As China has a supply gap of beef and Pakistan has sufficient capacity, it is hoped that Pakistani beef will soon enter the Chinese market, says a report published by China Economic Net (CEN).
According to the Pakistan Economic Survey 2019-20, more than 8 million rural households in Pakistan engage in livestock production which contributes to 35% to 40% of their total income. Over the years, animal husbandry has surpassed farm production and become the biggest contributor to value-added agriculture.
Pakistan has 208 million food animals, with a milk output of over 60 million tons and an annual production of 20 billion eggs, Khurshid Ahmad, Animal Husbandry Commissioner, Ministry of National Food Security and Research, said. Compared with Pakistan, China is a large meat importer. In 2020, China’s beef production reached 6.72 million tons, and the import volume reached 2.1183 million tons with an increase of 27.65%, setting the beef import record.
China’s annual output of beef and mutton adds up to 10 million tons, said Li Jinghui, Deputy Secretary General of China Animal Agriculture Association and President of White-feathered Broiler Alliance, adding that “China’s per capita output is a few kilograms, which fails to meet domestic needs. That’s why there are millions of tons of imports.” The report says, China is a major meat importer while animal husbandry plays an important role in the economy of Pakistan, yet annual meat trade between the two countries is very small.
So far, China has not opened the door of Pakistani beef import, as Pakistan is still on China’s “List of Animals and Their Products in the Countries and Regions with A Prevalent Animal Epidemic Situation Banned for Entry”. Chinese research institutions are providing Pakistan with state-of-the-art technology, said He Cheng, a professor at China Agricultural University’s College of Veterinary Medicine, adding that “with vaccines and training personnel, Pakistan can produce certified and FMD free meat and dairy products, which is our goal.”
On the site selection of FMD free zone, Shen Jing, Deputy General Manager of QYH Biotech, with China Animal Husbandry Industry as its shareholder, revealed that they plan to build the FMD free area in either Balochistan province or Punjab province, and carry out the construction with the support of Chinese customs and quarantine agencies. There is a long history of animal husbandry cooperation between China and Pakistan. As early as 1974, Guangxi province, China, imported 50 Nili-Ravi buffaloes, popularly known as “black gold” of Pakistan, initiating the bilateral scientific and technological cooperation.
Chen Yiyi, President of Royal Group, a leading buffalo milk production and processing enterprise in China, led a Chinese business delegation to Pakistan, the hinterland of buffalo milk production around the world, in April. Touching upon his visit to Pakistan, Chen said that Pakistan lacks products with high added value and deep processing, while China needs to import high-quality products.
As Pakistan has such resources, if the two countries can cooperate, it will definitely be mutual beneficial. He divided the cooperation into two stages. “In the initial stage, we can carry out technical exchange and cooperation. In the second stage, we hope to set up a factory in Punjab province to produce products for export to China.” In order to facilitate Chinese enterprises’ investment, the China-Pakistan Agricultural and Industrial Cooperation Information Exchange Platform was officially launched in January 2021.
To provide more exchange and cooperation opportunities for enterprises of the two countries, the platform plans to hold several online seminars in different fields be held this year. The report added that Karachi is the traditional fishing hub of the eastern fisheries of Pakistan. Li Bijian, Chinese Consul General in Karachi, said Chinese enterprises are welcome to invest in Pakistan’s fishery industry. He also put forward five requirements.
Firstly, partners of Chinese and Pakistani should strictly abide by each other’s laws and regulations. Secondly, the two sides should conduct training and capacity building on an equal and mutually beneficial basis. Thirdly, technology transfer should be based on commercial terms, i.e. strict protection of intellectual property rights. Fourthly, partners should work together to ensure that their investments are protected and guaranteed. Banks in both countries should lend as much as possible to small and micro businesses so that they can successfully set up and operate their businesses.
Fifthly, Pakistan should create a favorable investment environment and welcome and accept the relocation of manufacturers and manufacturing industries. From the point of view of China and other countries, Pakistan should introduce relevant policies to encourage foreign investment and strengthen policy continuity.