order. Structure of the Poultry Industry The structure of India's poultry industry varies from region to region. rearing DOCs. and veterinary care services and the non-availability of credit. expensive vaccines. Slow Changes in Consumption Habits An analysis of consumption data originating from National Sample Survey (NSS) rounds reveals many interesting facts.fish. per capita consumption of poultry meat is 0.68 in urban areas. compounding feed.66 in urban areas. Here. Per capita consumption of eggs is only 7.increased by only one percent in urban areas.000 birds have become common. or egg commodity group ranks third.

As a result.6 in urban areas. including cold chain. 1. The value of aggregated exports was Rs. The other two income groups in rural areas have high-income elasticity . 5 billion by the year 2000. there are wild price fluctuations in the prices of poultry products. meat. At least 80 percent of employment in the poultry sector is generated directly by these farmers. The presence of so many market intermediaries harms both the producer and the 66 . 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.683 million in 1996-97. the total employment numbers in the poultry sector were not so encouraging..U.6 million who are engaged in marketing and other channels servicing the poultry sector.). Exports were expected to reach the level of Rs. pharmaceuticals. 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.S. there may be a similar number of people roughly 1. With the demand for poultry increasing and production reaching 37 billion eggs and 1 billion broilers. and the European Union (E. i. As income and employment in the crop sector started diminishing. the non-crop sector. eggs and broilers. Employment Three decades ago. this sector now employs around 1. Additionally. when egg and broiler production was 10 billion and 30 million. live birds and value-added products such as egg powder and frozen yolk. underwent a significant shift.U. these issues may assume significance in a few years because of pressures from importing countries such as those in the E.e.0. Another constraint to growth is an inefficient marketing system. The income elasticity is low for the wealthy . which includes dairy and poultry.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.6 million people. and for the very poor in urban areas. while 20 percent is engaged in feed. 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. Exports Exports of poultry products from India comprise table eggs. equipment and other services required by the poultry sector. Price elasticities are greater than unity for the very poor and the poor in rural areas. 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.5 in rural areas and 0. respectively.greater than unity.

Policy Measures The policy measures that are required to improve the poultry industry must involve: (a) improving infrastructure facilities. but will also make them available in remote areas. As the broiler industry is growing at the rate of 15 percent per annum. which will involve using GM (genetically modified) seed varieties or. the demand for maize is thus likely to increase. A third problem relates to the price availability of feed resources. 67 . will necessitate finding other sources of feed ingredients that can replace maize. Presently India grows only 11 million tonnes of maize and only 5 million tonnes are available for poultry. alternatively. as it constitutes 50 to 55 percent of broiler feed. which is not sufficient if the current growth rate of the industry is to be maintained.consumer. Maize or corn plays a major role in broiler production. (b) creating an efficient marketing channel that will help provide remunerative prices to producers (in other words. which will help not only to stabilize the price of poultry products in the domestic market. India's marketing set-up should also grow along professional lines). and (c) increasing maize production.

68 .

al. et.Source: Mehta. 1992-93 and 199798 69 . (2002) Figure 1.2 Egg Production in India by Region.

1980-2000 Source: Mehta.3 Production of Eggs and Poultry in India. et.al. (2002) Figure 1. et.Source: Mehta.al. (2002) 70 .

