Milking the potential

Livestock farming plays a key role in the economic fabric of Pakistan, with over eight million rural families relying on this sector for 35-40 per cent of their income. It has become the largest contributor to Pakistan’s agriculture, accounting for 62.68 per cent of the agricultural produce and 14.36 per cent of the national GDP according to the FY2022-23 budget.

Pakistan has an estimated 57.5 million cattle, 46.3 million buffalos, 32.7 million sheep, 87 million goats, 1.2 million camels, 5.9 million asses, 0.4 million horses, and 0.2 million mules.

Bangladesh is currently estimated to hold 25.7 million cattle, 0.83 million buffaloes, 14.8 million goats, and 1.9 million sheep. So, rather than boosting livestock numbers, there is a need to pay attention to raising production per animal through efficient livestock management, feeding, housing, preventative measures and disease surveillance.

The livestock sector is a critical component of Pakistan's economy, contributing significantly to agriculture, rural livelihoods, and food security. However, managing and enhancing its growth poses challenges, particularly in balancing the dual targets of maximizing economic benefits while minimizing environmental impacts. The sector faces issues like overgrazing, deforestation, methane emissions, and inadequate safety standards in food production.

To address these concerns, there is a need for diversification within the sector, improved livestock management practices, and stricter safety protocols. Achieving this requires robust regulatory frameworks and substantial investment from both public and private institutions. The State Bank of Pakistan (SBP) has provided the regulatory framework enabling many banks and financial institutions to offer agri-loans.

Reverting to challenges, it is important to note that approximately 80 per cent of milk is produced on a small scale in rural areas. The challenges include low productivity of milking animals, limited feed resources, poor breeding practices, inadequate veterinary support, and the absence of an organized marketing system.

Take for example, the average milk yield of cows and buffaloes in Pakistan is 14 and 10 liters per day, which is still five to six times less than in developed countries. The average productive lifespan of a cow is about eight years, while a buffalo is productive for about nine years. To address this, breed improvement initiatives can be aimed at increasing milk productivity from the current 10 liters per day per animal to 30 liters.

Diversification through a comprehensive overhaul of the livestock business in the country is an immediate requirement. One effective approach is the development of entrepreneurship within identified clusters, particularly targeting young graduates from agricultural universities. In this context, the involvement of seven leading universities, eight dedicated agricultural faculties, and eight prominent agricultural colleges and institutes will play a crucial role in fostering innovation and driving growth within the livestock sector.

Livestock R&D units at head offices can play a pivotal role in developing and implementing livestock financing products through field offices

The Agricultural University of Faisalabad, being the largest university, can play an important role. By leveraging academic expertise and encouraging entrepreneurial ventures, these institutions can help modernize the industry and create sustainable opportunities for the next generation.

Here it is pertinent not to mention that industry-academia collaboration with a blend of practical expertise and academics can contribute a lot as the industry offers first-hand knowledge of on-ground challenges, while universities offer research-based actionable insights and cutting-edge theories.

By starting their businesses on a small scale with support from banks and government assistance, they can tap into the potential of the livestock sector. Opportunities for small-scale models such as cattle breeding, calf rearing, small-scale hatcheries, milk and meat value-added shops, and quality testing labs offer significant potential for entrepreneurship.

Livestock R&D units at head offices can play a pivotal role in developing and implementing livestock financing products through field offices, addressing the needs of dairy and meat farms. These farms often require financial support for daily expenses, working capital, and long-term investments in areas such as animal purchases, equipment, and infrastructure.

Financing solutions can be categorized into working capital, term finance, and composite loans. A successful example is the Australian Livestock Research Centre (ALRC), which, in collaboration with financial institutions and agribusinesses, has effectively tailored financing products to meet the specific needs of farmers.

Integrating digital technologies and e-commerce is essential for modernizing trade, improving input supplies, and increasing efficiency. Key areas for transformation include upgrading veterinary clinics with telemedicine and digital tools, promoting corporate farming for sustainable practices, and enhancing logistics and storage facilities for the timely delivery of feed and vaccines.

The livestock sector in Pakistan indeed offers significant growth potential, especially in rural areas where it serves as a critical source of livelihood. However, unlocking this potential will require more than superficial intervention. It needs a combination of strategic investments, technological integration, and innovative financial support to drive sustainable growth. More than general reforms, it mandates a strategic overhaul tailored to the country's unique challenges and opportunities.

A notable study by the Pakistan Agricultural Research Council (PARC) highlights the sector's critical productivity gap, where despite having the world's fourth-largest livestock population, Pakistan's yield per animal lags behind regional counterparts like India and China.

The writer is a freelance contributor. He can be reached at: mycolachi@gmail.com