DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/bbc599/pakistan_agribusin) has announced the addition of the "Pakistan Agribusiness Report Q4 2011" report to their offering.
BMI View: Pakistan's agricultural output has steadily declined in its contribution to GDP in the past decade, down from 24.0% in 2000/01 to 20.9% in 2010/11. That said, the sector still remains a government priority as the country deals with issues of food security and is particularly vulnerable to natural disasters. Over the long term, BMI foresee the dairy, poultry and wheat industries as benefiting the most from increased investment. However, BMI believe that vast improvements in infrastructure and better supply chains will have to be implemented before BMI can begin to get bullish towards the Pakistani agriculture sector's growth prospects.
Industry Developments
In July, domestic chicken prices increased 53.5% month-to-month to PKR165. This is because the mortality rate for poultry stocks were higher than expected and more than 50% of the country's chicken was smuggled to Afghanistan, Iran and other neighbouring countries. This has created tightness on the domestic market, but has also pushed poultry prices far higher than much of the local population can afford.
The better-than-expected sugar outturn for 2010/11 has led to expectations of reduced imports this year. The state-run Trading Corporation of Pakistan reportedly has ample supplies of the sweetener and government officials have expressed that there is no intention to import sugar until November 2011, when harvest from the next crop starts coming online. These dynamics also contribute to BMIs view for sugar prices to remain subdued in the medium term.
Pakistani dairy wholesalers and retailers have been allowed to sell milk at PKR55 (US$0.65) and PKR60 respectively from April 2011 onwards. This is in response to higher international milk prices. This is the second milk price hike in a relatively short period of time. In March, dairy farmers had increased the price by PKR10. However, according to The International News, the decision was withdrawn during a meeting with the District Coordination Officer of Karachi, Muhammad Hussain Syed, who is also the controller of general prices.
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