substandard and costly feed and inefficient marketing system.61 gram per head per day. Canada. The requirement of protein is 102.K. Grading is largely ignored in egg trade because of extra cost required for grading. Germany. poultry meat seems to offer much better prospects. motorcycle. there is a need for improving the efficiency and lowering the cost of distribution. we should give emphasis on quality and price. mutton. milk. For marketing of eggs and birds. the commission agents and retailers use various means of transportation to take produce to the market. In all stages of development.09 gram. packing and distribution system should be modernized 71 . bumpy roads and lack of modern packing techniques. Poultry farmers don't get fair returns. 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.7 gram per head per day while the available protein is 69. The main source of animal protein is beef. An economical marketing system can help the producers sell their products at reasonable prices and the consumers to buy their needs at minimum cost. following suggestions may be helpful: ‡ To curtail breakage losses. If we want to survive in post-WTO scenario. 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. Japan and U.RECOMMENDATION FOR THE POULTRY INDUSTRY OF PAKISTAN The human diet in Pakistan is deficient with respect to proteins of animal origin.S. The gap in requirement of protein is 33.. France. In developing countries like Pakistan where the population is growing at a faster rate. To overcome the animal protein gap. Transportation is the most important component of marketing system. the gap in production of food especially of animal origin is widening year after year. To improve the present marketing system of poultry. osses occur in case of death of birds due to diseases and poor handling. they can earn more profit out of their business. Poultry farmers should do their job both as producer as well as commission agents. wagons and donkey carts are being used for transportation. At present 66 per cent of the people are deficient in protein. So. The animal protein shortage seems still more grave especially when it is compared with the protein intake of various developed countries like U.. In economic sense. where consumption of protein is 79-95 gram per capita per day of which 46-65 gram is protein of vegetable origin. The higher losses during transportation are due to longer distance.A. transportation means the moving of goods from surplus production areas to deficient areas. In a competitive environment only those products will be accepted by consumers which are of good quality and are also available at reasonable price. Bicycle. poultry meat and eggs. The poultry industry faces problems like the incidence of diseases.

‡ 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

72

BIBLIOGRAPHY
y National Bank of Pakistan¶s 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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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/
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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
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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:
75

1. 4. Operations (production): production process. Administrative infrastructure management: Human resource management: Technology (R&D): Procurement: Identifying the key players of the industry/related industries . Along the value chain Levels of Value Chain Players Estimated final product contributions Margins* (%age) 76 . how do you facilitate the growing process of the chicks? 3. 3. Marketing and sales (demand): The "support activities" include: 1. Outbound logistics: 4.Our focus: Poultry Farming Other players of the industry. Inbound logistics: for example if movement of eggs and chicks when they are immature 2. 2.

Environmental factors 77 .Suppliers In-Bound Logistics Operations Middle Men (Levels) Seller Eg. Political factors: in respect to the current political environment of the country what are the implications specific to the poultry industry? 2. Social factors : 6. PESTLE ANALYSIS 1. 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. Technological factors: Has any technological advancements played any role in the performance of the industry 4. We would like you to tell us about the following factors relating to the industry.. 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. 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.

Firm strategy.To get the information about the business/operational environment WITHIN the industry SECTION-III 1.Do the supporting industries of the poultry sector provide cost-effective inputs. Factor conditions (human. Related and supporting industries (Industries that can produce inputs which are important for innovation and internationalization). 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. How do you think have you utilized these resources at your poultry farm? 2. then do you personally feel that it creates pressure to innovate in the sector? 78 . structure and rivalry (The way in which companies are created. which participate in the upgrading process? 4. capital and infrastructure resources.) Specialized resources are often specific for an industry and important for its competitiveness. set goals and are managed is important for success) Is the presence of intense rivalry in the home base present? If yes. knowledge. physical.

(Opportunities) do u find some external chances to make greater sales or profits in the environment. (Weaknesses) what are the characteristics that place your poultry farm at a disadvantage relative to others. How do you capitalize on them? 4. (Strengths) can u state some specific characteristics of your particular business that gives you an advantage over others in the industry.SWOT ANALYSIS OF THE POULTRY FARM SWOT analysis is a strategic planning method used to evaluate the Strengths. and Threats involved in a project or in a business venture. Weaknesses. (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 79 . 2. 3. 1. Opportunities.

These important poultry breeds of fowls are cross bred with each other to produce.8% Number of Poultry Farms is 28. 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.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. leghorn.5 million Chicken Meat Production in Pakistan is 707(µ000) Tones out of Asia s 28691.1(µ000) Tones.000 Number of Poultry feed mills is 141 Number of Hatcheries is 285 (as per 2008) Current investment in Poultry Sector is Rs.8% Contribution in total meat production is 23. which are highly productive and are more adaptive to the local conditions. light Sussex. There are also some local breeds.696 Kg Share in GDP is 1.200 Billion Directly or indirectly employed people are 1.1% Share in agriculture GDP is 4. 80 . Rhodes Island red are also hatched successfully in the country at desired traits.

81 .