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AN OVERVIEW OF THE PAKISTAN POULTRY SECTOR

Technical Report · January 2009

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 SSI Discussion Paper No. 04-09

SOCIAL SCIENCES
INSTITUTE

AN OVERVIEW OF THE PAKISTAN

POULTRY SECTOR
SERIES

Rubina Bano
Hassnain Shah
PAPER

Muhammad Sharif
Waqar Akhtar
WORKING
SSI

National Agricultural Research Centre

Pakistan Agricultural Research Council, Islamabad

December, 2009

0
 TABLE OF CONTENTS

1. INTRODUCTION 1
1.1.History

2. LIVESTOCK IN PAKISTAN PROVINCE WISE 2

2.1. Livestock Inventory

3. POULTRY SUB SECTOR 4

3.1.Livestock and poultry production
3.2.Overtime increase in poultry meat production (000 tonnes)
3.3.Domestic and commercial poulry
3.4.Veterinary hospitals, dispensaries and centers, the Punjab
3.5.Pakistan poultry meat consumption
3.6.Overtime increase in broiler meat consumption

4. POULTRY PRODUCTION STATUS IN PRIVATE/ GOVERNMENT

SECTOR IN PUNJAB. 9
4.1. Investment in poultry sector, Punjab.
4.2. Capacity to Produce/Maintain Birds
4.3. Poultry Products Produced in Punjab province.
4.4. Performance of government poultry farms, the Punjab
4.5. Pvt sector organizations, business, poultry/broiler farming, poultry
associations in pakistan
4.6. government poultry farms

5. MARKETING 12
5.1. Fluctuations in prices.
5.2. Small scale producers
5.3. More efficient users of inputs
5.4.Commission agents/wholesalers
5.5.Tool for poverty alleviation
5.6.Profitability
5.7.Transportation costs
5.8.Transaction costs.

6. ADVANTAGES OF POULTRY INDUSTRIES 16

7. CHALLENGES 16

8. DEVELOPMENT PROJECTS AND INCENTIVES. 17

8.1.National Programs for the Control and Preservation of Avian
Influenza”
8.2.Credit

i
 8.3.Sada Bahar Scheme/Revolving Finance Scheme:
8.4.Livestock Development Policy and Poultry Development Policy
8.5.Reduce Input Costs in Poultry Production

9. VALUE CHAIN DEVELOPMENT 19

9.1. Poultry-meat supply chains
9.2. Vertical Integration
9.3. World raking in poultry meat production
9.31. Brazil Poultry meat production
9.32. Poultry export status in Pakistan

10. CONTROL AND MANAGEMENT 22

10.1. Compartmentization
10.2. Extension services
10.3. Private sector involvement
10.4. Involvement of public sector
10.5. Educate farmers.
11. CONCLUSION 23

12. REFERENCES 24

ii
1. INTRODUCTION

More than two-third’s of Pakistan’s population lives in rural areas and their
livelihood continues to revolve around agriculture and allied activities .The share of
agriculture in GDP accounted for 24.1 percent in 2001-02 but subsequently has
declined to 20.9 percent in 2007-08 and provides employment to the 44 percent of the
country’s labor force. With in agriculture sector livestock activities accounted for
about 52.2 percent of the total value of agricultural output and about 11 percent of the
GDP in the country It is a source of livelihood for 30 – 35 million people in rural
areas. (GOP, 2008). Livestock is an insurance against harvest failures and a source of
easily cashable investment capital. (Wasim, 2007).

Pakistan has a vibrant poultry sector, with more than half a billion birds produced
annually (GOP, 2006). Poultry production in Pakistan is an important part of agro
industry and plays its role in food security of the country .Commercial poultry
production has bridged the gap between supply and demand of animal protein. It has
kept a check on prices of mutton and meat. Poultry is the cheapest available meat
protein for our masses and is the second largest industry having 200 billion investment.
It is producing and supplying in the market 10712 million table eggs 601,000 tons of
poultry meat and at present contributes 19 percent of total meat consumption. (GOP,
2008). Consumers increasingly prefer poultry meat to bovine and ovine meat. The
dominance of the village chicken in the poultry population is crucial as it provides a
basis for enhancing food security and nutrition and supporting livelihoods and poverty
reduction. In the very deprived regions, there is the highest concentration of village
chickens. (Aning, 2006)

About one-third of the livestock researchers focused on poultry research. Other

livestock research areas were dairy (20 percent) and beef, sheep, and goats (11 percent
each). Noteworthy is that most of the livestock research is conducted at the provincial
level. Close to three-quarters of the livestock researchers worked at the provincial
government level, mostly in the Punjab. Also note worthy is the 1 percent share of
poultry research for the livestock researchers at the federal government agencies; these
researchers spent relatively more time on beef and dairy research (23 and 33 percent,
respectively). (IFPRI, 2004-06). The average consumption of animal protein is a
meager 17g as against the recommended daily requirement of 28g. This shortage of
protein can well be managed with increase in the production of poultry meat at a
reasonable cost. It is highly labour intensive and if proper attention is given to this
sector, it will not only absorb more rural workforce but also help alleviate rural poverty
in Pakistan (Alam and Khan, 2000). The poultry industry has tremendous potential.
However, the industry is characterized by small and unorganized operators. Lack of
disease control, financial commitment and technology are the major problems facing
the industry today.

1.1. HISTORY

1
Commercial poultry farming started in Pakistan in 1963 with the introduction of hybrid
strains of broilers and layers from abroad, and has become an industry with a total
investment of 200 billion rupees in 2008. (GOP, 2008). Commercial poultry farming in
Pakistan began in sixties in the shape of chicks of M/S Shavers of Canada with local
partners PIA and poultry feed from Lever Brothers. Rapid growth started in seventies
.The poultry sector has had government support in various forms in its initial years.
Poultry farming, poultry processing and poultry feed were recognized by the
government as agro based food processing industry, and given incentives / concession
like total or partial exemption from import duties / sales tax and income tax holiday for
number of years. The private sector made substantial investment in commercial poultry
production. As a result production in early seventies grew in the range of 20 to 30%
per annum and in eighties the annual growth rate was between 10 to 15% (Ahmed and
Hasan, 2005).

