Table of Contents

1 Overview of the Pakistan Economy 1

1.2 Sector-based Overview 4
2 Porter’s model 5
2.1 ​Factor Conditions 5
2.2 ​Related and supporting Industries 5
2.3 ​Home Demand Conditions 5
2.4 ​Strategy, Structure and Rivalry 6
2.5 Government 6
2.6. ​Chance events 6
3 Analysis through porter’s model 7
3.1 Significance of the Industry 7
3.2 Overview of Poultry industry 8
3.21 History of poultry industry 8
3.22 Introductory period (1965–1970) 8
3.23 Institutional development phase (1971–1980) 9
3.24 The depression and adjustment phase (1981–1990) 9
3.26 Severe disease outbreaks and re-emergence of the industry (1991–2000) 10
3.27 Poultry farming in recent times (2001 up until now) 10
3.3 Factor Conditions 11
3.31 Human, capital, land and building 12
3.32 Process 22
3.33 Climate 22
3.34 Feed 23
3.35 Water 25
3.36 Supply 25
3.37 Breeds 26
3.38 Hormones and chicken: 26
3.4 Structure Strategy and Rivalry 29
3.5 Demand for Poultry in Pakistan 34
3.6 Government Intervention 39
3.7 Value-Addition in the Poultry Sector 45
3.71 Issues in the Value-Adding Sector 46
3.8 Related And Supporting Industries Of Poultry Farming: 46
4 Additional Information on Empirical Research 51
Appendix 53

1 Overview of the Pakistan Economy

GDP and Growth Rates

Pakistan is a developing country with an immense economic potential. Reports published by the Price
Water House Coopers in 2017, predict Pakistan to become the world’s 20th largest economy by 2030
and 16th largest by 2050. Economic growth in Pakistan has been volatile in the past, lacking a steady
growth path and adding to the economic uncertainty about the country’s economic conditions.

In 2013, the Pakistani government took steps to restore macroeconomic stability and focused on
increasing GDP growth to provide better living conditions to the people through higher increases in per
capita income and increased job opportunities etc. Since 2013-14, the economy has witnessed a smooth
upward trend in growth rate. Real GDP growth was above four percent in 2013-14 and has smoothly
increased during the past four years to reach 5.28 percent in 2016-17, which is the highest in 10 years.

The accommodative monetary policy stance, increase in development spending, substantial growth in
private sector credit, inspired activities in the power sector, friendly and pro-growth policies for real
sector growth, such as relief measures and in particular for the agriculture sector, have been
instrumental in achieving the impressive growth performance.
 ABSTRACT
Find more about Pakistan’s 11th largest sector in the
world

Members:
AreeshaMemon12651
Esha Hasan 12527
FatemaSafdar 12746
Aqsa Ghouri 12743

POULTRY INDUSTRY
OF PAKISTAN

Reports published by the World Atlas Data indicate that Pakistan’s GDP in terms of Purchasing Power
Parity (PPP) reached $1,060 billion in 2017. Therefore, by PPP ranking, Pakistan is currently the 25th
largest economy in the world.
The country's Nominal GDP was reported at 304.0 USD billion in Jun 2017. , yielding a nominal GDP per
capita of 1,275 USD which ranks 154​th in the world in 2017. However, Pakistan's undocumented
economy is estimated to be 36% of its overall economy, which is not accounted for when calculating per
capita income.

Inflation and Consumer Price Index

Inflation Rate in February 2018 was recorded to be 3.80%. The Consumer Price Index (CPI)​ ​landed at
219.58​ ​points in February 2018 compared to 211.54 Points in February 2017.

Population, Labor Force and Employment

With a population over than 207 million, Pakistan is 5​th​ largest country in terms of population.

Pakistan is the 10​th largest country in the world according to the size of the labor force. The total labor
force has increased from 59.7 million in 2012-13 to 61.0 million in 2014-2015. Moreover, the number of
employed people increased from 56.0 million to 57.4 million during this period and the overall
unemployment rate has decreased from 6.2 percent in 2012-13 to 5.9 percent in 2014

A breakdown reveals that labor force participation rate slightly decreased from 32.9 percent in 2012-13
to 32.3 percent in 2014-15. Female labor force participation rate increased from 15.6 percent in 2012-13
to 15.8 percent in 2014-15 and the Male labor force participation rate decreased from 49.3 percent in
2012-13 to 48.1 percent in 2014-15.

Comparison of rural and urban participation rates reveals that labor force participation rate is higher in
rural areas as compared to urban areas because of agrarian economy. As agriculture is treated as a
family occupation in rural areas, therefore, the female labor force participation in rural areas is higher as
compared to urban areas.

Literacy Rates

The Economic Survey of Pakistan (2016-2017) revealed thatthe country’s literacy rate declined from 60
percent to 58 percent. The data shows that literacy remains much higher in urban areas (74 percent)
than in rural areas (49 percent) with male (81 percent) and female (68 percent) in urban areas. Province
wise data suggests that Punjab and Sindh leads with 62 percent and 55 percent respectively followed by
Khyber Pakhtunkhwa with 53 percent and Balochistan with 41 percent.

Pakistan’s public expenditure on education as percentage of its GDP is estimated at 2.3% in the fiscal
year 2016, making it the lowest in the region.

Human Development Index

The Human Development Index (HDI) is a composite statistic (composite index) of life
expectancy, education, and per capita income indicators, which are used to rank countries into four tiers
of human development. A country scores higher HDI when the lifespan is higher, the education level is
higher, and the GDP per capita is higher. HDI value for Pakistan in 2015 was recorded at 0.550—putting
the country in the medium human development category and positioning it at 147 out of 188 countries
and territories. Between 1990 and 2015, Pakistan's HDI value increased from 0.404 to 0.550, an increase
of 36.2 percent.
Income Inequality and the Gini Coefficient

The report “Development Advocate Pakistan” published by the United Nations Development Program
indicated that income inequality rose, even as consumption-based poverty and multi-dimensional
poverty decreased. A finding of the report says that some Pakistani districts are as well off as any
developed country while others are on par with the poorest in sub-Saharan Africa.

The reports also mentions that in 1987-88, the Gini coefficient, which measures income inequality, was
0.35 and that this number rose to 0.41 in 2013-14.

Foreign Direct Investment

Foreign direct investment (FDI) in Pakistan has shown a sinusoidal pattern. Pakistan garnered FDI of
almost $5200 Million in the financial year 2007-08, which had a significant impact on the GDP. Foreign
investment significantly declined after 2010, due to Pakistan‘s political instability and weak law and
order situation. Foreign investors seemed to have lost their confidence in Pakistan and since 2011
improvement in this situation is awaited. For restoration of such confidence, the law and order situation
needs to be improved. Although Chinese and Turkish firms have undertaken initiatives in the energy and
infrastructure sectors, stronger efforts are required to attract more FDI for boosting the GDP of the
country. In the year 2016, FDI was recorded at $2,761 million which was slightly higher than the
previous year.
1.2 Sector-based Overview

Pakistan has a semi-industrialized economy, comprising of textiles, agriculture, pharmaceuticals,

cement, steel, food processing, mining etc. The economic growth of Pakistan depends on all sectors of
the economy.

The improvements in the Real GDP growth is attributed to an improved industrial performance,
including a sharp recovery in agriculture sector, healthy performance by services, and an increase in the
large scale manufacturing output. The key factors enabling this performance include improved supply of
energy, increased developmental spending, supportive monetary policy, and an improved law and order
situation.

Agricultural Sector

This sector comprises Important Crops including rice, wheat, maize, sugarcane and cotton and Livestock.
The agriculture sector accounts for 19.5% of GDP and creates 45% employment opportunities. The
sector achieved a targeted growth rate of 3.5 percent during FY17, with a broad-based improvement in
the production of important crops. Price subsidy on fertilizer, and affordable access to credit facilities
(owing to decades’ low policy rate), resulted in the important crops segment having a growth of 4.1
percent

Services Sector

The services sector benefitting from improvements in the agriculture sector, an increase in
manufacturing, and a rise in trade activities contributed 59.6% to the GDP growth rate witnessed during
FY17, with increase in wholesale and retail trade growth. In addition, finance and insurance posted a
recovery on account of healthy deposit and advances of the banking sector.

Manufacturing Sector

The major source of tax revenues for the government is the industrial sector which significantly
contributes in provision of employment opportunities to the labor force. Its contribution is 20.8 per cent
in GDP. The share of employment in manufacturing sector has increased from 14.1 percent in 2012-2013
to 15.3 percent in 2014-2015.

The performance of the industrial sector remained constrained in FY17. This was the major reason GDP
growth could not reach its targeted figure. A decline in the growth rate of electricity generation and
distribution, mining and quarrying, and construction was witnessed. On the other hand, large scale
manufacturing (LSM) fared well with a 3% growth rate from the previous year.

Demand-side Perspective

From demand-side perspective, the support to GDP growth mainly came from increased domestic
consumption. Subdued inflation, growing income levels, improved liquidity among farmers (through
roll-out of subsidy package), and higher demand from expanding middle class population bolstered
consumer spending in the economy. Further support to domestic demand came from the investment on
account of increased focus on CPEC and public infrastructure development projects during the year.
2 Porter’s model
The Porter Diamond model is a model that is intended to help comprehend the competitive advantage
countries or groups have because of specific factors accessible to them, and to clarify how governments
can go about as impetuses to enhance a nation's situation in an all around competitive environment

2.1 Factor Conditions

This is linked to factors like knowledge, basi raw materials etc.. These are important factors for initiating
an industry. These variables can be gathered into material assets HR (labour costs, capabilities and
responsibility) – knowledge and infrastructure. Be that as it may, they additionally incorporate
components like nature of research or liquidity on securities exchanges and natural assets like
atmosphere, minerals, oil and these could be purposes behind making a global competitive position.

The factors can be divided into 4 categories: basic, general, advanced and specialized.

