KARACHI: Exports of meat and its products hit a record high of $512 million in FY24, marking a 20 per cent increase from $426m in the preceding year.

This growth is attributed to a 24pc rise in export volume, which reached 123,515 tonnes from 99,892 tonnes in the previous fiscal year, driven by strong international demand and competitive pricing following a significant devaluation of the rupee.

Azeem Akhundzada of Sherman Securities said that despite the overall growth, the average meat price in the international market during FY24 dropped by 3pc to $4.1 per kg compared to $4.3 per kg a year ago.

The United Arab Emirates played a major role in this price reduction, with export values to the UAE decreasing by around 2pc, while prices in other regions remained relatively stable.

Export volume surges 24pc to 123,515 tonnes on back of competitive prices

However, the UAE continued to be the largest market for Pakistani meat, accounting for 39pc of total exports valued at $200m.

Despite an estimated 2pc drop in meat prices in the region, overall exports grew by 4pc in dollar terms.

Saudi Arabia emerged as the second-largest destination for Pakistani meat, comprising 28pc of total meat exports.

Thanks to rising demand and favourable pricing, exports to Saudi Arabia surged by 66pc year-on-year to $142m in FY24.

Kuwait and Qatar, two promising markets that together constitute around 17pc of Pakistan’s meat export market, saw declines in value terms, with exports falling by 13pc to $49m and by 2pc to $38m, respectively.

Additionally, new export markets such as Vietnam, Kazakhstan and Kyrgyzstan have developed over the past few years.

Mr Akhundzada highlighted that the Organic Meat Company Ltd, a major exporter of fresh, chilled beef to Middle Eastern countries, has diversified into pet chews and cooked meat products.

In the current fiscal year’s budget, a key concern for meat exporters is the inclusion of the meat sector under the normal tax regime, replacing the previous fixed tax regime (FTR). This change may impact export volumes going forward.

In the last three months, Pakistani exporters have renegotiated their long-term contracts with Middle Eastern buyers, resulting in a 20-25pc rise in export prices to offset the rising cost of meat.

Domestically, meat merchants continue to link higher local meat prices to soaring exports and the smuggling of animals to Afghanistan.

Data from the Sensitive Price Indicator (SPI) shows that the national average price of beef with bone (average quality) increased to Rs700-1,250 per kg during FY24 from Rs600-1,050. The price of mutton (average quality) rose to Rs1,500-2,300 per kg from Rs1,400-2,000.

Published in Dawn, July 27th, 2024