There have been black periods also in the history of poultry sector due to changes in
government policies, and natural causes. For example in year 1996-97 the government
imposed sales tax on poultry feed, the impact of which was severe one. Feed
constitutes major components of cost of production of chicken meat and eggs. The
steep rise in the price of feed due to imposition of sales tax forced farmers to sell their
products at prices below their cost of production. The government withdrew the sales
tax on protest after much harm had been done to the industry. Yet another unhappy
experience was imposition of ban by government on service of food in marriage parties
due to which demand for poultry meat fell drastically. The natural causes like
mysterious diseases took a heavy toll on some occasions. Despite these set-backs the
poultry sector of Pakistan has made a great progress (Sadiq, 2003).Today it constitutes
a large segment of national economy with investment of 200 billion rupees. The sector
consists of 30.57 million domestic chicken and 98.45 tons of domestic poultry meat
Commercial poultry comprised of 26.56 million layers, 407.7 million broilers and 7.61
million breeding stock (MINFAL, 2008).In the province of Punjab this sector consists
of 123 hatcheries, 119 feed mills, and more than 3260 layer, 19091 broilers, 337
breeder farms. (PRI, 2008).
2. LIVESTOCK IN PAKISTAN PROVINCE WISE
Pakistan has a large livestock population, well adapted to local conditions, and some of
the best tropical breeds. According to livestock census 2006, the buffalo population
increased by 17747, cattle by 14412 , sheep by 6362, goats by 19831, camels by 199
and poultry by 25906 in the province of Punjab. Sindh has about 19% poultry and
Baluchistan has 9% poultry while Punjab and NWFP have 38% and 35% of poultry
respectively.

2
Table 2.1. Livestock population (in thousands) in the provinces of Pak.2006.
Species Punjab Sindh North West Baluchistan Total
Frontier
Goat 19831 12572 9599 11785 53787
(37) (23) (18) (22)
Sheep 6362 3959 3363 12804 26488
(24) (15) (13) (43)
Buffalo 17747 7340 1928 320 27335
(65) (27) (7) (1)
Cattle 14412 6925 5968 2254 29559
(49) (23) (20) (8)
Camel 199 278 64 380 921
(22) (30) (7) (41)
Poultry 25906 1416 27695 5911 73648
(35) (19) (38) (8)
Livestock census, 2006.Figures in parenthesis are percentages.
LIVESTOCK INVENTORY
The share of livestock in agriculture growth agriculture growth has increased from
25.3% in 1996 to 52.2% in 2008.Poultry sector faced a tough challenge on account of
Avian Influenza (AI) outbreak in the country. .(Economic survey 2007-08).The
population of poultry in Punjab decreased from 27848 in 1986 to 24952 in 1996
while in 2006 the population of poultry again increased to 25906.The livestock
inventory from 1986 to 2006 is given below.
Table 2.2. Number of Livestock, the Punjab (Thousands)
S/No Type 1986 1990 1996 2000 2006
1 Cattle 8818 7665 9382 8584 14412
2 Buffaloes 11150 10863 13101 13170 17747
3 Sheep 6685 8218 6142 4119 6362
4 Goats 10755 13809 15301 13686 19831
5 Poultry 27848 (a) 24952 * (a) 25906
6 Camels 321 283 187 143 199
7 Horses 245 179 181 158 163
8 Mules 36 33 57 42 63
9 Donkeys 1657 1456 1948 1706 2232

Source: - 1990 and 2000 Censuses of Agriculture and 1986, 1996 and 2006 Censuses of
Livestock. Agriculture Census Organization, Statistics Division, Govt. of Pakistan,
Lahore

a) The data on Poultry Birds was not collected.

* Domestic/Commercial poultry excluded.

3
3. POULTRY SUB SECTOR

3.1. LIVESTOCK AND POULTRY PRODUCTION

Poultry meat carries an advantage over red meat (beef and mutton) in having less
percentage of fat than either beef or mutton, and is therefore, termed as non fattening
and good dietary source for he prevention of hardening of arteries-There is an annual
production of 1,549 million tones of beef, 578 million of mutton and 601 million of
poultry meat according to economic survey 2007-08. Poultry meat production has been
increased from 512 thousand tones in 2005-06 to 601 thousand tones in 2007-08 and it
has registered a significant increase of 8.48 percent in 2007-08 over 2006-07. The
comparative status of production of beef, mutton and poultry meat for last three years
is given below.

Table 3.1. Meat production (000 tones)

Items 2005-06 2006-07 2007-08 % change % change
between 2005- between 2006-07
06 and 2006-07 and 2007-08
Beef 1,449 1,498 1,549 3.38 3.12
Mutton 554 566 578 2.16 2.12
Poultry
meat 512 554 601 8.20 8.48

Source: Pakistan Economic Survey 2007-2008

3.2. Overtime Increase in Poultry Meat Production (000 Tonnes)

Mutton consumption has reduced by more than 10% during the last 10 years .During
1990-91, 151,000 tones of poultry meat and 4490 million eggs were produced. An
increase in commercial poultry farms results in increase in production outputs. In
2007-08 production of poultry meat and table eggs 601,000 tones of and 10712 million
were produced. Total Poultry Production has increased from 151 thousand tones in
1990-91 to 601 thousand tones in 2007-08 showing a growth rate of 377 %(Table 1.4)
Meat production trends

Source: Agricultural Statistics of Pakistan 2005-2006

4
Table 3.2. Meat production (000 tones)
Fiscal Year Beef Mutton Poultry Meat Eggs
(Mln. Nos.)
1990-91 765 665 151 4,490
1991-92 803 713 169 4,914
1992-93 844 763 265 5,164
1993-94 887 817 296 5,740
1994-95 931 875 308 5,927
1995-96 898 587 355 5,757
1996-97 919 602 387 6,015
1997-98 940 617 284 5,737
1998-99 963 633 310 8,261
1999-00 986 649 322 7,321
2000-01 1,010 666 339 7,505
2001-02 1,034 683 355 7,679
2002-03 1,060 702 370 7,860
2003-04 1,087 720 378 8,102
2004-05 1,115 739 384 8,529
2005-06 1,449 554 512 9,712
2006-07 1,498 566 554 10,197
2007-08 1,549 554 601 10,712
G.rate(%)1990-
91 to 2006-07 184.6306 80.25056 134.9703 214.1309
G.rate(%)1990-
91 to
2007-08 191.5413 78.80625 376.5044 225.6819
Source: Livestock division.

3.3. Domestic and Commercial Poultry

There are two distinct production systems.