Basic factors are raw materials naturally available. Basing the competitive advantage on these would not
be sustainable as any country can import raw material from somewhere else.

General factors are the ones provided by the government of every country such as infrastructure, so
these do not give an edge to any country or industry as everyone possesses these.

Advanced factors are those, which have been attained through some investment, for example
computers. The industries can base their competitive advantage on these but they need to innovate and
constantly develop these otherwise they will become basic or general too, which every industry has
acquired.

Specialized factor are specific to every industry, and are a result of huge amounts of investment. Basing
the competitive advantage on these factors really gives an edge to the industry and gives it a
comparative advantage. They also need to be innovated constantly.

2.2 Related and supporting Industries

The achievement of a market likewise relies upon the nearness of providers and related businesses
inside an area. Competitive suppliers strengthen advancement and internationalization. Other than
these, related associations are of significance as well. On the off chance that an association is effective,
this could be gainful for related or supporting associations. They can profit by each other's mastery and
support each other by delivering complementary items.
2.3 Home Demand Conditions

In this determinant the key inquiry is: What reasons are there for a competitive market? What is the
idea of the market and what is the market estimate? There dependably exists a communication between
economies of scale, transportation costs and the measure of the home market. In the event that a
producer can understand adequate economies of scale, this will offer points of interest to different
organizations to benefit the market from a solitary area. Likewise the inquiry can be asked: what affect
does this have on the pace and bearing of advancement and improvement?

2.4 Strategy, Structure and Rivalry

This factor is identified with the manner by which an association is composed and dealt with, its
corporate goals and the measure of contention inside its own particular hierarchical culture. The
Furthermore, it centers around the conditions in a nation that figure out where an organization will be
built up. Social viewpoints assume an imperative part in this. Areas, regions and nations may vary
significantly from each other and variables like administration, working assurance and communications
between organizations are molded diversely in various societies. This could give the two points of
interest and inconveniences to organizations in a specific circumstance when setting up an organization
in another nation. As indicated by Michael Porter household contention and the constant scan for upper
hand inside a country can enable associations to accomplish points of interest on a universal scale.
Notwithstanding the previously mentioned determinants, Michael Porter likewise specifies factors like
Government and chance occasions that impact rivalry between organizations.

2.5 Government

Governments can assume an effective part in empowering the improvement of ventures and
organizations both at home and abroad. Governments fund and develop foundation (streets, airplane
terminals) and put resources into instruction and social insurance. In addition, they can urge
organizations to utilize elective vitality or option natural frameworks that influence generation. This can
be affected by allowing appropriations or other monetary motivating forces.

2.6. Chance occasions

Michael Porter likewise shows that in many markets chance assumes a vital part. This gives chances to
imaginative organizations that are not hesitant to fire up new activities. Business visionaries as a rule
begin their organizations in their country, without this having any monetary points of interest, while a
comparative begin abroad would give more openings.
3 Analysis through porter’s model
3.1 Significance of the Industry

Poultry sector is one of the most organized branches of the agro based sector of Pakistan. Its
growth rate is 10-12% per annum whereas the growth rate in other developing countries ranges
from 7-9%. Presently its turnover is PKR 750 billion rupees. It provides employment to about
1.5 million people. Over PKR190 billion of agricultural products and by products are consumed
by poultry annually.

Pakistan is the 11​th largest broiler producer in the world. There is 90-95% of value addition to
live broiler meat in the top 10 countries but in Pakistan its just 5-6%.

There are over 15000 poultry farms spread deep into the rural areas across country from Karachi
to Peshawar. Capacity of these farms range from 5000 to 50000 chickens. Annually, we are
producing 18000 million table eggs and 2250 million kilograms of meat such that 50-55% of
total meat consumption is procured from poultry products.

Meat of chicken has least amount of grease as compared to that of goat, lamb, or cow and thus is
recommended to diabetic patients and those with heart diseases. Whereas, chicken eggs contain 9
essential amino acids beneficial for our hair, skin, and sight. They also contain 3 types of
vitamins: B2, B6, and D which are useful for skin and sight, heart, and bones and teeth,
respectively.

In Pakistan, the consumption of both poultry meat and eggs is very low. According to the
standards of World Health Organization, daily protein requirement is 27 grams however we are
only consuming 17 grams. Throughout the world on average 300 eggs are consumed and thus
their lifetime ranges up to 80-82 years. However, Pakistanis only consume 60 eggs and thus their
lifespan ranges up to only 60-62 years.
3.2 Overview of Poultry industry

In Pakistan the poultry area is playing a vital part in overcoming any issues between the demand and
supply activity for protein. Commercial poultry farming began in Pakistan in the mid-1960s and
indicated quick development throughout the decades. The early development of this part was the
consequence of the promotional policies from the Government and the persistency of the poultry
farming group. The Government considered the poultry creation tie to be a critical piece of the food
processing industry and gave extraordinary motivating forces to this part, and thus the poultry segment
was announced free of sales and income tax, in addition excluded from import obligations for various
years. Accordingly, amid the mid-1970s, the area saw 20– 30% development for each annum, and kept
on developing at a rate of 10– 15% in the 1980s. The most important explanation behind this
development was an energetic domestic market, because of which poultry meat utilization expanded
over 4% every year.

In Pakistan, poultry creation is a standout amongst the most powerful and efficient segments
contributing 26.8%, 5.76% and 1.26% respectively to total meat production, agrarian sector and general
GDP. Over the most recent couple of years, the poultry part has indicated amazing development and
has risen as a wellspring of work employing more than 1.5million people.

3.21 History of poultry industry

Before 1963 local chickens was the source of eggs and meat in Pakistan, and these chickens deliver, on
average, 0.769 kg of meat at four months of age and lay 30 eggs per year. These chickens were raised as
a supporting activity to meet individual family unit needs. In 1965– 66, an enriched variety of chicken
called Lyallpur Sliver Black was presented by the Department of Poultry Husbandry at the University of
Agriculture, Faisalabad. This breed was created by intersection the local Desi breed with three imported
breeds, in particular; White Leghorn, White Cornish and New Hampshire in a two-manner cross
reproducing system to build up a breed that could make due under the difficult ecological environment
of rural regions, and additionally being equipped for delivering up to 150 eggs for each year. In the mid
1960's Pakistan International Airlines, as a team with Shaver Poultry Breeding Farms of Canada built up
Pakistan's first commercial hatchery in Karachi. In the meantime, Lever Brothers Pvt. Ltd. set up the first
commercial poultry feed mill in the locale Rahim Yar Khan in the Punjab area.

3.22 Introductory period (1965–1970)

In this period, early poultry ventures, particularly those including financial risk, were firmly upheld by
the administration. Poultry production was rejected from national tax levies. Poultry producers were
permitted to import hereditary enriched reproducing stocks and gear as duty free things. The view of
human protein insufficiency in Pakistan, astounding profit margins, accessibility of advances and
support from the Government were the fundamental powers behind molding the early structure of the
industry. The Directorate of Poultry Production in Karachi was set up with a specific end goal to give
extensive services to a gradually developing poultry farming community.

3.23 Institutional development phase (1971–1980)

With the poultry-friendly policies of the Government and great benefits, poultry production created as a
beneficial endeavor in Pakistan. The achievement in this segment urged the government to reinforce
institutions serving this industry. This period was described by the foundation of the Federal Poultry
Board in 1979 with a specific end goal to set up a powerful connection amongst industry and
government. Poultry research institutes were set up in 1978 in Karachi and Rawalpindi with help from
UNDP/FAO funds to give research services to poultry farmers. This time is viewed as a blast period in
the historical backdrop of the poultry business in Pakistan. Particular inducements made by the Sindh
Government as far as accessibility of state land for poultry cultivating under ten-year leases and the
nationalization of different enterprises by the central Government pulled in various business visionaries
to this segment. Nevertheless, amid this time the poultry business suffered as far as constrained
marketing opportunities because of a ban on export of poultry products. Illness issues, moderately high
costs of low-quality feed and a restricted supply of feed ingredients additionally worsen the situation. In
the meantime, the Pakistan Poultry Association was built up in 1979 to elevate campaigning to inspire
the status of the business and farmers. From 1971 to 1980, the poultry business experienced 177%,
271% and 297% general development in an all-out number of birds, total poultry meat generation and a
total number of eggs, respectively. The accompanying are the significant strategy choices by the
Government that helped the earlier development of the poultry industry:

● An exception to charges from the wage earned from poultry farming.

● Leasing of state land at nominal rates.

● Provision of subsidies on grains to formulate low cost, high-quality rations.

● Statement of Tuesday and Wednesday as meat-less days all with the exception of chicken to
advance its utilization.

● Foundation of Poultry Research Institutes, directorates of poultry generation and Federal Poultry
Board with the thought processes to prepare poultry farmers and give look into administrations and
to make a connection between the Government and poultry farming community.

● Facilitation of the availability of loans through different financial institutions

3.24 The depression and adjustment phase (1981–1990)

Amid this period, the poultry business experienced a one of a kind geographic movement. In the early
1980's, the size and volume of poultry industry demonstrated a surprising reduction in the Sindh
territory. Moreover, poultry farms situated in various groups confronted various issues. Illnesses
flare-ups and diminished profitability because of climatic pressure required long-term arrangements.
Remembering every one of these imperatives, farmers that are more progressive chose to move farms
to the generally cooler and more bio secure northern regions of Pakistan. Amid this stage, the poultry
business experienced 118%, 190%, and 94% development individually regarding the total number of
birds, general meat generation, and egg production.

3.26 Severe disease outbreaks and re-emergence of the industry (1991–2000)

This period was described by various fiascos in the industry, particularly from the ailment. Hydro
Pericardium Syndrome (HPS) showed up in 1990 and made a colossal harm to broiler and broiler
reproducer flock. Gumboro showed up in 1991-and unfavorably affected broiler, layer and parent
flocks. While the business was attempting to change itself from the prior HPS and Gumboro assaults,
another episode of Avian Influenza in Murree and Abbottabad in 1995 occurred in the parent flock and
caused up to 80% deaths.

