Pakistan to export heat-treated beef to China

Poised to ship first consignment of frozen beef this month

KARACHI:

Pakistan has won the eligibility to export cooked, heat-treated frozen beef to China, which is the world’s largest consumer of meat, as the country is set to ship the first consignment this month.

In a notification to the Pakistan Stock Exchange (PSX), The Organic Meat Company Limited (TOMCL) reported on Monday that it “…has successfully become the first and only company from Pakistan to secure approvals from GACC (General Administration of Customs of the People’s Republic of China) to export cooked/ heat-treated frozen beef to China.”

“Let’s make Pakistan proud,” Company Secretary Imran Khan said in the notification.

Talking to The Express Tribune, company CEO Faisal Hussain said that the scope of cooked/ heat-treated frozen beef export from Pakistan to China was significantly high.

The demand for beef from China stood significantly higher than what Pakistan was exporting in “raw form”, he said.

China alone consumes 23% of the world’s total beef production, while Pakistan provides (exports) only 0.5% of the world’s consumption.

“We are very close to them (Chinese) in proximity and we are the cheapest nation in providing things to the world,” he said. “Pakistan’s beef is far above than a lot of countries in terms of quality and secondly it is cheaper too.”

Pakistan is a viable export partner of China when seen in the context of proximity and logistics. “The completion of China’s Belt and Road Initiative will provide the best corridor for export of beef and other things soon.”

The company is set to send its first shipment of beef this month. “It will get there. People will check it, comment on it…if they want to change something (specification)…we will be dispatching regular consignments with full force in two to three months.”

There are 15 private slaughter houses in Pakistan including those of TOMCL. They are engaged in exporting meat to different countries including the UAE, Saudi Arabia, Oman and Bahrain. The Annual Report 2023 says the company is expanding its export market in the UAE.

TOMCL’s exports in the fiscal year to June 30, 2023 stood at 6,163 tons, comprising fresh chilled meat, frozen meat, frozen offal and pet chews.

They represented a slight decrease of 2% from the previous year. The export volume of fresh chilled meat dropped by 6%, while that of frozen meat increased by 66%, resulting in a marginal growth of 0.36% in total meat exports.

The company during the year ended June 30, 2023 was able to increase export revenues by 36.35% on a net basis, whereas export volumes increased by 0.57% and the devaluation benefit came in at 38.56% against the US dollar. The company posted a net profit of Rs722 million in FY23 compared to Rs411 million in FY22.

Average prices declined by 2.78%. Cost of sales increased from Rs646/kg to Rs894.56/kg in FY23 due to higher procurement costs and higher depreciation charges given the capitalisation of fixed assets.

Mari finds gas

Mari Petroleum Company Limited reported to the PSX that it had found new deposits of gas in its exploratory well Mari Ghazij-l located in Mari development and production lease.

The well was spud on September 11, 2023. “Post-acid gas flow rate was 11.1 million standard cubic feet per day…,” the company said in a notification to the PSX.

It is pertinent to mention that Ghazij-2 is the first well in a series of planned appraisal wells to evaluate the Ghazij-l discovery and determine its extent. The well will be put on extended well testing in due course for supply of gas to the government-designated buyer, after completion of requisite regulatory formalities.

Published in The Express Tribune, October 10^th, 2023.

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