3.31. The traditional rural system
3.32. Commercial poultry production.
3.31. The traditional rural system, where almost all rural and about 20% of urban
households keep flocks of between 5 and 10 birds, with a cock. These birds are
scavengers, living on crop residues and kitchen waste, and are confined to the house at
night. Common breeds are Desi, Lyallpur Silver Black, Aseel, Fayoumi, Rhode Island
Red and crosses. Cockerels and old hens are eventually eaten or sold. Raising poultry
is traditionally women’s work, which not only provides eggs and meat for family
consumption but also meat for guests.
3.32. Commercial poultry production, which started in 1963 to supply the Karachi
market and now, has an investment of over 23 billion rupees. The average size of a
layer flock is 2500 and a broiler flock 2200 birds. Concrete and brick houses are used,
often with cooling during summer in hotter areas. Both broilers and layers are reared
on a deep litter of rice husk or sawdust. About 10% of farmers use battery cages for

5
layers. Broiler farms raise between four and six batches per year. Day-old chicks are
purchased and reared for five to seven weeks for sale at 1.25 to 1.5 kg live weight.
Layers start egg production at 20 weeks and are usually kept for a further 45 weeks.
Commercial poultry feed is usually purchased, although some farmers use home-mixed
feed.

According to Economic Survey 2007-2008 there is a total production of 75.11 million

domestic poultry and commercial poultry comprised of 26.56 million layers, 407.7
million broilers, 425.96 million day old chicks and 736 million eggs. Annual total day
old chicks production jumped from 387.2 million in 2006-07 to 425.95 2007-08
million with an increase of 10 percent and poultry bird production increased from 477
million in 2006-07 to 518 million in 2007-08 with an increase of 8.48 percent. (Table
1.5)
Table 3.3. Domestic and Commercial Poultry
Type
% change % change
between between
2005-06 2006-07
to 2006- to 2007-
UNITS 2005-06 2006-07 2007-08 07 08
Domestic Millions
poultry No's 72.95 74.02 75.11 1.46 1.47
Cocks " 8.61 8.84 9.08 2.67 2.71
Hens " 34.23 34.84 35.47 1.782 1.808
Chicken " 30.12 30.34 30.57 0.73 0.75
Eggs " 3423 3484 3547 1.78 1.8
Meat 000 Tons 94.67 96.54 98.45 1.98 1.98
Duck, Drake Millions
& Ducking No's 0.7 0.67 0.67 4.48 0
Eggs ": 31.14 29.85 29.85 4.14 0
Meat 000 Tons 0.95 0.91 0.91 4.2 0
Commercial
poultry
Layers Millions
No's 23.2O 24.82 26.56 6.98 7.01
Broilers " 337 370.7 407.77 10 10
Breeding
Stock " 6.9 7.25 7.61 5.07 4.97
Day old chicks " 352 387.2 425.92 10 10
Eggs " 6258 6682 7136 6.78 6.79
Meat 000 Tons 416.55 456.95 501.3 9.69 9.7
Total poultry
Day old chicks Millions
No's 352 387.2 425.92 10 10
Poultry Birds " 441 477 518 8.16 8.58
Eggs " 9712 10197 10712 4.99 5.05
Poultry Meat 000 Tons 512 554 601 8.2 8.48
Source: MINFAL (Livestock Wing (2008))

6
3.4. Veterinary Hospitals, Dispensaries and Centers, the Punjab
In the province of Punjab the numbers of veterinary Hospitals have been
increased from 511 in 1997-98 to 537 in 2006-08.Siumilarly the number of
veterinary dispensaries and Veterinary Centers have been increased from 747 and
1994 in 1997-98 to 1017 and 1931 in 2006-07 respectively as shown in the table
below.

Table 3.4. Veterinary Hospitals, Dispensaries and Centers, the Punjab

Veterinary Veterinary
Year Hospitals Dispensaries Veterinary Centers
1997-98 511 747 1994
1998-99 511 745 1996
1999-00 511 745 1996
2000-01 545 725 1964
2001-02 540 731 1991
2002-03 541 740 1892
2003-04 541 740 1892
2004-05 518 755 2024
2005-06 527 775 1998
2006-07 537 1017 1931
Source: Directorate of Livestock and Dairy Development (Ext.) Punjab, Lahore.
Directorate of Livestock and Dairy Development, Barani Areas (PVTI) Rawalpindi.

3.5. Pakistan Poultry Meat Consumption

Our meat resources like buffaloes, cows, goats and sheep are depleting. Mutton prices
are increasing which will in turn boost up chicken consumption. Beef / mutton
produced from animal of different age groups and health status is inferior to poultry
meat, which is produced from broilers of uniform quality and of international
standards. More over poultry sector is capable of maintaining a sustained supply of
poultry meat and chicken, there is obvious potential for expansion in Pakistan.
According to HIES 2004-05 the per capita monthly consumption of chicken meat was
0.23 while mutton and beef consumption was 0.07 and 0.33 respectively in Pakistan.

Table 3.5. Per capita monthly consumption of meat

Items rural urban all

chicken meat 0.18 0.32 0.23

eggs 2.02 3.53 2.5

mutton 0.05 0.13 0.07

beef 0.3 0.39 0.33

fish 0.05 0.08 0.06

Source: Household Integrated Economic Survey 2004-05 by FBS, Islamabad

7
3.6. Overtime Increase in Broiler Meat Consumption

According to FAO estimates in 2003 the total Pakistan poultry meat consumption
quantity was 377170 tones and 2 Kg per capita per year as compare to 72759954 tones
and 11 kg per capita per year world poultry meat consumption. As we all know the
present per capita income in Pakistan is very low, so is the consumption of poultry
products.
Table 3.6. Pakistan Poultry Meat Consumption compared with world (Tones/Kg)

(Pakistan) (World)poultry (World)poultry

(Pakistan) poultry poultry consumption consumption
consumption consumption quantity quantity
Year quantity(Tonnes) (kg/capita/yr) (Tonnes) (kg/capita/yr)
1996 359701 2 53385216 9

1997 391680 2 54683776 9

1998 288688 2 58179343 10
1999 314770 2 60572186 10
2000 326966 2 63594573 11
2001 343948 2 67305746 11
2002 359811 2 69862606 11
2003 377170 2 72759954 11
Source: FAO Statistics 2008

Growth in poultry and egg output is expected to remain strong, with their share
gradually increasing in total output of livestock products in China. China has moved to
the second place behind the United States in total output of poultry meat. China’s
policy is geared towards self-sufficiency in poultry products, due to the high internal
demand. However, trade in poultry products has been increased in the last decade.
South Asia. Countries such as Pakistan, Bangladesh, Nepal, and Sri Lanka are
predominantly consumers of milk rather than meat. Pakistan as a predominantly
Muslim country has comparatively high, and rising, levels of meat consumption, with
ruminants playing a larger role. Bangladesh, Nepal and Sri Lanka are more similar to
India in their production structure, importance of dairying and with poultry as a rapidly
emerging business. Bangladesh has notable developments in terms of cooperative
structures in the poultry sectors. (FAO, 2005).

