The estimated Rs90 billion Eid ul Azha economy in 2008 might have increased only marginally this year. One estimate puts it around Rs100 billion, a paltry increase of 10 per cent despite higher prices of animals.

But new urban based players had entered in the Eid livestock market in Sindh to make short-term investment. People with links in rural areas have made investments for 3-4 months on promise of up to 50 per cent return.

Some business segments who used to operate in capital, property and commodity markets in better times have diverted a portion of their investment towards livestock farming to produce sacrificial animals. The normal return in the business, an insider told Dawn, is 100 per cent and above.

The number of small time investors was not expected to increase this year as the entry of big players was at the cost of petty small household cattle farmers.

“The entry of urban-based business groups had increased competition and pushed up the cost of facilities at makeshift cattle markets in major cities just before Eid”, Ghulam Mohammad, a cattle farmer from Gharo, Sindh, said.

“From power to security to provision of other amenities at the cattle markets, everything was more expensive this year than before. This was the reason why many people opt to sell informally through agents, an option less risky--- offering less but stable return”, he said.

According to press surveys in different parts of the country, prices of animals had increased by 20 per cent on an average this year. The middle class families had an average Rs5,000-6,000 budget for sacrificial animals.

In smaller cities where prices were not as high as they were within reach of family cattle farmers, white collar workers could afford to buy goats or lambs. However, in big cities long supply chain of middle men and transport and other costs pushed up prices.

It explained the change in the composition of demand in Karachi where according to data quoted in press, the number of cows brought from outside were three times the number of goats in cattle markets. Some 1,55,000 cows as against 51,000 goats crossed over from Superhighway into the city till November 23, according to reported figures of administrator livestock office. It was the other way round till last year when goats outnumbered cows by a clear margin.

“I would have loved to buy a goat but a healthy goat is priced as high as Rs12000 and that is more than double the amount I set aside for the sacrifice. I have taken a share in cow that will cost me around Rs6000 all inclusive”, Rashid a salaried middle aged man told this writer last week at a makeshift cattle market in the city.

Iqbal Qureshi, general secretary. Meat Merchant Association confirmed that the composition of market has changed. He, however, attributed surge in price of cattle to short supply of animals in Karachi as compared to its demand.

“Yes, people as big as Dewan, Lasani, Dilpasand, etc. have entered the market and are reported to be doing very well”, Qureshi said.

Some other sources who wished for anonymity told Dawn that livestock smuggling from southern part of the country has increased as livestock sector in the north took the brunt of ongoing war on terror and shrank.

“The livestock sector does not only cater to domestic need of milk and meat but also to demand of those living as far off as Tajikistan and Uzbekistan beside Afghanistan”, a frustrated player facing competition from new comers, said.

According to officials, however, over 90 per cent of livestock is still owned by small farmers and landless rural households. Such families depend on revenue from sale of milk and animals for sustenance. It is also said to be a key source of cash income for rural families.

The latest data indicate that together livestock and dairy sectors are bigger than the crop sector and account for 52 per cent of agriculture economy, about 11 per cent of the GDP and nine per cent of exports. During July-Oct 2009 meat and meat preparation export amounted to $33 million, about $10 million more than exports during same period last year.