The development of these maladies opened new avenues in the poultry industry, whereby prophylactic
measures with respect to inoculation and biosecurity were introduced. New organizations for the
import of imports and medicines were set up. The University of Agriculture in Faisalabad, poultry and
veterinary research establishments played an essential role in controlling these issues. Then again, the
absence of planning prompted an oversupply of parent stock in the nation in 1996, which caused a
sharp decrease in day-old chick costs underneath the cost of production. In 1997, the burden of a
boycott by the central Government on serving lunch in marriage functions (where the chicken was
consumed) additionally weakened the circumstance, as it lessened the request of poultry items in the
nearby market by around 40%. In 1998, chick prices enhanced and breeding and hatchery center
organizations turned out to be more financially secure, however, in 1999 the business again endured
because of the presence of influenza-like disease. Notwithstanding the business encountering
overwhelming misfortunes amid this stage, it continued developing and demonstrated a phenomenal
development rate in terms of the aggregate number of birds produced, general poultry meat
generation and the aggregate number of eggs produced with the growth values as 99, 125 and 67%
respectively.

3.27 Poultry farming in recent times (2001 up until now)

The poultry industry began to balance out in the late 1990s by increasing better net revenues on poultry
items. New speculators went into the business and received present day advancements, for example,
ecologically controlled housing. In this stage, the business got enormous investment from new investors
and poultry farming began moving from open-sided houses to new, state of art barns. The foundation
of the University of Veterinary and Animal Science in Lahore in 2002 was a further advancement
towards quickly developing industry in Pakistan by fathoming ailment issues and giving trained
workforce. The students getting the veterinary solution and poultry science degrees turned out to be a
benefit for the business.

Up until 2004, the poultry business delighted in amazing development with great net revenues
nonetheless, the rise of avian influenza in South East Asia, and it’s supposed spread into Pakistan
impeded this development. The imposition of the ban on the import of poultry items by Middle East
nations additionally worsens the circumstance. Regardless of its good and bad times, the Pakistan
business still accomplished 127% development in the total number of birds produced, 126%
development in the total meat production and 71% development as far as total eggs produced between
2000 and 2010. The explanation for this extraordinary development is the presence of the solid base of
this industry in Pakistan. Currently, the least expensive accessible wellsprings of animal protein in
Pakistan are the eggs and meat from the poultry sector.

Upto 2018, turnover in the poultry industry of Pakistan was about 750 billion rupees. The industry
generates employment and income for around 1.5 million people. Poultry area is a standout amongst
the most sorted out branches of the agro-based division of Pakistan. Its development rate is 10-12% per
annum. It presents more than 190 billion rupees worth of agribusiness products and by-products of
agriculture and by-products are being used in the poultry feed. There are more than 15000 poultry
farms spread across Karachi to Peshawar. The capacity of farms ranging from 5,000 to 500,000 broilers.
Marketing channels of broilers and eggs are situated in the unorganized sector. Around 40-45% of the
aggregate meat utilization is being obtained from poultry items. Poultry Slaughterhouses,
Processing/Value Addition in sorted out area is 5-6%.Annually we are delivering 18,000-million table
eggs. Annually we are creating 2,250 million kilograms chicken meat. In our nation per capita, utilization
of meat is just 7 kilograms and 65-70 eggs every year. While the developed world is consuming around
40 kilograms meat and more than 300 eggs for each capita every year. According to the standard of
World Health Organization, daily requirement of animal protein for a person is 27 grams while public of
Pakistan is consuming 17 grams only. Therefore, we are now consuming less animal protein according
to required measures. In the present situation, almost 352 hatcheries have been set in the nation with a
limit of about 346 million day-old chicks on a yearly premise. The populace as far as poultry is assessed
to be about 319 million, out of which in excess of 44 % is originating from the rural areas. The populace
incorporates

● 160 million broilers

● 17 million layers

● 5 million rearing stocks

● 13154 homesteads.

Broiler parent stock placement 13 million

Broiler day old chicks 1560 million
Broiler Marketed 1404 million
Chicken Meat 2250 million kilo gram
Layer parent stock 0.925 million
Commercial Layer 60 million
Layer table eggs 18,000 million
Feed production 8.50 million ton
Contribution to GDP 2.0%

3.3 Factor Conditions

Pakistan has become the world’s 11th biggest producer of broilers, producing 1.2 billion meat-type
chickens annually. The broilers available in local markets are fed on the same genetic nutrients as of US,
Europe, India, Brazil, Argentina, and China and denied that they were fed on hormones. The chicken
diet constitutes of corn, broken rice, wheat bran, rice polishing, corn by-products, oilseed meals and
vegetable oil. A tremendous progress has been made in the fields of poultry genetics, nutrition,
housing, management practices and disease control and eradication. Around 40-45% of the aggregate
meat utilization is obtained from poultry items. The PPA official, citing a research study, said broiler
weight has been gaining between two and three percent per annum since 2005. “In 1957, a day old
chick weighed 34 grams; in 1978 it weighed 42 grams and in 2005 it weighed 44 grams,” he said. “A
28-day broiler weighed 316 grams in 1957, 623 grams in 1,978 and 1,396 grams in 2005.”The modern
poultry houses in Pakistan have controlled environment with fans, lighting, and heating to tap the
optimum genetic potential. The critically balanced diet is prepared and formulated on a computer to
give a balance between energy, protein, and essential amino acids. Egg laying strain chicken or desi
chicken, which have a different genetic material than the meat type, are fed with nutrition far superior
to the one given to the meat type. Poultry advancement policy dreams a sustainable supply of healthy
poultry meat; eggs and value-added product to the local and international markets at competitive
pricing and focus on supporting private sector-led advancement for sustainable poultry production.
Strategies that could be used involves improving regulatory framework; ailment control and genetic
improvement in rural poultry; hi-tech poultry production under naturally controlled lodging; enhancing
bio-security; need-based research, development, farmers training, and education.

Factors conditions of the porter’s diamond model include human resources, physical resources,
educational resources, capital resources and infrastructure. The poultry industry also includes
specialized resources but are specific to an industry and importance for its competitiveness.

Each factor conditions are further going to be analyzed based on the primary and secondary research
conducted.

3.31 Human, capital, land and building

According to an NCBI journal, (PMC4684835) poultry industry is playing a vital part in overcoming any
issues between the demand and supply activity for protein. Poultry area is playing a vital part in
overcoming any issues between the demand and supply activity for protein. Around 40-45% of total
meat utilization is obtained from poultry production. Being the largest agro-based sector of Pakistan,
poultry sector comprises of more than 750 billion rupees investment. The annual growth rate in this
sector is around 10-12%. The poultry value added at current factor cost has increased from Rs. 121.7
billion (2012-13) to 130.7 billion (2013-14) showing an increase of 7.4% as compared to previous year.

This is shown in the following figure from an article on veterinary:

A poultry endeavour produces meat in two months and eggs in 24 weeks. Poultry meat is a decent
supply of cheap, appetizing and nutritious protein and contributes 1.3 percent in GDP during 2013-14,
while its contribution to agriculture and livestock value-added remained at 6.1% and 10.8 %
approximately.

Human effort is very important in the poultry sector as more than 50% of poultry sector is situated in
the rural areas. In commercial poultry, as well humans do most of the poultry work. From our research
in a poultry farm, the human requirements are listed below in the table:

Human Resource
Requirement

Description of the Number of workers

workers required required

Supervisor 1

Housemen 5

Watchmen 6

Electrician 3

Assistant supervisor 1

Cleaner 2
Semi-skilled workers are needed to look after feeding, vaccination and cleaning operations at the farm.
One person is able to manage around 3000 chicken and with 2 workers 7500 birds are easily managed.

For the training of the workers, one person who’s been doing the work for a long period of time,
accompany the new employee in a farm and in around 2-3 weeks the new employee learn the
techniques to carry out that work.

Capital Requirements

Poultry sector deploys modern method and technology in areas of poultry breeding and mass
production. Proper techniques are employed in the chicken housing such as evaporative cooling and
humidity control system. A few layers house have switched from litter farm to cage system. The
hatchery operations use modern incubators such as Chick Master to produce broiler and layer chicken.

In a controlled environment the temperature, feed and drinking system is operated automatically and
monitored by the semi-trained staff. The broiler house is given 15 days for the preparation to receive
the new flock after marketing of broiler about at age of six weeks. Before the arrival of the new flock,
some of the fuctions are performed. These include: proper cleaning, washing, whitewashing,
disinfection and fumigation with recommended chemicals and machinery. During flock, strict measures
for bio-security are observed at the unit. Inputs in a controlled Environment farm include drinkers, feed
trays, brooders, and feeders.

As per the Industry sources, there are a total of 5,000 Environmental Control Houses in Pakistan and
currently, 2,500 houses are working, out of which 75% (1,875) are located in Punjab and the remaining
25% (625) are situated in other provinces.

The Controlled Shed Poultry Farm with a population of 35,000 birds needs a capital investment
estimated at Rs. 19.2 million for construction, purchasing machinery and equipment. Along with this, a
sum of Rs. 5.7 million is needed as working capital that is used for purchasing day-old chicks and other
inputs like feed, vaccines, etc. The total cost is estimated to be Rs. 24.9 million.

An estimate of total farm equipment and machinery requirement is listed below in the table:

Description Amount Rs.

