CLUSTER PROFILE

MEAT PROCESSING CLUSTER,

LAHORE

Turn Potential into Profit

Small & Medium Enterprise Development Authority
Ministry of Industries & Production
Government of Pakistan
4th Floor, Building no. 3, Aiwan-e-Iqbal Complex,
Egerton Road, Lahore
Tel: 92-42-111-111-456 Fax: 92-42-6304926-27,
Email: helpdesk@smeda.org.pk

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Cluster Profile Meat Processing, Lahore.

Table of Contents
1. Introduction of Lahore ................................................................................................ 3
2. Description of the Cluster ........................................................................................... 3
2.1 History & Background of Cluster ........................................................................ 3
2.2 Description of Products ........................................................................................ 4
2.3 Core Cluster Actors .............................................................................................. 4
2.3.1 Farmers\Livestock Markets: ......................................................................... 4
2.3.2 Slaughter House: ........................................................................................... 4
2.3.3 Machinery/ Equipment Suppliers: ................................................................ 4
2.3.4 Packaging: ..................................................................................................... 5
2.4 Current Cluster Scenario .......................................................................................... 5
3. Analysis of business Operations ................................................................................. 5
3.1 Organization of Cattle Markets ............................................................................ 5
3.2 Process Flow ........................................................................................................ 6
3.3 Major players ....................................................................................................... 7
3.4 Quality Assurance ................................................................................................ 7
3.5 Human Resource .................................................................................................. 7
3.6 Key Success Factors ............................................................................................. 7
3.7 SWOT Analysis........................................................................................................ 8
Strengths ......................................................................................................................... 8
Weaknesses ..................................................................................................................... 8
Opportunities................................................................................................................... 8
Threats............................................................................................................................. 8
4. Institutional Setup ....................................................................................................... 9
4.1 Entrepreneurs Associations .................................................................................. 9
4.2 Govt. /Semi Govt. Support Institutions ................................................................ 9
4.3 Private BDS Providers (Consultants) ................................................................... 9
5. Issues and Problems .................................................................................................. 10
5.1 Energy Crises .......................................................................................................... 10
5.2 Lack of Trained Work Force................................................................................... 10
6. Investment Opportunities .......................................................................................... 10
6.1 Setting up Large Breeding Farms....................................................................... 10
6.2 Integrated Meat Production & Processing ......................................................... 10

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Cluster Profile Meat Processing, Lahore.

1. Introduction of Lahore
Lahore is the second largest city in Pakistan. The traditional capital of Punjab
for a thousand years, it had been the cultural center of Northern India
extending from Peshawar to New Delhi. This preeminent position it holds in
Pakistan as well. Lahore is the city of poets, artists and the center of film
industry. It has the largest number of educational institutions in the country
and some of the finest gardens in the continent, had been the abode of great
people, both in the spiritual as well as worldly realms. Lahore having been the
seat of many imperial dynasties possesses interesting historical
reminiscences. There is a fascinating and colorful panorama of extraordinary
Mosques, Mausoleums, Fort, Gardens and the like. The grandeur of Lahore
cannot be solely attributed to its buildings, gardens, monuments and other
historical places. Rather it is its atmosphere and ambience, its moods of joy
and sorrow, fairs and funs, pains and pleasures, and above all the colorful life
of its people which actually render impetus to the spirit and sole of Lahore.
2. Description of the Cluster

2.1 History & Background of Cluster

The disease-free animals are procured from the livestock
markets/farmers/feedlots/farms to produce quality meat. There is very little
processing of the meat. The meat produced for the domestic market is sold
as hot meat. Goat/sheep meat is marketed in villages by slaughtering one or
two animals once in a week. In the small towns sheep/goat meat is directly
marketed to the consumers from meat shops. Since the time gap between
slaughter and the sale is very short, the deterioration of the quality of the
meat is less. In the big towns and cities most of the meat is consumed on the
same day or kept in a refrigerator in the households. Large ruminants (buffalo
and cattle) are slaughtered in big towns and meat is sold directly to the
consumers. Poultry meat is mostly sold by slaughtering the live birds in the
presence of the consumers. However, there are a few modern processing
plants where poultry is slaughtered; chilled and frozen birds are sold in big
cities. The export of poultry meat is insignificant. The reasons are that
mortality of birds is high, overhead inventories are abnormal. The greatest
disincentive is that exporters find the prices quoted in importing countries are
not favorable.
Currently, the requirement of meat is fulfilling by Livestock markets and
farmers but need is to establish Commercial farming. Because of less number
of commercial farms, we cannot fix the issue of animal health and its volatile

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price. Another threat to our livestock sector is smuggling of animals to

Afghanistan and Iran on large scale.

