Livestock export potential

It appears the government is ready to lift the ban on the export of sheep and goats to capitalise on high demand for the animals in the Middle East. However, it is worth acknowledging that the ban, imposed 15 years ago, still makes sense to its supporters, because they do not feel the government will be able to keep domestic prices stable. Among the very legitimate concerns is that prices will spike even higher around Eid, when demand for sacrificial animals increases.

Supporters of exports have, however, noted that it could be very cost-effective - and thus more profitable - to also set up fattening farms here to significantly increase the selling prices of exported goats. Along with live animal exports, the government should also look at ways to encourage meat exports without affecting domestic markets.

A Ministry of National Food Security and Research summary calling on the federal cabinet to reopen exports says the domestic supply and demand situation has improved dramatically, and that allowing exports would go a long way in curbing smuggling, while also helping stabilise domestic prices. Incidentally, increased border fencing and policing have already helped reduce smuggling, which in turn increased domestic supply and brought down prices in recent years.

The SIFC, meanwhile, has also given its approval to reopen exports. Though the ministry's summary is focused more on goats and sheep, there is huge potential for beef exports as well, especially due to concerns over pressure in India to limit its 'beef' exports - which are actually buffalo meat rather than cow meat.

It is also worth noting that livestock is actually the biggest part of the agriculture pie in terms of contribution to GDP, accounting for almost 61% of the agriculture sector, or about 14.5% of overall GDP. Much of the livestock industry is also still in the hands of poorer farmers, meaning that a well thought-out strategy that helps these farmers grow, without letting industrial farms to take over, could play a huge part in addressing rural poverty.