Main Feed Line System 85,000

Feed Pan System 524,170

Nipple Drinking System 337,470

Ventilation System (Cone Fans) 308,700

Minimum Ventilation Fan 60,782

Pad Cooling System 142,296

Minimum Ventilation System(Air Inlets with Accessories) 185,304

Motor for Air Intel 26,000

Controlling Equipments 45,000

Heating System 250,000

Total Cost of Machinery 1,964,722

Generator Set (75 KVA) 1 750,000

Fire Extinguisher etc. (Set) 1 27,000

Other Equipments (Shovels, Hand Trolley, Uniforms etc) 30,000

Total Machinery & Equipment Required 2,771,722

Erection & Installation of Machinery 1% 27,717

Contingencies 3% 83,152

Total Machinery & Equipment Required (incl.

Erection & Installation etc.) 2,882,591

Figure 2 feed pan

Figure 4 Ventilation

Requirements within the machinery are also very high that

results in an increase in that particular machinery cost. For
the visit to the poultry farm, it was discovered that the
main types of machinery used in Pakistan are feed line system that includes feed pan system and nipple
drinking system, fans and cooling pads.

Below are the requirements of each machinery, according to specifications and quantity, a medium
sized poultry farm require:

Feed Line System

Feed pan system

Nipple drinking System

Ventilation System
Pad Cooling System

Minimum Ventilation System (Air inlets)

Controlling Equipment

Heating System

Below are the results of the research of Poultry Association of Pakistan of poultry sector in 2012 :

3.34 Land and Building

Land requirement related to the number of birds an individual wants to raise. If 5000 birds than 5000
square feet, land required. If the individual is planning to go about in a structured way, say 2000, 2000
and 1000 at different intervals then you need another shed of around 750–1000 sq. for brooding. Rural
areas located close to the major cities of the country are suitable areas for setting up a poultry farm.
Proximity to the farm to the city make it easy to access the market for the purchase of Day Old Chicks,
farm inputs (feed, etc.), and selling of broilers. The farmer has to ensure the availability of electricity
connection and supply and proper quality of drinking water.

A report was produced by National Bank of Pakistan regarding poultry so the estimate of land and
building requirement and the total cost was produced:
The controlled environment of poultry although require investment but its way better than open shed
farm because it decreases the chances of death rates among the chicken.

Open Shed Control Shed

Temperature uncomfortable for chickens Temperature can be brought down by 10°C to
15°C
the broiler production in summer season is controlled environment farming where 6-7 flocks
almost nil and only four poultry could be taken of chicken could be raised
the incidence of diseases could be minimized and The chances of disease and coat of vaccination
cut down the cost of vaccine and medication of are high
Rs. 2-3 per bird
Mortality has been decreased to 2 to 3 percent Mortality is 10%
only one person at daytime and one at night time nearly 6-8 persons are required to manage such a
are sufficient to look after a flock of 35,000 birds flock
farm a broiler flock is ready for market in 37 days farm a broiler flock is ready for market in 45 days
Feed Conversion Ratio (FCR) in conventional farm FCR is improved to 1.8 in controlled environment
is more 2 to 2.2 (3 to 3.3 kg feed to gain 1.5 kg farm (2.8 kg feed to gain 1.5 kg weight)
weight)
Chicks are brought in from Hatcheries in Hyderabad and Karachi. After they’ve been brought in, the shed
is prepared for them and certain controls are implemented in order to make the sheds friendly for
these chicks.

SPRAY

Shed is sprayed with Formaldehyde gas, made by adding Formalin on Potassium Permanganate to
sanitize the shed from germs and insects. The house should be vacant and sealed for 30 minutes after
the fumigation so that the gas infiltrates in every corner.

BEDDING

To avoid direct contact of chicks with the ground, Rice-husk and sawdust are usually spread as litter. The
bedding materials help absorb moisture, limiting the production of ammonia and harmful pathogens. It
also helps the birds to move easily.

LIGHTING

Light is provided for 24 hours during early growing period. In first fifteen days, light intensity is be 40-60
watts per 200 sq. of space which is changed to 15 watts bulb in the start of third week. The length of
light per day is important for the rate of growth and development. Long simulated day lengths will
encourage birds to eat more and they will develop at rapid pace.

Meat producing birds may be exposed to long photo period lengths as they reach the end of their
producing cycle to encourage rapid weight gains. Majority of farmers use sheds that are covered from
all sides by a grill. They can control the light by covering the grill with the jute cloth.

3.33 Climate

After chicks are imported and brought to the farm, certain temperature is maintained (The climate
directly surrounding the birds is called the micro-climate). On average, the body temperature of birds is
between 41°C and 42.2°C

Table-Recommended Temperature for Broilers

First day 32-34°C

1st week decrease 30°C

2nd week decrease 26°C

3rd week decrease 22°C

4th week decrease 20°C

Intense heating or cooling is done to control humidity of house air compared to the temperature
outside.. When outside temperatures are low, relative humidity in the house is low, which often results
in dry dust circulating in the air within the house. The targeted relative humidity for poultry is 60-80%.

After 3 weeks of age when the house temperature is less than 28–30°C they grow best. In rural areas,
the temperature is usually around 40°C in the day so they will grow a bit slower than usual.

Heat stress is the major problem in poultry farming. Being a tropical country the temperature reaches
over 40°C during summer and is not suitable for poultry farming, and maintaining reasonable house
temperatures is either too costly or simply not possible, owing to a limited or lacking power supply and
other factors. Hot and humid climate and poor management alleviates the mortality rate of birds, and
stunts their growth. Most farms spray cold water time to time to maintain the body temperature of the
birds. For all small-scale production systems in tropical developing countries, tolerance to high
temperature is a key requisite in the birds. One of the most effective ways of improving heat tolerance
is through cross breeding. This will mix the genes of the indigenous animal which has high heat
tolerance. On the other hand, Controlled environment poultry farms can overcome this critical summer
situation. These farms are equipped with highly mechanized system of automatic chain feeding and
nipple drinking systems which make the environment quite conducive for poultry production by getting
continuous production.

The lowest temperature in the thermoneutral(The ​thermal neutral zone​ (TNZ) is the chicekns
temperature tolerance rangezone) is called the ​lowest critical temperature​ (LCT). If temperatures fall
to under this temperature the bird will start to use feed energy to warm itself (i.e. maintain its body
temperature) and will consequently consume more feed. The highest temperature in the thermoneutral
zone is called the ​highest critical temperature​ (HCT). If the temperature rises above this temperature
the birds can no longer dissipate their heat. They will start to consume less feed and production will
drop as a result. These depend on body weight, age, housing system, feed level, air velocity, humidity,
health.

When temperatures out of the normal range, chicks have techniques which help them in maintaining
their body temperature in the zone.

Increase feed intake when the temperature is below thermoneutral zone

Decrease feed intake when the temperature is above the thermoneutral zone)

3.34 Feed

Several feed mills in Pakistan exist which produce their feed with corn, wheat, soybean, fish. Before
making feed these RM are tested in labs. After passing the tests this feed is made in imported machines
and is packed properly so that it remains fresh and protected till it’s transported to farms.

For meat producing birds three types of rations are used; starter, grower and finisher. The feed chosen
depends on the bird’s age and the stage of production. Each diet is carefully formulated to meet the
requirement of protein, energy, minerals and vitamins.
Starter Chicken Feed

Starter feed is a protein dense variety of chicken feed designed to meet the dietary requirements of
baby chicks for the first 6 weeks of their life before progressing onto grower feed. The high protein
content, usually between 20-24%, helps young chicks grow.

Grower Chicken Feed

The dietary requirements for a chicken between 6 to 20 weeks old is very different from a baby chick.
Grower feed has a protein content of 16-18%

Starter feed should be offered as a source of energy to chicks as it is easily digestible and a good source
of energy. Starter feed is fed up to four weeks and then the finisher feed is fed from fifth to sixth week.
There are many feed mills that prepare these formulated feeds.

Canola seed, canola oil and soybean, multi vitamins are imported. Soybean not agriculturally produced.
We have corn, wheat etc which come from Punjab. 65-70% of feed ingredients are locally produced.
Feed for all birds almost same.

Reasons behind soybean cultivation in Pakistan are:

● Climate change is the big reason

● Improper marketing

● Non Availability of high yielding varieties

● Irregular rainfall
 ● Poor quality Seed

● Minimum Research station for soybean

● Lack of Agricultural Scientist Research on soybean cultivation

● Variation in planting time

● Damaged seed

Mortality rate around 2-3% from total flock. Vitamins and antibiotics are fed to prevent mortality. 1 bird
eats approximately 70-80g feed a day and, drinks double water than feed so the ratio is 1:2.FCR
currently is 1.5 kg. FCR represents the ratio of feed to weight gain. It is essential to provide adequate
feeder space. Ideally, one pan type feeder insufficient for 50 birds.

The chicks can survive for 24 hours without feed because of the nutrients provided by the yolk, which
they absorb prior to hatching. Their small size means they have little body reserves to live for long
without feed and water. Which is feed is available 24/7 through feeders. As soon as the feed reduces,
the feeders are refilled so that the chickens always have water and feed for consumption.

3.35 Water

The water is supplied through drinkers or beakers. The birds press their beaks against the button and
the water pours in so it becomes easier for birds to access water. Birds drink about two litres for one kg
feed. The ratio of feed and water is 1:2. One drinker is sufficient for 50 birds.

Report is made of the entire day and sent to the office regarding how much feed they ate, how much
mortality etc.

3.36 Supply

In 35-40 days (5-6 weeks), the bird is ready to be marketed.

Transportation of broiler at night around 3-4 am because cool temperature plus its needed in the
morning at shops. They spray water on birds to maintain their body temperature. 1 small weigh
machine checks the individual weight of birds, and 1 big weighing machine which weighs the truck
before and after flock is loaded to check the total weight of flock. This is carried mostly to the local
shops in the area.

We control supply when prices fall but since we can’t store chicken for a long time, we have to sell it at
lower prices.

Poultry litter is used in agriculture as fertilizer so it is sold to them after the birds are also marketed. The
dead birds are burnt and buried.