2.2 Description of Products

 Beef
 Chicken
 Mutton

2.3 Cluster Actors

Core Cluster Actors include the major stakeholders involved in value chain of
meat processing from Farms to Packaging of the product. Major stake holders
are given below.

2.3.1 Farmers \ Livestock Markets:

Suppliers of animal heads are in large number but commercial farming is
negligible. There is an animal mandi also in Lahore. Calf fattening farms and
dairy farms are in surrounding of Lahore to meet the need of raw material for
this sector.

2.3.2 Slaughter House:

Majority of slaughter houses are not of international standard. Govt of Punjab
has established an automated slaughter house which act as a common
facility center. Beside this some private investors also established automated
slaughter house for own meet processing in Lahore and Karachi. Elsewhere
we find the traditional manual “Zibah Khana” only.

2.3.3 Machinery/ Equipment Suppliers:

Machines for meat processing are available in the market. Both local and
imported machines are being used by meat processors. The contact details of
the machine suppliers are given below:

Uniteck International (Pvt ) Ltd. Bio Vet (Pvt

Plot # 9, Holiday Park, 97 A Jail Road Opp Cricket House,
Musharafabad Raiwind, Lahore.
Lahore. Ph # 042-7534508
Ph#042-53207426-7 Fax # 042-7534510
www.unitechint.com

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Cluster Profile Meat Processing, Lahore.

2.3.4 Packaging:
Meat is cut up in different pieces and minced as desired by customers.
Usually it is packed in box covered by polythene and kept in and hygienic
temperature.

2.4 Current Cluster Scenario

The emerging economies have become more affluent as they have sustained
higher economic growth in recent years. Such affluence is impacting the
consumption patterns of households including a dietary change towards
higher quality food such as meat and dairy products. As a result, the
production of these items is rising globally. In Pakistan however, the livestock
and dairy sectors have received little or no attention despite the fact that it
accounts for 58.33 percent of agriculture, 11.39 percent of GDP and affects
the lives of 8.0 million rural families. Livestock sector of Pakistan grew by 3.43
percent in FY 2016-17 as compared to 3.36 in last year. In order to achieve
higher sustained growth in agricultural value added, it is absolutely necessary
to give due attention to the livestock and dairy sector to achieve multiple
objectives, such as, the objectives of attaining food security and poverty
reduction.
At present around 10 modern units are working in this sector providing direct
employment to almost over 1000 persons with annual meet production of
30,000 Tons. Total Investment in modern setups is approximately Rs. 1,700/-
Million. Beside this a lot of conventional meet suppliers are available in
market. All these set-ups follow international safety standards.

3. Analysis of Business Operations

3.1 Organization of Cattle Markets

The meat animals are raised by the farmers, namely, sheep, goats etc. The
farmers in small hold farming also raise the large animals. There are three
stages through which the animal passes as has been shown in the figure
below. At each stage, 15 – 25% cost is added till the animal reaches the
slaughterhouse. This excludes the cost of transportation the surplus stock is
sold to the primary trader in the village itself or it could be taken by the
farmers to the weekly animal markets near the village where the secondary
traders who are financially better off purchase the animals from the small
collector. This trader also purchases the animals from the market to supply
them to the main slaughterhouses for export. Usually, this should be the
stage at which Municipal/State Government Veterinarian should carry out

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examination of each animal to ascertain that it is fit for slaughter and also fit
for human consumption.
The Government ought to modernize the cattle markets where end users
should have an access to the farmers’ animals rather than the involvement of
the agents in between. There should be a weighbridge and purchase prices
should be displayed. This will give proper price to the farmers.

3.2 Process Flow

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Cluster Profile Meat Processing, Lahore.

3.3 Major players

K & N: January 1964, a young man Khalil Sattar still a college student, had
the vision to foresee a need to establish a poultry farm. His interest led him to
start a small broiler farm of 1000 chick. This was the simple, inspired and
nationalistic beginnings of K & Ns with a single-minded objective of providing
better nutrition for health and happiness of Nation. Currently K&N is the
largest poultry value added supplier with presence in almost all metropolitan
cities.
Syed Traders: Started their business back in 1995 and deals in meat
processing and Dairy products.
Neat Meat: Formerly started with the Dairy farm and extended their business
to neat processing with the name NEAT MEAT. They have their only one
outlet in Defence and planned to expand to other areas of Lahore.
Besides these large players there are various other players i.e. Zenith
Associates, Anis Associates, PK livestock, Abiden International and Ketco
that are providing processed meat in the market.

3.4 Quality Assurance

Most of the meat processors are not following international quality standards.
The demand of meat can be raised in international market by adopting ISO
and HACCP quality standards. Few units who are dealing in export market
are following all the international quality standards.

3.5 Human Resource

A large number of conventional butchers are available in market, who are not
familiar with the quality standards of modern meat processing. A nominal on
job training can transform them in skilled labor for this industry. Industry
owners however feel that they feel difficulty in getting experts of meat
processing as per International or modern standards.