8
4. POULTRY PRODUCTION STATUS IN PRIVATE SECTOR IN PUNJAB.

The average consumption of the animal protein is about 17 grams as against the daily
requirements recommended of 28 grams. This deficiency can be met with the increase
of production of poultry meat at a reasonable cost.

4.1. Scope of Investment

At present there are about 22688 poultry farms in the province with an investment of Rs.
28500 million .There are 119 feed mills whih produced 2.17 million ton poultry feed.

Table 4.1. Investment in poultry sector, Punjab.

SR.
NO. PARTICULARS UNIT 2007-2008
1 2 3 4
1 Rs. In
Investment In Poultry Farming Sector Mill 28500
2 Hatcheries:
Number Number 123
Capacity to produce day-old Chicks Million 406.22
Day-old chicks produced Million 389.92
3 Feed mills:
Number Number 119
Capacity to produce feed per annum Mill. Ton 7.6
Poultry Feed Produced Mill. Ton 2.17
4 Poultry Farms
Layer Number 3260
Broiler Number 19091
Breeder Number 337
Total Number 22688
Source: PRI, Rawalpindi 2008.

4.2. Capacity to Produce/Maintain Birds

There is a capacity to produce 491.04 Million broiler birds ,20.8 million layer birds and
5.53 million breeding stock while 329 Million broiler birds ,16.61 million layer birds
and 4.85 breeding stock are actually being produced. The share of rural poultry is
33.86 million birds.

9
Table 4.2. Capacity to Produce/Maintain Birds
1 CAPACITY TO PRODUCE/MAINTAIN 2007-
BIRDS UNIT 2008
Layer Million 20.8
Broiler Million 491.04
Breeding stock Million 5.53
2 BIRDS PRODUCED/MAINTAINED
Layer Million 16.61
Broiler Million 329.11
Breeding stock Million 4.85
3 RURAL POULTRY POPULATON Million 33.86
Source: PRI, Rawalpindi 2008.

4.3. Poultry Products Produced in Punjab province.

According to PRI estimates, 391797 million metric ton poultry meat and 5434 million
eggs are produced in Punjab province. The share of broiler in poultry meat is 329108
million metric ton poultry while the share of culled birds and desi is 21463 and 41226
million tons respectively.

Table 4.3. Poultry Products Produced in Punjab province.

PARTICULARS UNIT 2007-2008
1) Eggs
Farm Million 3986
Desi Million 1448
Total Million 5434
2)Poultry Meat
Broiler Metric Ton 329108
Culled(Layer & Breeder) Metric Ton 21463
Desi Metric Ton 41226
Total Metric Ton 391797
Per Capita Availability Of Poultry
Products
Eggs Number 60.87
Poultry meat Kg. 4.39
Source: PRI, Rawalpindi 2008.

4.4. Performance of Government Poultry Farms, The Punjab

The number of Government poultry farms remain same from 2002-2007 while the
number of birds maintained increased from 706 thousand in 2002-2003 to 797
thousand in 2006-2007.the number of day old chicks also increased from 555 thousand

10
in 2002-03 to 592 thousand in 2006-07. The performance of Government farms in
Punjab is shown below.

Table 4.4. Performance of Government Punjab Poultry Farms

2002- 2003- 2004- 2005- 2006-
Particulars Unit 03 04 05 06 07
Govt. Poultry Farms
in operation (Number) 10 10 10 10 10
Total Birds (Thousand
Maintained Nos.) 706 740 681 891 797
Birds Sold For
Breeding " 539 543 495 635 539
Birds Sold For Table " 42 55 61 106 75
Eggs Produced " 3158 3508 4537 2811 3628
Eggs Sold " 2230 2627 3644 1829 2686
Eggs Set in
Incubators " 937 868 896 1022 934
Day old chicks
produced " 555 508 503 650 592
Number of Birds in
Lay produced per
month " 19 21 26 17 21
Hatchability " 59.23 58.53 56.14 63.6 63.38
Source: PRI, Rawalpindi 2008.

4.5. Pvt Sector Organizations—Business, Poultry/Broiler Farming, Poultry

Associations in Pakistan
From 1990 onward, growth in poultry sector was on tremendous scale despite few
setbacks but it is pertinent to mention that during this period balance of growth greatly
titled in favor of Punjab region. Hi Tech group, National group, Olympia group are
very famous and became poultry industry giants, closely followed by SB group, Asia
feed group and Islamabad group. Although Hi Tech group has split into two groups
recently, Hi Tech and Shehzor but Hi Tech Feed Mill at Rawalpindi still has the
distinction to be the largest feed mill in Pakistan. The names and locations of poultry
hatcheries and breeding farms is given below.

 Arbor Acres Pakistan Ltd(Lahore)

 Qadria Poultry Breeders(Lahore)
 Euribrid Nurgha Valley Poultry Breeding House(Rawalpindi)
 Karachi Farmers(Karachi)
 Marakash Poultry Breeders(Karachi)
 Al-Madina Breeders(Karachi)
 Sieghal Poultry Farms(Karachi)

11
  Best Birds(Lyallpur)
 K $ N’s Poultry Breeding Farms(Karachi)
 Golden Breeders(Karachi)
 M.A. Farms(Karachi)
 Star bro (Karachi)
 Hi-tech(Lahore)
 Big Bird(Lahore)
 Olympic Chicks(Lahore)
 Sadiq Brothers(Islamabad)
 Islamabad Poultry and Breeding(Islamabad)

GOVERNMENT POULTRY FARMS

 Government Poultry Farm, Mianwali
 Government Poultry Farm, Bahawalpur
 Government Poultry Farm, D.G.Khan
 Government Poultry Farm, Multan
 Government Poultry Farm, Bahawalnagar
 Government Poultry Farm, Attock
 Government Poultry Farm, Dina
 Government Poultry Farm, Gujrat
 Government Poultry Farm, Sargodha

5. MARKETING
5.1. Marketing Channels
There are two methods.

5.11. Direct method:

In Pakistan, poultry is sold through wet markets in cities and villages. Birds are selected
live by the consumer at the retail shop and slaughtered and dressed by the retailer. Only
a small percentage of commercial broilers are commercially processed, mainly for
hotels. Broilers and eggs are produced on the farms, which are generally close to the
urban areas and conveyed by dealers to wholesale markets in major cities. An additional
layer of dealers purchase and distribute eggs and live broilers to shopkeepers in cities
and adjoining areas. The sales chain, involving middlemen, wholesale markets and
dealers, working for distribution of chicken and eggs, gets approximately 10% of the
retail price.