3.37 Breeds
Breeds are imported. Same breeds all over the world. Some indigenous breeds exist here. Aseel is the
only unique breed, which is found in rural areas for cock fighting. This is has immense disease and heat
tolerance qualities. Under rural poultry improvement, Breeds such as Fayoumi, Dokki, Mini Red and
Rhode Island Red have also been introduced in Pakistan But since these breeds are not high in
productivity, is why broiler is used for consumption purposes.

3.38 Hormones and chicken:

Myth​: Chickens are fed growth hormones to produce more meat, which effect the human health. This is
just a rumor created on social media platforms. The reality is actually different

Scientists at the Department of Poultry Science in the Universidad Nacional Autonoma de Mexico led
a review of the scientific reasons why poultry are not fed hormones

Reasons for not using growth hormones in poultry:

● Hormones exist in two different chemical forms: they can be steroids or proteins. Steroid
hormones are active in the body when taken orally. However, protein hormones are broken
down in the stomach and extensively metabolized after leaving the gut; so they lose their ability
to act in the body when ingested. Therefore, to have an effect on the body, protein hormones
must be injected. Farmers would have to physically inject each bird by hand about three times
per day. Moreover, we eat 7-8 lac birds in Karachi everyday so to inject each bird would be
nearly impossible.

● Progesterone, testosterone, and estrogen are naturally occurring hormones in both humans and
animals. These hormones are necessary for normal development, growth, and reproduction. It
cannot be taken orally, because it is digested normally, to be effective it would have to be
injected. The injections would have to be given every 90 minutes to be in correlation with the
pulses of the natural hormones in the chicken. In addition, the Cost structure says that chick cost
15-20%, feed cost 60-70%, and overhead cost 10-15%. If we use hormonal injections than those
would be 10% of overhead costs and 1% of total production cost. This will make the process
very costly.

● Additive hormones are banned so no growth hormones are added to the chicken we eat,
because they are illegal

● Through genetics, breeding, nutrition, veterinary care, and advancements in the housing,
chickens are healthier and bigger than ever before. Chickens are not fed or injected with growth
hormones; they just have naturally increased size over time. European countries and America
have genetically improved birds. No artificial methods used. Improved genetics create better
performance. These countries develop them and send us their grandparents. In Pakistan, we
don’t do this development because we don’t have a lot of institutes and skilled professionals.
 ● Growth hormones, such as oestrogen, progesterone and testosterone, occur naturally in animals
and are essential for various physiological processes. Modern broiler chicken breeds are very
fast-growing. It takes between 35 and 98 days after implantation to have an effect on muscle
production in chickens. This means that hormones won't prove to be effective in poultry. The
hormones have no physiological effects as the birds acquire market weight before they acquire
sexual maturity.

Reasons for Rapid Growth

There are three major factors contributing to rapid growth rate we witness in today’s commercial
poultry but none of them includes hormones.

● The first, mentioned previously, is the success of primary breeder companies in selecting the
best birds for growth and performance. They are selected on the basis of weight, productivity
etc.

● Second is research related to nutritional requirements of the bird. Now we understand what we
should be feeding different genetic strains and birds are maintained according to target weights
in terms of energy, protein, vitamins and minerals to optimise performance and growth.
Average age of chicken to sell at market educed from 112 to 47 days, live weight increased from
1.1 to 2.6 kg, feed conversion ratio( a kg of feed needed to produce a kg of ,meat) reduced rom
4.7 to 1.6

● Third, we now understand the type of environment the birds need to develop genetic and
nutritional capacity it has. This includes providing temperature, air quality, ventilation, lighting
and feeder and drinker space to achieve maximum performance. The correct environment,
together with high-quality feed and advanced genetics, gives us a bird that does not need
growth hormones

-Genetic improvement can be achieved through cross-breeding. There are two ways of doing that.

Back-crossing(​Backcrossing​ is a ​crossing​ of a hybrid with one of its parents or an individual genetically

similar to its parent) to a superior parent breed; or through within-line selection.

The cross-breeding approach usually requires a two-way cross between an improved exotic and a local
breed, with the aim of combining the better production capacity of the former with the with the latter’s
adaptability to harsh environments.
Genetic Development has caused the weight of birds to increase, not the hormones.

We don’t import or produce any hormones in Pakistan

Due to genetic improvement now bird gets ready in 35 weeks rather than in 50-55 weeks

Target now is to bring FCR to 1 from 1.5

3.4 Structure Strategy and Rivalry

Grandparents are genetically modified day old chicks produced by only three countries of USA
and Europe. There are only 5 importers of these grandparent chicks in Pakistan. These chicks are
provided with appropriate temperature and imported feed in the grandparent farms. They give
birth to the parent chickens.

The Hatcheries

The eggs of these parent chickens are taken to hatcheries. Here the eggs are kept for 21 days
under proper temperature and hygienic conditions until they hatch. They are then tested and
distributed to:

● Unorganized sector: individual/backyard farms

● Organized sector: Commercial farms and Layer farms

Backyard Farming
These are small farms mostly in rural areas. These farms are owned by the lower SEC and thus
traditional methods are used. For hygiene before the arrival of the stock they spray formal
dehydein the room and keep it closed for half an hour and sweep the floor with caustic soda.
Some of them even cover the floor with plank of woods to avoid humidity and infection. To
control the temperature, they have about 3broders which are filled with burning coal. The chicks
flock around them which provide them with a similar warmth to that of the mother hen. For
about 6 weeks they are taken good care of until they turn into a healthy broiler chicken ready to
consume. Then they sell them off to retailers, mostly the local butchers.

Backyard farmers buy day old chicks from hatcheries. although the farmers start from keeping
1500 chicks but it is generally observed that in the long run only those succeed who keep atleast
a stock of 5000 chicks. These backyard farmers check the health of the chicks at the time of
purchase by the shine in their eyes, the spotlessness on the skin from their knees to toes, and the
purity of membrane between their toes. They prefer taking the stock with all chicks of roughly
the same size. Nowadays, each chick is bought for about PKR 40. The hatcheries always gives
them 2% extra chicks for free as some of them die during transportation. If the death is more
than 8% in the next 24 hours then the whole flock is considered unhealthy and is disposed off.
Within a day of their arrival they are given glucose and are vaccinated.

Commercial Farms

Day old chicks are bought here and tested by the skilled labor. Hygiene is so strict that
employees are not allowed to enter the farm without having a bath and dipping their shoes into
the caustic soda solution each time. Mechanized system of feed, vaccination and temperature
controls are available here. Most of this machinery is imported from Japan and Germany and
skilled labour is hired to manage the operations. 75.7% of the chicken that we consume are
prepared here. Broilers (the chickens that are for consumption) are prepared within 6 weeks and
then are either sent for further processing (frozen foods) or are sold to wholesalers or retailers.
We have a total stock of about 440 million broilers under normal circumstances.

Layer Farms
Specific types of chicken are sent here. These are called the Layer hens. These hens are kept for
longer than just a month and a half. They are taken comparatively special care with respect to
hygiene and nutrition in feed. The eggs that they give are then again sent to hatcheries. About 28
million of our animals are involved in this process.

Within the supply chain of poultry industry there exists many businesses. Sometimes in order to
attain operational efficiency the whole supply chain is owned by one owner. Their own feed,
hatcheries, medicines along with the animals help them gain economies of scale.

The essential players in this industry are:

Feed mills

Poultry farms

Vaccine and medicine production houses

Hatcheries

Wholesaler

Retailer

Middlemen/distributors

Feed Mills:

Despite being the backbone of this industry there are only a handful of good feed mills in
Pakistan. The giants like Menu and K&Ns own some of them.

Feed mills are responsible to produce specific feed for a flock in order to ensure their maximum
growth within 7 weeks. These kind of feeds are made by mixing a variety of small crops, corns,
and vegetable oils in specific proportions in a plant.
For such a task semi to highly skilled workers are required. In Pakistani poultry industry all the
workers are full time employees. Mostly the owners provide their employees with residential and
related facilities near the mills.

Poultry farms:

This is the core business of the chain. These farms are responsible for the careful growth of
chicks for the next 7 months until they turn into fully grown broiler flock. Poultry farms operate
in 2 ways: control shed and open house

Control Shed:

It is a computerized system to ensure the appropriate temperature and minimization of bacterias

in the farm. For this purpose every person entering the farm has to dip their shoes in caustic
soda, a solution which is always kept outside the farm. The wheels of the vehicles entering the
farm are also soaked with respective chemicals.

The capacities vary from 30000 to 90000 animals depending on the size of the sheds (i.e. single,
double, or triple). Thus, a highly skilled labour force is hired who knows the operational and
technical aspects of the shed, and the appropriate precautionary measues to protect the flock.

Open Farms:

In Pakistan, open huse farming is the most prevalent. More than 50% of our farms are operating
on this system. Their capacities vary from 5 to 6 thousand animals per farm. Even semi-skilled
workers handle such a small farm efficiently.

Vaccine And Medicine Production Houses:

Considering that the diseases spread rapidly within the flocks it is essential to have these
production houses. Some farms have their own vaccine and medicine houses whereas there are
big pharmaceutical companies as well which produce tailored products according to their needs
(eg: Pfizer)

Hatcheries:
They are the primary suppliers of chicks to poutry farms. They are responsible for the artificial
hatching of eggs. For this they have two systems: incubators and brooders. The eggs are
provided the appropriate temperature and movements they would get when a mother hen would
sit on them. Immediately after hatching the chicks are kept in intensive care units. Once the
chicks are healthy enough they are transported to poultry farms.

Wholesalers:

These are situated in every city. On a daily basis they buy chickens from the farms and sell them
to the retailers with a certain amount as their commission

Middlemen:

Also known as ARTIs in the local language, they are basically wholesalers. They own their own
transportation facility. In a few cases where middlemen is not the wholesaler, retailer has to pay
a higher price as both middleman and wholesaler demand commission.

