Trading in sacrificial animals has begun amid political uncertainty in the country and dampened hopes for a substantial growth in business this year.

Temporary markets set up for selling animals have started attracting large crowds of prospective buyers in Karachi and elsewhere in the country.

“More than 12 million animals were sacrificed on Eidul Azha last year. But this year we are not expecting a substantial increase in the number,” says an official of the Pakistan Tanners’ Association (PTA).

Traders say rallies and sit-ins might hamper the transportation of animals and their fodder from one place to another, particularly in Punjab, besides creating shortage of labour in animal markets

The people associated with sacrificial animals’ trade and PTA officials share the view that political uncertainty — which started with the Supreme Court’s trial of former prime minister Nawaz Sharif and peaked when he was ousted from office on July 28 — could weigh on the economy of Eidul Azha.

They fear that the continuation of political rallies and sit-ins might hamper the transportation of animals and their fodder from one place to another, particularly in Punjab, besides creating shortage of labour in animal markets.

Those who believe that the number may remain stagnant or register only a modest rise this year argue that political uncertainty has prevented influential investors from pouring in huge sums of money into the sacrificial animals business this year.

A decline in remittances during the last fiscal year has also squeezed investment.

Besides, a recovery in the real estate sector seen in the past year has kept most investment-hoppers glued to it, and not many of them are willing to shift sizeable funds towards the business of sacrificial animals.

The 12m animals sacrificed last year included 3.5m cows, 8.5m goats and sheep, and around 80,000 camels.

Based on their average prices, just the animal sacrificing part of Pakistan’s Eidul Azha economy comes to no less than Rs328bn (i.e. if we take Rs55,000 as the average price of a cow or calf, Rs15,000 for a goat or sheep and Rs100,000 for a camel).

Add to this billions of rupees generated through the sale of hides and skins of sacrificed animals and the business activity that takes place in allied industries of the slaughtering of animals and fodder production, and the estimated size of this economy would rise close to Rs350bn.

And if we increase the estimated average prices of the animals by a few thousand rupees per animal, the Eidul Azha economy would be somewhere near Rs400bn.

The estimates are conservative, but figuring out an exact number may require a fully integrated scientific study, analysts say.

The cycle of sacrificial animals’ trade begins every year with money flowing into large-scale advance booking of animals three to four months before Eidul Azha.

However, unlike previous years, investors were a bit cautious this time around, perhaps for one or more reasons cited above.

But whatever the reason, the fact is that the investment in sacrificial animals remains low this year, animal farm owners and managers say.

Seminaries, investment-hoppers, online marketers, religious groups, religious wings of political parties, big businesses including media houses, non-governmental organisations, charities and neighbourhood self-help groups all invest tens of billions of rupees to buy in sacrificial animals months before Eidul Azha.

Some of them book these animals at breeding farms, only to lift them ahead of Eidul Azha for collective slaughtering. Others do this for spot trading of animals and quick profit-making.

So, due to the low investment, animal breeders have entered the market this year after spending more of their own money.

“They are now making bulk sales in haste,” says a big animal farm owner from Sindh who has brought hundreds of cows and goats for spot selling in Karachi’s main animal market in Sohrab Goth.

He said he has sold 600 goats for Rs13,000 to Rs15,000 apiece to an online marketing group and bringing in more animals from Khairpur and Dadu.

A manager of one of the many animal slaughtering facilities of a religious party said that individuals participating in collective sacrifice of animals would pay Rs16,000 each for a medium-sized goat.

He booked hundreds of goats two months ago at Rs12,000 to Rs14,000 per animal from interior Sindh and Punjab.

The cost of one-seventh share of a cow or calf ranges between Rs9,000 and Rs12,000, depending upon the size and weight of the animal, he tells Dawn. He booked hundreds of cows and calves at Rs45,000 to Rs60,000 apiece a few months ago.

In addition to the main Sohrab Goth market spread over 700 acres, hundreds of small makeshift markets have sprung up all across Karachi for trading of sacrificial animals.

The Sohrab Goth market has 26 blocks, including four VIP blocks where pricy animals of the best breed are on display.

On Aug 16, prices of well-fed, high-bred cows and calves at these VIP blocks ranged between Rs1m and Rs2m. But managers of animal farmhouses say costlier animals would soon join in.

Similarly, owners of some tall, well-bred goats were also demanding more than a million rupees for each animal. One owner was demanding Rs1.5m each for a pair of two huge and tall, decorated goats of the Gulabi breed.

However, average prices of a majority of small- and medium-sized cows and calves were in the range of Rs70,000 to Rs100,000 per animal.

Similarly, asking average prices of a majority of small- and medium-sized goats ranged between Rs20,000 and Rs40,000.

Published in Dawn, The Business and Finance Weekly, August 21st, 2017