The exports of meat and its products are considered to hit a record high of about $512 million in the present fiscal year 2024, making a 20% increase from $44 to $6 million in the preceding year. This growth rate is expected to rise 24% in export volume, which attained 123,515 tons from 99893 tons in the fiscal year 2023, and it is driven by strong international demand and competitive pricing following a notable devaluation of Rs.
Azim Akhundzada, Sherman Securities, claimed that despite the general increase in growth, the average meat price in the international market during fiscal year 2024 decreased by 3% to $4.1 per kg as compared to $4.3 per kg one year ago. The UAE plays a key role in its price reduction, with export values to the UAE decreasing by around 2%, while costs in other states and regions continue relatively stable.
Export volume increases 24% to 123,515 tons on the back of competitive prices. Meanwhile, the UAE remains to be the largest and biggest market for Pakistani meat, comprising 39% of total exports valued at $200 million. Despite a projected 2% decrease in meat prices in the state, all-inclusive export rate expanded by $1.4 million in fiscal year 2024.
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Qatar and Kuwait, which are also the largest exporters of meat in the world. The export to Saudi Arabia increased by 66% year-on-year to $142 million in fiscal year 2024.
Qatar and Kuwait are considered to be two hopeful markets that merge and represent approximately 76% of the meat exports of the Pakistani market. It also seemed to decline in financial terms, with exports reducing by 13% to $49 million and by 2% to $38 million.
Furthermore, besides these new export markets, such as Kazakhstan, Kyrgyzstan, and Vietnam have successfully developed over the past few years. Mr. Akhund Zada depicted that Organic Meat Company Limited (TOMCL), a major exporter of fresh chilled beef to Middle East countries, has developed a diversified plan into meat chews and cooked meat products. The main concern of meat exporters is the addition of the meat sector under the normal tax regime, transitioning the previous fixed-tax regime, FTR. This alteration may prove to be impactful for export volumes going forward.
In the previous three months, Pakistani exporters have renegotiated their lonesome contracts, especially with the Middle Eastern states, which resulted in a 20-25% increase in export costs to offset the rising cost of meat. If we talk domestically, the meat merchants continue to link higher local market costs to increasing exports and the smuggling of animals to the state of Afghanistan.
Data from the sensitive price indicator SPY depicts that the national average price of beef with bone soared to Rs 700 to Rs 1,250 per kg during the fiscal year 2024 from Rs 650 to Rs 1050. The cost of mutton, which is the average quality mutton, soared to Rs 1,500 to Rs 2,400 per kg from Rs 1,450 to Rs 2,000.