Retailers​:

Usually reailers are the local butchers final consumer buys the processed chicken from. Semi
skilled worker is required I this process.

Integration:

More than 80% of pakistan’s poultry industry is still vertically integrated. However a few giants
like K&Ns, Food, and Menu have their own supply chain and are thus horizontally integrated.

Pricing And Competition:

The pricing depends upon the basic supply and demand. The retailers tell the forecasted amount
of chicken needed for the next day. This forecast depends upon the pre-orders of consumers and
the demand in the previous seasons. If the demand is more than the supply higher prices are
charged by the poultry farms. Vice versa is the case in the excess supply scenario.
The government doesnot interfere with the pricing of this industry. However, in the excess
demand scenario respective District Coordination Officers call a meeting of wholesalers and
retailers in order to control the prices.

There is no such price wars among different firms in this industry. It all depends on the balance
in the maturity and selling of the animal. After the maturity of the animal the weight gained after
per unit consumption of feed keeps on decreasing. Thus, farmers want to sell of their animals as
soon as they reach their maturity. The only competition that exists in this market is the better
forecasting by the farmers of when the animals should be sold in order to capitalize on the prices
prevalent in the market at a given time.

3.5 Demand for Poultry in Pakistan

According to Porter’s Diamond Model

● Local demand should be anticipatory of foreign demand

● Domestic demand should be stringent and sophisticated

● When the market for a specific product is bigger locally than international markets, the
domestic firms give more attention to that product than do foreign ones, creating a
competitive advantage.

● A higher demand in the local market leads to international advantage

● A strong local market helps local firms anticipate global trends

Demand of Poultry
Pakistan is an agricultural country and a large proportion of its population depends on
agricultural goods and products for their livelihood. With a population growth rate of
approximately 2% per year, the government needs to develop ways to increase the production to
provide for sustenance and generate a surplus that can be exported. Owing to infertile soil,
obsolete agrarian practices and water shortages, agricultural production has experienced a large
decline. To prevent the escalation of the food shortage problem, meat production is used.

Over the years, many changes have been noticed in the pattern of meat consumption in the
country. The graph below shows how the preferences for meat have changed between 1986 and
2009.

In recent years, chicken continues to be the largest source of meat consumption in Pakistan. A
historical analysis indicates that after experiencing a dramatic rise for around 20 years, chicken
lost part of its edge due to apprehensions caused by viruses such as bird flu. After reaching a
very high figure of 49% in 2000, the share of chicken in meat consumption fell to 39% in 2007.
However, the most recent surveys conducted show that chicken is gaining back its lost share.
One major factor contributing to high poultry demand is its lower prices compared to beef and
mutton. Chicken is priced at Rs. 244/kg whereas beef costs Rs. 476.91/kg and mutton at Rs.
700/kg.

Comparing Pakistan’s Poultry Demand with Global Consumption.

In our country, per capita consumption of meat is only 7 kilo grams whereas the developed world
consumes about 40 kilograms of meat per capita per year. Per capita consumption of eggs in
Pakistan is only 65-70 eggs annually whereas the world average consumption is around 160 eggs
with developed world consuming as much as 300 eggs per capita per annum.

As per standard of World Health Organization, daily requirement of animal protein for a person
is 27 grams whereas public is consuming 17 grams only. Therefore, Pakistan is consuming less
animal protein as per required standards and there is a high need to increase the consumption of
meat to meet the ideal standards.

Reasons for low poultry demand

Price remains the major reason for a low poultry demand. Despite the fact that demand is lower
than supply, poultry products are priced at a rate that remains out of reach for many consumers.
The government has set the price for poultry at Rs. 182/kg but retailers do not follow this. The
price they set comes from an area-based committee and is usually between Rs. 245/kg and Rs.
282/kg. The charging of exorbitant prices comes as a result of lack of government monitoring.
Many retailers have put up the official price list to avoid trouble, but in reality do not follow it.

Per-capita income and poultry demand show a positive correlation. The higher a country’s
per-capita income, the higher its poultry consumption. The table below shows the per-capita
incomes along with the per-capita chicken consumption.

Country Per-capita Income $ Per-capita chicken

consumption (kg)
USA 58,030 49
Saudi Arabia 55,760 42
Canada 43,420 37
Turkey 43,990 18
Pakistan 5,580 7
Nigeria 5,740 2

It must be noted that per-capita income is not the sole determinant of poultry demand. As
identified by the Mr. Javed Aslam, Ex-Chairman Pakistan Poultry Association, developing
nations, including Pakistan do not have sufficient knowledge regarding the importance of poultry
meat consumption and its nutrition value. There is a lack of awareness amongst the population
about the benefits of protein consumption obtained from poultry meat, leading to a low demand.

To counter this problem, the PPA is actively conducting seminars and informational sessions to
educate the masses on the health benefits of poultry meat. In July 2017, PPA arranged a seminar
on “Nutritional Benefits of Poultry Products on Human Health” with Women Degree College
Town Ship Lahore. In 2018, a Seminar on Awareness about Poultry was conducted at
Government Degree College for Women.

In addition, a monthly magazine (Poultry Pakistan Mag) is also published and distributed.
However, no records of the magazine were found after June 2017. Members of the PPA also
appear on various news channels to disseminate essential knowledge about poultry consumption.

Major Consumers

Individual households are one the largest consumers of poultry whereas the rest of the demand
comes from commercial ventures like restaurants, fast food chains and hotels. Of the chicken
supplied to individual households, 95% of the chicken is sold to shops and only 5% goes for
processing. With a gradual increase in production, the demand is now less than supply.

Pricing and Price Volatility

As stated earlier, the price established by the regulatory bodies is not followed, but is the result
of the market committee’s decision that is based on demand and supply. Therefore, to analyze
the changes in price, it is important to understand the factors that change the demand.

● Broiler demand is influenced by the prices of supplementary food items like beef,
mutton, pulses, etc.

● During the month of Muharram, Safar, and Zil Hajj, chicken meat demand goes down
and during the month of Shaban, Shawwal, and Rabi-al-Awwal and the wedding season,
demand goes up.

● Demand also changes with the percentage increase in per capita income.

● Prices also go down during mango season because income is channelized towards
mangoes.

The only way reduce or eliminate volatility is to bring about equilibrium in demand and supply
by encouraging poultry and adding value to the products.

Although the PPA does not directly influence the prices, it justifies the pricing strategy followed
by the retailers. The Association’s stance is that it is unfair to control prices to shield consumers
when poultry farmers get no protection from the government; the raw materials for poultry are
heavily taxed leading to a rise in prices, making it impossible to follow the government pricing.

They want the government to declare a minimum floor price which should be at least 10pc above
the cost of production. Hence, if prices go above this price, then the government should regulate
but if prices fall below this price, then the government should provide compensation to the
farmers.
3.6 Government Intervention

The government plays a significant role in this sector in the form of taxes and policy-making.

Zero-rating in the Poultry Sector

Prior to 2013-2014, the poultry-sector was zero-rated. The zero-rating (applicable on the sales
tax) came during Musharraf’s period and continued for 8 years.

In 2015, the FBR issued Show Cause Notices to the industry that inquired why it was claiming
and getting input tax when it could only be claimed against imported goods and supply but not
against locally produced goods and supplies. The philosophy of FBR goes against the norms of
taxation throughout the world: countries generally provide tax relief to locally produced goods
and supplies, rather than protecting imports of the same kind.

Current Tax Structure

The Poultry Industry is checkered with a number of taxes and import duties, which are imposed
on the feed, day-old chicks imported as grandparent stock, electricity, machinery etc. these
include:

● 16pc duty (10pc regulatory duty, 1pc import duty and 5pc normal import duty) is charged
on day-old chicks imported as grandparent stock.

In poultry, feed costs 70pc of the total input investment. Here again, the government has imposed
significant taxes that increase the cost of production.

● 22.10pc (regulatory customs duty of 10pc, 1pc import duty and 10pc sales tax) on
soybean meal import. Almost 100pc soybean is imported to produce quality poultry feed.

● Regulatory import duty of 40pc (30pc duty and 10pc additional duty) is imposed on
import of maize. Though maize is not imported regularly because of local production, but
in case of domestic crop’s failure (as happened in 2014), the import becomes necessary.

Other taxes and duties include

 ● 5pc import duty on the import of machinery and plants plus 10pc sales tax plus 1pc
additional duty, making the total 16pc.

● Additional tax levies, clearance expense and transportation taxes from seaport to Punjab
make up 30-35pc inland freight expense.

● Government charges 16pc sales tax on electric bills

● Withholding tax 10pc 235(4) (A) income tax ordinance 2001

● For two years, government has been charging 8pc sales tax on import of poultry feed
additives.

Impact of Taxes on Consumers

The principle of sales tax is that every time a product changes hands, the sales tax is transferred
forward based on the selling price but, the poultry sector cannot pass on the tax because the
pricing of poultry products is not based on cost of production; it is based on demand and supply.
If the government today decides to levy any other additional tax on key inputs, be it sales tax or
import duty, the cost of production increases immediately but it cannot be reflected in the selling
price as the sector cannot increases the prices at will.

However, eventually every tax other than income tax has to be paid by the final consumer of the
product, which fluctuates with demand and supply, but there will be a delayed transfer. The
mechanism involved is that if today's cost of production is Rs130/kg, then anything above Rs130
is profitable; thus, the level of production can be continued. Tomorrow, if the government levies
an additional tax which increases the cost of production to let us say Rs145, then the farmer
obviously needs a price above Rs145 to continue production, thus the threshold of loss increases
from Rs130 to Rs145. In case the selling price is lower, he starts to reduce or discontinue
production, which creates a short supply in the market, forcing the prices to go up. In such a
situation, the prices may increase far above the actual increase in cost because of a lack of
equilibrium between demand and supply.

