Wednesday, December 25, 2024

Pakistan’s Meat Sector :Record $512 Million Meat Exports for FY24 Despite Falling Prices

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In FY24, meat and its products exports hit a record $512 million, marking a 20% increase from the previous year’s $426 million.

This growth was driven by a 24% rise in export volume, reaching 123,515 tonnes compared to 99,892 tonnes last fiscal year. Strong international demand and competitive pricing following a significant rupee devaluation contributed to this rise.

Despite the increase in export value, the average international meat price fell by 3% to $4.10 per kg in FY24 from $4.30 per kg the previous year. The UAE played a key role in this price reduction, with export values to the region decreasing by about 2%, while prices in other markets remained relatively stable.

The UAE continued to be the largest market for Pakistani meat, representing 39% of total exports valued at $200 million. Although meat prices in the UAE dropped by an estimated 2%, overall exports to the region grew by 4% in dollar terms.

Saudi Arabia emerged as the second-largest market, accounting for 28% of total exports. Exports to Saudi Arabia surged by 66% year-on-year to $142 million in FY24, driven by high demand and favorable pricing.

However, Kuwait and Qatar, which together account for about 17% of Pakistan’s meat export market, saw declines in export values. Exports to Kuwait decreased by 13% to $49 million, and exports to Qatar fell by 2% to $38 million.

New markets like Vietnam, Kazakhstan, and Kyrgyzstan have emerged over the past few years.

A significant concern for meat exporters this fiscal year is the shift from the fixed tax regime (FTR) to the standard tax regime, which may affect export volumes.

In the last three months, Pakistani exporters renegotiated long-term contracts with Middle Eastern buyers, leading to a 20-25% increase in export prices to manage rising meat costs.

Locally, higher meat prices are linked to increased exports and the smuggling of animals to Afghanistan. According to the Sensitive Price Indicator (SPI), the national average price of beef with bone (average quality) rose to Rs700-1,250 per kg during FY24, up from Rs600-1,050. Mutton (average quality) prices increased to Rs1,500-2,300 per kg from Rs1,400-2,000.


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