5.12. Marketing through intermediary

The marketing channels of poultry include producers (Breeder farms, Broilers farms,
Layer Farms), wholesaler and commission agents, poultry shops and consumers. Birds
are mostly sold on live-weight basis. There are only few processing plants in the country
they distribute frozen chicken as whole or cut-ups to the consumers through retail shops.

12
5.12.a) Producers
Breeder farms sell day old chicks to broiler farms. After rearing the birds broiler farms
sell their finished birds to the wholesalers who normally operate at wholesale markets
and decide the price structure. Most of them are also commission agents and supply the
product to poultry shops.

5.12.b) Wholesalers and Commission Agents

Wholesalers majority of whom are also commission agents operate at wholesale markets
where they have holding and weighing facilities. Since the product is in living form, its
detention at wholesale level cannot be afforded and therefore marketing process is
accomplished upto noon

5.12.c) Poultry Shops

Poultry shops are almost scattered throughout the cities, towns and even villages for
retail selling of birds to their customers in any quantity and number. The consumers
mostly take the bird in dressed form for consumption. Though marketing is normally
carried out on live weight basis at predetermined prices, poultry meat is also sold on
weight basis. The Poultry shop owners maintain poultry cages with facilities of feeding
and watering for the stock being maintained and left overs.
5.12.d) Consumers
Non-graded meat is sold by the poultry shops where poor hygienic conditions do exist.
The Government regulates consumer prices of essential commodities, one of which is
meat, but does not guarantee minimum meat quality standards.

5.2. Mode of Transportation

While there is a potential to cause considerable stress to breeders during catching and
transport, their high value tends to ensure the breeding companies take great care to plan
and control the movement of birds from rearing to laying accommodation. By contrast,
this incentive is less with birds at the end-of-lay and particular attention should be paid
to ensure that no reduction in standards is allowed.Salary Per

5.3. Fluctuations in prices.

There are fluctuations in sale rates of poultry products in Pakistan. According to the
PRI estimates the monthly price for live chicken in June 2008 was 68.4 PL and 73.3
CL while for dressed chicken the price for June 2008 was 101.83 and prices of the
chicken meat may cross Rs 200 per kg prior to Eid-ul-Fitr.According to Pakistan
Poultry Association recent estimates all chick rates surged by Rs 18 to Rs 19 per piece
compared to previous rates of Rs 12 to Rs 13, while chicken feed prices have almost
doubled during the last few months from previous rates of Rs 700 per 50 kg bag to
current price of Rs 1400 per 50 kg bag. The demand and supply mechanism,
fluctuation in the rates of day-old chicks and the skyrocketing prices of poultry feed
are the main reasons for fluctuation in prices of poultry products. Feed accounts for
more than 70 per cent production cost for poultry comes from feed prices. Poultry feed
prices have gone up by 22 per cent in 2007-2008.

13
Table 5.3. Average sale rates of poultry products in Punjab. PRI: Rawalpindi.
1 2 3 4
MONTH LIVE DRESSED
PL CL CL
JULY, 2006 74.25 79.25 113
AUGUST, 2006 82.25 87.75 124.75
SEP, 2006 71.5 77.25 113.75
OCT, 2006 67.25 72 109.5
NOV, 2006 57 61.5 99.75
DEC,2006 47.5 52 86
JANUARY, 2007 52.5O 57.38 90.5
FEBUARY, 2007 69.5 73.75 105.75
MARCH,2007 68.5 73.5 105.5
APRIL,2007 71.25 76.25 106.75
MAY,2007 56.5 63.25 92.75
JUNE, 2007 59.25 63.75 93.5
JULY, 2007 60.23 65.1 94.75
AUG, 2007 79.87 84.6 117.5
SEP, 2007 79.75 84.5 117.36
OCT, 2007 84.63 90 125
NOV, 2007 66.37 71.53 99.35
DEC, 2007 63.71 68.84 95.61
JANUARY, 2008 69.19 74.35 103.27
FEBUARY, 2008 65.5 70.52 97.95
MARCH,2008 84.86 89.89 124.78
APRIL,2008 96.53 101.53 141.03
MAY, 2008 73.3 78.06 108.44
JUNE, 2008 68.4 73.3 101.83
SOURCE: PRI, RAWALPINDI.

5.4. Small scale producers

Agricultural production is dominated by small scale producers. When prices are
depressed due to poor market conditions they create disincentives for these producers
to continue investing their meager resources and time in their respective agricultural
productive activities. There is therefore need for intervention to address the market
challenges in order to keep these producers in their engagements (Aryeetey and
Nyanteng, 2006).

5.5. More efficient users of inputs

Theoretically, in a competitive market environment, more efficient users of inputs
eventually drive less efficient ones out of the market. In general, smallholders need to
be more efficient in the use of inputs and make higher profits per unit of output to
survive and earn a living due to low volume of business. Larger producers may survive

14
with low unit profit because of larger volume of business; in fact such producers may
deliberately push unit profit to low levels to squeeze out smaller producers from
market (Delgado, 2004).

5.6. Commission agents/wholesalers

Commission agents or wholesalers are the major player in deciding the price at the
retailer’s level. Reasons of non-remunerative price to producers are: a) Missing direct
linkages between producers and consumers, which do not provide chance to producer
to understand consumer’s behavior, and b) Lack of investment to develop
infrastructure. 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.
Government should also take initiatives to develop laws which can allow producers to
sell their products directly in market (Islam, 2003).