Impact of Taxes on Exports

These taxes create a major issue in this industry and prevent exports from reaching their
maximum potential. Naturally, these taxes have pushed up the cost of production of chicken
meat. Due to this increased cost, industry experts believe that Pakistan has failed to create any
export market for its poultry products and so exports remain negligible.

Demands by the Pakistan Poultry Association

● To withdraw Import Duty and Sales Tax on the Import of Soybean Meal: The PPA has
requested for a withdrawal on the custom duty and sales tax on the import of soybean
meal, enabling poultry sector to keep supplying cheap poultry products to the masses.

● Sales Tax Exemption on Poultry Machinery & Equipment: Small-scale poultry farmers
cannot afford overhead expenses in respect of sales tax registration and submitting
monthly returns etc. So they, being unregistered person, cannot avail the benefit of sales
tax concession on machinery imported for poultry farming. Withdrawing the condition of
depositing pay-orders/bank guarantees and then submitting the copy of sales tax return, to
provide the benefit of sales tax exemption to poor small poultry farmers will ultimately
be used for the production of poultry.

● Sales/Withholding Tax: Since poultry is an agricultural product, withholding tax on

poultry sector is exempted under income tax ordinance 1979. The relevant exemption
under serial (v) of SRO 586 (1)91 of Income Tax Ordinance 1979 stated as under:

“Persons receiving payments from a company exclusively for the supply of agricultural produce
(including fresh milk, , live chicken bird and eggs ) by any person engaged in poultry farming
and by an industrial undertaking engaged in poultry processing which has not been subjected to
any process other than which is ordinarily performed to render such produce fit to be taken to
market”.

Therefore, the Association demands that no sales/withholding tax should be imposed on

following Vegetable Protein Source being used as raw material of poultry feed Millet Meal,
Linseed Meal, Sesame Seed Meal, Coconut Meal and Other Vegetable Protein Meals.

● To Exempt Sales Tax & Withholding Tax on Electricity Bill Collected from Poultry
Sector

● To Exempt Additional 10% Import Duty Imposed on Poultry Seeds and 30% Regulatory
Duty on Import of Corn

Comparison with International Tax Structures

All over the world, countries provide subsidies on export of processed chicken. Like European
Union most exporting countries provides an export subsidy of 0.325 Euro cents per kg of frozen
chicken exported. However, in Pakistan, there is no provision of such subsidies.

Moreover, in other parts of the world - including the EU - poultry and meat production (in fact,
all food items that cannot be consumed standing in the store) are zero-rated. Even the inputs such
as poultry feed and its ingredients are zero-rated.

Government Financing in the Poultry Sector

As per the guidelines issued by the State Bank of Pakistan in 2007, individuals and all types of
legal entities engaged in poultry related activities or desirous to establish new broiler, breeder,
hatcheries or layer farms having sufficient knowledge and relevant experience were classified to
be eligible to draw loans under poultry financing.

Agricultural financing was extended to entities (including corporate firms, partnerships, State
Bank of Pakistan Guidelines For Poultry Financing 2 and individuals) engaged in farming
activity as well as processing, packaging and marketing of mainly 75% of their own agriculture
produce. Financing facilities were also extended, provided the bank was satisfied with the
repaying capacity of the borrower & his managerial skills to run the farm and compliance with
SBP regulations and bank’s credit policy.
In July 2017, The Bank of Punjab started to provide Finance Schemes to Controlled Poultry
Sheds & Poultry Farming under its KissanDost Initiative.

Particulars Bank’s Policy

To finance poultry Farmers for establishing Controlled poultry farm in order to

meet the growing demand of chicken products at reasonable prices. This
scheme aims to provide financing for:

● Construction of New Controlled Poultry Sheds

Purpose ● Remodeling of existing conventional sheds into Controlled Sheds.

● Modernization / remodeling of existing sheds by replacing equipment /

machinery

● Purchase of Imported machinery / equipment related to Controlled

Sheds.

● A farmer has to be directly or indirectly engaged in Agriculture related

activities

● Should have a suitable land to construct Controlled Sheds

Eligibility
Criteria ● Should not have a defaulter history from any Financial Institution.

● Should hold a Computerized National ID Card

● Age: 21-65 years (till maturity)

Maximum: ​Rs 50.00 Million

Amount of The facility shall be provided keeping in view the cash flows of the borrower
Facility in order to justify the requested amount of finance and secure the bank’s
interest.
 For D/F & L/F (Term Loan Facility): 15% P.A. Fixed rate
Markup
For RF facility: 03 M KIBOR + 500 BPS

● Leased Asset in case of Lease Finance Facility (receipt will be issued in

the name of Bank of Punjab)

● Charge on agriculture land through Agri Passbook

OR

● Charge on urban immovable property through equitable/registered

mortgage

● The property should be cleared by the banks approved legal counsel

Security
and will be assessed by the Banks and PBAs approved surveyor.

OR

● Liquid security in shape of Bank’s Fixed Deposit Receipt /DSC/NSC or

Regular Income Certificates.

● One Personal Guarantee of an individual having adequate tangible net

worth.

● Two written satisfactory market verified reports.

Tenure of 5 years from the date of disbursement (in case of D/F & L/F)
Facilities 1 year from the date of disbursement (in case of R/F)

Loan ● Demand Finance Facility – 18 equal quarterly installments (Principal

Repayment Markup)
 ● Lease finance Facility – 20 equal quarterly installments (Principal
Markup)

● Running Finance Facility - markup will be recovered on quarterly basis.

3.7 Value-Addition in the Poultry Sector

Pakistan is the tenth-largest producer of broiler chicken in the world after Thailand; the dominant
players include US, Brazil, China, France, etc. The top nine producers process between 95 to 100
percent of all live chicken produced whereas in Pakistan only about five percent of the total live
chicken produced is processed.

Advantages of Value-Addition

There are number of advantages of value-addition in the poultry sector.

Since the market forces of demand and supply determine price, moving towards value-addition
will bring stability in prices as gradually there will be equilibrium in demand and supply. The
quality of products will improve very substantially as is seen in branded products. There is no
competition in selling generic products but branded products give rise to substantial competition.
Moreover, processing also gives leads to the production of export-oriented products.

3.71 Export Potential

The Halal food market was worth $3.5 trillion in 2012, showing an annual growth rate of
approximately 10 percent. The market of Pakistan’s interest includes UAE, Saudi Arabia, Oman,
Kuwait, Yemen, etc. as they are Muslim countries in close proximity, is $5.8 billion. Hence,
there is a great potential for earning foreign exchange as well. As little as exporting an additional
10 percent live chicken produced converted to value-added products would earn $440 million per
annum but to materialize this gain, the sector has to be zero-rated.
3.71 Issues in the Value-Adding Sector

Until the early 2000s, processed packed frozen chicken was subject to sales tax. During this
period, a number of processing units, such as Pakistan Poultry Produce established by the
Minwalla Group, Jiffy Chicken established by a family member of the Wazir Ali Group, KK
Chicks established by Climax Fans Group, Modern Poultry Processor and BiBi Jan Processing
all had closed down. The main reason for the closure was that they could not compete with the
unorganized poultry processor sitting on the footpath.

The value-addition sector could not compete with the unorganised sector sitting on the footpath,
which virtually has a cost of no more than Rs2/kg against the cost of processing, excluding the
cost of the chicken, which was somewhere between Rs45-55/kg because everything the
processed-chicken player does is taxed. They also have to hire competent work force – including
veterinarians with heavy salaries. Moreover, this cost is only to the extent of slaughtering and
meat processing. In this cost, there are a number of taxes and levies, which includes sales tax on
sanitizers, detergents, gases for freezing, equipment /machinery, Social Security, WPPF,
Workers Welfare Fund, EOBI, education, compulsory employment to handicaps, etc.

3.8 Related And Supporting Industries Of Poultry Farming:

Due to the increasing prices of meat and beef the poultry sector became quite a profitable
business in Pakistan. Thus related and supporting industries of poultry farming now play a vital
role in our economy. There are three essential supporting industries in this sector related to
vaccination, feeding , and by products of chicken.

Poultry Feed Industry

The first mill was installed in Rahimyar Khan district in 1962 by an MNC named Lever Bros.
five years later another mil was set up named Ani Feds at Gujranwala. Big Birds Group and Hi
Tech Feds are the biggest producers. Today, there are about 141 feeding mils which produce
over 2540000 tonnes of feed per anum al over Pakistan. Consumption varies from 125-135
grams of feed for each bird every day.
Earlier the producer did not give attention to the quality and quantity of ingredients in the fed
which resulted in malnutritioned birds. Now the birds are given home based and
comercialyprepared feds from maize, pulses, wheat, rice, seafood, sorghum barley, and
vitamins. About 75% of the fed is commercially prepared. Earlier 8 week old broiler with a
weight between 1.25-1.5 kg with fed conversion ratio of 3kg of fed to 1 kg of live weight was
considered healthy.

Being a significant part of this industry it pays an important role in finalizing the price of the
animals. Recently, its prices have risen resulting in 60% increase in the final product.

Currently the manufacturers are focused on producing high quality fed for more output. This
modified and balanced fed has appropriate protein, carbohydrate, and fat content that increases
weight of the birds and is cost effective to the farmers. The fat content ratio has now fallen to 2
kg of fed to 1kg of live weight.

The technology has also improved over time. Automatic batch controller and computerized
manufacturing program has improved purity and reduced labour costs.

Pakistan is self sufficient in producing fed as its raw materials are the by products of agriculture
industry which are found in abundance. Local farmers buy the fed directly from the mils.

Feds for poultry:

There are 3 kinds of poultry feds

1. Starting poultry fed: a mash given uptil 8 weks

2. Growing poultry fed: a ration given from 8 weks to about 20 weks or until the laying
comences
3. Laying poultry fed: a ration given after 20 weks or after the laying commences

The nutrient constituents of poultry feds are:

Proteins: On a dry weight basis the protein content in an egg is about 50% and in an 8 week
broiler it is about65%. Typical broiler rations contain 23% protein.

