Halal meat industry faces growth hurdles

SHAHRAM HAQ SHAHRAM HAQ | 09-07 08:25

LAHORE:

Pakistan's halal meat industry holds tremendous potential in the global market, yet industry experts argue that a comprehensive strategy is urgently needed to address both supply and demand-side challenges. These constraints, they say, are limiting the country's ability to capitalise on its halal meat export potential.

Experts emphasise the need for improved infrastructure, greater investment in technology, and the adoption of international best practices in meat processing and packaging. "Despite its potential, Pakistani halal meat exporters face several challenges that impede growth," said industry expert Ijaz Arif. "A lack of modern slaughterhouses, inadequate cold chain facilities, and limited access to finance are among the structural issues within the country."

Meeting strict global quality and certification standards is another major hurdle for exporters. The lack of government support, in the form of subsidies and policy facilitation, adds to the burden. Experts believe non-tariff barriers, such as stringent halal certification and traceability requirements, further complicate matters. Many importing countries demand rigorous standards that Pakistani producers struggle to meet due to limited resources and outdated practices. The fragmented global halal certification landscape, with varying standards across countries, creates additional challenges for Pakistani exporters. Without a unified approach to certification and quality control, experts warn that Pakistani exporters will continue to face difficulties in accessing premium markets.

The global halal meat market is projected to surpass $1.6 trillion by 2033, presenting a significant opportunity for Pakistan to increase its foreign exchange earnings. According to a report by the Pakistan Institute of Development Economics, the country's surplus production of beef, mutton, and poultry offers substantial export potential.

According to the State Bank of Pakistan, exports of meat and edible meat offal surged from $14 million in 2003 to $467 million in 2023, growing at a compound annual growth rate of 18%. Beef is the largest contributor to Pakistan's meat exports, accounting for $332 million in 2023, followed by mutton ($42 million), offal ($18 million), poultry ($0.03 million), and other meats ($74 million).

However, despite being the 15th largest meat producer globally, Pakistan ranks just 57th in meat exports due to the underperformance of its meat export industry. The lack of technological innovation and research in meat processing, packaging, and transportation further contributes to the industry's stagnation. Experts argue that there is a pressing need for the government to invest in research and development to enhance the efficiency and quality of halal meat production.

The Middle East, Southeast Asia, Europe, and North America are major markets for halal meat, while Brazil, Australia, and New Zealand currently dominate the global supply chain due to their advanced meat processing technologies and stringent quality control measures. "Pakistan's halal meat industry is vast, with a large livestock population and relatively low production costs compared to other markets," said Dr Ahmad Raza, a halal meat trader based in the Middle East.

Raza added that Pakistan's strategic location and efforts by exporters to diversify into new markets, including China, could prove transformative. "China's growing halal meat demand could be a game-changer for Pakistan, but there are other countries as well that present lucrative opportunities," he noted.

Experts also stress the need to address geopolitical complexities. The government should play a pivotal role in facilitating market access through trade diplomacy and bilateral agreements. Establishing globally recognised halal certification centres and investing in strategic reforms could help Pakistan's meat industry overcome existing challenges and emerge as a leading halal meat exporter. "With these reforms, Pakistan could potentially generate billions in foreign exchange within a few years, creating a win-win situation for both exporters and the country," Raza concluded.

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