5.7. Tool for poverty alleviation

Adequate and systematic impact studies are required to assess the actual beneficiaries
reached by various projects, the impacts made (where, how, why), the indicators of
success or failure, types of investments and support services required to make such
models sustainable and viable. Such knowledge is essential to guide policy and
investment strategies for extensive use of smallholder poultry as a tool for poverty
alleviation (Islam and Jabbar, 2003)

5.8. Profitability
Cost of production and net profit per broiler determine the fate of broiler productivity.
Both are influenced by numerous factors, like market age, mortality, flock size, shed
utilization and hygienic conditions of the farm.Higher market age and smaller flock
size would narrow the margin between total gross income and net profit per broiler.
Park and Joeng (1990) and Holsheimer and Veerkamp (1992) reported better overall
performance of broilers marketed at the age of 6 weeks than at the age of 5th and 7th
through 9th week. Mortality plays an important role in determining overall profitability
of a flock. An increase in mortality from 2.5 to 10% reduced net profit per broiler
(Kitsopanidis and Manos 1991).

5.9. Transportation costs

The majority of losses occur as a result of birds dying of diseases and poor handling.
Transportation is the most important component in Pakistan's marketing system.
Commission agents and retailers use various forms of transportation to distribute
products to markets (i.e. bicycle, motorcycle, wagon, and donkey carts.) Higher losses
occur over longer distances, because of bumpy roads and the deficiencies in modern
packing techniques.

5.10. Transaction costs.

Under marketing environments where volume and quality assurance is important, a
major incentive for some form of coordination or another is a wish to limit transaction
costs. Even in traditional marketing, these are often prohibitively high for small-scale

15
producers because of the small quantities of marketable product produced and the
absence of adequate physical and market infrastructure in remoter areas. Transaction
costs are also increased where producers lack negotiating power or access to market
information and remain dependent on middlemen. Moreover, the lack of facilities for
the formation of producers associations, or other partnership arrangements, makes it
more difficult for smallholder producers to reduce transaction costs through economies
of scale. Economic forces towards vertical co-ordination are sometimes further
strengthened if governments tax market transactions. (Delgado, 2002)

6. Advantages of poultry industries

The poultry meat and egg production over many decades have publicized optimistic
growth in the overall performances of the livestock sector and it has now reached a
stage where its impact is obvious on the national economy of the country. Poultry
keeping business is one of the most hopeful sources of additional income. Besides, this
poultry farming has a number of advantages. It produces much needed protein, food, it
serves as a source of income and employment to many and it has good returns. Poultry
keeping is becoming more and more capital intensive, and it is very profitable. The
income from poultry business begins to emerge within 8 to 9 weeks for broiler or 20 to
22 weeks for layers. A broiler is a young male or female bird under the age of 10
weeks. These are generally fast growing breeds reared and marketed for meat.
Depending on feed and management broiler mature in 8 weeks weighing nearing 2-2.5
kg and the broiler consume about 4 kg of feed in the period of 6 to 8 weeks is the usual
age for marketing. Most breeders rear broilers to be ready for sale during festivals
when demand of profit is high. (Alam and Khan, 2000)
 Poultry meat demand is highly price sensitive among low- and middle-income
consumers. Policies that protect the domestic poultry market may also slow
growth in consumption and production.
 Factors that discourage transport and distribution of poultry within country,
including limited demand for frozen products, a poor and high-cost transport
infrastructure, and limited and unreliable cold chain, or frozen storage, facilities,
are also strong impediments to poultry imports and may be as important as tariffs
in constraining trade.
 Vertical integration can promote industry growth by enhancing production and
marketing efficiency and reducing consumer prices.
 Competitive feed prices are key to competitive poultry and egg production.
Policies that protect local feed producers are also likely to slow growth in poultry

7. CHALLENGES
This sector has faced a tough challenge on account of Avian Influenza (AI) outbreak in
the country. The re-occurrence of Avian Influenza was reported on 3rd February 2007
in backyard poultry and commercial poultry in Rawalpindi or Islamabad, Peshawar,
Abbottabad, Mansehra, Kamalia, Summundari and Karachi areas. There have been 72
(27 commercials flocks and 45 backyard poultry and game birds) recorded cases of

16
H5NI till March 2008, involving approximately 176.1 thousand commercial poultry
(broiler/layer) apart from game birds and backyard poultry.

It is a well known fact that poultry farming is a profitable business but it has also some
disadvantages some disease such as Newcastale disease, Marek's disease, infectious
bronchitis, gum-boro disease, fowl pox, myco-plasmosis, coccidiosis, lymphoid, adino
virus hydro-pericardium etc. are very common in the poultry chicken. These diseases
affect very quickly and have a tremendous effects on the growth of the birds. The
excess uses of meat also has ill-effects on the health of their users, because the feed
they eat contains lots of unhygenic ingredients. Therefore the chickens should be
vaccinated regularly and properly. (Alam and Khan,2000)

IFAD identified some common features such as poor credit repayment trends, limited
marketing options, high mortality rates and high feed costs. The marketing constraints
include competition with large commercial producers. High mortality rates resulted
from poor management and inadequate vaccination. High prices for feed are usually
attributed to marketing problems and are the main cause of poor credit repayment.
These features had a bearing on the overall performance of project interventions in
terms of reaching the target population, i.e. poor especially women, and enabling them
to increase their income and welfare. The study concluded that there was a need for
development projects to continue introducing new technologies especially in health
management and feeds through which an increased level of profit could be achieved
from smallholder semi-intensive poultry-rearing. In view of the observed shift in
emphasis from scavenging to semi-intensive systems, there was an urgent need for
research to study alternative systems of management and to develop the most
appropriate systems for the poor, IFAD’s target group. However, the promotion of
improved breeds should be conditional on the provision of intensive training for
farmers and improved health services. The problems experienced often relate to the
management skills and the husbandry practices needed by farmers for unconventional
types of production. Therefore, farmer training is considered to be of primary
importance (Nabeta, 2002).

8. DEVELOPMENT PROJECTS AND INCENTIVES.

8.1. National Programs for the Control and Preservation of Avian Influenza”
Ministry, Food, Agriculture & Livestock has intimated a project titled “National
Programs for the Control and Preservation of Avian Influenza” at a total cost of Rs
1180.142 million. The project is of three years duration and will be implemented
through out Pakistan including AJK, FATA and FANA. The proposed project
objectives include improving and scaling up avian influenza surveillance, reporting and
diagnostic at federal and provincial district levels. Strengthening disease control,
outbreak containment and eradication of highly pathogenic avian influenza (HPAI),
compensation to farmers, increase awareness among the farmers, consumers,
veterinarians and other stake holders regarding AI, vaccine development, improving
veterinary services to enforce national animal disease control measures.