Source: meat scraps (lysine), fish meal (lysine, methionine), poultry by product meal
(tryptophan, lysine) blood meal, liver and glandular meal, feather meal (hydrolyzed) animal tank
age, milk products, cottonseed meal, peanut meal, soybean meal, sesame meal, sunflower seed
meal.

Carbohydrates: essential polyhydrates such as starch, pentosans and several other complex
carbohydrates provide energy to the birds. Cereal grains and their by=products are an essential
source of starch and thus are a huge part of their fed.

Source: corn, rye, sorghum grains (milo) barley, wheat, wheat millings, oats, various grain by
products.

Fats: when it comes to dry content, 40% weight of an eg and 17% THAT of a broiler consists
of fat. Although fat contains more energy than either protein or carbohydrates yet it is not used as
much due to high prices. And risk of rancidity due to prolonged exposure to air, sunlight, and
moisture, etc. however, low intake of fat in chicks ca result into accumulation of liver fat, poor
growth, and respiratory infections. Low fat content in the fed of hens result into smaller eggs
which do not hatch well. Most fed ingredients (such as wheat, maize, barley, etc) contain about
3-5% of fat which is enough for inclusion of one essential fatty acid

Source: vegetable oils, corn oil, beef, lard

Minerals:

The most common minerals found in the feed are:

● bonemeal

● dicalcium phosphate
 ● super phosphate

● oyster shell

● manganese sulphate

● sodium chloride

● potassium iodide

Source: milk products, fish meal, meat scraps, grounded oyster shells, steamed bone meal, salt,
and deflourinated rock phosphate

Vitamins:

They function as coenzymes and regulation of metabolism. lack of even one of the 13 essential
vitamins results in faulty egg and then seriously effects the life of the chickens.

Source: alfalfa meal, liver meal, milk by products, distillers soluble, fish soluble, yeast

Feed additives: these are non-nutrient feed additives. They do not fulfill any of the nutrient needs
but are added in order to fortify feed with certain medicines or stimulants.
Vaccination Industry:

In earlier times, unorganized sector was the most prevalent where traditional methods of curing a
disease were used. No prior precaution was taken. Until 2000, when the farmers incurred huge
losses and had to waste entire flocks due to the spread of Bird Flu disease. Chicks had to be
vaccinated at least 5 times to prevent infectious bursal disease and bronchitis.
Antibiotics are given to keep the birds healthy. However the amount to be given is very critical
and must be monitored by a veterinary doctor. If medicines are given more than requirement then
it might lead to fungal infections, digestive problems. And delay in the growth of chicks. If
traces of these infections are left in the meat then it affects the human health drastically.

There are a very few vet doctors in Pakistan, specifically in the rural areas where the production
is falling rapidly. Only 3 companies within Pakistan are making vaccines and most of it is
imported from USA. For the first time Big Bird Farms opened a new department for the
production of vaccination.

The farmers argue that R&D can be developed only with the help of the government. However,
there are other matters of importance to be focused on initially. Also the investors are investing
in the mechanized farming with better methods of hygiene thus reducing the chances of germs
being spread and consequently reducing the demand for medicine and vaccines.

4 Additional Information on Empirical Research

Tariq poultry layer farm:

Labour intensive, only two machines. System already made food and water available at all times. Canals
made of plastic, feeder lines. Feed is filled in the morning and evening (2 times a day). No such
improvements made in previous years. Feed includes rice corn etc, they are mixed in the mixer and
made. Layer birds sold in small towns and villages, a lot of ppldon’t eat these they eat broiler. 15000
layer birds kept in 6-7 sheds. Solar energy cause lack of electricity by K electric. Machines don’t work on
solar energy. Also have generators. Feed made themselves from animal protein, vegetable protein,
energy, amino acids, soybean corn etc comes khi and punjab. Day old chicks come from breeding farms
in khi. Registered with govt. per bird feed 100g. 1 sack=1700 rs and 30 sack demand. Salty water is
processed to make it sweeter. Labour=40, unskilled mainly. Till chick completes 12 weeks it has been
vaccinated 4 to 5 times. 18-19 weeks mein egg starts developing. No export. Temperature control not
done. Here water is sprayed all over the birds. Normally 2-4 birds die daily due to heat. No govt
intervention. No checks by govt. recently a viral disease bird flu had spread so nearby vets in
Memongoth were asked to check and medicate the layers. No hormone injections. Vaccine for typhoid,
cholera, newcastle etc. Vaccines brought from local medical stores. For whole flock 1 lac worth of
vaccine is bought. Litter is sold to agriculture after every 15-20 days.

Eastern Broiler farm​:

Total birds 80,400

1 shed 20,400

Labour= 6 guards, 2 assistant supervisor, 1 supervisor, vets. Supervisor is skilled. Labour is called from
villages and provided on the job training only. Every new guy is allocated to an old one who teaches the
former all the processes etc. It goes on for 3-4 days. Per shed 4 labour:2 for the day and 2 for the night.

Birds taken by dealer to khi at night around 3-4 am as it’s cooler at night plus birds needed in the
morning.

In 35-40 weeks the bird is ready to be marketed.

24/7 water and food from cans and beakers.

Springs attached to the can. As soon as feed finishes in the can, the motor starts and feed is refilled
automatically.

Feed made in feed mills. It includes corn, maize, wheat, pluses, soybean etc.

Temperature set at 24 degrees.

Bedding of rice husk. Bird can move easily on this.

Vaccination: a program when birds brought in when they are vaccinated. versaplus is sprayed all over
when they come in, on 6th day vaccine for indikilled given, 9th day Vaccine for H9, 12th day lasota

2 Doctors handle everything. They diagnose diseases, cure them, provide vaccines. They are appointed
by the company. They visit 2-3 times a week to check if any disease.

Currently no such disease.

No issues at control farms.

Almost al farms are private

No govt intervention

International standards followed

Chicks come from hatcheries in Hyderabad and Karachi

Govt has set rate at rs185 per broiler

Caged trucks come at night. They spray water on birds to maintain their body temperature

All Machines and generators etc from uk and Germany. Nothing local

Feed comes from Punjab.

Litter is sold to agriculture

Report is made of the entire day and sent to the office regarding how much feed they ate, how much
mortality etc.
Mortality rate around 2-3% from total flock. Vitamins and antibiotics are fed to prevent mortality.

Dead birds are burnt and buried.

1 bird=70-80g feed, drinks double water than feed.

They don’t move much. Just drink and eat.

1 weight=220g and price according to weight.

Birds weighed on Weight machines

Vaccination at different stages.

1 small weigh machine, and 1 big weighing machine which weighs the truck before and after flock is
loaded to check the total weight of flock.

High temperatures are a feature of most developing countries, and maintaining reasonable house
temperatures is either too costly or simply not possible, owing to a limited or lacking power supply and
other factors. As a result of this susceptibility to heat stress in broiler strains, it is standard practice in
many tropical developing countries to market the birds at an early age and low weight, before heat
stress becomes a major problem.

Recommendations
● Due to the non-availability of proper marketing system, producers face many problems for
which they demand establishment of a poultry market. Producers could not fix the sale price of
their produce as per production cost. It is also observed that due to price fixation on daily basis,
they face problems. It is recommended that poultry sale price should be fixed fortnightly or
weekly.
● Lack of finance is also a barrier in the promotion of this industry. Farmers purchase chick and
feed on credit, which makes it mandatory on them to pay extra. They should be facilitated by
institutional credit by the ZBTL or other institutions on low interest rates.
● The poultry department should properly support and guide the farmers. In case of disease,
these farmers are at the disposal of veterinary medicine dealers who often provide irrelevant
and expired vaccines, which at times inflict heavy losses.
● It is a common complain that the poultry medicines available in the market are inferior. In
remote areas, especially in villages, proper poultry medicines are not available. The department
should ensure the availability of poultry medicines.
● They should provide training to farmers on vaccination and provide these vaccines at nominal
charges with technical guidance. Properly equipped laboratories are needed at the district level.
Appendix
References
http://pakistanpoultry.org/poultry-industries/an-overview-of-poultry-industry/
http://pakistanpoultry.org/april-2016-poultry-magazine/
http://pakistanpoultry.org/april-2016-poultry-magazine/
https://fp.brecorder.com/2015/05/201505051183198/
https://fp.brecorder.com/2017/04/20170421171448/
http://www.thepoultrysite.com/publications/6/diseases-of-poultry/199/newcastl
e-disease/
https://www.msdvetmanual.com/poultry/newcastle-disease-and-other-paramyxo
virus-infections/newcastle-disease-in-poultry
http://www.thepoultrysite.com/articles/2812/chickens-do-not-receive-growth-ho
rmones-so-why-all-the-confusion/
http://www.thepoultrysite.com/articles/2812/chickens-do-not-receive-growth-ho
rmones-so-why-all-the-confusion/
https://www.ncbi.nlm.nih.gov/m/pubmed/2403332/
http://www.roysfarm.com/broiler-poultry-feed/
https://youtu.be/kb0nw2oYoRU
https://pakistanpoultrycentral.pk/
http://thepoultryguide.com/10-most-famous-breeds-of-chicken/
http://www.agrifarming.in/broiler-farming/
https://en.m.wikipedia.org/wiki/Broiler
https://www.poultryventilation.com/node/4927
https://www.google.com.pk/url?sa=t&source=web&cd=3&ved=2ahUKEwirqfjmrvj
aAhVEVxQKHS72ByQQFjACegQIBhAB&url=https%3A%2F%2Fwayne.ces.ncsu.edu
%2F2012%2F12%2Fthe-hormone-myth-2%2F&usg=AOvVaw0QBCCE8pAmxVqqirL
LacS0
https://m.youtube.com/watch?v=Qe5CTjtAW70