3.6 Key Success Factors

Following key success factor for the growth of this sector:
 Effective distribution network and supply chain.
 Large scale of Product range
 Superior processing technology.
 Brand Building and marketing.

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 Meat processing plants should follow world class sanitary and

phytosanitary measures, the plants should be certified with HACCP
(Hazard Analysis Critical Control Points), ISO-9002.

3.7 SWOT Analysis

Strengths
 Machinery (local and imported) is available.
 Labor force is available.
 Huge market of Muslim countries for Halal meat.

Weaknesses
 There is a shortage of R&D in this sector.
 Price of animal heads is volatile.
 Lack of control on demand and supply of Meat.
 Unawareness of Social Compliance and Environmental issues.
 Only few technical training institutes are available for this sector.
Opportunities
 Large export potential in Middle East, Asia and Europe.
 Rising demand of meat all over of the world.
 Adequate level of Marketing and Promotion may able the processors to
promote their products at international level.
 International exhibitions on meat processing, is an opportunity to
attract foreign buyers.
 The growth of meat processing sector is also evident.

Threats
 Unstable political condition discourages any investment in this sector.
 High international quality standards.
 No training institutes at national level to guide the industry towards new
technology and product line.

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4. Institutional Setup
4.1 Entrepreneurs Associations
All Pakistan Meat Exporters and Processors Association is representing this
sector and playing their role for the development of meat processing in
Pakistan. Their office is located at 177-B, Johar Town, Lahore.

4.2 Govt. /Semi Govt. Support Institutions

Government of Punjab has established Punjab Agriculture and Meat
Company (PAMCO) in order to provide support to meat processor. PAMCO
has installed their state of the art Slaughter house in Lahore may that meat
retailers and processers could process their meat as per the international
standards. This slaughter house is working as a Common Facility Center
where farmers/butchers/exporters could take their live animals for
slaughtering. Blast freezing plant is also available for export purposes.
Small and Medium Enterprises Development Authority (SMEDA): Small
and Medium Enterprises Development Authority was formed in October 1998
with a sole purpose of developing SMEs in the country. It has a Regional
business centers (RBCs) in various cities of Punjab including Lahore These
RBCs provides following services to SMEs:
 Identification of Investment Opportunities
 Facilitation in arranging finance from financial institutions
 Training programs
 Marketing advice.
 Technical advice.
 Legal Services
 Business plan development.
 Common facilities centres.
Export Promotion Bureau (EPB): Export promotion bureau has a mandate
to promote local products in international markets. It has reserved a special
quota for SMEs (20%) in all the international trade exhibitions, trade
delegations, trade conferences which it arranges.

4.3 Private BDS Providers (Consultants)

There are various business development service providers (BDSPs) that are
offering services for developing, implementing and monitoring of meat
.

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processing. These BDSPs render their services in a manner that is conducive

to this cluster needs.

5. Issues and Problems

5.1 Energy Crises
The most crucial problem faced by the whole economy is energy crises. The
meat Processing industry is an electricity intensive industry. Therefore, this
industry is adversely affected due to electricity shortage.

5.2 Lack of Trained Work Force

Industry is facing lack of trained work force which cause raise in production
cost. Industry requires a trained work force which could meet the international
standards.

6. Investment Opportunities
The growing world meat market is presently valued at US$844 billion per
annum. Asia is a huge market for meat exporters. Japan alone imports meat
worth nearly US$6 billion. Countries like Saudi Arabia, Egypt and Iran are
good prospects for Pakistan as they import Hilal meat. It is easier to capture
the Middle East market, by only having better supply management and
assuring quality standards at each level of the value chain. Meat is the
second largest commodity, after milk, in Pakistan’s agriculture sector.
Livestock contributes 31 percent of the agricultural value-added produce. The
size of the meat market in Pakistan at present is 2,185,000 metric tons and
the demand is growing at almost 6% per annum while supply is growing at
1.8%. At present meat production and distribution is almost totally in the
informal sector.

6.1 Setting up Large Breeding Farms

Large farms (buffalo, important local breeds with high demand, crossbred
animals and exotic cattle breeds) can serve as primary source of sale of
genetically superior animals for new farms, dairy colonies (which have high
turn over of animals) and export.

6.2 Integrated Meat Production & Processing

Demand for red meat is increasing rapidly. The only way to meet the demand
of mutton and beef in the country is conversion to feedlot fattening. Thus,
feedlot fattening offers good investment opportunity. Furthermore,
establishment of slaughterhouses and model butcheries with grading system
.

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and commercial cuts will add value. Moreover, there is tremendous scope
and need to establish slaughterhouse by-product plants for further
profitability.

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