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Incentivising Cattle Farmers May Increase Trade Between Pakistan and Indonesia

Chargé d’Affaires of the Indonesian Embassy Rahmat Hindiarta Kusuma recently visited MNS University of Agriculture Multan, highlighting the potential for enhanced trade cooperation between Pakistan and Indonesia, particularly in the halal meat sector.

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Chargé d’Affaires of the Indonesian Embassy Rahmat Hindiarta Kusuma recently visited MNS University of Agriculture Multan, highlighting the potential for enhanced trade cooperation between Pakistan and Indonesia, particularly in the halal meat sector.

Minister Kusuma’s visit underscores the growing demand for quality halal meat in Indonesia and the promising opportunities for Pakistan to expand its exports in this sector.

Indonesia, home to the largest Muslim population in the world, has a substantial demand for halal products. The halal food and beverage market in Indonesia is projected to grow significantly, with an estimated revenue of USD 258.02 billion by 2030.

This growth is driven by the country’s commitment to maintaining stringent halal standards and the increasing consumer preference for halal-certified products. Kusuma emphasized that Pakistan, with its expertise and resources, is well-positioned to meet this demand, suggesting that strengthening trade ties could be mutually beneficial.

Pakistan has a significant potential to become a major player in the global halal meat market.

Despite having a large livestock population, Pakistan’s share in the global halal meat market remains relatively small.

This disparity is a result of several factors including a low meat yield per animal. Pakistan is significantly lower compared to countries like Brazil, the US, and Australia. This is largely because livestock in Pakistan are often raised primarily for milk production rather than meat.

Also, diseases such as Foot and Mouth Disease, Peste des Petits Ruminants and Highly Pathogenic Avian Influenza are common in Pakistan. These diseases affect the health and productivity of livestock, reducing the quality and quantity of meat produced.

Furthermore, while Pakistan has some modern abattoirs, they operate well below their capacity. The distance between these facilities and rural areas discourages farmers from using them, leading to inefficiencies in the meat production process.

The lack of regulatory prices and support for livestock farmers creates low or zero incentives for farmers to rear cattle for meat. Additionally, Pakistani meat faces stiff competition from countries like India, which has a higher market capacity and established export frameworks.

Nonetheless, Minister Kusuma says that with the right infrastructure and regulatory support, Pakistan could significantly increase its exports.

The global halal meat market is expected to reach USD 1.65 billion by 2032, growing at a CAGR of 7.4 percent.

Pakistan’s proximity to key markets in the Middle East and its established halal certification processes position it well to capitalize on this growth.

During his visit, Minister Kusuma toured the state-of-the-art laboratories at MNS University of Agriculture Multan, which are at the forefront of agricultural research and innovation. The university’s efforts in crop genetics, tissue culture, and crop productivity enhancement are claimed to be crucial for improving crop yields and food quality. These advancements not only support local agricultural development but may also have the potential to enhance Pakistan’s export capabilities.

Minister Kusuma also inspected the university’s hydroponic unit, a modern facility dedicated to soilless agriculture. This system allows for efficient cultivation of vegetables with minimal water and land usage, showcasing the university’s commitment to sustainable agriculture.

The Vice-Chancellor, Prof. Dr. Ishtiaq A. Rajwana, highlighted the university’s achievements in agricultural research and its role in supporting experts, scientists, and industry, contributing to the country’s potentially positive, economic outlook.

He discussed current research and initiatives addressing critical issues such as climate smart agriculture, water conservation, and pest control through smart trap. The vice-chancellor added that the university is working not only to increase agricultural productivity but also to create a sustainable and resilient agricultural system for enhanced food security.

The Chairman of YAHAR Center Multan, Chaudhry Muhammad Haseeb, also emphasized the importance of agricultural exports in supporting the economy.

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