17
8.2. Credit
In 2007-08 ADB gave 3994.7 million rupees for dairy farming and 101 million rupees
for poultry farming. From 1960 to 2008 a total of a total of 517826 million rupees were
disbursed for all agricultural purposes by ADB of Pakistan in which the share of
poultry sector was of 4701.945 million rupees. In Pakistan, previous authors have
noted that small farmers have limited access to institutional credit, relying on non-
institutional sources; larger operations are more favored by formal credit lenders
[Malik (2003)]. Khandker and Faruqee (2000) have shown that in spite of the fact that
the recovery rate of loans is much higher for small farmers, the lending of the largest
institutional lender, the Agricultural Development Bank of Pakistan ADBP, is highly
biased towards larger farms.

8.3. Sada Bahar Scheme/Revolving Finance Scheme:

For providing timely input loans for crops and working capital for dairy, poultry and
fisheries, the Bank has launched Sada Bahar Scheme (SBS). Assessment for inputs
requirements for the whole year is made at the time of first application. The amount so
assessed is treated as Revolving Limit. For repeat loan, fresh investigation is not
necessary. The Managers are authorized to sanction such loan within their loan
sanctioning powers and renew the same even if previously it was sanctioned by the
higher authority. During (July 2007– March 2008), an amount of Rs 33473.514 million
was disbursed inclusive of Rs 8187.698 million disbursed under One Window
Operations.

8.4.Livestock Development Policy and Poultry Development Policy

Realizing its importance to rural poverty reduction, the government has started giving
some attention only during the last two years. It is in this perspective that livestock
development policy and poultry development policy have been put in place. Both
policies are aimed at developing livestock and dairy sector by the private sector, the
job of the government is to provide enabling environment. Accordingly, a full
autonomous private sector led Livestock and Poultry Development Board have been
established. These are serving as a platform for investment in this sector. Apart from
provincial Government programs, the federal, government has substantially increased
public sector investment in livestock sector and has initiated projects to the tune of Rs
7.1 billion for strengthening livestock services for improving disease control; milk and
meat production; breed animal husbandry and management practices; in the county.

8.5.Reduce Input Costs in Poultry Production

Government has allowed import of Incubators, Brooders, Evaporation cooling pads,
cooling system, Grain storage silos for poultry, poultry equipments,,at zero percent
custom duty. In order to reduce input costs in poultry production, poultry vaccines,
feed additives, coccidiostats, Growth promoters premixes, Vitamin premixes, Fish
feed, Zinc sulphate, Copper sulphate used in poultry feed has been zero-rated. Sales
tax exemption has been allowed to un-cooked poultry meat; processed milk, yogurt,
cheese flavored milk, and butter cream. In addition, poultry, vaccines, feed additives

18
and coccidiostats used in poultry feed manufacturing have been allowed at zero
percent custom duty.

9. VALUE CHAIN DEVELOPMENT/ORGANIZED PRODUCTION AND SALE

IN BROILER/POULTRY

The cost of distribution of poultry products from producer to the consumer is very
high, mainly due to high share of middlemen involved at various stages. The extraction
of abnormal profit by middlemen reduces the profit of poultry farmers and discourages
them to expand the production unit. The profit share of middlemen also needs to be
reduced in order to lower prices at the retail level. The objective of the present study
was to look at the profitability of different stakeholders involved in poultry sector and
to propose a policy that can distribute profits among different stakeholders on
rationality basis. (Abedullah, 2007)

Generally, the main broiler business was operated through three intermediaries namely:
commission agents, feed dealers, and butchers who charged certain amount as
commission fee for their services. Farmers for timely disposal of their output used the
intermediaries, but they reported that commission fees of these intermediaries were
very high. Sadly, there was no agency to check such unfair commission rates (Anwar,
2005).

Feller, (2006) argue precisely for the need to stop thinking of supply chains and value
chains as different entities, but rather, for integration of the two. As such, value chains
include the vertically linked interdependent processes that generate value for the
consumer. In contrast, the term supply chain is used internationally to encompass every
activity involved in producing and delivering a final product or service, from the
supplier’s supplier to the customer’s customer.

Abedullah, et al (2007) explains in their study middlemen at various levels of poultry

marketing system were exploiting the poultry farmers. 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. Hence, profit
of middlemen should be decreased. They determines in their results demonstrated that
commission agents were earning 47% of the total profit in poultry industry, followed
by retailers (28%) and producers (25%). This indicates that it would be impossible to
improve the contribution of poultry in total nutrients uptake of human beings in the
country without reversing the trends in profit share

9.1. Poultry-meat supply chains

Two important issues related to poultry-meat supply chains are environmental
regulations and globalization. Due to the growing awareness towards protection of the
environment, poultry farms today are increasingly required to adhere to the

19
environmental regulations stipulated by the governments, particularly with regard to
water purity, manure removal and dead carcass disposal (Katz and Boland, 2000).

Poultry-meat supply chains are increasingly becoming globalized as consolidation and

evolution of transnational companies, either by vertical or by horizontal integration, are
taking place around the world. Global poultry-meat supply chains enjoy the benefits of
other global supply chains in terms of economies of scale, better sourcing options, and
access to intellectual and technological resources. The benefits to the consumers are in
terms of lower prices, higher varieties, higher qualities, and the advent of
“convenience” foods. Factors influencing the globalization of poultry-meat supply
chains would include, among others, the relative strength of currencies, speed of
technology transfer to developing countries, tax and regulatory issues, cost of labor and
capital, concerns over production methods, food safety and hygiene standards,
development and implementation of bio-security protocols, availability of land to grow
crops for feed ingredients, and feed costs. Globalization has also led to the risk of
spreading bird-borne diseases in different countries, as the world has recently
witnessed the outbreak of avian influenza or commonly-called “bird flu” in China and
some south-east Asian nations, highlighting the importance of keeping strict control
and maintaining security of the meat supply chain (Manning and Baines, 2004).

9.2. Vertical Integration

A vertically integrated livestock company may produce animal feed, breed the
animals, fatten, slaughter and process them, and deliver the products to the retail level.
Almost the entire poultry and pork industries in the United States are vertically
integrated.

Proponents of vertical integration argue that it will combine poverty alleviation with
economies of scale (Jutzi et al., 2000). Several studies (Weatherspoon and Reardon,
2003; Reardon et al. 2003) indicate that through vertical coordination and governance
at each stage in the chain, production efficiency as well as product quality can be
monitored, and standards imposed. Vertical coordination not only allows gains from
economies of scale, but it also secures benefits from market ownership and control
over product quality and safety by controlling the technical inputs and processes at all
levels. Large multinational firms have strength in achieving economies of size and
scope, and by sourcing supplies at different levels and across national boundaries.

This vertical integration into wholesaling operations allows them to standardize

quality, improve bargaining power, and achieve economies of scale in distribution. In
addition, they usually adopt a list of preferred suppliers who are known to be able to
produce consistently the quantity and quality demanded by the supermarket chain. The
need to standardize quality (particularly if the chain offers store brands) leads to the
development of detailed private standards, most importantly for fresh fruits and
vegetables, meat, and fish. The procurement system is more demanding than the ones
used traditionally by wholesalers and retailers. Thus, the trend has been to move

20
towards contracts with dedicated suppliers to reduce the transaction costs of bargaining
as well as reducing risks, wastage and guaranteeing food safety and quality control;
Chowdhury et al, 2004

There is a strong increase in high-value agriculture and vertical coordination in Asia.

The growth of high-value agriculture is caused by a combination of factors, including
income growth, demographics, and policy changes. The emergence of contract farming
and other forms of vertical coordination are a response to 1) the rising share of
perishable high-value foods being marketed, 2) the increasing scale of processors and
retailers which implies the need for a more organized procurement system, and 3) the
increasing demand by consumers for food safety and very specific quality attributes
which are difficult to ensure without some form of vertical coordination. Contract
farming can benefit farmers by providing them with specialized inputs, technical
assistance, credit, and an assured market, thus solving a number of problems small
farmers typically have in producing new high-value commodities. Ashok et al.(2006)

9.3. World raking in poultry meat production

9.31. Brazil Poultry meat production: Brazil is the world’s leading supplier of poultry
meat (41% forecast for 2008). The United States, with 34% of world exports, and the
EU (9%) have lost market share to Brazil in recent years .According to FAO estimates
world chicken meat export has increased from 4554250 tones in 1995 to 8095799
tones in 2005 while world chicken meat imports has increased from 4230303 tones in
1995 to 6850314 tones in 2005.while Pakistan has not chicken meat trade.(FAO,2008)

9.32. Poultry export status in Pakistan: Achieving international standards for being
able to compete in the export market is another proposed option. But if domestic
demand for livestock products is booming, why should developing countries
emphasize exports? It would make much more sense to concentrate on meeting
domestic demand. It would also appear that complying with international standards for
exports could be used as a pretext for supporting industrialized production and
eliminating small-scale producers for fear of epidemics. Experiences with the avian
influenza epidemic give us a warning in this respect. Small- and medium-scale poultry
producers are being eliminated because they can not comply with bio-security
standards. In some countries, backyard poultry keeping is being curbed within the
vicinity of industrial production systems (Mathias, 2006).
Pakistan entered into a preferential trade agreement, SAPTA, which is expected to grow
with the mutual giving of some tariff concessions on specified items. However, poultry
farming operations in Pakistan still depend solely on imports of all inputs, the bulk of
which come from the U.S. and the U.K. Yet a large trade potential exists for Pakistan
with the SAARC nations (India, Iran, China, and Afghanistan,) especially with India, if
Pakistan's poultry industry made some improvements to its current systems. USDA
(2005)

21
10. CONTROL AND MANAGEMENT
10.1. Compartmentization
The World Organization for Animal Health (OIE) recently included the use of
compartments in its guidelines on avian influenza control (OIE, 2005). It has been
stressed that compartmentalization is a strategy that needs to be adopted by countries
with particular attention to country level production characteristics and features.
Furthermore, trade agreements between countries that use or do not use
compartmentalization will be worked out between those trading countries, as has
always been the case in bilateral trading agreements. The premise of the new approach,
compartmentalization, is to identify “compartments” of farms or processing units based
on the scale of production and other shared characteristics in order that approaches to
controlling disease are geared to compartments rather than the entire poultry industry.
The grouping is not based directly on geographic location but rather on characteristics
such as scale of production and inputs, and particularly on a common bio-security
system within a compartment, and degree of traceability of animals and products along
the market chain.(OIE, 2005).

10.2. Extension
More intensive extension is suggested as another avenue for supporting poor farmers.
However, an in-depth analysis of extension practices in three countries (Burkina Faso,
Kenya, India) concluded that there were serious problems relaying new research
findings to livestock producers, and that there were no examples for the successful
transmission of information to crop-livestock farmers (Morton, et al., 1997). The
reason would seem to lie in extension messages that are inappropriate for small-scale
livestock keepers, as well as in a lack of participatory techniques. Without entirely
revamping veterinary education to include training in participatory methods and the
whole approach to extension services, increased extension s e r vi c e s is not going to
be of benefit to livestock keepers.

The farmers should be aware of the latest farming techniques and principles of
poultry business. Small subsistence farms should never be engulfed by large
commercial units. The government should bring subsistence farmers in the
mainstream of technologically advanced poultry farming by educating them in
farm management practices, continues the Dawn report.

10.3. Private sector involvement especially feed mills and hatcheries recruit their
own extension staff for promotion and extension activities. Although technical and
extension field staff is mainly intended to promote sales of the feed mills and
hatcheries’ products, it also helps boost the poultry industry.

10.4. Involvement of public sector is revealed by the research study recently

conducted in Faisalabad district. None of the sampled farmers reported the
activities of public poultry extension agent. There is a need to fill the vacant
position in livestock department and implementation of a strict monitoring policy.

22
10.5. Educate farmers: The poultry sector also needs attention to educate
farmers. The government and the private sector should encourage and upgrade
poultry industry. Some appreciable efforts have been made by the Smeda (small
and medium enterprises development authority) and Livestock Department to
develop the poultry industry. If the government addresses the causes of losses to
subsistence farmers as a priority basis and arranges a strategic set-up to educate
farmers, it would ensure the incorporation of small and subsistence farmers into
the modern poultry industry.

11. CONCLUSION
Pakistan's poultry industry is looking forward and striving for modernization and
improvements in product quality and price in order to be more competitive. To achieve
this goal industry is pushing for: a modern packing and distribution system; improved
roads; reasonable price levels for feeds and medicines; establishment of poultry
coordination boards at both provincial and federal levels; a grading system at the
producer level with price adjustments; a long run vaccination and deworming campaign;
the construction of veterinary labs for drug residue testing; and improved sanitation
conditions at both the production and processing levels.

23
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